Interview: Stephen Higgins on Cambodia’s Economic Crossroads — Cautious Optimism with Global Storm Clouds Ahead May 2025 Stephen Higgins, Managing Partner at Mekong Strategic Capital As Cambodia navigates a post-pandemic recovery amidst global uncertainty, one of the country’s most influential economic voices, Stephen Higgins, Managing Partner at Mekong Strategic Capital, offers a sobering yet cautiously optimistic perspective on where the Kingdom stands — and where it might be heading in the year ahead. We sat down with Higgins to get his take on the current economic climate, the challenges ahead, and what he sees as the key drivers of resilience and recovery. Q: Looking back, how would you describe Cambodia’s economic performance in 2023 and 2024? Higgins: The official line was 5% GDP growth, but we’re skeptical. When you dig into the numbers, about 2.1% of that was from non-garment manufacturing, mainly solar panel exports. That doesn’t pass the sniff test — Cambodia doesn’t have the infrastructure to justify that scale of solar panel production. If you strip that out, you’re left with something close to economic stagnation. Q: What indicators give you cause for concern? Higgins: Garment exports — a pillar of the economy — were down. Tax revenues fell significantly, particularly VAT and excise collections, which typically signal consumer activity. Vehicle imports, which are a reliable proxy for household confidence, dropped 44%. These aren’t the signs of a thriving economy. Q: So, has 2024 brought a turnaround? Higgins: Yes, encouragingly so. If you exclude solar panels, exports are up 25% year-on-year. That’s even better than what we’re seeing in Vietnam. Garment exports have rebounded, consumer spending is picking up — evidenced by stronger VAT collections and a 28% rise in vehicle imports. It’s the kind of recovery we’d hoped to see earlier. Q: And tourism? Is it bouncing back too? Higgins: To an extent. International arrivals are up 29% compared to last year, but still down 47% from pre-COVID levels. Cambodia continues to underperform in this area. The product offering is good, but the brand perception isn’t where it needs to be. That hurts repeat visitation and long-haul tourist numbers. Q: Let’s turn to the financial sector. Where does it stand in mid-2024? Higgins: Liquidity has returned in a big way. Customer deposits are up 20% in just six months. But that hasn’t translated into credit growth. Banks are cautious, and so are borrowers. Part of that is due to uncertainty in incomes and higher interest rates. Q: What about non-performing loans? Higgins: That’s still a concern. About 7.5% of borrowers are over 30 days in arrears. That number hasn’t shifted much yet. There’s potential for improvement as rates come down and incomes stabilize, but we’re not out of the woods. Q: The real estate sector seems like a pain point. What’s your view? Higgins: It’s oversupplied and soft. Property prices are falling, but not fast enough to clear the market. Restructured loans in the sector account for 14% of total lending, which is significant. There’s a lot of deadweight. Eventually, to resolve the backlog, we’ll need to see widespread sales — and that will likely push prices down further. Q: What’s your overall outlook for the next 12 months? Higgins: Cautious optimism. The worst is behind us in terms of domestic headwinds. But global conditions are softening. The IMF just revised Cambodia’s 2025 forecast down to 4.0% from 5.8%. As a small, open, trade-exposed economy, Cambodia is highly sensitive to global trends — and the external picture isn’t great. Q: Any specific risks to watch? Higgins: A slowdown in the U.S. or Chinese markets could have an outsized impact. And if global interest rates remain elevated, that will constrain investment flows. Cambodia’s current recovery is partly driven by consumption and exports — if either falters, we’ll feel it quickly. Q: What sectors offer the best prospects for growth? Higgins: Manufacturing still has potential, particularly if Cambodia can move up the value chain. Agri-processing and electronics could be strategic bets. Tourism has a long way to go and should bounce back more fully if connectivity and promotion improve. Q: And the financial sector? Higgins: There’s an opportunity to strengthen capital markets. Cambodia needs alternative financing channels beyond bank lending. If the securities and bond markets can be deepened, that will attract investment and provide much-needed diversification. Q: What should policymakers focus on to sustain recovery? Higgins: Infrastructure investment is essential. That includes energy, logistics, and digital infrastructure. The new Phnom Penh airport is a good example — it’ll be a game-changer if executed well. Second, the financial sector needs a long-term clean-up. That means tackling bad debt and ensuring prudent lending practices. Third, trade diversification — Cambodia is still heavily reliant on a few markets and product categories. We need a more resilient export base. Q: If you had to sum up where Cambodia is today, what would you say? Higgins: We’re at a turning point. The economy has shown resilience, but it’s not yet robust. There’s momentum — but it’s fragile. The next 12 months are a window of opportunity to lay the foundations for stronger, more inclusive growth. That requires bold decisions, not just cautious management. About Stephen Higgins Stephen Higgins is a founding partner of Mekong Strategic Capital, one of Cambodia’s leading advisory and investment firms. An influential voice on economic and financial sector issues, Higgins previously served as CEO of ANZ Royal Bank in Cambodia and has worked extensively across Southeast Asia. His regular insights are widely followed by investors, policymakers, and business leaders across the region. Editor’s Note For more commentary from Stephen Higgins and Mekong Strategic Capital, visit mekongstrategic.com or follow their latest reports and appearances on regional economic developments.

