Ketsana’s costs pile up in K Thom

Photo by: WORLD VISION

Villagers displaced by Typhoon Ketsana bide their time at a makeshift shelter in Siem Reap province’s Sandan commune.

Friday, 09 October 2009 15:03 Chhay Channyda

AS the Kingdom continues to evaluate the destruction inflicted in the aftermath of Typhoon Ketsana, officials in Kampong Thom province say they are only beginning to get a handle on the level of damage.

Provincial Governor Chhun Chhorn said the total amount of damage in his province, Cambodia’s hardest-hit, was still unknown.

“The floodwaters are still like rivers, and it has hardly gone down,” he said. “Most of the roads in the districts are flooded, except roads in the towns.”

Chhun Chhorn said that around 3,000 families have been seriously affected, but that the figure could rise as receding floodwaters allow access to more remote areas of the province.

Over 30,000 hectares of rice paddies have been affected by the storm, he added, including over 17,000 hectares that have been completely destroyed.

“I do not calculate yet how much money we lost from agriculture, but I can say that we have lost a lot more than in other provinces. It could be double,” he said.

In Stung Treng province, Governor Loy Sophat said that 3,000 families remain affected by storm damage.

He added that 3,000 hectares of rice paddies were destroyed in the aftermath of the typhoon, and that the total agricultural cost to the province may be as much as US$3 million.

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Workers protest factory’s closure

Photo by: Sovan Philong.

Frustrated garment workers face off against police officers following the sudden closure of Cambodia’s biggest garment factory, Tack Fat, in Phnom Penh’s Meanchey district on Thursday.

Friday, 09 October 2009 15:03 Kim Yuthana and Khouth Sophak Chakrya

THOUSANDS of factory workers gathered in front of Phnom Penh’s Tack Fat garment factory after the company shut its doors on Thursday morning and announced a suspension of production in the midst of the global downturn that has seen dozens of other Cambodian factories close this year.

Factory workers, more than 1,800 of whom appeared in front of the facility in the capital’s Meanchey district, said the closure had come as a surprise, as factory owners had informed union representatives about it only a day before.

Twenty-eight year old Leap Chanthouen said that workers were told they will receive US$10 per month in salary while the factory is closed. She and other Tack Fat employees expressed frustration with the factory’s suspension, however, and said that the proposed compensation was not enough.

“It is unacceptable that the factory closed today,” she said. “We are here to protest.”

Meas Samphars, president of the Coalition of Cambodian Apparel Workers’ Democratic Union, said workers were demanding their salary from September as well as a 50 percent payment of their base salaries during the suspension in production.

Chiv Leang, a Tack Fat representative, emphasised the fact that his organisation is not closing permanently, adding that it plans to meet its obligations to the workers.

“We will pay them their September salary on October 10, and during the suspension, we will pay them $10 per month,” he said, adding that Tack Fat is negotiating with the Ministry of Labour regarding the terms of the suspension.

Kei Savuth, director of the Ministry of Labour’s labour conflict office, said his ministry was still considering whether to approve the suspension.

Chea Mony, president of the Free Trade Union of the Workers of the Kingdom of Cambodia, said he suspected that the suspension was a move by the Tack Fat management to avoid paying worker salaries in the face of imminent closure.

“I believe that the factory owners intend to close the factory completely, but they are concerned that workers will ask for a seniority bonus if that happens, so they are using a suspension to avoid responsibility,” he said.

Ken Loo, secretary general of the Garment Manufacturers Association of Cambodia, dismissed this assertion, saying members of the Tack Fat management are victims in the same way that workers are.

“This is a function of the international economy right now – we are in crisis, the whole world is in recession,” he said.

“We would very much like to help [the workers], but unfortunately it’s not something we can do right now.”

Some 130 Cambodian garment factories have closed or suspended production in 2009, the Ministry of Labour said last week, leaving more than 30,000 workers jobless and an additional 30,000 temporarily out of work.

ADDITIONAL REPORTING BY JAMES O’TOOLE

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Exhibit shows Kingdom’s changing capital

Photo by: Sovan Philong.

A visitor uses his mobile phone to snap a picture of photographs charting the development of post-independence Phnom Penh at a new exhibition that opened Thursday in Wat Phnom.

