SERC Partners With CCIA To Promote Securities Market In Cambodia
The Securities and Exchange Regulator of Cambodia (SERC) signed a Memorandum of Understanding (MOU) with the Cambodia Confederation of Investors Association (CCIA) on “Cooperation on Raising Awareness and Promoting Participation in the Development of the Securities Sector in Cambodia” on September 17, 2024, at the Non-Bank Financial Services Authority Building (FSA).
This MOU – signed by H.E. Sou Socheat, Director General of SERC, and Neak Oknha Ly Kunthai, President of CCIA – aims to promote the development of the securities sector and establish cooperation in raising more awareness on Cambodia’s securities market.
Primary objectives of the MOU are to equip CCIA members for investment readiness, facilitate financing through the Cambodian securities market, and strengthen good corporate governance practices to enhance transparency and confidence in Cambodia.
Speaking at the event, H.E. Sou Socheat emphasised that the securities market provides investors with the opportunity to diversify their investments, even with a small amount of capital, thus offering potential for higher returns and easier start-ups. Simultaneously, the market serves as a significant source of capital for companies aiming to expand and achieve better standardised practices, and also helps support the country by showcasing a strong domestic market value to the world.
The Director General said:
If [international investors] want to assess [Cambodia’s] market, they will look at the securities market. Currently, Cambodia’s market is valued at only USD 2.73 billion, a figure that is too small to reflect the true market value of all companies in the country. If more companies join the securities market, total capital in the market will also increase.
“While banks may sometimes deny loans, in the securities market, investors won’t say no. If a company has good business performance, people will be willing to buy its shares,” he added.
Neak Oknha Ly Kunthai also stated, “The CCIA is honoured to sign an MOU with the SERC. We are dedicated to promoting and facilitating ongoing education and knowledge acquisition for our members and investors, with a particular focus on capitalising on new investment opportunities to contribute to the development of the securities sector in Cambodia.”
The CCIA was formed in 2023 by six business chambers in Cambodia to promote economic growth and investment opportunities in the Kingdom. The CCIA includes the Cambodia Chinese Commerce Association (CCCA), Cambodia Footwear Association (CFA), Cambodia Travel Goods and Leather Association (CTLA), China Sichuan & Chongqing Chamber of Commerce in Cambodia (CYZSH), Malaysian Business Chamber of Cambodia (MBCC), and Singapore Club Cambodia (SCC).
As part of this MOU, a dissemination workshop on investment opportunities and seeking financing through the securities market was also held on the day of the signing. The workshop shared experiences from award-winning securities firms and retail investors regarding their trading experiences in the securities market, as well as insights from issuers on financing sources and sustainable business practices.
The event was attended by senior management and technical officials of the SERC, representatives of the General Secretariat of the FSA, regulators and units under the FSA, the Cambodia Association of Securities Firms (CASF), the Securities Investor Association of Cambodia (SIAC), the Derivative Broker Association in Cambodia (DBAC), and media partners, totaling 145 participants.