Combining Strategic Vision with Hands-On Operational Leadership Daniel Simon, a seasoned hospitality professional from Sweden, brings over 30 years of global experience to his role as Managing Director at Rosewood Phnom Penh. His career spans 11 cities across the United States, Southeast Asia, Canada, and Australia, reflecting a deep commitment to luxury service and cultural immersion After serving as a logistics officer in the Swedish Army, Daniel began his hospitality journey with Four Seasons Hotels & Resorts. He held key positions such as Director of Food & Beverage at Four Seasons Resorts Bali and General Manager at Four Seasons Hotel Tokyo, honing his leadership skills in diverse cultural and economic environments. Daniel's impressive resume also includes significant experience in the cruise industry, having worked as Hotel Director for Celebrity Cruises. In this role, he traversed the oceans of Asia, Alaska, the Caribbean, and Europe, elevating guest experiences along the way.  Upon leaving the cruise industry, Daniel joined W Koh Samui as General Manager before relocating to Bangkok to lead Anantara Siam Bangkok Hotel. There, he developed a profound appreciation for Thailand's diverse culinary offerings, from street food to Michelin-starred dining. In 2021, Daniel took the helm at Rosewood Phnom Penh, located atop the iconic Vattanac Capital Tower. Under his leadership, the hotel has garnered accolades, including recognition in the Travel + Leisure Luxury Awards Asia Pacific 2024.  Daniel emphasizes sustainability and local engagement, exemplified by initiatives like the ecoSPIRITS partnership, which introduced Cambodia's first closed-loop cocktail program at the hotel's Sora Sky Bar.  Daniel holds a bachelor's degree from the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. His leadership at Rosewood Phnom Penh continues to set new benchmarks in luxury hospitality, blending global standards with local cultural richness

Combining Strategic Vision with Hands-On Operational Leadership Daniel Simon, a seasoned hospitality professional from Sweden, brings over 30 years of global experience to his role as Managing Director at Rosewood Phnom Penh. His career spans 11 cities across the United States, Southeast Asia, Canada, and Australia, reflecting a deep commitment to luxury service and cultural immersion After serving as a logistics officer in the Swedish Army, Daniel began his hospitality journey with Four Seasons Hotels & Resorts. He held key positions such as Director of Food & Beverage at Four Seasons Resorts Bali and General Manager at Four Seasons Hotel Tokyo, honing his leadership skills in diverse cultural and economic environments. Daniel's impressive resume also includes significant experience in the cruise industry, having worked as Hotel Director for Celebrity Cruises. In this role, he traversed the oceans of Asia, Alaska, the Caribbean, and Europe, elevating guest experiences along the way.  Upon leaving the cruise industry, Daniel joined W Koh Samui as General Manager before relocating to Bangkok to lead Anantara Siam Bangkok Hotel. There, he developed a profound appreciation for Thailand's diverse culinary offerings, from street food to Michelin-starred dining. In 2021, Daniel took the helm at Rosewood Phnom Penh, located atop the iconic Vattanac Capital Tower. Under his leadership, the hotel has garnered accolades, including recognition in the Travel + Leisure Luxury Awards Asia Pacific 2024.  Daniel emphasizes sustainability and local engagement, exemplified by initiatives like the ecoSPIRITS partnership, which introduced Cambodia's first closed-loop cocktail program at the hotel's Sora Sky Bar.  Daniel holds a bachelor's degree from the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. His leadership at Rosewood Phnom Penh continues to set new benchmarks in luxury hospitality, blending global standards with local cultural richness

Combining Strategic Vision with Hands-On Operational Leadership Daniel Simon, a seasoned hospitality professional from Sweden, brings over 30 years of global experience to his role as Managing Director at Rosewood Phnom Penh. His career spans 11 cities across the United States, Southeast Asia, Canada, and Australia, reflecting a deep commitment to luxury service and cultural immersion After serving as a logistics officer in the Swedish Army, Daniel began his hospitality journey with Four Seasons Hotels & Resorts. He held key positions such as Director of Food & Beverage at Four Seasons Resorts Bali and General Manager at Four Seasons Hotel Tokyo, honing his leadership skills in diverse cultural and economic environments. Daniel's impressive resume also includes significant experience in the cruise industry, having worked as Hotel Director for Celebrity Cruises. In this role, he traversed the oceans of Asia, Alaska, the Caribbean, and Europe, elevating guest experiences along the way.  Upon leaving the cruise industry, Daniel joined W Koh Samui as General Manager before relocating to Bangkok to lead Anantara Siam Bangkok Hotel. There, he developed a profound appreciation for Thailand's diverse culinary offerings, from street food to Michelin-starred dining. In 2021, Daniel took the helm at Rosewood Phnom Penh, located atop the iconic Vattanac Capital Tower. Under his leadership, the hotel has garnered accolades, including recognition in the Travel + Leisure Luxury Awards Asia Pacific 2024.  Daniel emphasizes sustainability and local engagement, exemplified by initiatives like the ecoSPIRITS partnership, which introduced Cambodia's first closed-loop cocktail program at the hotel's Sora Sky Bar.  Daniel holds a bachelor's degree from the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. His leadership at Rosewood Phnom Penh continues to set new benchmarks in luxury hospitality, blending global standards with local cultural richness

Interview: Stephen Higgins on Cambodia’s Economic Crossroads — Cautious Optimism with Global Storm Clouds Ahead May 2025 Stephen Higgins, Managing Partner at Mekong Strategic Capital As Cambodia navigates a post-pandemic recovery amidst global uncertainty, one of the country’s most influential economic voices, Stephen Higgins, Managing Partner at Mekong Strategic Capital, offers a sobering yet cautiously optimistic perspective on where the Kingdom stands — and where it might be heading in the year ahead. We sat down with Higgins to get his take on the current economic climate, the challenges ahead, and what he sees as the key drivers of resilience and recovery. Q: Looking back, how would you describe Cambodia’s economic performance in 2023 and 2024? Higgins: The official line was 5% GDP growth, but we’re skeptical. When you dig into the numbers, about 2.1% of that was from non-garment manufacturing, mainly solar panel exports. That doesn’t pass the sniff test — Cambodia doesn’t have the infrastructure to justify that scale of solar panel production. If you strip that out, you’re left with something close to economic stagnation. Q: What indicators give you cause for concern? Higgins: Garment exports — a pillar of the economy — were down. Tax revenues fell significantly, particularly VAT and excise collections, which typically signal consumer activity. Vehicle imports, which are a reliable proxy for household confidence, dropped 44%. These