Cambodia

Fun & Facts

INTERNATIONAL BUSINESS MANAGEMENT
PROF DR NAZARI ISMAIL
 Cambodia

•Conventional Name :
PREAH-REACH-ANA-CHAK KAMPUCHEA
(Kingdom of Kampuchea)

•Southeastern Asia country, bordering the Gulf of Thailand, Vietnam and Laos

•Capital City : PHNOM PENH

•Population is 14.8 m (UN, 2005)

•Tropical Humid Climate : Rainy (May – Nov) and Dry (Dec – Apr)

•2/3 is covered by forests, however degraded due to slash-and-burn and sifting agriculture
 Demographic
• 0 -14 years : 41.25%
• 15-64 years : 55.28%
• >65 years : 3.47%

• Sex Ratio – Male:Female = 0.94:1

• Ethnic Groups : Khmer 90%, Vietnamese
5%, Chinese 1%, Other 4%
• Religions : Thevarada Buddhist 95%,
Others 5%
• Literacy (age >15 and can read/write) :
35%

• Population Growth Rate : 2.25%

• Birth Rate : 33.16 births/1,000 population
• Death Rate : 10.65 deaths/1,000 population
• Total fertility rate : 4.74 children
born/woman
 Politic
•Independence Day : 9 November 1953
•Multiparty Liberal Democracy under Constitutional Monarchy
•Primarily a civil law mixture of French-influenced codes, royal decrees, and acts of the legislature, with
influences of customary law and remnants of communist legal theory
•An increase influence of common law in recent years

EXECUTIVE BRANCH:
•Chief of State : King Norodom Sihamoni
•Head of Government : Prime Miniter Hun Sen
•Cabinet : Council of Ministers appointed by the monarch, no election.
•Monarch is chosen by Royal Throne Council.
•PM appointed by monarch after vote of confidence by National Assembly
 Politic
•Independence Day : 9 November 1953
•Multiparty Liberal Democracy under

•Constitutional Monarchy
•Capital City –Phnom Penh with
•The royal family has been a constant in contemporary Cambodian history and no-one more so than the
mercurial monarch King Sihanouk who surprised the world with his abdication in 2004.
•The unknown son, King Sihamoni assumed the throne and has brought renewed credibility to the
monarchy.

•The CPP is a new royal family in town.

•PM Hun Sen has a political guile and cunning rivaled in Cambodia.
• Love him or hate him, he has proved himself a survivor, personally as well as politically, for he lost an
eye during the battle for Phnom Penh in 1975.
•With the opposition is under his thumb, and poorly educated electorate, it appears that

“In the country of the blind, the one-eyed man is

king”
The good | the bad | the ugly
 The Good
The Funan Empire (68 – 550 A.D):
• The Funan Empire was the first and the
foremost kingdom
• Follow the culture and art of India (Bengal)
• Follow the alphabetical systems, number
systems, religious and architectural activities
from India.

The Chenla Era (550 – 802 A.D):

• Chenla Era started after defeating the Funan Empire.
• The Khmers, vassals of the Funan finally ended up
in the Mekong and Tonlѐ Sap Rivers where it was
related to wet - rice agriculture.
• Chenla, their first independent state was then
developed.
 The Good
The Khmer / Angkor Empire (802 – 1431 A.D):
• After the Chenla era, Cambodia was totally
under the control of the Khmer king
• It was during this period the name Cambodia
(Kampuchea) evolved.
• During this era, Cambodia was making trade
with Asian countries and resulted in the
economic rise of Cambodia.
• Finally the Angkor Thom was captured by
the Thai which led to flee of the Cambodian
king to the south of the country.
 The Bad
The dark age of Cambodia(1618 – 1863):
• Due to religious conflict and internecine rivalries
by the king, Cambodia sought protection from
neighboring countries – Thai or Vietnam.
• Nguyen lords of southern Vietnam came to
rescue the Cambodian King for settlement rights
in the Mekong Delta region.
• In the west, the Thais controlled the provinces of
Battambang and Siem Reap in 1974 which held
much influence over the Cambodian royal family.

