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Cambodia’s exports to Singapore rise 1,820% in May
Cambodia’s exports to Singapore increased by a massive 1819.9 percent in May this year compared to the same month last year, making the island city-state the fourth biggest market for the Kingdom after the US, China and Vietnam for the month.
According to the latest trade data released by the General Department of Customs and Excise (GDCE), recently, for the first five months of the year, Cambodia’s exports to Singapore rose by 508.3 percent compared to the same period last year, also the biggest jump in the list of 20 top export destinations of the Kingdom.
Singapore accounted for 6.1 percent of Cambodia’s exports in May after 38.4 percent of the US, 7.7 percent of China and 7.3 percent of Vietnam.
Overall, Cambodia’s exports moved up in May 2023 by 7.9 percent compared to May 2022 after going down for the first four months, though the country’s main export-earning sector of garment, footwear and travel bags still recorded a 23 percent decline and remained a concern for the economy.
For January to May 2023, Cambodia’s exports reached $9.18 billion, compared to $9.41 billion for the same period last year, registering a decline of 2.4 percent.
Cambodia’s exports to Singapore include pearls, precious stones, metals, rubber items, garments, electrical and electronic equipment and footwear.
According to experts, the rising trade volume showed Singapore’s recognition of Cambodia’s economic prowess and its strategic importance in the Asean region. The 15-member Regional Comprehensive Economic Partnership (RCEP) has also contributed to the growth in trade.
Vichet Lor, Vice President of Cambodia Chinese Commerce Association (CCCA), told Khmer Times that Singapore is already a frontrunner as a major source of FDI in Cambodia in 2021. Cambodia has also taken care to diversify its export market due to weaker demand from traditionally major markets like the US and the European Union (EU).
“Cambodia has invested enormously in infrastructure development to incentivize trade connectivity and reduce logistics cost to improve our export market price competitiveness,” Vichet noted.
According to him, the RCEP agreement has paved the way for Cambodia to further expand its trade and export markets regionally. “Coupled with reduced operating costs and tax breaks when assembled in designated Special Economic Zones, Cambodia’s exporters are able to export to Singapore at a more competitive price compared to our Asean neighbours. This has helped Cambodia enormously and has also reflected in the rising exponential figures in the exports with Singapore,” Vichet said.
Cambodia, he added, is on the path to becoming a regional hub for assembly plants due to competitive wages and the continuous upskilling and reskilling of human resources and the gradual switch from labour-intensive to skill-intensive manufacturing to address the rising demand of modern industries.
Some of the top business leaders in Cambodia also believe that the Kingdom could be the next Asian Tiger, following the path of Singapore, Hong Kong, Taiwan and South Korea. The advantages for Cambodia to attract foreign investment include the provision in law for 100 percent ownership for foreigners in companies, low corporate taxes and low capital requirements to start a business.
Source: https://www.khmertimeskh.com/501307388/cambodias-exports-to-singapore-rise-1820-in-may/