aren’t the signs of a thriving economy. Q: So, has 2024 brought a turnaround? Higgins: Yes, encouragingly so. If you exclude solar panels, exports are up 25% year-on-year. That’s even better than what we’re seeing in Vietnam. Garment exports have rebounded, consumer spending is picking up — evidenced by stronger VAT collections and a 28% rise in vehicle imports. It’s the kind of recovery we’d hoped to see earlier. Q: And tourism? Is it bouncing back too? Higgins: To an extent. International arrivals are up 29% compared to last year, but still down 47% from pre-COVID levels. Cambodia continues to underperform in this area. The product offering is good, but the brand perception isn’t where it needs to be. That hurts repeat visitation and long-haul tourist numbers. Q: Let’s turn to the financial sector. Where does it stand in mid-2024? Higgins: Liquidity has returned in a big way. Customer deposits are up 20% in just six months. But that hasn’t translated into credit growth. Banks are cautious, and so are borrowers. Part of that is due to uncertainty in incomes and higher interest rates. Q: What about non-performing loans? Higgins: That’s still a concern. About 7.5% of borrowers are over 30 days in arrears. That number hasn’t shifted much yet. There’s potential for improvement as rates come down and incomes stabilize, but we’re not out of the woods. Q: The real estate sector seems like a pain point. What’s your view? Higgins: It’s oversupplied and soft. Property prices are falling, but not fast enough to clear the market. Restructured loans in the sector account for 14% of total lending, which is significant. There’s a lot of deadweight. Eventually, to resolve the backlog, we’ll need to see widespread sales — and that will likely push prices down further. Q: What’s your overall outlook for the next 12 months? Higgins: Cautious optimism. The worst is behind us in terms of domestic headwinds. But global conditions are softening. The IMF just revised Cambodia’s 2025 forecast down to 4.0% from 5.8%. As a small, open, trade-exposed economy, Cambodia is highly sensitive to global trends — and the external picture isn’t great. Q: Any specific risks to watch? Higgins: A slowdown in the U.S. or Chinese markets could have an outsized impact. And if global interest rates remain elevated, that will constrain investment flows. Cambodia’s current recovery is partly driven by consumption and exports — if either falters, we’ll feel it quickly. Q: What sectors offer the best prospects for growth? Higgins: Manufacturing still has potential, particularly if Cambodia can move up the value chain. Agri-processing and electronics could be strategic bets. Tourism has a long way to go and should bounce back more fully if connectivity and promotion improve. Q: And the financial sector? Higgins: There’s an opportunity to strengthen capital markets. Cambodia needs alternative financing channels beyond bank lending. If the securities and bond markets can be deepened, that will attract investment and provide much-needed diversification. Q: What should policymakers focus on to sustain recovery? Higgins: Infrastructure investment is essential. That includes energy, logistics, and digital infrastructure. The new Phnom Penh airport is a good example — it’ll be a game-changer if executed well. Second, the financial sector needs a long-term clean-up. That means tackling bad debt and ensuring prudent lending practices. Third, trade diversification — Cambodia is still heavily reliant on a few markets and product categories. We need a more resilient export base. Q: If you had to sum up where Cambodia is today, what would you say? Higgins: We’re at a turning point. The economy has shown resilience, but it’s not yet robust. There’s momentum — but it’s fragile. The next 12 months are a window of opportunity to lay the foundations for stronger, more inclusive growth. That requires bold decisions, not just cautious management. About Stephen Higgins Stephen Higgins is a founding partner of Mekong Strategic Capital, one of Cambodia’s leading advisory and investment firms. An influential voice on economic and financial sector issues, Higgins previously served as CEO of ANZ Royal Bank in Cambodia and has worked extensively across Southeast Asia. His regular insights are widely followed by investors, policymakers, and business leaders across the region. Editor’s Note For more commentary from Stephen Higgins and Mekong Strategic Capital, visit mekongstrategic.com or follow their latest reports and appearances on regional economic developments.

Interview: Stephen Higgins on Cambodia’s Economic Crossroads — Cautious Optimism with Global Storm Clouds Ahead May 2025 Stephen Higgins, Managing Partner at Mekong Strategic Capital As Cambodia navigates a post-pandemic recovery amidst global uncertainty, one of the country’s most influential economic voices, Stephen Higgins, Managing Partner at Mekong Strategic Capital, offers a sobering yet cautiously optimistic perspective on where the Kingdom stands — and where it might be heading in the year ahead. We sat down with Higgins to get his take on the current economic climate, the challenges ahead, and what he sees as the key drivers of resilience and recovery. Q: Looking back, how would you describe Cambodia’s economic performance in 2023 and 2024? Higgins: The official line was 5% GDP growth, but we’re skeptical. When you dig into the numbers, about 2.1% of that was from non-garment manufacturing, mainly solar panel exports. That doesn’t pass the sniff test — Cambodia doesn’t have the infrastructure to justify that scale of solar panel production. If you strip that out, you’re left with something close to economic stagnation. Q: What indicators give you cause for concern? Higgins: Garment exports — a pillar of the economy — were down. Tax revenues fell significantly, particularly VAT and excise collections, which typically signal consumer activity. Vehicle imports, which are a reliable proxy for household confidence, dropped 44%. These aren’t the signs of a thriving economy. Q: So, has 2024 brought a turnaround? Higgins: Yes, encouragingly so. If you exclude solar panels, exports are up 25% year-on-year. That’s even better than what we’re seeing in Vietnam. Garment exports have rebounded, consumer spending is picking up — evidenced by stronger VAT collections and a 28% rise in vehicle imports. It’s the kind of recovery we’d hoped to see earlier. Q: And tourism? Is it bouncing back too? Higgins: To an extent. International arrivals are up 29% compared to last year, but still down 47% from pre-COVID levels. Cambodia continues to underperform in this area. The product offering is good, but the brand perception isn’t where it needs to be. That hurts repeat visitation and long-haul tourist numbers. Q: Let’s turn to the financial sector. Where does it stand in mid-2024? Higgins: Liquidity has returned in a big way. Customer deposits are up 20% in just six months. But that hasn’t translated into credit growth. Banks are cautious, and so are borrowers. Part of that is due to uncertainty in incomes and higher interest rates. Q: What about non-performing loans? Higgins: That’s still a concern. About 7.5% of borrowers are over 30 days in arrears. That number hasn’t shifted much yet. There’s potential for improvement as rates come down and incomes