Cambodia is set to sign a Double Taxation Avoidance Agreement (DTA) with Malaysia this week as Malaysian Prime Minister Tun Dr. Mahathir Mohamad's arrival has been confirmed. The DTA is expected to open more business opportunities for Malay entrepreneurs.
According to the Malay Mail, Malaysian Ambassador to Cambodia, Eldeen Husaini Mohd Hashim, pointed out that it was a long wait for the country to finally sign the agreement with Cambodia.
Husaini explained that before the DTA's signing was agreed on, Malaysian investors had a hard time penetrating the Cambodian market. With new hopes for business ties, Malay businesspeople are expected to have a fresh start with their targets in the country.
Among the most notable applications submitted to the government under the DTA is a massive hotel project that's expected to have 2,000 rooms. The said project has a massive $4 billion budget.
Husaini further revealed that so far, the embassy has received around 20 applications from Malay firms that are looking to invest in Cambodian markets. Analysts are expecting to see the numbers hike as the two sides meet.
Mahathir's three-day state visit in Cambodia is expected to bring forth positive agreements on boosting trade and investments between the two Asian countries. One of the main aspects of negotiations is tourism.
The parties will sign the Malaysia-Cambodia tourism cooperation agreement. Under the deal, the two sides are expected to improve tourism policies for travelers. The countries already have good tourism relations but the official agreement is expected to further encourage trips on both countries.
Meanwhile, Mahathir has arrived in the Kingdom of Cambodia, along with 18 other Malaysian officials who will accompany him for negotiations. Minister of International Trade and Industry Darell Leiking arrived with the Prime Minister.
A statement from the Foreign Affairs Ministry last week stated that Mahathir will meet Cambodian Prime Minister Hun Sen, as well as acting head of state Say Chhum, and National Assembly president Heng Samrin, the Khmer Times reported.
Cambodian Foreign Affairs Ministry spokesman, Ket Sophann, revealed that the two countries have reached bilateral trade amounting to over $474.4 million. Analysts and political experts are expecting to see the numbers rise under the new deals.
Records from the January to June period indicate a whopping 45.2 percent increase in bilateral exchanges between the two countries. The spike reached $303.6 million compared to the same period last year that recorded $216.9 million.
Diplomatic ties between Malaysia and Cambodia were inked on August 31, 1957. Despite generally stable relations, Cambodia is the last of ASEAN member nations to finally sign a DTA with Malaysia.
