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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.
(Post by CAAI News Media)
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.
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
(Post by CAAI News Media)
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.”
Govt testimony could bias KRT: PM [-Hun Xen is concerned about his comrades' testimony?]
Prime Minister Hun Sen arrives at Chaktomuk Theatre on Thursday for a ceremony marking the 30th anniversary of the National Bank of Cambodia. (Photo by: AFP)
Friday, 09 October 2009
Sebastian Strangio and Cheang Sokha
The Phnom Penh Post
THE testimony of senior government officials could prejudice the Khmer Rouge tribunal’s upcoming case against four former regime leaders, Prime Minister Hun Sen said on Thursday, a day after the court made public documents summonsing six senior government officials to appear as witnesses at the hybrid court.
“These [officials] made the Pol Pot regime collapse, and they adopted the law on the Khmer Rouge tribunal, so if they go as witnesses, it would make the accused persons guilty,” Hun Sen said during a speech at Chaktomuk theatre on Thursday. “How is justice to be done? My main problem is that turning the plaintiffs into witnesses would doom the accused.”
The premier was responding to six letters of summons, dated September 25 and bearing the signature of International Co-Investigating Judge Marcel Lemonde, requesting that six government officials – Senate President Chea Sim, National Assembly President Heng Samrin, Foreign Minister Hor Namhong, Finance Minister Keat Chhon and two CPP senators – appear at the tribunal to provide testimony “in the framework of the investigation under way against Nuon Chea, Ieng Sary, Khieu Samphan and other leaders”.
Council of Ministers spokesman Phay Siphan echoed the premier’s statements, saying the testimony of senior government officials was “not necessary”, since there are witnesses and documentary evidence to spare.
“I think there’s enough proof already. It’s not necessary. This court has to be fair for both parties,” he said.
On Thursday, it remained unclear whether the six officials would obey the summons and appear in court. Foreign Ministry spokesman Koy Kuong said his boss, Hor Namhong, was too busy to have considered the issue, and officials representing Chea Sim, Heng Samrin and Keat Chhon declined to comment.
Senator Sim Ka could not be reached on Thursday, while Senator Ouk Bunchhoeun said that he “did not wish to elaborate” on the matter.
Pack your bags
A day earlier, government spokesman Khieu Kanharith said that though the individuals could appear in court voluntarily, the government’s position was that they should not give testimony. He said that foreign officials involved in the court could “pack their clothes and return home” if they were not satisfied with the decision.
According to Rule 60 of the internal rules of the ECCC, if any witness refuses a summons to appear in court, the co-investigating judges may issue an order “requesting the judicial police to compel the witness to appear”.
If any of the six officials do fail to appear, however, the tribunal could face some thorny challenges in implementing the rule.
“The questions are whether Judge Lemonde would issue an order pursuant to Rule 60 and whether the judicial police would serve it [to the officials],” said Heather Ryan, a trial monitor at the Open Society Justice Initiative.
“We don’t yet know the answers to either of those questions.”
Ryan said that making the cover letters of the summonses public would “increase the transparency of the court and, hopefully, the chances that the summonses are respected”.
Court officials expressed hopes on Thursday that the officials would obey the court’s request regardless of their role in setting up the Khmer Rouge trial process.
“We would expect that any law-abiding citizen would comply with a summons issued by a court of law,” said tribunal spokesman Lars Olsen. “That would apply especially to any representative of organs that played a crucial role in setting up the ECCC.”
Although the cover letters to the summonses bear only the signature of Lemonde, observers and court officials downplayed speculation of a rift between the international investigating judge and his Cambodian counterpart, You Bun Leng.
“The fact that the cover letters were signed by Judge Lemonde alone is significant only if the attached summonses were also signed only by Judge Lemonde and if his Cambodian counterpart declined to signed them because he did not agree that the documents should be issued,” Ryan said.
Olsen said he could not say whether one or both signatures appeared on the official summonses since the documents had not been made public.
You Bun Leng did not wish to comment when contacted on Thursday.
ADDITIONAL REPORTING BY AFP
“These [officials] made the Pol Pot regime collapse, and they adopted the law on the Khmer Rouge tribunal, so if they go as witnesses, it would make the accused persons guilty,” Hun Sen said during a speech at Chaktomuk theatre on Thursday. “How is justice to be done? My main problem is that turning the plaintiffs into witnesses would doom the accused.”
The premier was responding to six letters of summons, dated September 25 and bearing the signature of International Co-Investigating Judge Marcel Lemonde, requesting that six government officials – Senate President Chea Sim, National Assembly President Heng Samrin, Foreign Minister Hor Namhong, Finance Minister Keat Chhon and two CPP senators – appear at the tribunal to provide testimony “in the framework of the investigation under way against Nuon Chea, Ieng Sary, Khieu Samphan and other leaders”.
Council of Ministers spokesman Phay Siphan echoed the premier’s statements, saying the testimony of senior government officials was “not necessary”, since there are witnesses and documentary evidence to spare.
“I think there’s enough proof already. It’s not necessary. This court has to be fair for both parties,” he said.
On Thursday, it remained unclear whether the six officials would obey the summons and appear in court. Foreign Ministry spokesman Koy Kuong said his boss, Hor Namhong, was too busy to have considered the issue, and officials representing Chea Sim, Heng Samrin and Keat Chhon declined to comment.
Senator Sim Ka could not be reached on Thursday, while Senator Ouk Bunchhoeun said that he “did not wish to elaborate” on the matter.
Pack your bags
A day earlier, government spokesman Khieu Kanharith said that though the individuals could appear in court voluntarily, the government’s position was that they should not give testimony. He said that foreign officials involved in the court could “pack their clothes and return home” if they were not satisfied with the decision.
According to Rule 60 of the internal rules of the ECCC, if any witness refuses a summons to appear in court, the co-investigating judges may issue an order “requesting the judicial police to compel the witness to appear”.
If any of the six officials do fail to appear, however, the tribunal could face some thorny challenges in implementing the rule.
“The questions are whether Judge Lemonde would issue an order pursuant to Rule 60 and whether the judicial police would serve it [to the officials],” said Heather Ryan, a trial monitor at the Open Society Justice Initiative.
“We don’t yet know the answers to either of those questions.”
Ryan said that making the cover letters of the summonses public would “increase the transparency of the court and, hopefully, the chances that the summonses are respected”.
Court officials expressed hopes on Thursday that the officials would obey the court’s request regardless of their role in setting up the Khmer Rouge trial process.
“We would expect that any law-abiding citizen would comply with a summons issued by a court of law,” said tribunal spokesman Lars Olsen. “That would apply especially to any representative of organs that played a crucial role in setting up the ECCC.”
Although the cover letters to the summonses bear only the signature of Lemonde, observers and court officials downplayed speculation of a rift between the international investigating judge and his Cambodian counterpart, You Bun Leng.
“The fact that the cover letters were signed by Judge Lemonde alone is significant only if the attached summonses were also signed only by Judge Lemonde and if his Cambodian counterpart declined to signed them because he did not agree that the documents should be issued,” Ryan said.
Olsen said he could not say whether one or both signatures appeared on the official summonses since the documents had not been made public.
You Bun Leng did not wish to comment when contacted on Thursday.
ADDITIONAL REPORTING BY AFP
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