stabilize, but we’re not out of the woods. Q: The real estate sector seems like a pain point. What’s your view? Higgins: It’s oversupplied and soft. Property prices are falling, but not fast enough to clear the market. Restructured loans in the sector account for 14% of total lending, which is significant. There’s a lot of deadweight. Eventually, to resolve the backlog, we’ll need to see widespread sales — and that will likely push prices down further. Q: What’s your overall outlook for the next 12 months? Higgins: Cautious optimism. The worst is behind us in terms of domestic headwinds. But global conditions are softening. The IMF just revised Cambodia’s 2025 forecast down to 4.0% from 5.8%. As a small, open, trade-exposed economy, Cambodia is highly sensitive to global trends — and the external picture isn’t great. Q: Any specific risks to watch? Higgins: A slowdown in the U.S. or Chinese markets could have an outsized impact. And if global interest rates remain elevated, that will constrain investment flows. Cambodia’s current recovery is partly driven by consumption and exports — if either falters, we’ll feel it quickly. Q: What sectors offer the best prospects for growth? Higgins: Manufacturing still has potential, particularly if Cambodia can move up the value chain. Agri-processing and electronics could be strategic bets. Tourism has a long way to go and should bounce back more fully if connectivity and promotion improve. Q: And the financial sector? Higgins: There’s an opportunity to strengthen capital markets. Cambodia needs alternative financing channels beyond bank lending. If the securities and bond markets can be deepened, that will attract investment and provide much-needed diversification. Q: What should policymakers focus on to sustain recovery? Higgins: Infrastructure investment is essential. That includes energy, logistics, and digital infrastructure. The new Phnom Penh airport is a good example — it’ll be a game-changer if executed well. Second, the financial sector needs a long-term clean-up. That means tackling bad debt and ensuring prudent lending practices. Third, trade diversification — Cambodia is still heavily reliant on a few markets and product categories. We need a more resilient export base. Q: If you had to sum up where Cambodia is today, what would you say? Higgins: We’re at a turning point. The economy has shown resilience, but it’s not yet robust. There’s momentum — but it’s fragile. The next 12 months are a window of opportunity to lay the foundations for stronger, more inclusive growth. That requires bold decisions, not just cautious management. About Stephen Higgins Stephen Higgins is a founding partner of Mekong Strategic Capital, one of Cambodia’s leading advisory and investment firms. An influential voice on economic and financial sector issues, Higgins previously served as CEO of ANZ Royal Bank in Cambodia and has worked extensively across Southeast Asia. His regular insights are widely followed by investors, policymakers, and business leaders across the region. Editor’s Note For more commentary from Stephen Higgins and Mekong Strategic Capital, visit mekongstrategic.com or follow their latest reports and appearances on regional economic developments.

Combining Strategic Vision with Hands-On Operational Leadership Daniel Simon, a seasoned hospitality professional from Sweden, brings over 30 years of global experience to his role as Managing Director at Rosewood Phnom Penh. His career spans 11 cities across the United States, Southeast Asia, Canada, and Australia, reflecting a deep commitment to luxury service and cultural immersion After serving as a logistics officer in the Swedish Army, Daniel began his hospitality journey with Four Seasons Hotels & Resorts. He held key positions such as Director of Food & Beverage at Four Seasons Resorts Bali and General Manager at Four Seasons Hotel Tokyo, honing his leadership skills in diverse cultural and economic environments. Daniel's impressive resume also includes significant experience in the cruise industry, having worked as Hotel Director for Celebrity Cruises. In this role, he traversed the oceans of Asia, Alaska, the Caribbean, and Europe, elevating guest experiences along the way.  Upon leaving the cruise industry, Daniel joined W Koh Samui as General Manager before relocating to Bangkok to lead Anantara Siam Bangkok Hotel. There, he developed a profound appreciation for Thailand's diverse culinary offerings, from street food to Michelin-starred dining. In 2021, Daniel took the helm at Rosewood Phnom Penh, located atop the iconic Vattanac Capital Tower. Under his leadership, the hotel has garnered accolades, including recognition in the Travel + Leisure Luxury Awards Asia Pacific 2024.  Daniel emphasizes sustainability and local engagement, exemplified by initiatives like the ecoSPIRITS partnership, which introduced Cambodia's first closed-loop cocktail program at the hotel's Sora Sky Bar.  Daniel holds a bachelor's degree from the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. His leadership at Rosewood Phnom Penh continues to set new benchmarks in luxury hospitality, blending global standards with local cultural richness

Combining Strategic Vision with Hands-On Operational Leadership Daniel Simon, a seasoned hospitality professional from Sweden, brings over 30 years of global experience to his role as Managing Director at Rosewood Phnom Penh. His career spans 11 cities across the United States, Southeast Asia, Canada, and Australia, reflecting a deep commitment to luxury service and cultural immersion After serving as a logistics officer in the Swedish Army, Daniel began his hospitality journey with Four Seasons Hotels & Resorts. He held key positions such as Director of Food & Beverage at Four Seasons Resorts Bali and General Manager at Four Seasons Hotel Tokyo, honing his leadership skills in diverse cultural and economic environments. Daniel's impressive resume also includes significant experience in the cruise industry, having worked as Hotel Director for Celebrity Cruises. In this role, he traversed the oceans of Asia, Alaska, the Caribbean, and Europe, elevating guest experiences along the way.  Upon leaving the cruise industry, Daniel joined W Koh Samui as General Manager before relocating to Bangkok to lead Anantara Siam Bangkok Hotel. There, he developed a profound appreciation for Thailand's diverse culinary offerings, from street food to Michelin-starred dining. In 2021, Daniel took the helm at Rosewood Phnom Penh, located atop the iconic Vattanac Capital Tower. Under his leadership, the hotel has garnered accolades, including recognition in the Travel + Leisure Luxury Awards Asia Pacific 2024.  Daniel emphasizes sustainability and local engagement, exemplified by initiatives like the ecoSPIRITS partnership, which introduced Cambodia's first closed-loop cocktail program at the hotel's Sora Sky Bar.  Daniel holds a bachelor's degree from the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. His leadership at Rosewood Phnom Penh continues to set new benchmarks in luxury hospitality, blending global standards with local cultural richness

