PM Hun Manet Malaysia 2024 Visit - Economic And Security Agreements
Cambodian Prime Minister, Hun Manet, paid an official visit to Malaysia on February 27, 2024. He engaged in several bilateral meetings on his one-day trip and among his meetings, met with the Malaysian Prime Minister, Anwar Ibrahim, and the King of Malaysia, Ibrahim Iskandar.
According to local government media reports, Prime Minister Hun Manet discussed the promotion of bilateral relations and cooperation between Cambodia and Malaysia, in addition to matters related to defence and security.
Both parties also agreed to enhance their economic partnership, tourism between the two countries, and energy connectivity through maritime routes. The meetings reportedly commended the existing outcomes of bilateral cooperation and exchanged insights on enhancing collaboration across various sectors, including political-security, trade and investment, tourism, labour, the halal food industry, ICT and digital technology (including Electric Vehicle (EV) and Artificial Intelligence), and energy security.
Cambodia-Malaysia Bilateral Talks: Undersea Cables, Defence And Security
In the field of energy security, the two Southeast Asian nations agreed to support the coordination of a renewable energy transmission project (between Laos-Cambodia-Singapore) across the Malaysian seabed. In addition, both sides agreed to consider the possibility of holding a meeting of the Joint Commission on Bilateral Cooperation (JCBC) to be chaired by the Cambodian and Malaysian foreign ministers.
Within the framework of defence and security, Cambodia and Malaysia agreed to bolster cooperation, including human resource training, capacity building, information exchange, and joint exercises.
Cambodia-Malaysia Cross-Border QR Code Payments
Cambodia and Malaysia agreed to commence cross-border QR code payments, encompassing approximately five million retail locations, according to a press release issued by the National Bank of Cambodia (NBC).
This development comes after the two central banks of Cambodia and Malaysia signed a memorandum of understanding (MoU) on February 27, 2024. This is the latest in a number of MoUs on cross-border payments signed by Cambodia, with partners including Thailand, Laos, Vietnam, and China's UnionPay, among others.
The NBC stated that allowing QR code payments will make it easier for Malaysians visiting Cambodia to use their own bank accounts and national currency by scanning the KHQR code, while Cambodians can also benefit from the same in Malaysia.
The NBC added that this MoU is expected to facilitate trade, tourism activities, and regional economic growth between the two countries. The MoU also represents a new step in the ASEAN Payment System Connectivity Initiative, which is in line with the G20's strategic direction to enhance cross-border payment efficiency. Abdul Rasheed Ghaffour, Governor of the Central Bank of Malaysia, said the MoU reflects the commitment of the two central banks to promote cross-border transactions, remittances and payments in the national currency.
“This cooperation will further deepen the long-term cooperation between the Central Bank of Malaysia and the National Bank of Cambodia, in the interests of the people and business people of the two countries,” he said.
Chea Serey, NBC Governor, added that the NBC and Central Bank of Malaysia will also work together to promote financial innovation, and boost trade activities and the financial environment in both countries, as well as promote the use of domestic currency in line with ASEAN goals.
Malaysia and Cambodia To Convene Joint Trade Committee (JTC) - Look To Expand Air Routes
According to a report by The Star, Malaysia and Cambodia have agreed to convene a Joint Trade Committee (JTC) in 2024. The committee aims to explore potential trade, investment, and tourism opportunities that will benefit both countries, as stated by Prime Minister Anwar Ibrahim.
The Malaysian Prime Minister emphasised that under this new trade mechanism, both countries would explore cooperation between their respective customs departments to facilitate the movement of goods.
"We have a huge potential in terms of boosting trade volumes of palm oil and white rice, and the trade ministries of both countries will use the JTC platform to address these challenges and find solutions in both trade and tourism," said Anwar. "Investments have already been made, but we should expect more investments into Cambodia and from Cambodia into Malaysia."
He added that Malaysia and Cambodia will explore new flight routes to expand connectivity between the two nations and between key tourist destinations, particularly Siem Reap. Currently there are several weekly routes between the capitals of Phnom Penh and Kuala Lumpur.
"We explored the issue of tourism and 47 flights from Cambodia to Kuala Lumpur and Kuala Lumpur to Cambodia. I agree that we should explore new routes to explain this because there's a huge potential in both our countries,” Anwar surmised.
Cambodia and Malaysia: Bilateral Relations
During his visit, the Cambodian Prime Minister also met with the President of the Malaysian Senate, Mutang Tagal, and the President of the Malaysian National Assembly, Johari bin Abdul.
At the conclusion of these meetings, both the Cambodian and Malaysian Prime Ministers expressed optimism that the relationship between their countries would further strengthen and potentially reach new heights. Cambodia was one of the earliest nations to establish diplomatic relations with Malaysia in 1957.
According to the Malaysian Ministry of Foreign Affairs, in 2023, Cambodia ranked as Malaysia's 9th largest trading partner in the ASEAN region, with bilateral trade valued at RM3.02 billion (approximately USD $634.2 million). Malaysia's exports to Cambodia were valued at RM2.35 billion (approximately USD $493.7 million), representing a 1.6 per cent increase from 2022.
Malaysian companies have thus far implemented 162 projects in Cambodia, with investments totaling RM14.4 billion (approximately USD $3.02 billion).