The Maybank Kim Eng Group (MKE Group) has signed a memorandum of understanding (MoU) with the Securities and Exchange Commission of Cambodia (SECC). In a move that will see them work together to further develop the Kingdom’s securities industry.
The MoU, which was signed yesterday at Sofitel Phnom Penh, will establish a Cooperation and Technical Assistance Framework that is expected to lead the Cambodian capital market to greater heights.
MKE Group was represented by chief operating officer Mohamad Yasin Abdullah, while Sou Socheat, director-general, signed the agreement on behalf of the SECC. Maybank (Cambodia) CEO Mohd Hanif Suadi were also present at the ceremony.
MKE Group is the investment banking arm of Malaysia’s Maybank Group, which is one of Asia’s leading banking groups.
Under the three-year agreement, both parties agreed to cooperate in all areas of capital market development. These include the sharing of best practices and standards on areas of risk management, corporate governance and compliance, product development and standardised reporting systems for finance and accounting.
“We will share knowledge and recommendations primarily on rules, regulations and legal framework for Cambodia’s capital market,” Mr Yasin said.
Mr Yasin said they are happy and excited to work with the SECC. “We are honoured to collaborate with the SECC in developing Cambodia’s capital market,” he said.
With Cambodia’s economy on the rise, Mr Yasin hinted that now is the perfect time for such collaboration.
Cambodia is among the fastest-growing economies in the world. According to various forecasts, Cambodia’s economy will grow by nearly 7 percent this year.
This development is leading to tremendous growth for the Kingdom’s financial industry. “No wonder foreign investors are paying close attention to the development here,” he stated.
Buoyed by a strong and progressive economy, Cambodia’s capital market has grown steadily in recent years. Late last year, the Cambodian Securities Exchange (CSX) registered record growth in trading, a development that is expected to continue this year and in the foreseeable future.
Mr Yasin said MKE Group is well-positioned to help Cambodia grow its capital market.
“Operating in six Asean countries, MKE Group brings decades of regional experience and expertise into Cambodia. We will prioritise sustainability and purpose-driven growth in the financial industry to ensure that Cambodia’s corporates and communities can thrive together,” he emphasised.
He said that once the legal framework and everything else is in place, they will start bringing clients and other investors into the Kingdom. “This is the first step,” he said.
“We look forward to playing a prominent role in the next chapter of Cambodia’s development,” he added.
For his part, Mr Socheat said he is confident that their partnership with the MKE Group will be successful. “I am confident that the MoU will strengthen our relationship, and move our partnership to a higher level,” he said.
“This collaboration will enable us to scale new heights of performance, to power the growth of Cambodia’s securities industry and to continue making a vital contribution to the nation’s economy,” he added.
In the same speech, he also thanked Maybank, which he said were among the first foreign financial institutions that helped Cambodia recover economically after years of conflict. Maybank has been in Cambodia since 1993.
“It has almost been three decades of partnership,” he pointed out.