DFDL Cambodia Report Description 20th May 2025 (PDF, 54 pages) This guide by DFDL Cambodia  provides investors, developers and decision-makers with an in-depth overview of Cambodia’s real estate landscape, placing regulatory changes, market opportunities and investment pathways within the wider context of the country’s ongoing economic modernisation and urban transformation. Summary The guide explores Cambodia’s real estate sector across legal, regulatory, tax and operational dimensions, drawing on current laws, zoning rules and sector-specific licensing frameworks. It also examines the opportunities and constraints shaping residential, commercial and industrial development, offering investors a practical reference for navigating the country’s fast-changing investment environment: The guide highlights Cambodia’s real estate market resilience  despite construction slowdowns, supported by 5.8% GDP growth in 2024. Foreign investors face restrictions on land ownership but can utilise trusts  or long-term leases  to structure compliant investments. The regulatory framework governing co-owned buildings allows foreigners to hold up to 70% of units , excluding ground and basement floors. Cambodia’s digital land registration reforms introduce QR-coded certificates  and expanding online cadastral services , strengthening transparency. The new Environmental Code (2023)  mandates stricter EIA processes and consolidates existing environmental laws into 12 books. Sub-Decree 50 (2023) and Prakas 047 (2023) overhaul real estate development licensing, introducing business security guarantees  and enhanced oversight. The expansion of 49 Special Economic Zones , hosting more than 180,000 jobs, continues to position Cambodia as a regional logistics and manufacturing hub. About the Investment Guide to Real Estate The Investment Guide to Real Estate in Cambodia  series provides structured, practitioner-focused analysis of the country’s evolving real estate framework. Each edition outlines significant regulatory updates, sector-specific obligations and practical mechanisms for ownership and development. The series is designed to support both new and experienced investors seeking clarity and compliance in Cambodia’s maturing property market.   About DFDL Cambodia DFDL  is a leading regional law firm specialising in legal, tax and investment advisory services across Southeast Asia. The organisation is recognised for its deep expertise in cross-border transactions and sector-specific regulatory frameworks. With more than 25 years of experience in Cambodia, DFDL  provides authoritative guidance to investors navigating complex legal environments. Organization Website : dfdl.com

aniel Simon is a seasoned luxury hospitality executive with over 30 years of international experience, currently serving as the Managing Director of Rosewood Phnom Penh in Cambodia. Arnaud Darc Chair Thalias Hospitality Group Sector(s): Hospitality, F&B, Retail Arnaud Darc is a prominent entrepreneur and hospitality leader in Cambodia, having first arrived in the Kingdom in 1994. Originally working with Accor Hotels, he went on to found Thalias Hospitality Group , which operates some of the country’s most respected dining and hospitality brands, including Topaz , Malis , Khéma and Yi Sang . With a vision to elevate Cambodia’s culinary and service standards, Darc has played a pivotal role in professionalizing the sector. He also serves as President of the Cambodia Restaurant Association , advocating for industry development, food safety, and skills training across the hospitality landscape. Ashley Irving Askhat Azhikhanov Benilda Fernando Blaise Kilian Casey Barnett Clint O'Connell Cyril Girot Leadership at Rosewood Phnom Penh Appointed in 2021, Daniel has been instrumental in elevating Rosewood Phnom Penh's status in the luxury hospitality sector. Under his leadership, the hotel has received numerous accolades, including being named the #1 Hotel in Asia by Travel + Leisure in 2023. He emphasizes genuine human connections in hospitality and has focused on staff development, promoting local talent to leadership positions . Community Engagement and Sustainability Daniel is committed to community outreach and sustainability. He has initiated programs such as paid internships for local youth and partnerships with Cambodian farmers to supply the hotel with fresh produce. The hotel boasts an on-site hydroponic garden that provides 70% of its leafy vegetables, reflecting his dedication to sustainable practices. Industry Recognition In recognition of his contributions, Daniel was named among the "Top 50 International Voices in Cambodia" by the Cambodia Leadership Review in 2025. He also serves on the executive committee of the International Business Chamber of Cambodia, highlighting his influence in the country's business community . Cambodia Investment Review+1Cambodia Leadership Review -+1 Cambodia Business Chamber+1Cambodia Investment Review+1 For more insights into Daniel Simon's perspectives on luxury hospitality and his role at Rosewood Phnom Penh, you can watch the following interview:

Steering Cambodia’s Economic Future Through Finance and Foresight James Roberts, Partner & Head of Advisory Services at KPMG Cambodia When James Roberts speaks about Cambodia’s economy, he does so with the dual perspective of a seasoned global expert and a long-time resident of the Kingdom. “The Cambodian economy has performed very well in comparison with the large developed economies in North America and Europe, and even in comparison with the larger ASEAN economies such as Singapore,” Roberts observed, noting that during the pandemic Cambodia saw only a modest 6% dip in GDP while bigger economies suffered double-digit contractions. Such insights are characteristic of Roberts, who has spent over 15 years advising businesses in Cambodia and now stands as a leading voice in the country’s financial and economic landscape. Roberts’s journey to becoming a thought leader in Cambodia’s business community began in the United Kingdom. A Chartered Accountant by training, he built his early career in audit and consulting. In the mid-2000s, opportunity knocked in Southeast Asia. “James is a Chartered Accountant from the UK, with more than 15 years advising investors in Cambodia,” notes his official KPMG profile He first arrived in Cambodia when the country’s market was just opening up to international investment, and he has been part of its growth story ever since. In his early years in Phnom Penh, Roberts applied his broad experience across audit, tax, and advisory services. He co-founded or joined Premier Consulting, a local advisory firm, where he honed his expertise in mergers and acquisitions and business strategy. That venture proved prescient: in 2015, KPMG acquired Premier Consulting, bringing Roberts into the global “Big Four” firm’s fold. Since then, Roberts has served as Partner and Head of Advisory Services at KPMG Cambodia, leveraging his experience to counsel both multinational investors and local enterprises. His background spans multiple continents – he’s advised senior professionals across the US, Europe, and Asia – giving him a panoramic view of how Cambodia fits into the world economy. Colleagues say that Roberts’ international perspective is matched by a deep local insight. He has embedded himself in Cambodia’s business community, serving as a board member of the British Chamber of Commerce (BritCham) and as a former treasurer of the International Business