Phnom penh: Malaysian investors have been urged by a top trade body to explore high-growth sectors in Cambodia that offer compelling advantages, from improved connectivity to the burgeoning consumer market. The Phnom Penh-based Malaysian Business Chamber of Commerce (MBCC) says it is time for Malaysian companies to shift from the traditional sectors and tap into the latent potential of the Cambodian economy.
According to BERNAMA News Agency, MBCC President Tan Khee Meng recently highlighted the need for Malaysian enterprises to pivot towards sectors such as manufacturing, food processing, and high-end small and medium enterprises (SMEs) like fast-moving consumer goods (FMCG). These areas are seen as promising opportunities for Malaysian expertise. Tan emphasized a strategic shift, dubbing it 'Malaysia 2.0', which would resemble the initial wave of Malaysian investors who ventured into Cambodia post-conflict in the 1990s.
Malaysians have played a significant role as investors in Cambodia over the past three decades, contributing to sectors including power, telecommunications, construction, retail, and manufacturing. Both Malaysia and Cambodia are integral trading partners within ASEAN and are part of the Regional Comprehensive Economic Partnership (RCEP), encompassing 16 countries in Asia.
In the first ten months of this year, Malaysia's investments in Cambodia reached RM3.9 billion (US$961.4 million), marking a 38.9 per cent increase from the previous year. Tan noted Cambodia's strategic geographic advantage and its neutral stance within ASEAN, which has further amplified trade relations between the two nations.
Prominent Malaysian brands such as AirAsia, Smart Axiata, Malaysia Airlines, Tenaga Nasional, Sunway Hotel, and several major banks have already established their presence in Cambodia. Tan also addressed the impact of the Cambodia-Thailand border dispute on the supply chain, positioning Malaysia as an alternative supplier for products traditionally sourced from Thailand.
Tan projected that the bilateral trade between Malaysia and Cambodia could reach RM4.11 billion (US$1 billion) by the end of the year, reflecting the increasing trust and preference for Malaysian products among Cambodians. The economic outlook for Cambodia remains positive, with the International Monetary Fund forecasting a 4.8 per cent growth in 2025, bolstered by its young consumer demographic, with nearly 60 per cent of its population under Generation Z.