Containers are transported at a dry port in the capital’s D’Angkor area.
Heng Chiboan
Total trade between Cambodia and Singapore reached approximately $920 million in 2023, registering an increase of more than 7% year-on-year. According to the General Directorate of Customs and Excise (GDCE), imports from the city-state accounted for virtually 94% of this figure.
Bilateral trade volume in 2023 reached $917.45 million, an increase of 7.1% from $856.9 million year-on-year. Singapore is currently Cambodia’s ninth largest trading partner.
Exports to Singapore decreased by 9.8% to $51.23 million, while imports increased by 8.3% to a total of $866.22 million. Cambodia’s trade deficit with the wealthy island nation widened to $814.99 million from $743.33 million a year earlier.
Lim Heng, vice president of the Cambodian Chamber of Commerce and Industry (CCC), pointed out that although Singapore is small within the ASEAN region, it boasts one of the fastest growing economies and industries in the world.
He said that as a developing country, Cambodia imports a significant amount of high-tech equipment from Singapore, while also exporting goods, mainly textiles and agricultural products.
He highlighted the fact that both countries are members of ASEAN and the Regional Comprehensive Economic Partnership (RCEP).
Mr Heng expects trade between the two countries to continue to grow, especially given the strong global economic growth.
“Given that global economic growth forecasts for 2024 are expected to be higher than for 2023, I am optimistic that we will see a significant increase in both imports and exports between our countries,” he said on January 24. , told the Post.
Mr Heng pointed out that in addition to trade, Cambodia and Singapore also have strong ties in the tourism sector, with both countries benefiting from direct investment by Singaporean financiers.
According to GDCE, the majority of exports to Singapore consist of clothing, bags, shoes, electrical components, agricultural and agro-industrial products. Imports from Singapore include electrical equipment, electronic components, beverages, food, construction materials, and some pharmaceuticals.
To further strengthen bilateral trade, Cambodia and Singapore signed the Second Protocol on November 2, 2023, an amendment to the Double Taxation Avoidance (DTA) and Fiscal Avoidance Agreement.
The protocol was signed by Minister of Economy and Finance Aung Pornmonirot and Singapore Ambassador Teo Lai Chien at the ministry’s headquarters in Phnom Penh.
The Ministry said the purpose of this protocol is to update the Cambodia-Singapore DTA in line with the latest international standards set by the Organization for Economic Co-operation and Development (OECD), particularly to address base erosion and profit shifting (BEPS) issues. He explained that it is something to do.
The original agreement was signed on April 20, 2016 and became effective on January 1, 2018.
The National Bank of Cambodia (NBC) reported that the total amount of foreign direct investment (FDI) received by Saudi Arabia in the first quarter of 2023 was 185.7 trillion riel ($45.51 billion) compared to the same period in 2022. It increased by 9%.
Singapore invested 12.1 trillion riel ($2.065 billion), an 8.8% increase from a year ago, emerging as Cambodia’s third largest financial institution after China and South Korea.
According to the central bank, most Singaporean investments in Cambodia are in the finance, real estate, manufacturing and agriculture sectors.