Chamber (IBC). It’s not just titles on a resume – through these roles, Roberts has actively participated in policy discussions and investor forums that shape Cambodia’s business environment. In 2025, he was even named among the “50 International Voices for 2025” by the Cambodia Leadership Review, recognizing his influence in driving the Kingdom’s growth. Leading KPMG and Shaping Advisory Services At KPMG Cambodia’s Phnom Penh office – now a bustling workplace of nearly 400 professionals – James Roberts leads the Advisory Services division with a focus on deal advisory, strategy, and transformation. Under his leadership, KPMG’s advisory practice has expanded to meet the needs of a fast-evolving market. Roberts works extensively with new entrants to Cambodia, helping foreign investors navigate the startup phase of their businesses, and with established companies seeking strategic partners for expansion or exit. His role often places him at the nexus of major business decisions in the country. Whether it’s a merger of local companies, the entry of a multinational via acquisition, or a family business looking to modernize, Roberts has likely had a hand in advising the deal. This vantage point has given him a unique read on the market’s pulse. “There is strong upside growth available in a variety of sectors,” he tells investors, “but my firm belief is that agriculture presents the best overall investment thesis of any sector currently”. Demographics and fundamentals drive that view – Cambodia’s young population and growing incomes promise rising demand, making sectors like agriculture and consumer goods particularly attractive in Roberts’ analysis. His day-to-day work involves more than boardroom negotiations. Roberts is often found sharing knowledge at industry events and workshops. In one KPMG-hosted seminar on business transformation, he walked participants through how mergers and acquisitions can help Cambodian companies “future-proof” themselves and integrate into the global market. And in June 2022, he co-led a workshop on enterprise resource planning (ERP) and digital transformation, highlighting trends and challenges in modernizing Cambodian enterprises Those who attended recall Roberts stressing that adopting technology is no longer optional for businesses that aspire to regional competitiveness – a theme he would echo consistently in the years to follow. Economic Growth: Optimism with a Note of Caution Roberts’s tenure in Cambodia has coincided with an era of remarkable growth. He often recounts how, in the two decades before COVID-19, Cambodia averaged around 7% annual GDP growth – one of the fastest in the world Even the pandemic’s impact, he points out, was managed better here than elsewhere. “Cambodia has been the beneficiary of a sustained period of high single digit economic growth… over the past 20 years,” Roberts says, crediting this performance to sound macroeconomic policies and political stability It’s this track record that underpins his characterization of Cambodia’s economy as “robust”. Yet, ever the clear-eyed analyst, Roberts tempers optimism with realism. The very success of the past creates a new kind of vulnerability. “High growth has facilitated the development of many new and successful industries,” he notes. “However, it has also created an environment where the government has limited experience of managing economic shocks”. In other words, a generation of expansion means Cambodia’s policymakers haven’t had to navigate a major downturn – a learning curve that was tested when the pandemic struck. Roberts has urged vigilance as the economy moves forward, advising businesses and officials alike not to become complacent. In interviews, Roberts often speaks about resilience and diversification. He has highlighted how certain well-managed Cambodian manufacturers survived the pandemic by swiftly shifting product lines – for instance, garment factories pivoting to produce in-demand personal protective equipment. This ability to adapt, in Roberts’s view, exemplifies the grit of Cambodia’s private sector. At the same time, he acknowledges challenges in the post-pandemic recovery: tourism, a pillar of the economy, faces a longer road to rebound, and external risks – from global inflation to geopolitical tensions – could still buffet Cambodia’s open, trade-driven economy. “Our message is: do your due diligence and understand the market for every investment,” Roberts told investors in late 2021. The upside in Cambodia remains strong, he argues, but savvy investors must navigate the risks. His practical advice and confidence in Cambodia’s fundamentals have made Roberts a sought-after commentator on the economy, whether he’s briefing a delegation of foreign businesses or speaking to local media about the latest growth forecasts. Championing Tax Transparency & Policy Reform One area where James Roberts’s influence is distinctly felt is tax policy. As an advisor, he has guided numerous companies through Cambodia’s evolving tax framework, and he frequently engages with policymakers on creating a fair, investor-friendly tax environment. Recently, the government has introduced a Special Tax Audit Unit (STAU) to handle large international taxpayers – a move Roberts publicly applauded. “The law introduces a separate audit process for international companies that meet compliance standards, ensuring they are treated with utmost transparency and fairness,” he explained, emphasizing the importance of the new body. Roberts’s emphasis on transparency aligns with a broader shift in Cambodia’s approach to taxation. He notes that tax compliance and clear rules are not just bureaucratic matters but key factors in attracting foreign investment. In forums like the UK-Cambodia Trade & Investment Forum, he has stressed that investors are far more confident when they see a consistent application of tax laws and an efficient system that rewards compliance. Behind the scenes, colleagues say Roberts often serves as a bridge between the private sector and regulators. His tenure as IBC treasurer put him in direct dialogue with tax officials, where he advocated for modernizing tax administration and simplifying procedures. Those efforts complement international developments – such as the OECD’s global tax reforms – which Roberts monitors closely to advise clients on future changes. The introduction of risk-based tax audits, he suggests, is a “positive development” that will encourage better corporate behavior while weeding out bad actors. In Cambodia’s push to strengthen its investment climate, Roberts’ voice is one urging balance: offer competitive incentives, but also build a tax system that is fair and trusted. It’s a message he believes will help the country as it aims for its ambitious Vision 2050 economic goals, moving from lower-middle income toward upper-middle income status. Infrastructure and Investment: Building for Long-Term Growth No discussion with James Roberts about Cambodia’s future goes far without touching on infrastructure. In panels ranging from business chambers to energy summits, Roberts underscores that improving the nation’s infrastructure is critical for sustaining economic growth. At the Cambodia Clean Energy Summit in 2024, where he served as a panellist, Roberts highlighted both progress and pain points in this