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MANILA, October 4, 2018 – Despite a less favorable external environment, the growth outlook for developing East Asia and Pacific (EAP) remains positive, according to the latest World Bank economic report on the region. Growth in developing EAP is expected to be 6.3 percent in 2018, lower than in 2017 due to the continued moderation in China’s growth as its economy continues to rebalance.
Navigating Uncertainty, the October 2018 edition of the World Bank East Asia and Pacific Economic Update released here today, underscores however that in recent months a combination of trade tensions, higher US interest rates, a stronger US dollar, and financial market volatility in many emerging economies has increased the uncertainty around the region’s growth outlook. At the same time, inflation has begun to rise across the region, particularly in Myanmar, the Philippines, and Vietnam.
“Robust growth has been and will continue to be the key to reducing poverty and vulnerability in the region,” said Victoria Kwakwa, World Bank Vice President for East Asia and the Pacific. “Protectionism and turbulence in financial markets can hurt the prospects for medium-term growth, with the most adverse consequences for the poorest and most vulnerable. This is a time for policy makers across the region to remain vigilant and proactively enhance their countries’ preparedness and resilience.”   
China is expected to slow moderately to 6.5 percent in 2018, after growing faster than anticipated in 2017. Growth in developing EAP, excluding China, is expected to remain stable at 5.3 percent from 2018 to 2020, driven primarily by domestic demand. In Thailand and Vietnam, growth is expected to be robust in 2018 before slowing in 2019 and 2020 as stronger domestic demand only partially offsets the moderation in net export growth. Indonesia’s growth should be stable, thanks to improved prospects for investment and private consumption. Growth in 2018 in the Philippines will likely slow, but the expected expansion of public investment will boost growth over the medium term. In Malaysia growth is expected to ease, as export growth slows, and public investment is lower following the cancelation of two major infrastructure projects.
In EAP’s smaller economies, growth prospects remain robust, averaging over 6 percent annually in Cambodia, Lao PDR, Mongolia, and Myanmar between 2018 and 2020. Growth is expected to resume in Timor-Leste following the resolution of a political impasse, while in Papua New Guinea it is expected to rebound in 2019, following the large earthquake earlier this year. Growth in the Pacific Island countries is expected to remain relatively stable, although highly vulnerable to natural disaster shocks.
“The regional and global integration of most economies in the region intensifies their vulnerability to external shocks. The main risks to continued robust growth include an escalation in protectionism, heightened financial market turbulence, and their interaction with domestic fiscal and financial vulnerabilities,” said Sudhir Shetty, World Bank Chief Economist for the East Asia and Pacific region. “In this context of rising risks, developing EAP economies need to utilize the full range of available macroeconomic, prudential, and structural policies to smooth external shocks and raise potential growth rates,” he added.
The report points to a four-pronged approach for countries in developing East Asia to address these emerging risks:
* Reduce short-term vulnerabilities and build policy buffers. Pursuing proactive macroprudential policies can help address financial sector vulnerabilities, reduce capital market volatility, and manage exposure to exchange rate movements. Greater exchange rate flexibility can help absorb and adapt to external shocks. Tighter fiscal policies can help preserve or rebuild buffers to cope with a future downturn, without threatening debt sustainability.
* Redouble commitment to an open, rules-based international trade and investment system, including through deeper regional economic integration. Regional economies could gain by deepening existing preferential trade agreements and lowering non-tariff barriers. A further escalation of trade tensions could be avoided by turning to bilateral negotiations or the World Trade Organization.
* Deepen structural reforms, including liberalizing key sectors, improving the business climate, and boosting competitiveness. Leveling the playing field between SMEs and large firms, and between foreign and domestic firms, could also help reduce resource misallocation and create jobs.
* Strengthen economic security and promote economic mobility though programs such as targeted cash transfers, fiscally-sustainable social insurance systems, better access to prenatal and early childhood development, and more resources to schools in geographically-disadvantaged areas so as to reduce gaps in access and quality of education.
For the Pacific Island countries, the report stresses the need to focus on maintaining fiscal and debt sustainability while continuing to strengthen their resilience to natural disasters. Continued efforts to strengthen debt policies and debt management, improve natural resource management, and boost the quality of spending will be crucial to improve debt sustainability. Minimizing the effects of future natural disasters will require building fiscal buffers, improving crisis preparedness, management, and mitigation, and expanding targeted social protection mechanisms.

City Hall yesterday launched five new city bus routes using buses provided by the Japanese government.

The Japanese agreed to provide 100 buses and 60 have already been delivered with 20 more arriving today. The rest will be delivered later this year.

Phnom Penh Governor Khuong Sreng said yesterday at the launching ceremony that City Hall will use all 100 buses to service the people, especially the poor, and help reduce traffic jams in the city.

“With the new routes, we now have 13 city bus lines for people who would like to use state buses for easier and faster travel,” he said.

Mr Sreng added that officials will now identify the best locations to park the buses to make it convenient for the public to use the services.