Friday, 09 October 2009 15:02 Tep Nimol

A NEW photography exhibition celebrating the 575th anniversary of the capital’s founding in 1434 opened to the public in Phnom Penh on Thursday.

Showcasing arresting images of Phnom Penh throughout its tumultuous history, the exhibition includes 24 panels and 148 photos spanning several decades in the city’s recent past.

Organisers say they hope the display will help illustrate the reality of life in Phnom Penh, from its turbulent past to a more hopeful future.

The exhibition touches on the post-independence regime under Sangkum Reastr Niyum, the devastating rule of the Khmer Rouge between 1975 and 1979, the cautious post-conflict period and the rapidly developing capital as it stands today.

Mak Vann Sitha, Phnom Penh’s director of the Department of Cultures and Fine Arts, said he hopes the exhibition will capture the imagination of a national and international audience. The aim, she said, is to demonstrate how much Phnom Penh has developed.

About 162 million riels (US$38,812) has been spent on the exhibition, including costs for repairing and decorating the Wat Phnom exhibition hall.

City officials say they hope it will serve to illustrate how far the capital has progressed. “Phnom Penh is busy developing the city” to adapt to a changing, increasingly high-tech society, said Deputy Governor Mann Chhoeun.

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Exclusively yours

The suite at the One Hotel oozes contemporary chic. PHOTO SUPPLIED

Friday, 09 October 2009 15:02 Lily Partland

The One Hotel in Siem Reap is certainly something of an oddity. In a town with a great number of sprawling four and five-star complexes, stumbling across a hotel with just one room, albeit it a lavish and multi-levelled room, is something of a surprise.

And while the little hotel is not exactly a raging revenue-raiser, it’s attracted a huge amount of international publicity, which the owner, Martin Dishman, has spun off into his other projects.

The American said opening a one-room hotel was “genius by default”. The idea hit Dishman in mid-2005 when he leased a small, two-storey building in Siem Reap’s latest hot spot, The Passage, then a mainly residential street. He figured that developing the entire building would be too expensive, and a no-expense-spared one-room hotel would be the way to go.

“It was a completely unplanned idea and the best part about it is, if I had opened two or three rooms here, we would have probably got 90 percent less press than we did with one room,” said Dishman.

Last year, two years after opening the One Hotel in February 2006, Dishman decided to “piggy-back” on the publicity he’d received from his unique hostelry to extend his business and open Be Hotel, with more rooms – three, to be exact. Now, Dishman wants to expand his empire throughout the region.

“I want to try to do something outside the country, maybe in Thailand, Laos, Vietnam or even Bali because I’m proud of what I’ve done. It’s kind of the American way: to expand and conquer and colonise.”

Photo by: Lily Partland

Managing Director of the One Hotel and Hotel Be Martin Dishman.

Dishman worked for almost 20 years for the Intercontinental Hotels Group, which owns The Holiday Inn and Crowne Plaza franchises among others, and became a general manager at age 33. Despite some perks of the job, such as meeting visiting dignitaries, including Watergate-scooping journalist Bob Woodward, Palestinian spokeswoman Hanan Ashrawi, and the Singaporean PM Goh Chok Tong, Dishman was ready for a new challenge.

When his request for a transfer to an Asian hotel went unfulfilled, he bit the bullet and came to the region without a job.

After stints in a hotel in Phuket and an office in Bangkok, he arrived in Siem Reap in January 2004 as general manager of the Shinta Mani hotel. After a year there, Dishman opened Siem Reap’s first gay bar, Linga Bar in The Passage behind Pub Street, and when a property became available across the alleyway, he decided to create his own hotel.

He developed the property, designed the room and created his very own masterpiece, with an accent on “genuine hospitality”. The project had a profound effect on Dishman, who insists he is delighted to be free of the shackles of corporate life.

“Working in American corporations can be good, but they can chew you up and spit you out too. As soon as you’re gone, there’s someone else to take your place and there’s no legacy to speak of – so this hotel may be something of a legacy.

“I was free to create something that I thought was pretty unique and a lot of fun. At the beginning I went to the airport and met every guest. It was fantastic. If you’re really into hospitality, that’s what it’s all about.”

___________________________________

The One Hotel costs $250 per night for single

or double occupancy, with a special pre-paid

internet rate of $195

if you book online at

http://www.theonehotelangkor.com/.