arena. He praised moves toward “transparent governance and robust regulations” in the energy sector, but noted “the significant challenges of improving infrastructure and establishing strong regional partnerships” for Cambodia’s power and transportation needs. Infrastructure development, in Roberts’s eyes, is the foundation for attracting and retaining investment. Better roads, ports, and logistics networks lower the cost of doing business; a more reliable electricity grid powers new industries. He often points out that sectors like manufacturing and tourism – two engines of Cambodia’s growth – depend on continued improvements in infrastructure. For example, increased airport capacity and connectivity will be vital if Cambodia is to regain its tourism momentum, and upgraded highways and logistics centers will help manufacturers export efficiently to markets worldwide. Roberts also observes that infrastructure is an area ripe for foreign investment itself. Cambodia has welcomed projects funded by China’s Belt and Road Initiative, Japan’s development agencies, and public-private partnerships, from new bridges to special economic zones. The key, Roberts argues, is ensuring these projects align with national needs and are implemented transparently. Given the region’s competition for capital, he sees Cambodia’s recent focus on infrastructure reforms as a positive signal. As a World Bank report noted, “to maintain long-term growth, the country must prioritize financial and infrastructure sector reforms”, a sentiment Roberts echoes in strategy sessions with clients considering infrastructure ventures. His strategic outlook extends to what he calls “strong regional partnerships.” Roberts believes Cambodia’s economic future is intertwined with that of its ASEAN neighbors. Improved cross-border infrastructure – be it highways into Thailand, rail links to Vietnam, or energy-sharing agreements – can greatly amplify Cambodia’s growth. In his Clean Energy Summit remarks, he cited regional power grid connectivity as a win-win solution: Cambodia could export surplus renewable energy or import when needed, but this requires trust and investment among. It’s this kind of big-picture thinking, grounded in practical challenges, that characterizes Roberts’s contributions to discussions on infrastructure and development. Embracing Digital Transformation and Modernization While bricks-and-mortar infrastructure is crucial, Roberts is equally passionate about the less tangible infrastructure of the digital economy. Cambodia’s young population is rapidly coming online, and its businesses are beginning to digitize – trends Roberts sees as pivotal for the next stage of growth. As head of Advisory at KPMG, he has championed digital transformation projects, helping companies upgrade everything from their accounting systems to customer engagement platforms. “The priority of leaders looking to future-proof their businesses is still digital transformation,” notes one KPMG report, reflecting a view Roberts often reinforces to clients. Roberts has been at the forefront of advising on modern enterprise software adoption in Cambodia. In the 2022 workshop on ERP systems, he and his team provided a “high-level overview of the ERP digital transformation journey, trends, [and] challenges” specific to Cambodia. He pointed out that many Cambodian firms, including family-run enterprises, are now investing in cloud-based systems to manage their finances, supply chains, and human resources. The challenges are significant – from training staff to updating legacy processes – but Roberts argues the payoff is worth it. By streamlining operations through technology, businesses can become more efficient and resilient, a message that resonates as companies recall the disruptions of the pandemic. Beyond internal systems, Roberts frequently speaks about the broader digital economy. He has lauded government efforts like the introduction of a national payment gateway and fintech regulations, which have spurred a boom in digital payments and startups. However, he also warns that Cambodia must not fall behind in digital infrastructure: investments in internet connectivity, data centers, and cybersecurity are just as important as roads and bridges. In various panel discussions, he has advocated for public-private collaboration to boost digital literacy and innovation. After all, as he notes, Cambodia’s neighbors are racing ahead with Industry 4.0 initiatives – from Vietnam’s coding schools to Thailand’s automation in manufacturing – and Cambodia will need to keep pace to remain competitive. Internally at KPMG, colleagues say Roberts practices what he preaches. He has pushed the advisory practice to adopt advanced data analytics and to train a new generation of Cambodian consultants in cutting-edge tools. This not only improves KPMG’s service to clients but also contributes to the broader goal of skills development in the country. Roberts often quotes a favorite mantra to young professionals: “Stay curious and keep learning – the economy here is changing fast.” In a country where two-thirds of the population is under 30, that mindset of continuous modernization is one Roberts believes can unlock enormous potential. A Vision for Cambodia’s Future Speaking with James Roberts, one is struck by the balance he maintains – between optimism and caution, growth and governance, local insight and global perspective. He has become, in many ways, an ambassador for Cambodia’s business potential. Whether he’s addressing a room of foreign investors or mentoring Cambodian entrepreneurs, Roberts exudes confidence in the country’s trajectory while never downplaying the work needed to get there. “Cambodia is one of the youngest countries in Asia, and that’s a huge asset,” he said at a recent business forum, pointing to the demographic advantage that could drive the next 20 years of growth. But in the same breath, he’ll remind the audience about education, infrastructure, and institutions – the supporting pieces of the puzzle that must evolve. As Cambodia navigates the complexities of post-pandemic recovery, global economic headwinds, and its own graduation from least-developed country status, thought leaders like James Roberts play a crucial role. They translate the technicalities of finance, tax law, and market trends into actionable insights for decision-makers. They also serve as storytellers, framing Cambodia’s narrative in a way that both honors its progress and candidly addresses its challenges. Roberts does this with a characteristically analytical mind, often peppering his commentary with data points and comparative examples from abroad. Yet, he also speaks with the conviction of someone who has made Cambodia his home and is invested in its success. In the end, Roberts’s influence can be seen in both policy circles and boardrooms: in a new tax audit policy that treats investors more fairly, in a factory that found a buyer thanks to a deal he brokered, or in a young CEO who decided to implement an ERP system after attending one of his talks. These are the incremental changes that, collectively, help shape a nation’s economic destiny. And as an interview with James Roberts makes clear, he’s enthusiastically committed to seeing Cambodia realize the promise of its future – one advisory insight at a time.

