Cambodia Investment Review
Phillip Trustee (Cambodia), an associated company of Phillip Bank, has been granted one-of-six trust licenses by the Trust Regulator (TR) in Cambodia. This license allows the company to continue its business and appeal to more foreign investors in the country, providing four key services to foreign investors, namely holding trust property, holding personal trust, sale and purchase agreement (SPA) service, and escrow services arrangement with Phillip Bank.
With over ten years of experience in financial management in Cambodia, Phillip Bank will leverage its resources and facilities to help Phillip Trustee collaborate closely with foreign investors to identify the appropriate trust structure for their needs and investment objectives. As the trustee company, our role is to hold trust properties on behalf of the trustor while ensuring that they are the ultimate beneficiary owner.
Read more: Cambodia’s Trust Regulator Awards Inaugural Trust Licenses to Six Firms
Individual trusts can be customized for the benefit of the trustor, as well as for specific individuals or families, and social trusts intended for charitable purposes can also be accommodated by Phillip Trustee. In the case of commercial trust, if requested by the client, our trustee company can, or it is able carry out certain investment transactions.
Driving investment inflows
The Trust Regulator has granted initial licenses to six companies to operate trust businesses in Cambodia, and the announcement was made during the “Trust Forum 2023” event held at the Phnom Penh Hotel. The event aimed to disseminate progress in the development process of the trust sector in Cambodia to relevant stakeholders.
“The trust sector has played a crucial role in contributing to and driving inflows of investment in all sectors of the economy,” said Sok Dara, Director General of the Trust Regulator. “The advancement of the trust sector is a new chapter for development in Cambodia and has attracted a lot of attention from the private sector.”
“We are excited to enter the trust sector in Cambodia and offer our services to foreign investors,” said Mr. Ong Teong Hoon, Chairman of Phillip Trustee and Shareholder’s Representative of Phillip Bank.
“With Phillip Trustee, we aim to support our customers in owning assets and growing their businesses in the country. We believe that our expertise and resources, combined with the growing demand for trust services in Cambodia, will allow us to succeed in this new venture.”
His Excellency Mey Vann, Secretary of State of the Ministry of Economy and Finance and Secretary-General of the Secretariat of the Non-Bank Financial Services Authority, said, “This is an exciting time for the trust sector in Cambodia, and we hope to see continued growth and development in this area.”
Cambodia’s developing trust sector
The 2019 Trust Law governs the establishment, registration, management, and control of four types of trusts in Cambodia: Commercial Trust, Public Trust, Social Trust, and Individual Trust. The law contains comprehensive regulations and rules to govern the rights, duties, and responsibilities of the trustor, trustee, and beneficiary, providing a comprehensive understanding of each type of trust and its purpose.
Read more: Phillip Trustee Offers Customized Trust Options for Foreign Investors in Cambodia
There is currently some uncertainty around the taxation requirements of the trust law in Cambodia, but Phillip Trustee is compliant with all necessary tax and legal requirements.
The trust sector in Cambodia is still in its early stages of development and the framework for taxation is expected to be established in the near future, bringing greater clarity to this issue. In the meantime, Phillip Trustee plans to adhere to all necessary reporting and tax requirements to maintain transparency and soundness.
According to a report from the Trust Regulator, as of February 2023, 492 trusts were registered in Cambodia with a total investment fund of $735 million. Commercial trusts accounted for the majority of registrations, with 475 trusts and a total investment fund of $492 million, or 66 percent of all registrations.