Cambodia 20251027
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Headlines:
Ceasefire With Thailand Agreed
Crackdown on Cyber Fraud Networks Intensifies
Arrests of Foreigners in Scam Operations
Prince Group Sanctions Cause Bank Worry
U.S. Lifts Arms Embargo and Expands Security Cooperation
Trade Deals Finalized with U.S. and Regional Partners
Free Speech Restrictions Cause Rights Concerns
Nationwide Ban on E-Cigarettes and Shisha
Budget Rises Above $10 Billion for First Time
Education Investments Reflect Shifting Priorities
Tourism and Transportation by the Numbers
Investment and Business Developments Drive Growth
Ceasefire With Thailand Agreed
Yesterday, President Donald Trump flew into the ASEAN summit in Kuala Lumpur and oversaw the signing of an expanded ceasefire agreement between Thailand and Cambodia. The agreement includes Thailand releasing 18 Cambodian prisoners and both sides pulling heavy artillery back from their shared border. The ASEAN Observer Team is going to monitor compliance. The dispute is centered on the Prasat Ta Muen Thom temple and other contested heritage sites. Both prime ministers promised that they’d try to ratchet down the rhetoric and tension to promote confidence-building.
Read more: Khmer Times (Joint Declaration), France24 (Ceremony), Eurasia Review (Analysis), Lokmattimes (German Response)
Crackdown on Cyber Fraud Networks Intensifies
Cambodia is putting together a posse to dismantle online scam operations. The government says that it’s already cancelled 120 business licenses, suspended more than 1,000 gambling-related websites, and frozen bank accounts that have been connected to digital fraud. Law enforcement operations have resulted in hundreds of arrests and the closure of some of the “illegal” compounds.
Read more: Kiri Post (Task Force), The Star (Cooperation Call)
Arrests of Foreigners in Scam Operations
Police arrested 57 South Koreans on October 22 during a raid that found 86 people allegedly working for an online scam organization in Phnom Penh. The arrests came during a parliamentary inspection led by South Korean lawmaker Kim Seok-ki of employment scams and abuse of Korean nationals. The inspection followed the repatriation of 50 or so South Koreans arrested for similar crimes the previous week. The Korean National Police Agency said that 3,455 people of 20 nationalities have been arrested in the past four months, related to online scams. Korea has been particularly up in arms about how the business has been impacting Korean nationals, and their National Police Agency has begun what they’re calling “Operation Breaking Chains,” an alliance to combat transnational groups. The effort comes after the murder of a South Korean student, who was connected to scam operations, prompted Seoul to threaten sanctions and deploy additional consular staff across Southeast Asia.
Read more: Asahi (Arrests), Korea Times (Embassy Response), The Star (Progress), Korea JoongAng Daily (Repatriation), Korea JoongAng Daily (International Alliance), Next Shark (Korean Response)
Prince Group Sanctions Cause Bank Worry
The U.S. and U.K. said that Prince Holding Group is a transnational criminal organization, and grabbed $15 billion in bitcoin linked to chairman Chen Zhi. The sanctions affected 146 entities. Prince Bank’s mobile app disappeared from Apple’s App Store after the announcements, causing worry from regular customers about transaction safety and access to their money. CEO Looi Kok Soon resigned effective October 22. The National Bank of Cambodia is keeping an eye on things to make sure everything is done according to local law as Prince Bank looks at what options it has to manage the disruption.
Read more: Fed Agent (Seizure), Mezha (Charges), Camboja News (Banking Impact), Camboja News (Scholarship Program)
U.S. Lifts Arms Embargo and Expands Security Cooperation
The United States will lift its arms embargo on Cambodia and increase collaboration on working against transnational crime, including narcotics trafficking and the scams. The U.S. says it will increase placements for Cambodian officers at its military colleges, including West Point and the Air Force Academy, as well as restart joint military exercises. The agreement was finalized during a meeting between President Donald Trump and Prime Minister Hun Manet yesterday at the ASEAN Summit in Kuala Lumpur after assurances from the Cambodian government were given about Cambodia’s role in regional peace and security.
Read more: Khmer Times (Arms Embargo), Cambodianess (Australian Cooperation)
Trade Deals Finalized with U.S. and Regional Partners
The United States also finalized trade deals with Cambodia and Malaysia yesterday at the same ASEAN summit. The agreements cover 68% of $475 billion in U.S. trade with ASEAN. The deals include measures against “third countries” on investment screening, export controls, and tariff adherence. U.S. Trade Representative Jamieson Greer said the deals show how America can reduce the trade deficit while at the same time creating new market opportunities. Spain became Cambodia’s leading EU trading partner on trade volume of $896 million YTD, a 13.76% increase in total exports to the EU.
