While 2026 has presented significant challenges for businesses operating in Cambodia, Malaysian companies have also found new opportunities amid shifts in regional supply chains, with bilateral trade recording strong growth, according to Oknha Tan Khee Meng, President of the Malaysian Business Chamber in Cambodia (MBCC).
Tan said the business community had been closely monitoring developments affecting Cambodia’s trade and investment environment, but Malaysian companies had been able to respond by helping fill supply gaps created by changes in regional supply chains.
“For Malaysia, it’s a year of opportunity,” Tan said in an interview.
He pointed to bilateral trade as evidence of the growing economic relationship. Trade between Cambodia and Malaysia exceeded $1.17 billion in 2025, marking the first time bilateral trade had surpassed the $1 billion threshold in decades, he said.
The momentum has continued into 2026. According to Tan, bilateral trade reached about $730 million during the first seven months of the year, representing a 41% increase compared with the same period in 2025.
Importantly, the growth has not been limited to Malaysian exports to Cambodia, he said. Cambodian exports to Malaysia have also increased, making the expansion a two-way development that benefits both economies.
“Malaysian businesses have been very busy filling the gaps due to the shift of the supply chain in Cambodia,” Tan said.
For Malaysian investors considering Cambodia, Tan identified fast-moving consumer goods and consumer products as among the most immediate opportunities.
He said disruptions to established supply chains had created gaps in the Cambodian market, particularly for products that had previously been sourced from neighbouring countries.
“This is the immediate gap that Malaysian businesses can tap into,” he said, pointing to Malaysia’s mature FMCG manufacturing sector and its established product base.
Tan said Malaysia’s halal industry was an additional advantage, noting that many Malaysian FMCG products were halal-certified.
He said this could create opportunities not only to supply the Cambodian market but also potentially to develop production in Cambodia for export to other markets.
As the head of both MBCC and a major accounting and business advisory firm, Tan also offered his assessment of Cambodia’s taxation and compliance environment from the perspective of Malaysian investors.
He said Cambodia’s corporate income tax rate is relatively low compared with other countries in the region, including Malaysia, making the country an attractive destination for investors.
The standard 10% value-added tax rate also provides a relatively straightforward system for businesses to comply with, he said.
“Malaysians have never objected to complying and paying tax in Cambodia,” Tan said.
The bigger concern, he added, arises when tax laws or regulations do not provide sufficiently clear interpretations, potentially creating uncertainty for businesses.
He nevertheless said the continued digitalisation of tax administration was helping address some of these concerns.
The General Department of Taxation’s move towards electronic tax filing, he said, enhances transparency and gives investors greater confidence because declarations and submissions can be made through a secure electronic system.
“Electronic filing enhances transparency,” Tan said, adding that Malaysian investors have responded positively to Cambodia’s digital tax system.
Beyond tax and regulatory considerations, Tan said Malaysian investors have another important advantage: a long-established business and community presence in Cambodia.
Malaysian investors were among the early foreign investors to enter Cambodia following the country’s opening of its economy in the early 1990s. Over the years, many Malaysian businesses have established successful operations across different sectors.
Those existing success stories can serve as practical examples and sources of guidance for new Malaysian investors, Tan said.
“We have a very deep history in Cambodia,” he said.
He also pointed to the cultural similarities between Cambodia and Malaysia, and said Malaysian businesses can generally adapt relatively easily to the Cambodian market.
The existing Malaysian community also provides a support network for newcomers, helping them navigate the local business environment.
“Cambodian people have been very close to Malaysian investors and companies that have already been here for many years,” Tan said, adding that Malaysian investors are generally well received by Cambodian society.
Tan said MBCC’s role extends beyond organising business events.
The chamber regularly brings Malaysian businesses together through forums, gatherings and networking activities, while also connecting its members with other foreign business chambers and the Cambodian Chamber of Commerce.
This allows Malaysian companies to expand their networks beyond the Malaysian business community and develop relationships with businesses from other countries.
The chamber also provides opportunities for members to engage with government ministries and departments, allowing businesses to raise concerns and discuss challenges through an established platform.
“MBCC can become a bridge between the private sector and government departments,” Tan said.
He said this role gives businesses greater confidence that they have a platform through which they can develop relationships, expand their networks and communicate concerns to relevant authorities.
Tan said MBCC was committed to corporate social responsibility, noting that the chamber was increasingly focusing on the broader environmental, social and governance (ESG) framework.
He highlighted MBCC’s efforts to encourage its members to participate in social initiatives and noted that the chamber had organised fundraising activities to support landmine clearance.
However, he said responsible business should go beyond charitable activities.
MBCC also encourages members to comply with Cambodian regulations and strengthen corporate governance, helping companies become responsible corporate citizens.
“We are not only promoting one element,” Tan said. “We cover every element of ESG.”
Looking further ahead, Tan said one of his major ambitions as MBCC president is to use Cambodia’s Malaysian business community as a platform for greater cooperation among ASEAN business chambers.
He described this as the first step towards a broader regional network that could eventually connect ASEAN with the wider Asia-Pacific business community.
His longer-term vision is to expand this connectivity through the Regional Comprehensive Economic Partnership, which brings together ASEAN and five major partners: China, Japan, South Korea, Australia and New Zealand.
“If we can achieve this connectivity through MBCC as one of the parcels that we can push to connect, the whole ASEAN market for Cambodia itself is very promising for the country to grow,” Tan said.