Cambodia Investment Review
A Memorandum of Understanding (MoU) has been inked between the Trust Regulator (TR) of Cambodia and the Housing Development Association of Cambodia (HDAC) in a concerted effort to boost comprehension and application of the Trust Law within the country – targeting cooperation and education.
The agreement was signed by H.E. Sok Dara, Director-General of the TR, and Neak Oknha Ly Hour, President of HDAC, at a gala dinner hosted at the Hyatt Regency in Phnom Penh. The event saw the attendance of high-ranking individuals in the Cambodian financial and trust ecosystem, including H.E. Chhun Sambath, Head of Internal Audit Unit of the Financial Services Authority (FSA), senior management of the TR, vice-presidents and consultants of HDAC, among other stakeholders.
Understanding of trust operations
The primary objective of this collaborative initiative is to ensure that HDAC members, who constitute a crucial portion of Cambodia’s real estate sector, gain a thorough understanding of trust operations. By doing so, it aims to stimulate their engagement in, and benefits from, trust operations, thereby driving the growth of the country’s trust sector.
In a statement to local media, Sok Dara outlined additional goals under the MoU, including establishing opportunities for business networking within the construction and real estate sectors, supporting the housing development community, and advancing socio-economic growth across Cambodia. In alignment with these objectives, TR intends to set up an “Eco-System & Synergies System” to attract capital and sustain liquidity in the construction, real estate, and housing development industries.
Ly Hour stated that the MoU serves to establish a cooperative platform between the two organizations, allowing for greater awareness and understanding of the Cambodian trust sector among HDAC members and partners. To this end, HDAC and TR will collaborate to disseminate information about the country’s trust landscape, including relevant laws, regulations, and conduct standards.
Almost $1 billion under trust
Cambodia’s Trust Law, which provides guidelines for Commercial, Public, Social, and Personal Trusts, was enacted in 2019. Since its establishment, 512 trusts worth approximately $939 million have been registered. However, there is an ongoing need to augment awareness and comprehension of trusts amongst both local and international investors.
HDAC’s membership includes 74 companies involved in housing construction and development, this new partnership holds promise for a significant rise in knowledge and proficiency in the trust sector. Through this collaboration, TR, HDAC, and CIR are dedicated to amplifying understanding of Cambodia’s capital market, both nationally and globally.