AGP Executive Report

Aviation & Trade: Cambodia’s international passenger traffic fell 7% year-on-year to 3.27 million in H1 2026, while air cargo jumped 29% to 47,627 tonnes, as civil aviation trends diverged across segments. Investment Push: The CDC approved $4.7 billion in fixed-asset investment projects in the first half of 2026, spanning SEZs and power generation, with a forecast of about 160,000 jobs; China led as the top investor. Ports & Connectivity: Cambodia and Japan signed a concessional loan of about $119 million (JPY 17.776b) for Phase 2 of the Sihanoukville deep-sea port container terminal expansion. Capital Markets: Cambodia’s securities market surged in H1 2026, with active investors up 64% and the CSX Index rising 7.7%, helped by dividends and easier trading access. Border Tensions: ASEAN Observer Team visited 295 displaced families at Wat Peung Angkam in Preah Vihear, as Cambodia renewed calls for urgent Cambodia–Thailand border demarcation. Cyber Safety: Authorities warned of a rise in Telegram malware scams, urging users not to open risky file types and to keep protections updated. Weather Alert: Storm Haishen is expected to bring heavy rain and strong winds across much of Cambodia from July 14–17, with coastal areas hit hardest. Diplomacy & Media: Cambodia urged truthful, responsible storytelling at a regional media meeting in China, while senior officials met outgoing German and Japanese ambassadors and highlighted continued ties. Economy Snapshot: Cambodia–US trade rose 31.4% to $7.4 billion in H1 2026, with exports to the US up nearly 30%.

Border Crackdown & Scams: Cambodia deported about 16,000 foreigners tied to online scam compounds in the first half of 2026, with raids by police and provincial authorities banning those people from returning and linking tighter border controls to a drop in 1H26 arrivals. Court Case: Phnom Penh’s municipal court sentenced former deputy governor and influencer Thy Sovantha and her husband to three years in jail each over posts accused of jeopardizing the army and stirring unrest in the Cambodia–Thailand border dispute. Transport & Cost of Living: With fuel prices rising after the Middle East conflict, commuters are shifting to buses—one worker said a round trip to Techo International Airport costs far less than motorbike fuel. Diplomacy & Infrastructure: Deputy PM Prak Sokhonn and Japan’s ambassador signed documents for Phase 2 of the Sihanoukville port container terminal expansion, a roughly $119m loan. Jobs & Demographics: PM Hun Manet urged investment in youth education and STEM while preparing for an aging population. Weather & Tourism: Heavy rain and flooding have left mountain trekking and ecotourism in Khnorng Phsa and Chi Phat uncertain; visitors are told to follow official warnings. Business & Investment: Japan’s Lion Corporation is starting a feasibility study for a manufacturing plant in Cambodia. Environment Push: The Green Sprout Exhibition is framed as a nationwide push to plant trees and “plant values” for Cambodia’s green future.

Border Tensions, Diplomacy: The Francophonie Parliamentary Assembly (APF) urged Cambodia and Thailand to de-escalate immediately, respect Cambodia’s sovereignty, withdraw armed forces from disputed areas, and fully implement the 26 Oct 2025 Kuala Lumpur commitments, citing concerns over Thai-linked infrastructure, land allocation and harm to civilians and cultural heritage. Court & Free Speech: Phnom Penh Municipal Court sentenced former deputy governor and social media influencer Thy Sovantha and her husband Phe Sovannarith to three years each for posts deemed to jeopardize the army and incite unrest during the Cambodia–Thailand border dispute. Youth & Demographics: PM Hun Manet marked World Population Day by projecting Cambodia’s population will reach about 24 million by 2050 and stressing urgent investment in youth to turn the “demographic dividend” into lasting growth. Flood Watch: Rainy-season flooding hit Battambang, Kampot and Preah Sihanouk with minor damage and travel disruption; authorities say waters are receding and urge caution. Education Fundraiser: A Phnom Penh charity run drew 2,500 participants to support border children’s education, with proceeds going to the education ministry. Cambodia–China Ties: Hun Manet will visit China from 15–17 July for meetings with Xi Jinping and Li Qiang and to speak at the 2026 World AI Conference in Shanghai.

ASEAN Myanmar Diplomacy: ASEAN reaffirmed its Five-Point Consensus as the main framework for Myanmar, urging “demonstrable progress” on peace talks, including humanitarian access and release of political detainees. Digital Rights & Tech: A Cambodian IT expert says Apple’s OCR still misreads Khmer copied from images, converting it into Thai when pasted on iPhone/iPad/macOS, and urges users to report the bug to Apple. Public Health & Climate: El Nino is already cutting Cambodia’s rainfall by up to 50%, with uneven downpours and weak irrigation coverage raising drought risk for farmers. Border & Security: Cambodia-linked drug trafficking is again in focus after Nigeria’s NDLEA arrested a South African woman in Abuja for smuggling 5.75kg heroin, allegedly traveling via Doha from Cambodia and using her three-year-old son to evade checks. Heritage & Tourism: Siem Reap’s Chorm and Tonle Sngout temples are highlighted for restoration work and the Khmer Empire’s long-running healthcare legacy. Economy & Trade: Cambodia’s exports and garment momentum continue to be reported as H1 2026 figures climb, alongside efforts to modernize logistics for trade growth.