Interview: Stephen Higgins on Cambodia’s Economic Crossroads — Cautious Optimism with Global Storm Clouds Ahead May 2025 Stephen Higgins, Managing Partner at Mekong Strategic Capital As Cambodia navigates a post-pandemic recovery amidst global uncertainty, one of the country’s most influential economic voices, Stephen Higgins, Managing Partner at Mekong Strategic Capital, offers a sobering yet cautiously optimistic perspective on where the Kingdom stands — and where it might be heading in the year ahead. We sat down with Higgins to get his take on the current economic climate, the challenges ahead, and what he sees as the key drivers of resilience and recovery. Q: Looking back, how would you describe Cambodia’s economic performance in 2023 and 2024? Higgins: The official line was 5% GDP growth, but we’re skeptical. When you dig into the numbers, about 2.1% of that was from non-garment manufacturing, mainly solar panel exports. That doesn’t pass the sniff test — Cambodia doesn’t have the infrastructure to justify that scale of solar panel production. If you strip that out, you’re left with something close to economic stagnation. Q: What indicators give you cause for concern? Higgins: Garment exports — a pillar of the economy — were down. Tax revenues fell significantly, particularly VAT and excise collections, which typically signal consumer activity. Vehicle imports, which are a reliable proxy for household confidence, dropped 44%. These aren’t the signs of a thriving economy. Q: So, has 2024 brought a turnaround? Higgins: Yes, encouragingly so. If you exclude solar panels, exports are up 25% year-on-year. That’s even better than what we’re seeing in Vietnam. Garment exports have rebounded, consumer spending is picking up — evidenced by stronger VAT collections and a 28% rise in vehicle imports. It’s the kind of recovery we’d hoped to see earlier. Q: And tourism? Is it bouncing back too? Higgins: To an extent. International arrivals are up 29% compared to last year, but still down 47% from pre-COVID levels. Cambodia continues to underperform in this area. The product offering is good, but the brand perception isn’t where it needs to be. That hurts repeat visitation and long-haul tourist numbers. Q: Let’s turn to the financial sector. Where does it stand in mid-2024? Higgins: Liquidity has returned in a big way. Customer deposits are up 20% in just six months. But that hasn’t translated into credit growth. Banks are cautious, and so are borrowers. Part of that is due to uncertainty in incomes and higher interest rates. Q: What about non-performing loans? Higgins: That’s still a concern. About 7.5% of borrowers are over 30 days in arrears. That number hasn’t shifted much yet. There’s potential for improvement as rates come down and incomes stabilize, but we’re not out of the woods. Q: The real estate sector seems like a pain point. What’s your view? Higgins: It’s oversupplied and soft. Property prices are falling, but not fast enough to clear the market. Restructured loans in the sector account for 14% of total lending, which is significant. There’s a lot of deadweight. Eventually, to resolve the backlog, we’ll need to see widespread sales — and that will likely push prices down further. Q: What’s your overall outlook for the next 12 months? Higgins: Cautious optimism. The worst is behind us in terms of domestic headwinds. But global conditions are softening. The IMF just revised Cambodia’s 2025 forecast down to 4.0% from 5.8%. As a small, open, trade-exposed economy, Cambodia is highly sensitive to global trends — and the external picture isn’t great. Q: Any specific risks to watch? Higgins: A slowdown in the U.S. or Chinese markets could have an outsized impact. And if global interest rates remain elevated, that will constrain investment flows. Cambodia’s current recovery is partly driven by consumption and exports — if either falters, we’ll feel it quickly. Q: What sectors offer the best prospects for growth? Higgins: Manufacturing still has potential, particularly if Cambodia can move up the value chain. Agri-processing and electronics could be strategic bets. Tourism has a long way to go and should bounce back more fully if connectivity and promotion improve. Q: And the financial sector? Higgins: There’s an opportunity to strengthen capital markets. Cambodia needs alternative financing channels beyond bank lending. If the securities and bond markets can be deepened, that will attract investment and provide much-needed diversification. Q: What should policymakers focus on to sustain recovery? Higgins: Infrastructure investment is essential. That includes energy, logistics, and digital infrastructure. The new Phnom Penh airport is a good example — it’ll be a game-changer if executed well. Second, the financial sector needs a long-term clean-up. That means tackling bad debt and ensuring prudent lending practices. Third, trade diversification — Cambodia is still heavily reliant on a few markets and product categories. We need a more resilient export base. Q: If you had to sum up where Cambodia is today, what would you say? Higgins: We’re at a turning point. The economy has shown resilience, but it’s not yet robust. There’s momentum — but it’s fragile. The next 12 months are a window of opportunity to lay the foundations for stronger, more inclusive growth. That requires bold decisions, not just cautious management. About Stephen Higgins Stephen Higgins is a founding partner of Mekong Strategic Capital, one of Cambodia’s leading advisory and investment firms. An influential voice on economic and financial sector issues, Higgins previously served as CEO of ANZ Royal Bank in Cambodia and has worked extensively across Southeast Asia. His regular insights are widely followed by investors, policymakers, and business leaders across the region. Editor’s Note For more commentary from Stephen Higgins and Mekong Strategic Capital, visit mekongstrategic.com or follow their latest reports and appearances on regional economic developments.