Phnom Penh SEZ Plc, the kingdom’s leading economic zone, announced last week plans to diversify its revenue after revealing less-than-satisfactory financial results for 2017.
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Total revenue in 2017 equalled $9.1 million, a decrease from the previous year’s $9.4 million, according to Fong Nee Wai, PPSEZ’s chief financial officer, who spoke during the company’s annual general meeting on Friday.
The company was, however, able to achieve a higher gross margin than in previous years, Mr Nee Wai said, adding that net profit rose by 16 percent, reaching $1.68 million.
Revenue in 2017 came mostly from the sale of land, Mr Nee Wai said.
During the meeting on Friday, the group laid out financial plans for 2018, confirming that it will focus on expanding the size of the SEZ and increasing revenue from sources other than land sales.
The company will focus on generating income from the provision of utilities such as power and waste water treatment, said Lim Chhiv Ho, chairwoman at PPSEZ, arguing that currently the company is too reliant on revenue from land sales.
Meanwhile, Poipet PPSEZ, a wholly-owned subsidiary of PPSEZ, announced that is looking to attract high-tech manufacturers currently based in Thailand.
Hiroshi Uematsu, CEO of Poipet PPSEZ, said they are particularly interested in Japanese, Thai, Taiwanese, and European firms.
“In Poipet we have the potential to attract more value-added, high-tech industry,” he said. “We are committed to providing quality infrastructure so that we can attract valuable manufacturers to Cambodia.”
In February this year, PPSEZ signed a memorandum of understanding with the United Nations Development Programme to implement a new housing programme for factory workers in the SEZ. 2,000 houses will be built during phase one of the agreement, according to Ms Chhiv Ho.
PPSEZ is also planning to connect the SEZ to the country’s railway network, which will facilitate transport and reduce the cost of commuting, she said.
“We are discussing the construction of a new rail line that will reach PPSEZ. We hope construction will begin this year.
“We hope to see a railway service connecting Poipet to Phnom Penh, including our SEZ, and further on to Sihanoukville.”