Under French control ( 1864 – 1953):

• King Norodom of Cambodia decided to sign a
protectorate agreement with the French government.
• Initially, French officials involved little direct
interference in Cambodia’s affair
• In 1884 - French take over the entire control of
Cambodia.
• During World War II – Japanese occupied
Cambodia.
• After WW II – French returned and Cambodia once
again under the French Union.
The Sihanouk Years (1955 to 1970)
• In 1953, Cambodia gained their independence
through King Sihanouk. 
• Sihanouk abdicated the throne and became a full
time politician while his father became king.
• Cambodia remained neutral between US and
USSR regarding tensions in Vietnam.
• All classes were fed up with the pervasive
corruption in government ranks.
• In 1967 – a rural based rebellion broke out in
Samlot, Battambang. The army pressured him to
implement harsh repression against left-wingers.
• In March 1970 – General Lon Nol & Sihanouk’s
cousin (Prince Sisowath Sirik Matak) took over
the country with US consent
• Sihanouk took up residence in Beijing and set up
government – in – exile in alliance with an
indigenous Cambodian – Khmer Rouge.
 The Ugly
Final stages in Cambodian development:
• The Khmer Republic started when US and South
Vietnamese forces invaded Cambodia to flush out
Viet Cong – Lon Nol govt. become unstable +
corruption – Khmer Rouge play dominant role to
over throw Lon Nol regime.
• Upon taking Phnom Penh, the Khmer Rouge
implemented radical and brutal restructuring of a
society. They ruled for 3 years, 8 months and 20
days and over 20% of Cambodia's population was
murdered.
• On 25 Dec 1978: Vietnam launched a full-scale invasion of Cambodia, toppling Pol Pot
government 2 weeks after.
• In Sept 1989: Vietnam announces withdrawal of all troops in Cambodia.
• In Sept 1990: peace plan took place – the Supreme National Council (SNC), a coalition
of all fractions would be formed under the presidency of Sihanouk and UN Transitional
Authority in Cambodia (UNTAC) would supervise the admin of the country for 2 years
with the goal of free and fair election.
 Summary
The good, the bad and the ugly is the simple way to sum up Cambodian history. Things
were good in early years, culminating in the vast Angkor empire, unrivalled in the region
during four centuries dominance. The bad set in from the 13 th century, as ascendant
neighbours steadily chipped away at Cambodian territory. In the 20 th century it turned
downright ugly, as a brutal civil war lead to the genocidal rule of the Khmer Rouge
(1975 – 1979), from which Cambodia is still recovering ‘till to date.

They are cured now, very much cured.

They are tanned and fine. Their eyes are their only scars.

~ Stephen Vincent Benet ~

American author, poet, short story writer and novelist
 Culture
Sculpture
Lifestyle Handicrafts
Greetings Cinema
Dress
Taboos
Arts
Music
• Land of culture, tradition and ethnic civilization
•Starts its influence from Indian, follow by Thailand and Laos
•They developed their way of life from Buddhism and Hinduism
•Cambodia is a popular tourist destination, known for its ancient holy destinations, vivid pagodas,
untouched islands, hill tribes settled , beautiful architecture etc
Population Growth 1986-2010

Population Source: National Statistical Office Latest actual data: 2007 Primary domestic currency:
Cambodian riels Data last updated: 09/2009

With a rapid growth rate, it is predicted to reach 20

million by 2020
 Khmer is the official language of Cambodia and is
used in most social contexts including government

administration, education at all levels, and in the

mass media.

It is spoken by roughly 90% of the population.

Languag Regional differences are slight and normally

mutually

e intelligible.

