P Sihanouk working group look to stimulate economy
THE government has announced the establishment of a working group tasked with restarting stalled projects in coastal Preah Sihanouk province and attracting new investment. As of January 2024, the construction of over 360 buildings have been halted, and it is estimated that an additional $1 billion in capital investment is needed.
Signed by Prime Minister Hun Manet on January 26, the sub-decree establishing the group explains that it is entrusted with leading new investment projects in the province, as well as resolving issues with existing ones.
The working group will act as a One Window Service Office (OWSO), and will provide all relevant services to investors. It will also have the power to approve certain investment projects and grant business licences and permits. It will also be responsible for providing hospitality to potential investors, both at home and abroad.
While addressing the January 31 launch ceremony of the “Special Investment Promotion Programme in Preah Sihanouk Province 2024”, Manet explained that this initiative demonstrates his government’s unwavering effort to serve the nation and deliver socio-economic development.
“In order to address challenges and foster development in the medium and long term, we have to figure out how to stimulate business,
trade and investment activity in the province,” he said.
He added that the programme intends to make the coastal province a leader in fostering investment and industrial development. The programme is expected to provide a solid foundation for converting the province
to a Model Multi-Purpose Special Economic Zone.
He said the government expects that the programme will deliver positive changes, and is optimistic that the province will become a model economic pole for Cambodia.
“This year, we set two specific goals. The first was in Siem
Reap, where we launched the ‘Visit Siem Reap 2024’ campaign. Now, we are launching the ‘Special Investment Promotion Programme in Preah Sihanouk 2024’. We believe all provinces and all sectors are driving forces in promoting our economy, but we need to focus on key areas,” he said.
Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth also addressed the ceremony. He described how the new plans aim to stimulate business and investment activities, turning Preah Sihanouk
into one which fosters economic growth, even as the regional and global economies are facing uncertainties.
“I have instructed the Preah Sihanouk investment working group and the secretarygeneral of the financial and economic policy committee to act quickly and implement this programme within a month. To do so, they will need the active participation of the leadership of several relevant ministries and institutions,” he said.
He also reiterated the huge potential of the province, noting that Preah Sihanouk is home to beautiful beaches, attracting Cambodian and foreign tourists alike, as well as resources, infrastructure and special economic zones (SEZs) which are conducive to stimulating trade, investment and industrial activities.
Pornmoniroth added that since 2016, high-rise buildings have been springing up all over the province, but that the Covid19 pandemic, along with other global challenges, have caused the construction of many buildings to stall or stop completely.
The construction of 362 buildings has been suspended, with $1.161 billion in investment capital needed to complete them, he detailed, noting that 176 buildings are complete but have yet to be opened for use.
“In order to stimulate the Preah Sihanouk economy, the government has taken several measures. This includes the construction of expressways, roads and other infrastructure, as well as a March 2023 package of measures which provides incentives for potential investors until 2026,” he said.
Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association (CVEA), viewed the formation of the investment promotion working group as a positive step towards recovery.
“A similar working group was established last year, and it resolved many issues and served the needs of many clients, especially investors at home and abroad,” he said.
He added that the construction of many of the buildings in the province was halted because foreign investors were hit hard by the Covid-19 pandemic, but was optimistic that over time, the working group will be able to attract investors.
“If the new group can facilitate the completion of existing buildings, or transfer them to third parties so that work can continue, the real estate sector will begin to pick up again, and foreign investors will slowly begin returning,” he continued.