Seamstresses in a Cambodian garment factory produce apparel for export. Supplied
Trade between Cambodia and Malaysia experienced a remarkable increase in the first 11 months of 2024. Total trade hit almost $780 million more than a third higher than the equivalent period in 2023.
Statistics from the General Department of Customs and Excise (GDCE) show that from January to November 2024, the total trade value between the two countries reached $776.85 million, a 34.5% increase compared to the same period in 2023. Of this, Malaysian exports to the Kingdom amounted to $649.3 million, a 33.6% increase, while Malaysia imported a total of $127.55 million of Cambodian goods, a 39.2% increase.
This means Cambodia’s trade balance for the first 11 months of 2024 shows a deficit of $521.74 million, up from $394.41 million during the same period in 2023.
Malaysia is Cambodia's 12th largest trading partner, behind China, the US, Vietnam, Thailand, Japan, Canada, Indonesia, Spain, Germany, the UK and Singapore.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post that Malaysia is an important market for Cambodian agricultural products, with Cambodia exporting a significant of rubber in particular. However, he noted that exports to Malaysia are still relatively small compared to imports, as Malaysia is a large country with a large population and a long-established manufacturing sector.
He expressed his belief that Cambodian exports to international markets, including Malaysia, will grow significantly, as new investment efforts and business expansion projects are currently underway in Cambodia.
“Efforts to strengthen domestic production and attract new investments in manufacturing will help enhance Cambodia’s export capacity to international markets in the near future,” he added.
He also pointed out that, aside from trade, Cambodia has a large number of workers employed in Malaysia, as well as a number of Malaysia investments in the Kingdom. Malaysian capital in Cambodia is concentrated in sectors such as banking and finance, agriculture and agro-business, food and beverages, tourism, hospitality and real estate.
The majority of Cambodia’s exports to Malaysia are agricultural and manufactured goods, while Malaysian imports to the Kingdom include electronics, machinery, construction materials and various daily-use products, according to Heng.
On December 24, 2024, During a meeting with Malaysian ambassador to Cambodia Shaharuddin Bin Onn, Minister of Foreign Affairs and International Cooperation Prak Sokhonn, expressed his gratitude for Malaysia’s support and large rice purchases.
Both sides expressed their satisfaction with the growth of bilateral trade, investment and tourism, as well as cooperation in sectors such as labour and education, among others.
In February 2024, Chea Serey, governor of the National Bank of Cambodia, and Abdul Rasheed Ghaffour, her Malaysian counterpart, signed a memorandum of understanding (MoU) on cooperation to promote financial innovation and cross-border payment systems.
The MoU was aimed at fostering closer cooperation, enhancing financial innovation and cross-border payment effectiveness and security, bringing benefits to the people and businesses of both countries. It also opened the way for Cambodia and Malaysia to conduct payments through QR codes.
“This will provide convenience for Malaysian citizens to make payments by scanning QR codes in Cambodia, while Cambodian citizens can also make payments by scanning QR codes in Malaysia. This can be done using local currencies for payments and will support the mechanism for monitoring cross-border payments, making them more efficient and secure. This MoU will also facilitate business activities and tourism between the two countries,” explained the NBC, at the time.
In 2023, Cambodian-Malaysian bilateral trade totalled $632.44 million, marking a 1.9% increase compared to 2022. Cambodian exports to Malaysia amounted to $105.05 million, a 6.1% decline, while Malaysian imports totalled $527.38 million, a 3.7% increase.