Based on the dialect of the capital city of Phnom

Penh, Modern Khmer is used throughout the
nation
and widely understood by its inhabitants

Others
English,
French
Vietnamese
 Ethnicity
Ethnic Percentage
Khmer 90%
Vietnamese 5%
Chinese 1%
Others 4%
 Religion
Theravada Buddhist 95%, others 5%
OTHERS:
Hinduism
Islam
Christianity
Animism(Hinduism+Buddhism)
 Traditional Costume

Aspara Krama Mokot

Traditional Dance
Costume
 Traditional Costume

Sampot Phamuong

Wedding Costume
(Kahen)
Sampot Hol
Popular Cuisine

Caw Ka Tieu Mee Kola

Pleah Spiders
 Education System
Education statistics are improving dramatically but
are still very low by world standards.

Students attend
six years of primary school,
three years of lower secondary school
three years of upper secondary school - grades 10 to
12.
 Hierarchy
Common hierarchical guidelines are
-parents are superior to children,
-teachers to students and
-managers to subordinates.

As a foreigner you may find that people ask

personal questions - this is a means to identify
your 'rank' rather than being nosy.

They may change the way they communicate

depending on your status.
 Etiquette And
Meeting and Greetings
Customs
Dependent on the relationship/hierarchy/age between the people.

The traditional greeting is a bow combined with a bringing of the

hands together at chest level (similar to bringing hands together
for
prayer)

If one intends to show greater respect the bow is lower and the
hands brought higher.

With foreigners Cambodians have adopted the western practice of

shaking hands.

Women may still use the traditional Cambodian greeting.

The simple rule is to respond with the greeting you are given.

People are addressed with the title "Lok" for a man and "Lok
Srey"
for a woman followed with the first name or both the first and
surname.
Etiquette And Customs
Gift Giving Etiquette
Gifts are usually given at Cambodian New Year (Chaul
Chnam).

Unlike most other cultures, Cambodians do not celebrate

birthdays.
In fact, many older people may not know the exact date of their

birth.

If invited to a home, take nicely presented fruit, sweets, pastries

or
flowers.

Avoid giving knives.

Gifts are usually wrapped in colourful paper.

Do not use white wrapping paper, as it is the colour of sadness

When giving gifts use both hands

 Etiquette And
Customs
Dining Etiquette

Table manners are fairly formal.

The oldest person is usually seated first.

Similarly the eldest person should start
eating before others.

Do not begin eating until the eldest person

starts

Never discuss business in such social

settings
Business Etiquette And Protocol
Business Meetings

Meetings do not stick to any schedule or agenda

Cambodians are very indirect communicators so some reading between the lines is a necessary skill

They will always consider the implications of making statements or using particular words
especially if
it involves anything negative as this draws in the issue of face

if Cambodians disagree with someone they would rather remain silent than make any comment.

 Punctuality is important. Arriving late shows a lack of respect for the person with whom you are
meeting

 Non-verbal behavior is important to be aware

eg:-smiling may mean a person does not understand what has been said, they are nervous or even
irritated

Showing emotions is considered a negative behavior

Anger, impatience or frustration should be hidden as it would lead to a loss of face

Being vocal is not part of the culture and is considered a sign of weakness as well as poor manners
Modesty and humility are emphasized in the culture, so compliments and praise are generally
responded to by a critical comment
 Taboos
Touch people's head. The head is considered the holiest
part of the body

Touch monks if you female. Any physical contact with the

opposite sex is forbidden for ordained monks

Remove stones from historical sites, no matter how small

or undecorated

Purchase historical artefacts in Cambodia. Buy only the

replica ones

Give children vendors in the temples candies if you do not

intend to buy their products

Foul-mouthed in middle of lake or jungle. It is considered

bad omen
Cambodian. The
ongoing subjects
 ANGKOR WAT UNESCO
WORLD HERITAGE

• Was a Hindu Temple built for King Suryavaman II in Siem Reap in 12 th century. In late 13th
century, King Srindavarman a Buddhist monk convert the official religion into Buddhist.
• It is an extraordinary construction like no other building in this world, with towers,
decoration and all refinements which only human genius can conceive of. An epitome of the
high classical style of Khmer architecture.
• It is grander than anything left to us by Greece and Rome but present a sad contrast to the
state of barbarism which the nation is now plunged. Since 1992, this monument has been in
scripted under UNESCO World Heritage
• In Jan 2003, a riot erupted in Phnom Penh when a false rumour circulated by a Thai soap
opera actress, Suvanant Kongying claimed Angkor Wat belonged to Thailand.
 PRASAT PREAH VIHEAR

