Several government officials – and private sector representatives – have shared their belief that Cambodians should not be overly concerned about US President Donald Trump’s announcement that the Kingdom will be subject to 49% “Reciprocal Tariffs”.

It has also been suggested that the Cambodian government will engage in negotiations with the US government to lessen the
impact of the new duties.

On April 3, (Cambodian time), Trump announced new customs tariffs on imported goods from most of its trading partners, including Cambodia. He displayed a graph which suggested that the Kingdom currently imposes tariffs of 97% on US imports, and then said he will half the figure in return.

Pan Sovicheat, spokesperson for the Ministry of Commerce, told The Post that the 97% tariff figure announced by the US lacks any clear foundation. In reality, the tariffs Cambodia imposes on US goods average just 29.4%.

“The government and the commerce ministry are not alarmed by this issue. We will make every effort to protect the interests of the export industry, as well as the interests of workers in Cambodia,” he said.

He added that the ministry is working with all relevant institutions to conduct a study and assess the impact on Cambodia’s export industry. This study will provide concrete data for bilateral discussions and negotiations, as Cambodia is an ASEAN member, and the US engages in trade with ASEAN countries.

“We can conduct negotiations under the regional framework as partners with the US, as well as bilateral discussions, or within the framework of the World Trade Organization. It is clear that many member nations of the World Trade Organization are also affected by the US tariff increase,” he acknowledged.

Ly Kunthai, president of the Confederation of Cambodia Investors Association (CCIA) and president of the Cambodia Footwear Association, told The Post that despite growing concerns and widespread discussions about the tariff increases, he is not particularly worried.

“I think we don’t have much to worry about because I believe the Cambodian government will have negotiations with the US side. I am confident it will not have a significant impact,” he said.

Kunthai also noted that the Kingdom is currently promoting its garment products to European countries, Canada, the UK and the ASEAN region.
Meas Sok Sensan, spokesperson for the Ministry of Economy and Finance, spoke with local media outlet Fresh News.

“A ministry task force has reviewed the implications of the tariff increase, and we will take concrete and thorough measures to ensure that our economy remains competitive and continues to grow, benefiting citizens’ employment opportunities,” he said.

Source: The Nation

Morgan Stanley is raising about 100 billion yen ($684 million) for a Japan-focused real estate fund, two people familiar with the matter said, highlighting investor interest in property as the world’s fourth-largest economy emerges from years of deflation and standstill prices.

The Morgan Stanley-managed fund is due to close in June and expected to raise at least 100 billion yen based on current investor commitments, according to the people, both of whom declined to be identified because the information hasn’t been made public. The final size of the fund could change by the closing, the people said.

Investment will centre on offices and multi-family residential buildings in major cities, as well as logistics and hotels, one of the people said.

Morgan Stanley declined to comment. Details of the fund are reported here for the first time.

The U.S. firm is the latest global asset manager to set its sights on Japanese real estate, an asset class that has come back into favour after years of stop-start economic growth, flat wages and zero inflation.

The investment case has changed sharply over the last year, most notably after the central bank raised interest rates for the first time in 17 years last March.

Prices, including of real estate, are now going up: land prices across Japan grew 2.7 per cent in 2024, the fastest pace since 1991, after which the country’s “lost decades” began, a land ministry survey showed.

“We see great potential in real estate investment in an inflationary environment,” said Ikushin Tsuchida, managing director at Brookfield Asset Management. “Market dynamics are changing,” he said.

At the same time, in a corporate governance push, Japan’s listed companies are looking to improve their use of capital and sell off some property holdings.

Source: Reuters

South Korea’s Constitutional Court on Friday removed President Yoon Suk Yeol from office over his stunning declaration of martial law in a case that ignited the worst political crisis in decades and rattled markets.

WHAT HAPPENS NEXT?
South Korea will have to hold a fresh presidential election within 60 days. Until then, Prime Minister Han Duck-soo will remain as acting president.

After South Korea’s last impeachment and removal, in 2017, a presidential election was held on May 9 following the Constitutional Court’s decision to remove then-President Park Geun-hye on March 9.
Park’s successor was inaugurated the day after that vote.

Polls show opposition leader Lee Jae-myung, who narrowly lost to Yoon in the 2022 presidential election, is maintaining his lead for the snap election, leaving no major challengers.

A populist outsider and former governor of the most populous province in South Korea, Lee has however been beset by his own legal troubles and scandals that could bar him from an election run. He faces trials in cases from bribery to charges related to a property development scandal.

WHAT WILL BE THE NEW LEADER’s PRIORITIES?
Whoever wins the election, the priority will be to bring stability to domestic politics and take on the daunting task of dealing with U.S. President Donald Trump.

Trump has been pressuring allies with tariffs and demanding that South Korea pay more for American troops stationed there.

Tension on the Korean peninsula is also running high. Yoon took a hard line against North Korea, amid Pyongyang’s advances in military and space capabilities and warming ties with Russia.

South Korea suspended a military pact with the North meant to reduce military tension by curbing live-fire exercises along the border. The North’s constitution has designated South Korea as the principal enemy.

Source: Reuters