Cambodian Business Outlook Remains Positive Through Elections

Supporters of the Cambodia National Rescue Party, the KIngdom’s main opposition, campaign on the streets of Phnom Penh last week. KHMER TIMES

Experts have predicted that Cambodia’s economy will continue to benefit from political stability, following unofficial preliminary results of yesterday’s commune election showing that the ruling Cambodian People’s Party had taken nearly 60 percent of the Kingdom’s communes.

Although there was some vitriolic rhetoric, including threats of violence and even civil war, during political campaigning in the build up to the elections, there were no major altercations over weekend.

According to Emerging Markets Consulting senior consultant Ngeth Chou, many firms have continued to conduct feasibility studies in Cambodia during the electoral process and are expected to expand their businesses in the Kingdom.

“Investors believe that whoever wins the election, they will treat the private sector well,” he said. “They believe that the government acknowledges that the private sector is the main tax payer to boost government revenue and reduce dependency from foreign aid.”

Government policy had a major focus on the country’s financial sector leading up to the elections, with a series of regulatory changes, including an 18 percent interest rate cap on microfinance loans and efforts to publicise that the microfinance sector was not part of any government institutions.

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