• Khmer Temple a top of 525m cliff in Dangrek Mountain at the border district of Cambodia-
Thailand.
• In 1962, following a lengthy dispute between 2 countries over the ownership, International
Court of Justice (ICJ) in The Hague has awarded the temple to Cambodia.
• The dispute is far from over. In 2008, the stand-off between the 2 countries began again in
June and led to violent outbreak. They were shooting in Oct 2008 and Apr 2009.
 TONLE SAP LAKE

• The lake is one of the most unique ecological water wonder in the world
• The biggest lake of South East Asia that changes every monsoon and dry season.
Minimum size of 2.8 km2 and about 1 m depth. During rainy season the water of
Mekong reverse its flow and pushes back the surplus rain water into Tonle Sap lake
until 15 km2 with a depth of 8m.
• With the continuous change of water level, the people who live on the lake have to
move their houses away when the water level goes down.
 KHMER ROUGE GENOCIDAL
TRIBUNAL

• Khmer Rouge was remembered for its policy of social engineering and the genocide.
• About 2 million out of 7.1 million (20%) Cambodians are estimated to have died in waves of murder, torture and starvation aimed particularly at the educated and intellectual
elite. Khmer Rouge wanted to eliminate anyone suspected involve in free-market activities.
• After Khmer Rouge toppled down , they retreat into areas near Thai border. Despite the deposal, Khmer Rouge retained its UN seat until 1982. Western governments in fact
repeatedly backed Khmer Rouge in UN and voted in favor for Khmer Rouge to retain the seat.
• In 1996, Pol Pot dissolved the organization and died in 1998, having never been out on trial.
• Until today, UN and the Royal Government of Cambodia have brought trial to the senior leaders of Democratic Kampuchea for crimes and serious violations of Cambodian
Penal Law, International Humanitarian Law and Custom under the Crime of Genocide, that were committed from 17 April 1975 – 6 Jan 1979.
TUOL SLENG GENOCIDE
MUSEUM

• The former ground of a high school turned into prison camp that operated by Khang Khek Leu (Comrade Duch) as the
notorious Security Prison 21 (S-21)
• 17,000 people passed through this centre before they were taken to sites “the Killing Field – Choeung Ek”. They were
repeatedly tortured and coerced into naming family members and close associates who were in turn arrested, tortures and
killed.
• For the first year of S-21’s existense, corpses were buried near the prison, but at the end of 1979, cadres ran out of burial
spaces, so they were taken to Choeung Ek extermination centre. They were then killed with iron bars, pickaxes, machetes
and other makeshift weapons before buried in graves that held as few as 6 to as many as 100 bodies.
• Out of thousands entered Tuol Sleng Centre (known as well as S-21) only 12 survived.
KILLING FIELD CHOEUNG
EK

• The Killing Fields were a number of sites in Cambodia where large numbers of people were
killed and buried by the Khmer Rouge regime, during its rule of the country.
• At least 200,000 people were executed by the Khmer Rouge. Analysis of 309 mass grave sites
by the DC-Cam Mapping Program and Yale University indicate at least 1,386,734 victims.
• Estimates of the total number of deaths resulting from Khmer Rouge policies, including
disease and starvation, range from 1.4 to 2.2 million out of a population of around 7 million.
• Executed by mainly pickaxes to save bullets and buried in mass grave.
 LANDMINES

• To this day it is estimated that there may still be up to six million land mines scattered around
the Cambodian countryside which cause around 35 deaths a month.
• Already 40,000 people have lost limbs due to land mines giving Cambodia the unenviable
record of having the most amputees per capita (about one in every 275 people have lost a
limb!).
• Besides the direct human cost of these mines there are many other less obvious costs such as
food shortages which may result from the inability to farm large areas of rural land that has
been mined.
Economic
Economic
•Centrally controlled economy during 1979~1989
•Transformed towards market oriented economy and started to open up in 1989
•UN sponsored election in 1993 restored international community’s recognition.
•Cambodia started to attract inward FDI from 1994 onwards.