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National swimming legend Hem Thon stays poolside

Hem Thon (far right) stands with the Cambodian National Swimming team by the swimming pool of the Olympic Stadium complex. Photo Supplied

Hem Thon (far right) poses with the 1964 Cambodian National Swimming team during his heydey as the top swimmer in the Kingdom.Photo Supplied

Friday, 09 October 2009 15:00 Ung Chamroeun

Cambodia’s most decorated swimmer of the 1960s talks out about his past and current involvement in the national team, with big hopes for the future

HEM Thon shows a determination that goes beyond his 67 years. The national swimming legend began his career in sports way back in the Sangkum Reastr Niyum regime of Norodom Sihanouk, and he gives a fascinating insight into his past.

Raised in Koh Dach commune, Kandal Province, Hem Thon was initially interested in football. He played for royal team, Cercle Royale Khmere, alongside the top national goalkeeper of the time, Lim Sak, who remained one of his closest friends.

It was not by accident that Hem Thon found himself in the swimming pool near Wat Phnom, at a site now occupied by the American Embassy. “Two reasons pushed me to join” the swimming team, he recalls. “Firstly, because the encouragement of older athletes, and secondly, I was alone because most of my football teammates went to China.”

The top national swimmer

Hem Thon quickly rose up the ranks, making his national championship debut in late 1960, where he finished in second place. From then on out, he dominated the domestic scene for a decade, taking nothing but gold.

Hem Thon says he lost count of the amount of medals he received from national swimming events, but remembers grabbing three bronze medals at his first international event, the 1963 Ganefo Games in Indonesia.

During the third SEA Games in Kuala Lumpur in 1965, his medal haul included two silvers and three bronzes.

However, his happiest moment came in an international competition in Singapore in 1965, where he won gold in the 100m freestyle, beating swimmers from four other nations in the region. In total, Hem Thon won 12 medals at international competitions during his career.

His career as an athlete came to an end in 1971, with age becoming a factor and the political situation in the Kingdom rapidly becoming unsafe. During the Khmer Rouge regime, he relocated to Pursat province, where, tragically, five of his children died.

Photo by: Sovan Philong

Hem Thon discusses his experiences as a swimmer and later as a sports official during an interview with the Post Wednesday.

Despite ceasing to compete in the pool, Hem Thon was adamant about playing an active role in the development of sport in his home country. “I decided to return to the sports sector after the war because I don’t want to lose what I had done before,” he said.

In 1983, Hem Thon and a few friends started the Federation of Amateur Swimming of Cambodia, an internationally recognised organisation that changed to the Khmer Amateur Swimming Federation in 1996. Hem Thon was instated as General Secretary and head coach in 1994, as well as serving as a government official in charge of sport education until his retirement in 2000.

The national hero has stated that his mission will not be complete unless young Cambodian swimmers win medals from international competitions.

His talent in the water seems to have been passed down to his three sons, one daughter and one granddaughter. However, only his youngest son, 19-year-old Hem Thon Ponloeu, and his granddaughter, 15-year-old Hem Thon Vitiny, still compete in swimming, both featuring on the national team.

Much work still to be done

According to Hem Thon, the Cambodian swimmers of today are producing better performances than in his generation, but have a long way to go before they can begin to hold their own in regional competitions.

“While we are just starting the first step, other countries have reached the tenth step already,” he opined.

“It is difficult to say that [the young Cambodian athletes] will win medals from the upcoming SEA Games in Laos because, honestly, we are not well-prepared yet,” admitted Hem Thon. “But I hope in 2011 or 2013, they will realise our dream.”

Indeed, things look promising, with his granddaughter Vitiny making the last eight at the 2007 SEA Games in Thailand, setting a new national record in the process.

Despite his age, Hem Thon keeps remarkably busy. In the morning, he is often at Apsara TV, where he is one of a panel of experts on the sports news. Recently he was elected as a member of National Olympic Committee, a job he describes as complicated. Evenings nearly always see him training his students of the national team. The swimming federation has yet to find an office, so Hem Thon always takes related work to do at home.

“Most of the work I do voluntarily, and sometimes I spend my own cash,” he said. “If I didn’t think of the national interest, I may have left [the sport] a long time ago.”

