Cambodia Investment Review
H.E. Dr. Sok Siphana, Senior Minister in charge of Multilateral Trade and Economic Affairs and Chair of the Trade Policy Advisory Board of the Royal Government of Cambodia, delivered closing remarks at the Australia-ASEAN Business Forum in Canberra on August 29, 2024. His address, centered on the strategic and economic importance of the ASEAN-Australia relationship, emphasized the role of the Regional Comprehensive Economic Partnership (RCEP) in driving regional growth and stability amidst a shifting global landscape.
Strategic Shifts in the Global Order
Dr. Sok Siphana began by expressing his appreciation for the opportunity to participate in the forum, which marked the 50th Anniversary of the ASEAN-Australia Dialogue Relations. He highlighted the significance of this milestone, particularly given the recent attendance of Cambodian Prime Minister Hun Manet at the ASEAN-Australia Special Summit earlier in the year. “The presence of our Prime Minister at such a summit highlights our shared commitment to further strengthening our Dialogue Relations,” Dr. Sok stated.
Read More: RCEP and Cambodia’s Economic Evolution
Reflecting on the theme of the forum, “New Direction with New Opportunities,” Dr. Siphana acknowledged its relevance in the current global context. He emphasized that in a time marked by geopolitical and geo-economic shifts, it is crucial to explore new avenues for growth. “We are living in an interesting time, where the return to multipolarity and multiplexity has redefined the global order. This is a world characterized by interconnectedness and interdependence, with a multiplicity of actors influencing the course of international relations,” he said.
The Role of RCEP in ASEAN’s Economic Landscape
In the face of rising protectionism and escalating trade tensions, Dr. Siphana emphasized the importance of the Regional Comprehensive Economic Partnership (RCEP) for the ASEAN region. He described RCEP as the world’s largest trade agreement, covering 15 countries that collectively represent nearly 30% of global GDP and one-third of the global population. “RCEP’s scale and scope make it a powerful economic bloc with the potential to drive significant economic activity and growth,” he remarked.
Dr. Siphana elaborated on the benefits of RCEP, highlighting its role in trade liberalization, market access, and strengthening regional supply chain resilience. He pointed out that since RCEP’s implementation in 2022, ASEAN countries have experienced a significant boost in exports to other RCEP member states. “ASEAN’s total exports to RCEP partners rose from USD 885.5 billion in 2021 to USD 984.6 billion in 2023, reflecting an impressive compound annual growth rate of approximately 6%,” Dr. Siphana shared.
For Cambodia, the benefits of RCEP have been particularly pronounced. Dr. Siphana revealed that Cambodia’s exports to RCEP member states increased by 13% from January to July 2023 compared to the same period in 2024. He highlighted the fastest growth in exports to non-ASEAN RCEP partners, with significant increases to New Zealand, Australia, China, Japan, and South Korea.
Australia’s Strategic Interests in RCEP
Dr. Siphana also emphasized the strategic importance of RCEP for Australia. He noted that RCEP accounts for about two-thirds of Australia’s total trade and aligns with the country’s support for multilateral trade and regional integration. “RCEP provides a platform for Australia to engage with East Asian economies and manage its economic and political relations within a multilateral framework,” he explained.
In his closing remarks, Dr. Siphana highlighted the longstanding partnership between Australia and Cambodia, which spans over 72 years. He acknowledged Australia’s significant contribution to Cambodia’s peace process in the 1990s and outlined the economic opportunities that have emerged from Cambodia’s globalization efforts. “We have diversified our economy beyond garments and footwear, exploring new frontiers in ICT, automobiles, electronics, mining, and financial services to sustain our productivity and competitiveness,” Dr. Siphana said.
Looking ahead, Dr. Siphana expressed optimism about the potential for deeper ties between Australia and ASEAN, particularly in sectors such as manufacturing, services, agriculture, technology, innovation, and healthcare. He also highlighted the role of the newly established ASEAN-Australia Centre in promoting cultural exchange and enhancing people-to-people links between the two regions. “As a forward-thinking and globally engaged nation, Australia has a unique opportunity to deepen its ties with ASEAN and reap the rewards of this flourishing region,” he concluded.