•Export a major contribution : rice, fish, timber, garments and rubber

•Export counterparts: USA, Singapore, Japan, Thailand, China, Indonesia and Malaysia

•Main economic sectors : Agriculture, Tourism and Construction

•Income category: Low income

•Debt External - $829m

•Economic aid : $548 m pleadge in grants
•Economy slowed down in 1997-98 due to regional financial crisis, civil violence and
political fight
Economic
Threats & Vulnerabilities
Population lack of education and productive skills,
suffer from total lack of infrastructure

Fear of renewed political instability and corruption

discourage foreign investment and delay foreign aid

Rising Inflation lead by higher fuel and food prices –

13% in 2008

The Cambodian electricity prices – the highest in

the region – remain a major obstacle in attracting
FDI
Threats & Vulnerabilities
Garments : highly dependent on US and European
export markets now in recession; contracted by
4% in 2008

Tourism : over dependent on Angkor Wat, insufficient

pro poor tourism, insufficient ecotourism that could be
more resilient to global slowdown, impacted by dispute
with Thailand; slowing increase in tourist numbers and
receipts

Construction : decline in demand for real estate as

inflated real estate prices decrease

Agriculture : still very dependent on climatic conditions

Opportunities
•Abundant natural resources
•Competitive labor cost
•Young population (60% of total population under 25)
•Opportunities as Cambodia has become a member of WTO
•Oil & Gas sector as oil wells discovered in Cambodian shores
in 2005 – revenue expected in 2011
•Bio-fuel potential, wind turbine and other technologies
•Cambodia Government looking at building more hydro power
plants to handle its energy needs
• Other Government projects
•Poles of Growth – Phnom Penh>garment
– Siem Reap >tourism
– Sihanoukville>tourism/petroleum
– Battambang >agriculture/commerce
•Special Economic Zones (SEZ) to attract FDI
•The corridor of growth – Phnom Penh - Sihanoukville
Economic
Business Conduciveness
Ease of doing business

Source:http://www.doingbusiness.org/economyrankings/
Business Conduciveness
Corruption

Counterfeit/ Forgery
 Protection of property rights remains a problem – counterfeit medical
drugs
 Counterfeit money exchange
Business Conduciveness
Government policy
Supportive government policy to embrace development:
 Continue to renovate and rebuild transport networks
 Water and irrigation management;
 Electric network extension; and
 Development of communication and information
technology
 Human Resource Development - Professional and technical
Eliminate the major obstacles in doing business
 One window service, shortening the approval period and reduction
in transaction cost and improving business climate through various
governance reforms

Law & Legislation

 Recently approved anti-corruption legislation/ Anti-graft law

Co-operation with foreign bodies

 Cambodian Ministry of Health working with JPMA (Japan
Pharmaceutical
Manufacturers Association) to combat counterfeit medicines in
Malaysian presence in Cambodia
• Currently, Malaysia is one of the largest foreign investors in Cambodia with
investment worth over US$20bil

• Over 200 Malaysian companies operating in Cambodia, out of which about

90 companies are Malaysian-owned and the remaining joint ventures

• Malaysian investment in Cambodia are in the area of banking, logging and

wood processing, hotel, textiles and garment, transportation and forwarding,
plantation, construction, education, power, petroleum and services

• Major Malaysian companies operating in Cambodia include Malayan

Banking Bhd, Public Bank Bhd, Petroliam Nasional Bhd, Muhibbah
Engineering Bhd, YTL Corp Bhd and the Sunway Group
 Thank You

Raja Adlin Faridatul

CGA 080119
Idayu Daud CGA
080073
Noorita Wakiman
Norhayati Mat Lui