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Coach Andy returns to Takeo

Photo by: KEN GADAFFI

Coach Andrew Ehiwarior has been invited back to the Kirivong Sok Sen Chey coaching staff for the third time in two years.

Photo by: Nick Sells (http://www.nicksellsphotography.com/)

Phnom Penh Crown will look to defend the Samdech Hun Sen Cup in next year’s competition starting in January.

Friday, 09 October 2009 15:00 Ken Gadaffi

With the drama of the Cambodian Premier League over, teams start to prepare for next year’s Hun Sen Cup, with Kirivong Sok Sen Chey announcing new coach

Ehiwarior lands Kirivong job again

Nigerian-born coach Andrew Ehiwarior was given a yearlong contract Sunday as technical adviser to Kirivong Sok Sen Chey, which will see him return to the Takeo-based Cambodian Premier League club for the third time in two years.

“We have called him back as we rebuild the team for next season,” stated Somay Sokhea, director of finance and administration at Kirivong. “We want him to assist the Cambodian coach in technical areas of the team, as we want to improve on our performance of last season.”

Former Naga coach Heng Chan Kheang has also been contracted to lead the side, with both coaches officially unveiled to players by the management Wednesday.

“Our goal is to be in the top three for the Hun Sen Cup,” added Somay Sokhea. “Getting beyond the group stage is not going to pose much problem for us, but we will be happy to get as far as the semifinals.”

Ehiwarior was visibly delighted at his appointment. “I love this club, and I am happy to be asked to come to help the team once again,” he beamed.

However, it is still not clear whether Vietnamese coach Lou Foekten, who handled the team last season, will remain at the club.

Along with the new coaches, about eight players from various provinces have been invited for trials. “Some players who underperformed last season will be dropped,” the finance director asserted.

The club will look to play friendly matches and take part in invitational tournaments to prepare for January’s 2010 Hun Sen Cup competition.

Training restarts after short break

Newly crowned CPL champions Naga Corp are now back in training after going on a weeklong break. “It’s a short break, because we have to come back to training to start preparing for the Hun Sen Cup, which is our next target,” stated manager Michael Thachnen. “We want to take the team to the next level. We need to improve on our performance, and so the management will meet as soon as possible to work out training programmes.

“Of course we will consider some international friendlies to prepare our players for tougher opponents in the region,” the manager noted. “It will be great to represent Cambodia in the regional cup competition [the AFC Presidents Cup], as it will further lift Cambodia’s profile in the region.”

Meanwhile, Preah Khan Reach technical adviser Prak Sovannara remains undecided about his future, following his volunteer role last season. “I am not sure what next for me and the club for now,” he remarked. “I am still in the middle, but I will sit down with the management to decide my future soon.”

For Phnom Penh Crown, losing the CPL title was a big blow to their reputation, and they will look to reassert themselves as the best team in Cambodia by regaining the Hun Sen Cup next year.

“We want to come back stronger,” manager Makara Be declared. “We are going on a monthlong training tour in Thailand where we will play some top teams to strengthen our squad.” The Crown boss also revealed he will be using the trip to discuss trades of some of his foreign and local players.

“We are the only club that considers players’ futures,” he boasted. “We have contacts with some clubs in Thailand and Singapore who are interested in our players, so we hope to do some business during the off-season.”

Makara Be is noted to have brokered transfers of foreign players to the Thai Premier League, such as Nigerian Gbenga Ajayi and Cameroonian Jean Roger Lappe Lappe.

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Siem Reap Scene

Photo by: Peter Olszewski

Water woes: Siem Reap’s iconic Pub Street becomes a river.

Friday, 09 October 2009 15:02 POST STAFF

THE BIG WET

The historic weekend floods were quite a shock for many Siem Reap residents, but this was particularly true of Leakhena Muth, wife of FCC Angkor’s Director of Rooms Division Benoit Jancloes. The first shock came when she stepped out of bed into a fresh puddle. A nanosecond later came shock number two; one of the electric variety, from power points and electric cords that were underwater.

Benoit said, “My wife got out of bed last week thinking it was a normal day. But she got an electric shock when she stepped into 20 centimetres of water. She was holding the baby at the time, so it got a jolt as well. It was a nice wake-up call.”

Luckily, the shocks were mild.

