As international focus on Environmental, Social, and Governance (ESG) criteria intensifies, Cambodian Small and Medium-sized Enterprises (SMEs) are at risk of falling behind their regional competitors if they don't adapt quickly. Experts warn that upcoming EU legislation making ESG compliance audits mandatory could further marginalize local businesses that are not prepared. This shift from traditional Corporate Social Responsibility (CSR) activities to comprehensive ESG strategies is not just a trend but an urgent business imperative for Cambodia's SMEs.

Heather Wheeler MP, the UK Trade Envoy to Cambodia and Laos, concluded a landmark three-day visit to Phnom Penh, reaffirming the UK's commitment to strengthening trade and investment with Cambodia. The visit, the first by a senior UK official since Cambodia's 2023 elections, coincides with a 42.5% year-on-year increase in bilateral trade. A significant milestone was the unveiling of De Montfort University's campus, the UK's first accredited university in Cambodia, signaling a deepening of educational ties.

The Asian Development Bank (ADB) has updated its 2023 economic growth forecast for Cambodia, lowering it from 5.5% to 5.3%. The downward revision primarily attributes to slower growth in the industrial sector and an 18%+ decline in exports of key products like garments, footwear, and travel goods. Despite these challenges, other sectors such as services have shown resilience, and foreign direct investment inflows have been encouraging. The ADB maintains its 2024 growth forecast at 6.0%, indicating cautious optimism for Cambodia's economic future.

The International Business Chamber's recent "Talk of the Town" event convened leading experts to discuss the emerging trends and challenges shaping Cambodia's business landscape. The panel shed light on crucial sectors including telecommunications, insurance, tourism, and food & beverage, offering valuable insights into the future of the Cambodian economy. With the country undergoing significant regulatory and market changes, the dialogue emphasized the need for collaboration, innovation, and adaptability as keys to sustained growth and investment.

As Cambodia grapples with the challenges of data protection and sustainable IT management, industry experts convened at a workshop in Phnom Penh to provide insights and solutions. Organized by DFDL Cambodia and Asian Data Destruction (ADD), the event focused on the current legal landscape surrounding data protection, the importance of secure data erasure, and responsible IT asset management. The forum highlighted the urgency for Cambodian businesses to be compliant with existing laws, adopt secure data management practices, and embrace environmental responsibility.

Oxfam programs Fair Finance Asia (FFA) and Gender Transformative and Responsible Agribusiness Investment in South East Asia (GRAISEA) have issued a new policy brief urging Cambodia and other ASEAN Member States to prioritize gender equality and human rights due diligence in agricultural financing. The brief comes as a follow-up to a previous submission to the Royal Government of Cambodia and stresses the need for financial institutions to be proactive on these issues. The policy recommendations offer a roadmap for Cambodia's continued leadership in ASEAN.

AmCham Cambodia hosted a forum on business ethics and anti-corruption in Cambodia, highlighting the country's international corruption index, which ranks 150 out of 180 countries. The ranking serves as a deterrent to potential investors and has brought more businesses under increased scrutiny, particularly under laws like the U.S. Global Magnitzky Act. The forum emphasized that is no longer a choice but a mandatory step for companies desiring to do business in Cambodia.

The Cambodian financial sector exhibited resilience in 2022, with revenue increasing by 16% to $4.10 billion and a total loan book of $53.2 billion. Despite the growth, profits dipped by 6% to $1.22 billion, largely due to increased credit costs and expenses. Mekong Strategic Capital's comprehensive report, titled ‘Scale: Measuring What Matters’, delves into the sector's performance, challenges, and future prospects, offering a detailed analysis of a dynamic industry adapting to a complex economic environment.

Cambodia's consumer credit market saw mixed trends in Q2 2023, with total consumer credit reaching a record $14.76 billion, while late payments increased to 3.96%. Despite this growth, consumer credit applications witnessed an overall decrease of 11%, reflecting a complex and evolving landscape in personal finance, mortgages, and credit cards in the Kingdom of Cambodia.

Trade and Investment Specialist Mr. Sven Callebaut, spoke with CIR Leader Talks about the recently released ‘Handbook on Investing in Cambodia,’ a collaborative effort between the Australian Government and the Council for the Development of Cambodia (CDC). Mr. Callebaut emphasized the handbook's utility as a resource for investors to tap into promising opportunities, thereby strengthening trade and investment connections between Australia and Cambodia. His insights provide a profound understanding of the Cambodian market and the strategic pathways to successful investment.

Phillip Bank, the only Singaporean-owned commercial bank in Cambodia, has taken a decisive step in introducing Singapore's unique banking methods to Cambodia. Hosting a delegation led by the Singapore Business Federation (SBF), the bank showcased the opportunities and challenges in the Cambodian market through a presentation by their Cambodia Director, Mr. Ong Teong Hoon. This event paves the way for further collaboration, symbolizing Phillip Bank's commitment to nurturing financial ties between the two Southeast Asian nations.

The Cambodian Oknha Association (COA) recently convened a gathering of over 400 business leaders, foreign representatives, and top government officials for the 2023 Business Forum, focusing on the noble values of Oknha. This event emphasized honor, moral dignity, and a commitment to Cambodia's economic development, reflecting a shared vision for the future and the collaborative effort needed to achieve prosperity in various sectors of the Cambodian economy.