Read more: Politico (Trade Deals), Khmer Times (Spain Partnership), Khmer Times (EU Dialogue)
Free Speech Restrictions Cause Rights Concerns
Pin Poch, a tour guide, was charged with conspiracy to (*checks notes*) commit treason for suggesting a “color revolution” by way of a Facebook video. San Chansey, a bank worker, was charged with incitement after posts that were allegedly discriminatory to public officials. Rights organizations continue to fret over concerns of freedom of expression, counting more than 80 detainees held on similar claims as of today. The Cambodia Center for Human Rights says there’s been some progress in judicial practices across four Appeals Courts, with improvements in legal representation and public judgment rights, but also remarked about failures to respect rights to reasoned judgment, liberty, and evidentiary rights.
Read more: Camboja News (Arrests), Camboja News (Court Report), Nikkei Asia (Internet Gateway)
Nationwide Ban on E-Cigarettes and Shisha
The PM planned a nationwide ban on e-cigarettes and shisha this week that prohibits the import, sale, distribution, advertising, possession, production, and storage of both products. The ban is the result of public health concerns of youth addiction; authorities say there’s been a worrying rise in use by children and that they fear use will lead to drug abuse. The Health Ministry is going to lead public education on health risks, and the Education Ministry is supposed to enforce the ban near schools. The World Health Organization reports 15,000 tobacco-related deaths annually in Cambodia..
Read more: Asian News Network (Ban Details), Camboja News (Health Impact), Khmer Times (Implementation)
Budget Rises Above $10 Billion for First Time
The Cabinet approved the Draft Law for the 2026 national budget, and it’s going to be the first time that spending will be more than $10 billion. The proposed budget is 40,913 billion riels (approximately $10.20 billion), an increase of 7.8% from last year’s $9.32 billion, and is equal to 18.85% of GDP. The increase is mostly attributable to an increase in defense spending and funding for other policy priorities and reforms. The budget draft will next be sent to the National Assembly for approval, then reviewed by the Senate before being signed into law.
Read more: Cambodianess
Education Investments Reflect Shifting Priorities
Chip Mong Group announced a $100 million investment in iCAN British International School, part of the new Grand Landmark 271 development in Phnom Penh. The school is expected to provide accredited education that is focused on innovation and digital literacy. Cambodia’s Ministry of Tourism has been working with China’s International Economic and Technical Cooperation Company to improve vocational training for “smart tourism” and hotel management, creating new programs that develop industry skills and Chinese language training for tour guides.
Read more: Cambodia Investment Review (School Investment), Travel and Tour World (Tourism Training), UK Entrepreneur (UK Envoy)
Tourism and Transportation by the Numbers
The Henley Openness Index 2025 is out, and Cambodia is near the top of the Southeast Asia charts for visa liberalization. Cambodia now offers visa-free entry to 197 countries. Air Cambodia flew the inaugural Tokyo/Narita–Fuzhou–Phnom Penh route on October 26, expecting to run three round-trips weekly using a 170-seat Airbus A320. The airline also plans to make two Boeing 737 MAX aircraft available in 2029 for nonstop service. The new Techo Takhmao International Airport opened in Phnom Penh on September 9 with an initial capacity of 13 million passengers per year. As of September 2025, the country had 7,963,019 registered vehicles.
Read more: Travel and Tour World (Visa Openness), en.traicy (Air Cambodia), Khmer Times (Japan Route), Khmer Times (Vehicles)
Investment and Business Developments Drive Growth
ABA Bank integrated ABA PayWay with Shopify, the first local payment gateway on the e-commerce platform. The integration allows sellers to accept several forms of payment, including ABA KHQR, VISA, Mastercard, and WeChat Pay, directly into their ABA Bank accounts. Wing Bank got recognition at The Digital Banker’s 2025 Global Retail Banking Innovation Awards for removing cash-out fees and for its network of more than 12,000 agents across the country. Picasso City Garden Development Plc. is running IPO roadshows in advance of a public listing on the Cambodia Securities Exchange. It will be offering shares at KHR 4,800 with a guaranteed (?) 7% annual dividend for the first five years.
Read more: Cambodia Investment Review (ABA PayWay), Kiri Post (Wing Bank), Cambodianess (IPO)
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