But perhaps the most poignant scenes took place riverside on Sunday near Wat Bo Bridge, when family members of a missing boy presumed drowned in the river gathered to oversee the search for his body.

The boy, 17-year-old high-school student Amkong Chamrouen was among a group of young males jumping off the bridge into the flooded waters, when he disappeared while trying to rescue another boy.

Amkong Chamrouen’s uncle told Scene the utmost thing on the parents’ mind was to find the body, and they had engaged the services of a fortune teller who said it would be found on Sunday.

The parents then spent US$30 on hiring three Vietnamese men to search the water and offered a $1,000 reward for recovery of the body.

By late Sunday afternoon, more men were searching the river as the sun set, but sadly to no avail.

JAPANESE FM SINGS SIEM REAP’S PRAISES

Siem Reap played host to some high-profile politicians over the weekend as part of the second Mekong-Japan Foreign Ministers’ Meeting, which went ahead despite the flooding and was opened by Prime Minister Hun Sen.

The new Japanese Foreign Minister Katsuya Okada, who has only held office for a month following Japan’s federal elections in September, told Scene that Siem Reap was a significant venue.

“The choice of Siem Reap is very symbolic to me on two accounts. The city embodies the long history and cultural heritage of Cambodia, and it also exemplifies the development of the Mekong region,” he said.

Foreign ministers from Japan, Thailand, Myanmar, Lao PDR and the vice foreign minister of Vietnam joined Cambodian Foreign Minister Hor Namhong at the Angkor Palace Resort to discuss ongoing cooperation between the Mekong region and Japan.

Some of the organisational duties were also carried out at Sokha Angkor Resort.

Photo by: LILY PARTLAND

Adam Robertson.

FCC NATIONS CUP TEES OFF

The FCC Nations Cup takes place this weekend at Angkor Golf Resort, and according to operations manager Adam Robertson, “the battle lines are drawn.”

He said, “Despite the floods, Angkor Golf Resort remains playable and more than able to cope with the rigorous demands of some of the colourful golf swings that will be on display this weekend.”

Eight nations will compete over two rounds for the inaugural FCC Nations Cup, and the man to watch is Georges Ramorasata, a runner up during the Angkor Open played earlier in the year.

A strong representation from French expatriates has emerged, including hotel manager Raphael Guilien, rejuvenated from his leave and recent new posting as group general manager of the FCC empire.

Robertson noted, “A strong challenge should come from the Celtic team comprised mainly of Irish and Scots. A swarthy bunch led by the ubiquitous Emmett McHenry will undoubtedly charge manfully, but it remains to be seen if this charge will be on the golf course or to the nearest drinks kiosk.

“A rousing battle cry will probably be heard loudest from team England as they welcome to their ranks the Hayward brothers, more affectionately known as the Wayward brothers due to their tree- splitting drives from the tee.

“Team Australia has a gritty antipodean presence, and is represented by some worthy stalwarts, including Rob Matteo and Bob Massie, having both featured in the Angkor Open at some stage or other.”

On the same weekend, Prime Minister Hun Sen will also be chasing the little white ball at Angkor Golf Resort – but he won’t be competing in the tournament.

Robertson said, “He’s got about 20 or 30 guests coming. I think it’s just a friendly game that he normally plays with his committee.”

WANDERLUST’S SPIFFY SPA GEAR

Elizabeth Kiester, owner of ladies’ clothing boutique Wanderlust, has branched out into designing eco-friendly spa fashion wear.

The New York expat said she and her team designed and manufactured the range for Residence d’Angkor’s uber-chic new Kongkea Spa in record time.

“I’m so proud of this. We turned it around in a month – it was like a little bit of New York frenzy here in Siem Reap – but we pulled it off and the collection is quite beautiful.”

As well as the spa fashion-wear, Kiester also designed all the uniforms and robes for Residence d’Angkor’s eco-spa, which were made from organic cotton from Takeo Province. Kiester said, “It’s so important that it’s Cambodian, and that it’s supporting Cambodian people.”

Kiester’s frenzy continues as she prepares to open her second Wanderlust store, this time in Phnom Penh, at the end of the month.

“Phnom Penh will be fun, exciting and different because it’s really catering for a different customer – it’s less tourist-centric and more local-centric.”

