Matt Rendall

Joint Asian Development Enterprise

May 2025

As Cambodia navigates its post-pandemic recovery and positions itself within the dynamic ASEAN economic landscape, Paul Clements, Managing Partner at Joint Asian Development Enterprises (JADE) and Chairman of the International Business Chamber of Cambodia (IBC), offers a seasoned perspective on the nation's economic trajectory and investment climate.

A Veteran's Perspective on Cambodia's Economic Evolution

Having arrived in Cambodia in 2009 as Chief Operating Officer of ANZ Royal Bank, Clements has witnessed firsthand the Kingdom's economic transformation. "Phnom Penh has changed considerably with the restoration of some wonderful historical sites, become cleaner, better office and shopping environment, increase in the quality of life and education, and continues to remain safe," he reflects.

His extensive banking experience, spanning over 30 years across Relationship Banking, Investment Banking, Risk, Operations, and Transformation, has been instrumental in shaping his insights into Cambodia's financial sector.

Current Economic Landscape: Challenges and Opportunities

Clements acknowledges the challenges posed by global economic headwinds, noting, "Global issues have and will continue to dampen past GDP growth rates." He identifies the tightening of liquidity in the market as a significant risk, potentially impacting various projects and industries.

Despite these challenges, he remains optimistic about Cambodia's economic prospects. "Cambodia has a great base for ongoing economic development due to past investment, the drive of its people, and the new dynamic government," he asserts.

Sectoral Insights: Agriculture, Tourism, and Financial Services

Clements highlights agriculture as a major opportunity in the next five years, emphasizing the country's abundant land and water resources. He also anticipates a gradual return of tourism, a sector that has historically been a significant contributor to the economy. Financial services, he notes, have been a standout sector for many years, reflecting the sector's resilience and growth potential.

Investment Climate: Transparency and Regional Competitiveness

Discussing Cambodia's investment environment, Clements remarks, "The investment space is very transparent; Cambodia has a golden era ahead." He acknowledges the challenges posed by the strength of the US dollar compared to neighboring currencies, suggesting the need for reducing border costs and improving productivity to maintain competitiveness.

Clements also emphasizes Cambodia's leadership in ASEAN regarding GDP growth and attractive investment policies, predicting continued attraction of international Foreign Direct Investment (FDI).

Foreign Investment: Trends and Government Initiatives

While acknowledging a decline in FDI due to COVID-19 and global economic challenges, Clements notes that the base of international investors continues to expand. He anticipates an increase in FDI in 2024, attributing this to ongoing government policies around investment and public-private partnerships (PPPs), as well as growing international confidence in the new government under Prime Minister Hun Manet.

Looking Ahead: Embracing Opportunities Amidst Challenges

Clements believes that "tough times can also bring opportunities," suggesting that assets may be better utilized by those who can maximize their potential. He underscores the importance of leveraging Cambodia's young population and natural resources to drive future growth, while also recognizing that growth may be slower than previously anticipated.

About Paul Clements

Paul Clements is the Managing Partner of Joint Asian Development Enterprises (JADE) and serves as the Chairman of the International Business Chamber of Cambodia (IBC). With over three decades of experience in the banking sector, Clements has held senior roles in institutions such as ANZ Royal Bank, MekongBank, and EnviroCam/HCC. His expertise spans Relationship Banking, Investment Banking, Risk, Operations, and Transformation. Currently, he is involved in consulting across various sectors and holds directorship positions in companies including IS4KH PLC, WorldBridge Outsourcing Solutions Co., Ltd, and JTrust Royal Bank.