The business community is hoping for additional support following Prime Minister Hun Sen’s announcement that Cambodia will reopen by the end of this month.
The local economy contracted by 3.1 percent last year, according to Asia Development Bank and is only forecast to grow 1.9 percent his year after projections were halved last month because of diminishing domestic demand.
American Chamber of Commerce President Anthony Galliano told Khmer Times that he hoped meaningful incentives, measures and stimulus would coincide with Cambodia’s reopening.
“After nearly two years of economic downturn and social stress, the news of a reopening and the return of some semblance of normality is certainly welcome. Businesses are hopeful that there are additional announcements of lifting and further relaxation of restrictions forthcoming.
“There is now a growing sense of optimism after the announcement but also questions that will hopefully be answered sooner rather than later. Certain sectors will still require support to restart and there are expectations that existing incentives will remain in place and further measures and stimulus will be provided. The return to normalcy in infrastructure, particularly aviation and border travel is required revive tourism and business travel,” he said.
Galliano is optimistic that “2022 will be a year of stabilsation and return to robust economic growth, with a strong finish”.
“The finance, services, and manufacturing sectors should drive growth, and I expect a strong return of foreign direct investment (FDI) to the Kingdom,” he said.
“Construction and property development has consistently been one of the largest contributors to Cambodia’s economic growth over the last five years. The sector is at a point in the cycle where there is oversupply, projects being paused, declining prices, and substantial inventory coming to market. The relaxation of travel restrictions and the return of international buyers will offset current industry woes as the sector works out these issues,” he continued.
“The worst is not behind us and we can look forward to a return to stability and pre-Covid historical economic growth and FDI. The government did a superb job in managing an unprecedented and complex situation and we are emerging substantially intact.
“There are sectors that have suffered more than others, such as hospitality, that may take much longer to recover. However, I am optimistic once the economy jump starts, Cambodia will be back on the world map as it was before, one of the fastest growing economies in the world and a primary attractive destination for FDI,” stressed Galliano.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