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Forex reserves up to $2.52bn

Photo by: Tha Piseth

A money changer exchanges foreign currency in Phnom Penh. Cambodia’s forex reserves have risen this year, beating analysts’ predictions of a

Friday, 09 October 2009 15:01 Nguon Sovan

Prime Minister Hun Sen says National Bank of Cambodia, which celebrated 30 years in operation Thursday, has weathered the global financial crisis

PRIME Minister Hun Sen said Thursday that Cambodia continued to increase its foreign exchange reserves to the end of August reaching a near-record high of US$2.522 billion, while beating analysts’ forecasts of a sharp drop for 2009.

Speaking at the 30th anniversary ceremony for the National Bank of Cambodia (NBC), which was re-established after the end of the Khmer Rouge regime, Hun Sen said forex reserves had climbed 21.48 percent so far this year.

“Despite Cambodia suffering from the global financial crisis, we have still been able to ensure international reserves,” the prime minister said during the event at Chaktomuk Theatre in Phnom Penh.

International Monetary Fund (IMF) data shows that reserves reached a record high of $2.594 billion in May after climbing steadily at the beginning of the year from $2.076 billion at the end of 2008, a figure quoted by Hun Sen Thursday.

“Today, the banking industry is growing both in scope and operations, attracting large foreign banks to open, and the amount of deposits and loans have consistently increased – this reflects confidence from the public in this industry,” he said, encouraging banks to list on the long-awaited Cambodian stock exchange.

The IMF’s country representative, John Nelmes, told the Australian Business Association of Cambodia in Phnom Penh last week that the Kingdom in August was allocated $108 million in Special Drawing Rights, an IMF international reserve asset. The NBC used the facility to increase forex reserves, Nelmes added.

The latest figures represent strong growth in forex reserves for 2009 contrary to forecasts made by international analysts, including the Economist Intelligence Unit (EIU) which as recently as June was predicting a steady decline this year to just over $2 billion by the end of December through to about $1.5 billion by the end of 2010. It based the assessment on falling foreign investment and repeated intervention by the government to strengthen the riel.

However, the EIU has since revised its forecast, predicting in September that forex reserves would reach $2.951 billion by year’s end with a slight decrease to $2.861 billion by the end of 2010. In its October outlook, the London-based organisation said reserves would climb again to $2.983 in 2011.

“But [the NBC’s] international reserves position remains precarious, and the [riel] has … resumed its depreciating trend,” the EIU said in its September outlook, referring to “heavy dollar selling” in August.

Following a consultation with the government last month, the IMF recommended in a statement that the government limit intervention in the riel rate – namely, selling US dollars for local currency, adding that such moves would limit volatility in the exchange rate.

This “would help protect international reserves, deepen the foreign exchange market, and allow the exchange rate to play a greater role in facilitating external adjustment”, the IMF statement said.

Meanwhile, in his speech Thursday, the prime minister rounded on international agencies, including the IMF, for what he termed an overly controlling approach to assistance to the Kingdom.

“It is said I was Vietnam’s puppet, but when Vietnam was in Cambodia, I was more independent,” he said referring to international agencies such as the World Bank and IMF.

“We welcome your assistance, but do not intervene or put pressure on us, or there is no need to help.”

ADDITIONAL REPORTING BY NATHAN GREEN

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TNT in fast lane despite slowdown

Photo by: HENG CHIVOAN

TNT Express Worldwide (Cambodia) Country General Manager Sjaak de Klein says road transport stands to benefit from economic slowdown as firms look for cheaper substitute for air freight.

Friday, 09 October 2009 15:00 Nathan Green

TNT Express Worldwide (Cambodia) Country General Manager Sjaak de Klein talks about the impact of the economic slowdown on the transport sector and TNT’s prospects for growth

CEO Talk

---------------------------------------------

By Nathan Green

The So Nguon Group has reported a 40 percent decline in freight volumes over the first nine months of the year. How is TNT doing?

We are lucky in that we have a diverse portfolio of customers, including mining, oil and telecoms. We also have imports by land and air as well as exports, while So Nguon obviously had a strong focus on connecting with the export shipping lane in Sihanoukville. Our Asia Road Network, which we extended into Cambodia this year, is also really starting to see some success because the crisis is encouraging people to look for a cheaper option than air freight. And it’s much faster than moving goods by sea from Bangkok through Sihanoukville, which can take up to 15 days. We drive overnight, so there is a tremendous opportunity for customers to get their goods shipped quickly. The garment slowdown has affected us because we import accessories and fabrics and export documents and garment samples, but we have not been as adversely affected as the freight forwarders that focus on exports of ready-made garments to the US.

