Weekly news round up 2016 / Week 8
Political (Cambodia-Specific)
- Labour Ministry eyes minimum wage law 23-02-16
The Ministry of Labour is considering the creation of a draft law that would codify the process that determines the garment industry’s minimum wage, providing greater detail than the current prakases and sub-decrees on the issue and clarifying the mechanisms for wage setting. The law may formally expand the minimum wage to other sectors.
- Police praised for less ‘chaos’ 24-02-16
At a yearly meeting on national crime rates, Interior Minister SarKheng has praised law enforcement for creating “good conditions that make a fruitful atmosphere for economic and social development and strengthen democracy and rule of law in Cambodia”.
Demonstrations and strikes were reported to be down 35% in 2015 which, according to the Ministry, saw only two incidents of violence at demonstrations (the high-profile attacks on two CNRP lawmakers). A Ministry spokesman praised police for making arrests relative to the alleged use of violence at demonstrations at Freedom Park in 2014, and the high-profile arrests of Senator Hong Sok Hour for allegedly publishing a fake border treaty with Vietnam. He also referred to the intention to arrest exiled opposition leader Sam Rainsy on defamation charges.
The total number of reported criminal offences was said to be down by 4%. Petty theft remained more or less steady at around 1,100 cases. Aggravated robberies and rape cases both increased slightly.
- PM Pledges 1 Million Hectares of ELC Land to Poor 26-02-16
On 25th February, Prime Minister Hun Sen declared an end to the government’s review of Cambodia’s economic land concessions (ELCs), pledging that nearly 1 million hec¬tares of reappropriated property would be handed over to poor families.
ELCs are a potent political issue attracting a lot of attention from human rights and environmental NGOs.The issuance of ELCs had been formally frozen since 2012, by which time the Ministry of Environment and Ministry of Agriculture had handed out more than 2 million hectares of land to private com¬panies. The prime minister ordered a full review of existing ELCs in an effort to discover which companies were in violation of their contracts with the government. But it wasn’t until early last year that a committee was formed to do the job.
After the review, almost half of the land allocated is said to be reclaimed by the Government and given to landless families. The Environment Minister Say Sam Al revealed that 23 of the 113 ELCs issued by his ministry had been revoked as a result of the committee’s work, and that another four firms had voluntarily handed their concessions back to the state.
Rights groups have questioned the 1 million hectares claimed to be being reclaimed, citing a lack of transparency and the unavailability of a breakdown of which parcels of land had been taken back from which companies.
Europe, European Businesses and EuroCham Members
- Kampot pepper gets EU protection 20-02-16
The EU has officially recognized the status of Kampot pepper as a protected geographical indicator (GI), which will help protect the growing international brand name of the product against peppercorns not being produced according to the GI label’s stringent requirements.
The Kampot Pepper Promotion Association (KPPA) is is the sole body licensed to produce and export peppercorns labelled as Kampot pepper. Its members produced 60 tonnes of pepper last year, of which 70 per cent was exported with the EU being the most significant market.
- EU funds increase by nearly 50 per cent 22-02-16
The European Union is increasing its development grants to Cambodia by almost 50 per cent in 2016 compared to the previous year, granting a total of €59 million (about $66 million) to various government agencies and civil society groups this year. Last year, the EU granted a total of €40 million. An announcement stated that “Meeting people’s basic needs remains the priority for the European Union assistance in support of Cambodia’s efforts to eradicate poverty,”.
The EU’s bilateral cooperation goals include helping the government strengthen agriculture and natural resource management, provide better education and reform its governance and administration. Several of the NGO projects being funded aim to legally empower marginalised communities, support women in government, help handicapped people, provide better housing for the poor and strengthen civil society networks.
- Gov’t Aims for More German Investment 26-02-16
Khmer Times coverage of the trade mission organized by EuroCham Cambodia of companies from the German-Thai Chamber of Commerce. His Excellency SokChenda Sophea, Secretary-General of the Council for the Development of Cambodia (CDC), personally received the delegation and stressed how German businesses could bring capital as well as advanced production methods for manufacturing high-quality goods to the Kingdom.
Dirk Grossmann, honorary board member of German-Thai Chamber of Commerce and General Manager for Passenger Sales (Thailand & Mekong Region) at Lufthansa Group, said the delegates were investigating opportunities here. “We see the positive trends in investment opportunities in Cambodia,” he said. “We have two or three German projects in Cambodia and they want to increase their investment and other businessmen want to start investing once we have an overview of the market,” he said, adding that the delegation planned to visit special economic zones during their visit.
Infrastructure, Development and Core Industries
- SIM sales stagnate as internet use soars 23-02-16
The Ministry of Posts and Telecommunications report a 30% increase in new subscribers to mobile internet services for 2015. The report suggested that 6.3 million subscribers used their mobile phones to access online content last year – nearly a third more than a year earlier.
Mobile services represent over 98% of Cambodia's total internet usage. Cambodians’ appetite for social media usage coupled with the affordable cost of mobile data leave a lot of room for growth in the sector.
- Trash woes worse in rural areas: gov’t 26-02-16
A new report by the Ministry of Environment provides details of the Kingdom’s challenges in addressing solid waste management. Phnom Penh and the provincial cities clear solid waste by trucking it out of town and dumping it on private land or in temporary landfills – there are currently 76 dump sites in Cambodia, which generated 109 million tons of waste in 2014, a 10% increase. While 60 to 80 per cent of trash in urban areas is collected, only 40 per cent is collected outside of towns.
- The beach with two weeks left to party 27-02-16
Post Weekend article on the scheduled demolition of all properties along the seafront of Otres 1 and Otres 2 (and an undefined stretch of Ochheuteal) in Sihanoukville. An eviction notice was served to all residents within the defined area on February 13th, giving them one month to erase all constructions within 50-metres of the sea.
Under Cambodia’s Land Law, the coastline is considered to be state property, making it technically impossible for businesses or private individuals to possess titles to the land. A huddle of beachshacks were razed in 2010 in between the two Otres strips on this basis. Most local businesses possess tourism or business licenses and some have purchased the ‘soft title’ to the land which is signed at the local level at a cost of 50,000 to 100,000 USD, though Sihanoukville provincial governor Yun Min denied that letting or selling arrangements could exist on Otres. Business owners on other beachfronts are worried that the same principle will soon be enforced on their own properties.
The economic impact of the decision is significant – the restaurants, bungalows and shops that must now be removed provide around 1,000 jobs for the local economy. It remains unclear what will happen to more costly investments on the coastline such as Independence Hotel Resort and Spa and the Sokha Beach Resort Hotel.
There is ongoing community resistance to the demolition plans - Petitions have been sent both to the local governor in Sihanoukville, and to Phnom where have requested Prime Minister Hun Sen to either delay or reverse the decision. Whilst business owners accept that they would always have eventually had to move on, they resent the short notice and feel that the Government is kicking them off land that they have made valuable.
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