Cambodia is seeing the establishment of more trusts with the current number at 953 cases, amounting to $1.5 billion, said Sok Dara, Director General, Trust Regulator on Friday at seminar, titled, ‘Trust, An Empowering and Trusted Mechanism for Investment’. This is a huge increases from three years ago, when only 17 trust cases, amounting to $156 million was registered.
Other speakers at the event, included Neak Oknha Ly Khunthai, Chairman, Cambodia Footwear Association, Oknha Lim Tong, President, Cambodia Travel Goods and Leather Association, Oknha Tan Khee Meng, President, Malaysian Business Chamber of Cambodia and Prum Virak, Chairman, Board of Trustees of CamEd Business School.
In his remarks, Director General Dara said, “The majority (933 of 953) of the trusts we see registered with us are commercial trusts amounting to over $1 billion. This can be further split into trusts for real estate, escrow services, fixed deposit, pension funds, shareholding and green bonds.”
To do a deep dive, the Trust Regulator Director General said, they had seen 712 cases registered in real estate, amounting to $688 million; 148 cases in escrow services, amounting to $209 million, 30 cases in fixed deposit amounting to $10 million, 38 cases in pension funds, amounting to $63 million, and 3 cases in shareholding, amounting to $92 million and 2 cases in green bonds, amounting to $1.2 million.
Neak Oknha Ly Khunthai, Chairman, Cambodia Footwear Association, said, “This provision for creating Trusts show attract new investment flows into the country. Even though the Trust market is relatively new in the country; still this sector is growing fast thanks to the efforts of our regulator.”
The Trust Regulator’s participation in this segment has resulted in higher investor confidence,” he added.
“We feel not many people are aware of the Trust framework. Hence we want to highlight, how this can help everyone establish the right framework. Trusts enables you to manage your personal wealth and belonging; have a concrete plan of transfer to loved ones,” said Oknha Tan Khee Meng, President, Malaysian Business Chamber of Cambodia (MBCC).
Entering a legal relationship like a Trust comes with significant benefits. “One, the person is guaranteed certainty of possession of the asset. It also offers legality and protection – as the Trust must be registered with the Trust Regulator; who tomorrow can stand by the Trustee in a court of law for ensuring their claim,” said Trust Regulator Director General Dara. “Flexibility – trust provides great flexibility to the property owner in transferring and managing their property, he added.