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New MFI in town, ‘more still needed’

ORO Financecorp Plc held its official launch on Friday, joining the growing ranks of microfinance institutions in the Kingdom.

ORO Financecorp started providing business, agricultural and tractor loans in January with a $4 million capital investment from Seng Enterprise Co Ltd of Cambodia and Creed Asia Investment Ltd of Japan.

CEO Chet Kimchin used Friday’s belated launch to talk up the company’s potential.

Loans bring trust, not rate cuts

Three of Cambodia’s largest financial institutions were granted $105 million in loans during last month alone.

PRASAC, Cambodia’s largest microfinance institution, last week signed a loan agreement worth $20 million with German development bank KfW. On May 19, Amret MFI, Cambodia’s second-largest microfinancer, received a $10 million loan from the same German investment bank.

KfW’s loan to PRASAC is valid for five years and accrues 6.8 per cent interest annually.

In the commercial banking sector, the Asian Development Bank (ADB) last week gave Acleda Bank a $75 million loan.

All three of these loans were granted on the condition that the funds be used to benefit Cambodia’s small- and medium-size enterprises (SMEs).

ADB funds longer-term loans

Acleda Bank signed an agreement yesterday with the Asia Development Bank (ADB) for a $75 million loan to use for longer-term lending to the Kingdom’s smallest businesses.

In Channy, president and group chief executive officer of Acleda Bank, told the Post yesterday that saving deposits – traditionally used to fund loans – are usually no longer than 12 months, which restricts the length of time the bank is able to lend.

The ADB cash injection will give Acleda sufficient funds to be able to lend to businesses over an extended period.

“There is a big demand for loans with long periods among Cambodia’s micro- and small-business owners,” Channy said. “The ADB’s loan allows us to expand loans to businesses up to average periods of three to four years.”

Industry Predictions and Forecasts for 2014

The challenges facing the mobile operators in Cambodia are numerous. The market still needs to consolidate further. There are still too many mobile operators for the size of the market, and the confusion surrounding investment and pricing issues, which affect both customers and the mobile companies, needs to be addressed.

The telecommunications regulator will be key to ensure future growth and that the competitive nature of the market remains. It needs to lead and direct the market in a way which stimulates demand, whilst at the same time creating a fair and open market for both end users in terms of clarity of pricing, and as a result, give the mobile networks the confidence in terms of commitment to future investment.
The biggest growth will be from the rise in consumers utilising data. More and more people continue to access data through their mobile device and transact through their phone.

Song Saran, AMRU Rice (Cambodia) CEO. PHOTOSUPPLIED

Song Saran, AMRU Rice (Cambodia) CEO
WE EXPECT that the quantity of Cambodia’s rice exports will reach around 650,000 tonnes in 2014, closer to the government’s goal of 1 million tonnes in 2015.
Cambodia still has potential to expand the market in Europe, but exporters are also trying to go to emerging markets in Asia and West Africa to maintain sustainable growth.
We foresee that in 2014, the government of Cambodia will be more responsible for reducing unofficial payments than past years. The government is providing easier export procedures and facilitating the lower costs of transporting goods, which is a significant improvement to better compete with neighboring countries.

First for bank meeting

CAMBODIA hosted the ASEAN Banking Council Meeting of the ASEAN Bankers Association for the first time Thursday as the two-day event kicked off in Phnom Penh with discussions covering cooperation on finance, investment and trade, as well as education. “Cambodia has enjoyed political stability and rapid economic growth for the past decade and is now on the investment map of many businessmen,” Pung Kheav Se, chairman of the Association of Banks in Cambodia, said in a welcome message to delegates.

World Bank on loans, polls, ASEAN

The World Bank announced recently that it was preparing a new two-year interim strategy for Cambodia. What does this mean?

We have begun a process of engagement. The next step is that we will launch consultations with all stakeholders in Cambodia – all key stakeholders – in government as well as in civil society, development, the private sector and academia. We hope this is going to start early next year, and after that we will look at what comes out of these consultations. We will incorporate them into an interim strategy note, which is a tool that the World Bank uses for engagement with countries such as Cambodia. That will be put forward to the board of executive directors for consideration in due course when it is ready.

Nine hot Asian banking jobs with skyrocketing salaries in 2014

If you’re looking for a banking role in Hong Kong or Singapore, don’t expect a huge uptick in the job market next year.

Headhunters in the Asian financial hubs tell us they aren’t expecting a bumper 2014, while a new survey by recruiters Astbury Marsden points to falling candidate confidence in Singapore.

But there are some banking roles in Asia that will be genuinely in demand in 2014 – here’s our pick of the region’s most sought-after jobs, where candidates can expect pay rises of 15% or more.

1) IPO execution

Attention unemployed i-bankers: IPO execution roles will be hot in Hong Kong next year, according to Marlene Chan, a senior consultant at headhunters Capital People. “The expectation of the IPO market is positive for 2014 and hiring will become more aggressive because many banks will face a shortage of staff in ECM due to massive layoffs in 2012 and 2013. People who speak native Mandarin will be especially in demand and will get the highest pay rises,” she added. Another headhunter said Deutsche Bank, JPMorgan and HSBC will be hiring in ECM in Hong Kong, as will the Chinese banks.

Tips for Getting a Job at a Commercial Bank

Do you have a passion for numbers? A business background? You may be interested in working at a commercial bank. For those of you graduating soon, or simply wishing to change jobs, you probably know that perseverance and diligence go a long way. It's no different with finding a job at a commercial bank. You must put in time and effort into the job search, especially in the financial services industry, which is even more competitive in today's market environment.

How to get a banking and investment graduate job: the basics

Everything you need to know about graduate jobs with investment banks and related organisations. Whether you want to know how much you could expect to earn, or what areas you could work in, you can find answers to key questions here.

A career in banking and investment is all about making money. Graduate recruiters in banking and investment provide financial services to clients at the top end of the market, such as corporations, institutions and governments. Amongst other services, clients are assisted to raise loans, invest surplus cash, take over and merge with other business or float shares on the stock exchange.

This is the most important thing

"Rule No. 1: never lose money; rule No. 2: don't forget rule No. 1"

Source: The Tao of Warren Buffett

Be greedy when others are fearful

"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."

Source: Letter to shareholders, 2004

Beware when investing turns into speculating

"The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible

The company is more important than price

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Source: Letter to shareholders, 1989

Don't swing at everything

"The stock market is a no-called-strike game. You don't have to swing at everything--you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, 'Swing, you bum!'"

Source: The Tao of Warren Buffett viaEngineeringnews.com

On Wall Street advice

"Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."

Source: The Tao of Warren Buffett

Price and value are not the same

"Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.' Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down."

Source: Letter to shareholders, 2008

No need to be a genius

"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ."

Source: Warren Buffet Speaks, viamsnbc.msn

If Newton had a "Fourth" Law of Motion...

"Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases."

Source: Letters to shareholders, 2005

Bad things aren't obvious when times are good

"After all, you only find out who is swimming naked when the tide goes out."

Source: Letter to shareholders, 2001