The new routes are from Borey Santepheap 2 in Por Senchey district to the Phnom Penh Economic Zone; from Central Market to the Boeng Chhouk bus stop; from Sleng Pagoda to the Stung Meanchey bus stop; from the Royal Railway station to Pasteur avenue; and from the Kouch Kanong roundabout in Sras Chork commune to the Phsar Doeum Thkov roundabout.

Mr Sreng also ordered authorities to educate motorists not to park their vehicles at spots designated for buses as this will inconvenience the public.

He noted that City Hall will also provide bus services for people to travel from Phnom Penh to their hometowns for Pchum Ben, adding that he was waiting for advice from Prime Minister Hun Sen on how many buses should be deployed.

Ean Sokhim, Phnom Penh Autonomous Bus Transportation Authority director, said yesterday that the capital had eight public bus lines using 156 vehicles previously.

“Between 20,000 and 21,000 passengers use city buses daily,” he said. “We have now launched the five new bus lines using the buses donated by the Japanese government.”

Svay Rieng provincial authorities plan to build a factory that recycles plastic waste to make furniture in collaboration with a Japanese company and support from the Japanese International Cooperation Agency, according to officials.

Toch Poliva, the deputy provincial governor in charge of the project, yesterday said if all went according to plan, the factory will be ready by April.

“We may likely start building the factory in Svay Rieng city at the end of this year so that we can start operations in April,” he said. “The factory will not be large and will be used to house equipment imported from Japan by the Gomi Recycle 110 company.”

Mr Poliva said that the project has reached the stage where the Japanese side is putting the proposal to the Japanese government for approval.

“We are also requesting for trucks from the company to make sure the waste collection is up to international standards because we currently lack such vehicles,” he said. “The price tag for the project has yet to be fixed as it has yet to be approved by the Japanese government.”

Mr Poliva estimated that the amount of plastic waste in Svay Rieng city is about nine tonnes daily, noting that the factory will be built near a rubbish dumpsite in Svay Rieng commune.

JICA officials were not available for comment on the project yesterday. One official confirmed the ongoing cooperation, but was not aware of the details.

Yusuke Okumura, director of Gomi Recycle 110, was quoted in a provincial administration report on Thursday as saying that the company is prepared to import the waste collection trucks and build the factory.

He also conveyed his appreciation to the provincial administration for its cooperation in realising the project.

Provincial Governor Men Vibol said in the report that in addition to converting plastic waste into furniture, the project will also help clean up the city to make it more attractive.

A letter obtained by Khmer Times on August 31 tells of the Prime Minister approving the creation of two new provinces. One is to carve out of Kandal province and the other will be made from a portion of Mondulkiri’s Koh Nhek district and Rattanakiri’s Lumphat district.

This will increase the number of provinces in the Kingdom to 26.

Interior Minister Sar Kheng had requested said a government measure to improve the effectiveness of administration, security, public order, local development, and public services.

He will assign technical officers to cooperate with relevant partners to conduct a study on the proposed areas and confer with Hun Sen thereafter.

Mr Keng says he wants the preliminaries to be completed by January 2019 “… in order to ensure a [sufficient] period of time for the government to adjust the number of seats in capital, city, provincial, municipal, district, and khan councils for the upcoming election of the third mandate in May 2019.

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WorldBridge Arena, a shopping and entertainment complex built by the WorldBridge Group in Phnom Penh, will open to the public in November, with half of the retail space on offer already booked.

Simon Griffiths, managing director of Urban Asset Solutions, a company that has provided consulting and management services to WA Arena, said the complex was built with a $10 million investment, and consists of 13 main buildings.

It will have a market with a wide selection of products, from fashion and gadgets to handicrafts and beauty products.

“WB Arena brings together the most popular global brands as well as the most popular home-grown restaurants and cafés.

“Customers can choose from a wide selection of cuisines from Chinese, Khmer, Western, Japanese, Vietnamese and Thai all the way to ice-cream parlours, coffee shops and bakery cafes,” Mr Griffiths said.

“We also have an additional entertainment concert, live show theatre, spa and massage,” he added.

Mr Griffiths said that more than 50 percent of the commercial space available at the complex has already been booked.

Chhay Sivlin, president of the Cambodia Association of Travel Agents, welcomed the new development. She said the new entertainment complex shows the potential of the private sector to create innovative commercial spaces to meet local and international demand.

“This is a new destination for tourists in the Kingdom. I hope it will help boost the number of tourists to the capital,” Mrs Sivlin said.

Jiranun Wongmongkol, chairman of RCG Retail (Cambodia), the company that brought Inthanin Coffee to Cambodia, told Khmer Times that an Inthanin café will open in the complex in December this year.

“We hope that the new outlet will be a success. There is not many cafes in this side of town, and is not far from the centre of Phnom Penh and Takhmao city,” she said.

WA Arena extends over 1.3 hectares of land and is located between the Tonle Bassac River and national road 2 in Chak Angre Krom.

Construction of the Kingdom’s first-ever highway, stretching 190 kilometres to connect Phnom Penh and Sihanoukville, was confirmed to start in November.

