Cambodia Investment Review
In a significant financial development, Cambodia has witnessed a surge in remittances, reaching an impressive $1.25 billion in 2022, as reported by the ’12th Annual ADBI–OECD–ILO Roundtable on Labour Migration: Recovering from Covid-19: What Does It Mean for Labour Migration in Asia?’. This places Cambodia’s remittances at the third-highest in the ASEAN region as a percentage of national GDP, following the Philippines and Vietnam.
According to the report, Cambodia’s remittances accounted for 4.4 percent of its GDP in 2022, positioning it behind the Philippines at 9.5 percent and Vietnam at 4.6 percent. Notably, Thailand housed an estimated 1.2 million Cambodian workers in 2021, reflecting the substantial economic ties between the two nations.
The Kingdom’s remittance landscape is further delineated by the prominence of certain destination countries for Cambodian migrant workers. Thailand led with approximately 1.2 million workers, followed by South Korea with almost 46,000, Malaysia with 23,000, Japan with nearly 12,000, and Singapore with about 800. Singapore, Malaysia, and Thailand emerged as the primary destinations for ASEAN migrant workers.
For Cambodian students studying abroad, Australia claimed the top spot with 1,900 students in 2000, while the United States and Japan secured the second and third positions with around 800 and 600 students, respectively.
Addressing the pivotal role of remittances in Cambodia’s economy, the National Bank of Cambodia (NBC) revealed an annual inflow of approximately $1.25 billion. In response to this, Phillip Bank, Cambodia’s only fully-owned Singapore commercial bank, has introduced a groundbreaking initiative – a free service for receiving international remittances.
The International Remittance Service at Phillip Bank now features a free Inward Transfer option, allowing customers to receive remittances from overseas bank accounts into their Phillip Bank accounts without incurring any fees. This announcement is particularly noteworthy in light of the crucial role remittances play in sustaining many Cambodian families.
Phillip Bank’s representative affirmed the commitment to ensuring the safety and accessibility of funds for customers, emphasizing the significant step towards improving the financial well-being of families in both rural and urban communities. The initiative aligns with the bank’s corporate mission to provide convenient, integrated, innovative, and trusted financial solutions.
To utilize the service, customers can download the Phillip Mobile app, Phillip Bank Internet Banking, or visit the nearest Phillip Bank branch. Sending remittances involves using these platforms, while receiving remittances requires a visit to a Phillip Bank branch and completion of the Inward Telegraphic Transfer Instruction Form, including beneficiary details and Phillip Bank account number.
This strategic move by Phillip Bank is expected to have a positive resonance among Cambodians, both locally and in the diaspora. It offers a cost-effective and convenient means of managing international financial transactions, contributing to the overall economic growth of the country.
