Cambodia Investment Review
As Cambodia enters 2026 against a backdrop of uneven global growth, tighter financial conditions, and shifting regional dynamics, business leaders are recalibrating expectations across key sectors. These themes were brought into sharp focus at the International Business Chamber (IBC) Open Meeting held on January 14 at Rosewood Phnom Penh, where senior executives shared sector-specific insights on risks, opportunities, and the private sector’s near-term outlook.
Part one of this series examines perspectives from finance and banking, real estate, energy, and recycling—four industries that sit at the core of Cambodia’s economic adjustment as confidence, capital allocation, and cost structures continue to evolve.
Finance and Banking: Growth Continues, but Selectivity Increases
Speaking on behalf of the financial sector, Sothearoath Oeur, Chief Executive Officer of Credit Bureau Cambodia, described a system that remains fundamentally resilient, even as lending conditions tighten.
According to sector data presented at the forum, credit demand remains positive, with loan account growth of around 5.3 percent and outstanding balances expanding by approximately 5.5 percent. Asset quality, while under closer scrutiny, is holding steady, supported by improved credit information and cross-border digital payment connectivity.
Oeur noted that while headline growth figures remain encouraging, the market is becoming more disciplined. “We are no longer in a phase where growth alone defines success,” he said, adding that lenders are increasingly focused on credit quality, customer experience, and risk-adjusted returns.
Looking ahead, he pointed to artificial intelligence and data-driven decision-making as areas of opportunity, particularly in customer resolution and fraud prevention. At the same time, regulatory compliance costs and sector divergence are expected to weigh on profitability over the next 12 months, reinforcing the importance of consolidation and operational efficiency.
Read More: Leader Talks – Oeur Sothearoath, CEO of Credit Bureau Cambodia
Real Estate: A Confidence Reset, Not a Capital Crisis
In real estate, Kinkesa Kim, Managing Director of Advantage Property Services, framed current conditions as a confidence-driven slowdown rather than a structural collapse.
“The real estate market is not in a capital crisis; it is in a confidence reset,” Kim said, pointing to softer demand since 2022 alongside improved government engagement and incentives aimed at stabilizing the sector.
She highlighted that occupiers now hold greater negotiating leverage, with tenants and buyers placing increased emphasis on total occupancy costs, flexibility in lease structures, and operational efficiency. While headline supply remains elevated in certain segments, Kim noted that well-located and well-managed assets continue to attract demand.
Looking into 2026, she emphasized that property costs will increasingly influence business decisions. “Businesses that understand their operational needs and market positioning will still be able to extract value, even in a cautious environment,” she said. Flexibility, adaptive space design, and cost management are expected to become decisive differentiators.
Energy: Volatility Drives Strategic Repositioning
Energy-sector insights were delivered by Yuan Liu, Managing Director and Country Chair Cambodia at TotalEnergies. He described 2025 as a year defined by geopolitical risk, border instability, and inflation-driven cost pressures that have reshaped energy planning.
“Global supply chains and regional security issues have directly impacted pricing and logistics,” Liu said, noting that higher operating costs and tighter import regulations are likely to persist into 2026.
Despite these challenges, Liu stressed that opportunities remain for companies willing to invest strategically. Reaffirming long-term partnerships, upgrading logistics capacity, and developing local product solutions were cited as key areas of focus. However, he cautioned that compliance costs, stockpiling requirements, and technical standards will continue to rise, placing pressure on margins.
“Efficiency and reliability are no longer optional,” he added. “They are becoming baseline expectations for energy providers and their customers.”
Recycling: Standards Rise as ESG Expectations Tighten
The recycling sector, often overlooked in broader economic discussions, is undergoing rapid transformation. Adam Fetherstonhaugh, Managing Director of A1 Plastics, said global sustainability commitments are reshaping demand and pricing structures across the value chain.
He pointed out that around three-quarters of global consumer brands now have public recycling or sustainability targets, driving higher standards for material traceability and verification. At the same time, price sensitivity and rejection rates remain significant challenges, particularly in fragmented informal markets.
“Transparency is no longer a nice-to-have; it drives pricing and access to international supply chains,” Fetherstonhaugh said. He noted growing opportunities in design-for-recycling, segregation, and recovery, as well as diversification into new material streams.
Over the next year, he expects stricter contractual standards, expanded ESG audit requirements, and uneven capacity growth across regions. While recycling processing capacity is forecast to grow globally, he warned that professionalisation and compliance will determine which operators benefit from that expansion.
Read More: Opinion – Cambodia Must Deal with its Fabric Waste
As these four sectors demonstrate, Cambodia’s private sector is entering 2026 with cautious optimism. Growth remains achievable, but it is increasingly conditional on discipline, adaptability, and alignment with evolving regulatory and market expectations.
Part two of this series will examine perspectives from tourism, logistics, FMCG, and garments, completing the cross-industry snapshot of Cambodia’s economic outlook for the year ahead.