The highway will begin in Phnom Penh’s Chaom Chao area, starting at street Tom Nop Kop Srov, which links national roads 4 and 5, according to Va Simsorya, spokesman at the Ministry of Public Works.

“Minister Sun Chanthol has already confirmed that construction of the expressway will begin in November as planned,” Mr Simsorya said on Friday.

“The site is now being prepared for the upcoming construction work.”

China Road and Bridge Corporation, who has been granted the project, has also said they are ready to begin work, Mr Simsorya said.

The highway will be built on a build-operate-transfer basis, with the Chinese firm reaching a deal with the Cambodian government in January.

The government is now working on a compensation plan for people affected by the project, Mr Simsorya added.

The thoroughfare will come at a cost of nearly $2 billion, and it will stretch over 190 kilometres – shorter than the current road, which runs for 240 kilometres. It will have four lanes for the majority of its run and will take four years to complete.

Starting tomorrow, all vehicles accessing Phnom Penh International Airport will be welcomed by a new hi-tech parking lot, which has been designed to ease traffic congestion, according to an airport representative.

Chloé Lapeyre, the airport’s general manager, said in a press conference yesterday that over $1 million was invested to install advance parking equipment and widen the lanes.

“The redesigned car park will have new access points and exits and will be partially accessible to the public after a soft launch this Thursday,” she said, adding that the car park will be fully operational in two to three weeks’ time.

“The deployment of the automatic payment machines and the widening of the passenger lanes will ease traffic congestion at the airport where an average of 3,000 vehicles transit daily,” she said.

Ms Lapeyre said there are currently eight automatic payment machines in the airport. The parking fee is fixed at $0.50 per entrance for motorcycles and at $1.25 and $1.50 per hour for cars and vans, respectively.

She said the new design and hi-tech systems will change parking at the airport, reducing traffic and freeing up car park attendants so that they can focus on helping passengers.

Ms Lapeyre said some lanes have been reserved for holders of Svay Cards, which are new prepaid parking cards for frequent users.

The new Svay Card will provide several benefits, she said, including a 10 percent top-up bonus and privileged access to express lanes, which will allow drivers to drop off passengers near the entrances to departure check-in halls.

Svay Cards will allow drivers to enter and exit the car park and express lanes with a simple scan of their card at entry and exit gates. The scanners debit the parking fee upon exit, she added.

Sorry, this entry is only available in JP.

Yunnan Shengmao Investment (Cambodia) Co., Ltd yesterday started the construction of a $1-billion commercial complex in Phnom Penh’s Boeung Salang village.

The land, located in Russey Keo district, was leased by Phnom Penh Autonomous Port (PPAP).

Chen Tai An, director of Yunnan Shengmao Investment, said the project, known as Triumph Commercial Centre, is in line with China’s Belt and Road Initiative (BRI). He said the project will bring the two countries closer.

“We are constructing an international commercial and tourism center. There are about 10,000 companies with 100,000 types of goods that will occupy the complex,” Mr Chen said, adding that it will be “the biggest commercial centre in Cambodia connecting to the rest of the world through BIR.”

He said the first phase of the project will be completed by the end of next year, with the whole development finished a year later.

The project received approval from the Council for the Development of Cambodia (CDC) in April. CDC said Triumph Commercial Centre will help create more than 1,000 jobs.

Hei Bavy, PPAP’s director general, said the port authority decided to lease the site because the land was idle.

“Previously this area was used for the storage of containers, but since 2013, this site was not really used because PPAP transferred all its container operations to the terminal in Kien Svay, in Kandal province.

“It took two years to study the project before starting construction. It will provide many benefits for local businesspeople, as well as the general public through employment creation,” Mr Bavy said.

Last month, PPAP leased nine hectares of land along the Tonle Sap River for 50 years to Chean Chhoeng Thai Group, a subsidiary of Yuetai Group, a major Chinese real estate developer.

PPAP was paid $16.5 million for the deal, which will see the development of the area that stretches from Chroy Changvar Bridge – also known as the Cambodia-Japan Friendship Bridge – to the Night Market into a commercial complex.

Prime Minister Hun Sen said that a new government is scheduled to be formed next month after the CPP won a sweeping victory in Sunday’s election.

Speaking to about 10,000 garment workers in Phnom Penh’s Meanchey district, Mr Hun Sen said the Cambodian People’s Party will form a new government on September 20.

“We will form a new government on September 20 and a new Council of Ministers’ meeting will be held on September 21,” he said.

“The first opening session of the National Assembly will take place on September 19 and lawmakers will take oaths in the evening,” he said.

Mr Hun Sen said that King Norodom Sihamoni will preside over the National Assembly’s first opening session.

According to National Election Committee’s preliminary results, the CPP garnered roughly 4.8 million votes, dwarfing the two parties including the two closest competitors–Funcinpec party with 373,526 votes and the League for Democratic Party with 308,292 votes.

Based on its own calculations, the CPP said it secured all 125 parliamentary seats after garnering 77.36 percent of all valid ballots.