The dream of homeownership crumbles in a Borey

Leng Malin opens the front door to her house in Borey Chomkar Svay, looking down at cracked ceramic tiles on a sunken floor, is her welcome home. As she walks further into the house, she points at cracks and water stains on walls and ceilings.

Currently she is spending around $1000 on cosmetic repairs in her home – as much as she spent last year – but the cracks in the floor tiles and the wall, keep reappearing.

Leng has lived in a Borey home for three years and has been dealing with water damage and sinking foundation for the last two. Since the contract with the Borey owner only included a warranty for six months, she and her husband alone are responsible for repairs.

“I didn’t understand the problem when I initially bought the house, so I didn’t talk about the details with the Borey owner,” she said. “The Borey owner should have been responsible for this issue and should have helped to fix my home.”  Continue reading

In response to the Post Property article ‘2018 – the year of the empty condo?

After sharing my thoughts with the editor of Post Property regarding the above mentioned article in last week’s issue which I believed was to sway readers towards an overly negative opinion of the condo market – it was suggested that my opinion be shared by way of a letter to the editor, which this is.

Firstly, rents, capital value and occupancy do not always directly correlate. Low occupancy does not mean low or negative capital growth at that development. Wider market forces are at play and need to be understood in their entirety to draw insightful conclusions.  Continue reading

CIMB drops mortgage rate, ACLEDA increases volume by a third

CIMB, the second largest bank in Malaysia, is planning to loan $15 million in the mortgage sector with a low interest rate of eight per cent in a bid to gain market share and to tape the wake of the mortgage industry in Cambodia.

The announcement from the bank said the offer would be available for three months starting from April 30 until July 30 and targeted to lend $15 million to Cambodian home buyers. During the campaign,​the bank will reduce its interest rates for home loans to 8 per cent per annum and will not charge loan approval fees. However, customers will be required to pay a legal fee to the law firm that reviews their loan application.

“We understand the needs of our customers,” said Him Seila, CIMB head of retail network.“Not everyone has all the cash to buy a house, especially a dream house, and paying developers directly can be costly. An interest rate of 8 per cent per year is amongst the lowest rates being offered in the market. Plus, during this campaign, CIMB will waive the loan approval fees.”  Continue reading

US investors put off by uncertainty and corruption

Charles Rollet

While American companies have more than $1 billion invested in the Kingdom, the West’s largest economy remains lukewarm on doing business here

Despite high-profile US companies like Coca-Cola announcing plans to expand their footprint in the Kingdom, foreign investment from the US remains low compared to regional heavyweights.

Large US businesses appear reluctant in setting up in the Kingdom due to corruption concerns, an unpredictable regulatory environment, and a lack of economic attractiveness that allows US interests to thrive. Continue reading

Tycoon to beef up palm oil products

Thu, 30 April 2015

May Kunmakara

Cambodian agriculture tycoon and CPP Senator Mong Reththy launched his company’s second palm oil processing plant in Sihanoukville province yesterday, to keep up with increasing yields of palm oil.

The $20 million processing plant is located in the Prey Top district of Sihanoukville and is a joint venture between Mong Reththy Investment Cambodia Oil Palm and Thailand-based TCC Group. Continue reading

Thai paint producer on the way

Thu, 30 April 2015

Chan Muyhong

Thailand’s largest paint manufacturer, TOA Paint, is set to begin production in Cambodia before the end of the year, the company’s president said this week.

Opening new factories in Cambodia and Indonesia, the firm is looking to expand its regional footprint in light of the upcoming ASEAN Economy Community due at the end of the year, Pongcherd Jameekornkul, president of TOA Paint Thailand, told the Bangkok Post. Continue reading

SMEs to benefit from trademark protocol

Wed, 29 April 2015

Hor Kimsay

From mid-June, companies with a production base in Cambodia that want to protect their product’s trademark overseas will be able to register in the Kingdom, rather than having to register their product in individual countries abroad.

Cambodia joined an international system of trademarks, known as the Madrid Protocol, in March and official use of the scheme comes into force in June, senior government officials said yesterday.

Once enforced, the protocol will allow Cambodian companies to protect their products in 110 foreign countries by registering their trademark with the Ministry of Commerce. Continue reading

SME policy still needs work

Wed, 29 April 2015

Chan Muyhong

The Ministry of Industry and Handicraft released an early draft of the SME Promotion Policy yesterday that is aimed at providing a national-level framework to promote and regulate SMEs as well as spell out a clear tax regime for the sector, with the ministry working to complete it before the ASEAN Economic Community integration later this year.

The policy aims to provide a clear roadmap for SME development in the Kingdom by creating a national definition of SMEs, simplifying tax rules in order to get businesses to adopt better bookkeeping techniques, and tax compliance as well as improving technology adoption capabilities. Continue reading

Lack of finance holds back businesswomen

Thu, 30 April 2015

Hor Kimsay

Although Cambodia’s women entrepreneurs are well positioned to expand their businesses, many remain stuck maintaining micro-enterprises, a senior National Bank of Cambodia official said yesterday, with a lack of access to larger loans holding back business potential.

The NBC joined the United Nations Capital Development Fund (UNCDF) yesterday for a conference on women and enterprises in an effort to accelerate the ability of women to access appropriate financial services and products. Continue reading

IFC gives $10M line of credit to Prasac

Wed, 29 April 2015

Ananth Baliga

The International Finance Corporation has given Prasac Microfinance, the biggest player in the MFI sector, a loan of up to $ 10 million to expand its loan portfolio, specifically to small-medium enterprises.

According to a press release yesterday this is the fourth loan IFC has given the MFI and is expected to extend Prasac’s lending portfolio to $900 million, with 350,000 loans being given out by the end of 2019.

“Our [average] loan size is around $2,500. So at least, I think, the number of clients will be 3,000 to 4,000,” said Sim Senacheert, Prasac’s chief executive officer. Continue reading