What import sectors are proving resilient?

Consumer goods, especially consumer electronics and computers, are holding up as the middle class is rising and people have more spending power. There is also a lot of imports of baby stuff. The telecoms industry is very dynamic, and they are bringing in a lot of equipment to build towers. We are also seeing a pickup in garments, with many factories receiving new orders and showing interest in bringing in fabrics and accessories.

There was a Greater Mekong Sub-region (GMS) meeting in Phnom Penh recently where GMS ministers pledged to accelerate economic corridor development. Is enough being done in Cambodia?

Cambodia is lagging behind in GMS development, which is unfortunate as building a strong economic corridor will not only stimulate the economy but also provide jobs in the transport sector and increase economic productivity near those roads. Some countries are picking it up faster than others. For example, Laos realised very quickly that as a landlocked country they had to do something, much like Switzerland did in Europe. They got proper funding to build a bridge across the Mekong and built some extremely good roads across the southern part of Laos. They also have incentives for companies to register trucks there. In Cambodia, the government doesn’t have special incentives for the transport industry, which is a pity.

What incentives are needed?

What the industry most urgently needs is incentives to bring in proper equipment instead of having all these local companies with secondhand trucks that are 10, 15, 20 years old. If you import a truck now, you pay a 40 percent import tariff, including duty, special tax and VAT. We would like to become a showpiece for the transport industry, but at the moment its is expensive to bring in a good fleet.

ASYCUDA (Automated SYstem for CUstoms Data) is being rolled out and TNT has introduced e-invoicing. What impact will electronic data interchange have on the sector?

ASYCUDA is only used at the port in Sihanoukville. They are still trying to roll it out at the international airport, but I have heard nothing about a rollout plan at land border crossings. But in general, we are embracing IT technology and like to exchange data with customs electronically. It will speed up our clearance processes as long as the government starts using electronic data interchange and applies risk management profiling to that data. For our express products, that’s important. Electronic data exchange also benefits our customers, and the bigger customers are definitely interested in that.

The economy is expected to contract this year and begin expanding again next. What’s your growth projection for TNT?

We haven’t really seen that contraction and are still growing year on year. And we are optimistic about the future. There is still an opportunity to develop a domestic network, and I am convinced that special economic zones (SEZs) will be successful in attracting new investments like Ajinomoto, which is setting up in the Phnom Penh SEZ. I’ve been here three years and I fell pretty comfortable about the buzz here. The economy has perhaps not been affected quite so much by the global economic crisis as believed because it is cash-based, and we still predict to grow our revenue by a substantial percentage.

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Police, FBI Bust Seven in Major Drug Raid

By Sok Khemara, VOA Khmer

Original report from Washington

06 October 2009

Cambodian police working with the US Federal Bureau of Investigation arrested seven people and seized 16 kilograms of heroin, following three months of investigation, officials said Monday. Police also found counterfeit US dollars in the Oct. 2 raid.

“In the operation, we did an investigation and tracked [the suspects] down for almost three months, with the support of the FBI representative in Cambodia,” said Chhay Sinarith, chief of the Interior Ministry’s security department.

Suspects were arrested in Phnom Penh and Stung Treng province. The raid included the arrest of Lam Sokha, a suspected trafficker who has been arrested and released in recent years, police and court officials said.

The seven suspects were sent to Phnom Penh Municipal Court on Monday and would be questioned by prosecutors this week, officials said.

Police said the heroin moved through neighboring countries through Stung Treng, which borders Laos.

The discovery of heroin, crystal methamphetamine, or “ice,” drug production and counterfeit money made the raid a major case, Chhay Sinarith said.

The US State Department praised Cambodia for its anti-drug efforts in 2009, but said the country faces increasing problems of consumption, trafficking and the production of dangerous drugs.

The State Department warned that crackdowns on trafficking in Thailand and China had made Cambodia an attractive route for traffickers, while internally, use of amphetamines, including ice, was escalating.

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