Public Health: Cambodia confirmed a fifth human H5N1 bird flu case of 2026, a 9-month-old girl in Phnom Penh now in intensive care, with authorities tracing contacts and investigating the infection source. Digital Rights & Tech: An IT expert urged Apple users to report a Khmer OCR bug where Khmer text copied from images turns into Thai characters when pasted into documents on iOS/macOS/iPadOS. Trade & Industry: Cambodia’s exports hit $17.09 billion in H1 2026, up 19.5% year-on-year, with the US the biggest market; Toyota also inaugurated a new Hilux Travo production line, signaling deeper manufacturing investment. Infrastructure & Tourism: A restored Angkor pier near Bayon is being revived to expand visitor routes, while National Road 7’s upgraded Skun–Kampong Cham stretch opened to cut travel times and boost trade. Humanitarian/Regional: Amnesty said the latest US deportation to Eswatini is unlawful, calling it “cruel and racist.” Migration Watch: The Philippines’ Department of Migrant Workers plans to open a Phnom Penh office to help overseas Filipinos facing scam trafficking and illegal recruitment.

Angkor Heritage & Tourism: Apsara National Authority is restoring an ancient cruciform pier and quay near Angkor Park, part of a wider plan to revive a long-lost royal palace route and open up “lesser-known” areas for more visitor options. Border Tensions: Cambodia has lodged fresh protests against Thailand’s continued barbed-wire works near boundary pillars in Oddar Meanchey and Banteay Meanchey, saying they violate sovereignty and earlier agreements. Human Rights & Security: Cambodia’s crackdown on scam trafficking and illegal entry continues, with reports of Thai nationals repatriated after cyber-scam and illegal entry cases. Public Health: Cambodia confirmed a fifth human H5N1 bird flu case in 2026, with authorities investigating the source and contacts. Labour & Migration: The Philippines’ Department of Migrant Workers will open a Migrant Workers Office in Phnom Penh on July 14 to help OFWs targeted by scams and trafficking. Trade & Jobs: Cambodia’s garment, textile, footwear and travel goods exports rose 6.2% in H1 2026 to $7.99bn, supporting a sector employing about 1.1 million workers. Diplomacy & Development: India and Cambodia signed two Mekong-Ganga Quick Impact Projects in Kratie, including climate-smart apiculture training and a schooling support package for disadvantaged students.

Border Tensions: Cambodia lodged another formal protest against Thailand over alleged barbed-wire installation and embankment works near Boundary Pillars No. 14 and No. 22 in Oddar Meanchey and Banteay Ampil, saying the moves violate sovereignty, treaty maps, and the 2000 border MoU. Defence Diplomacy: Malaysia’s Chief of Defence Forces chief visited Senate President Hun Sen, reiterating support for peaceful, international-law-based border resolution and pledging closer defence cooperation. India–Cambodia Cooperation: India and Cambodia signed two Mekong-Ganga “Quick Impact Projects” for Ou Krieng Senchey in Kratie, including climate-smart beekeeping training and a school support phase with bicycles and safety gear. France–Cambodia Business Push: France pledged stronger economic ties and more SME engagement during a Phnom Penh visit, ahead of Cambodia hosting the 2026 Francophonie Summit. Women in Science: The ASEAN-India Women Scientists Conclave closed in Phnom Penh, highlighting women’s leadership in STEM and practical innovation for regional challenges. Trade Update: Cambodia’s exports rose 19.5% year-on-year to about $17 billion in H1 2026, with growth linked to RCEP and bilateral free trade deals.

Trade Surge: Cambodia’s exports jumped 19.5% year-on-year to about US$17.09 billion in H1 2026, with the US the top market (US$7.17b), followed by Vietnam and China, as trade pacts like RCEP and bilateral free-trade deals keep demand steady. Tourism Push: Japan’s outgoing ambassador says Cambodia is safe and ready for more Japanese visitors, proposing visa exemptions and urging deeper air connectivity and promotion. SEZ Planning: The CDC and Japan Development Institute discussed an international-standard Cambodia–Japan Special Economic Zone master plan to attract Japanese supply chains. Workforce Skills: Cambodia’s Skills Development Fund signed partnerships with logistics, auto, cashew, and electronics groups to align training with labor-market needs, with ADB and AFD in attendance. Rural Quick Impact: Cambodia’s Ministry of Information and India’s embassy agreed on two projects—bicycle support for students and beekeeping for vulnerable farming households. Cybercrime Crackdown: Cambodia deported 79 Thai nationals and issued entry bans after a sweep targeting online fraud and illegal border crossings. Environment & Water: A World Bank team joined Cambodia to assess Tonle Sap water security and biodiversity, while the “Green Sprout” campaign aims to plant one million palm trees nationwide. Health Cooperation: Cambodia and the US signed a five-year MoU to expand infectious-disease research with local public health institutions.

IMF Watch: Cambodia’s Finance Minister Aun Pornmoniroth said the economy is still expected to grow 4.2% in 2026, but the IMF cut its forecast to 3%, citing Middle East risks, the Cambodia–Thailand border dispute, and the crackdown on online scams. Trade Update: Cambodia’s trade topped $36.84B in H1 2026, with exports near $17B and China remaining the biggest partner. Border Tensions: Residents in Thma Da (Pursat) say Thai troops have installed barbed wire, flags, and other items inside Cambodia, while displaced families in Thmar Da condemn ongoing encroachment and say schools and hospitals remain closed. Tourism Push: Japan’s outgoing ambassador proposed visa-free entry for Japanese travellers as Cambodia seeks stronger tourism ties. Tech & Startups: Khmer Enterprise and 2080 Ventures back PharmKulen, a medicine-search and pharmacy stock system using a large local medicine dataset and AI. Angkor Conservation: APSARA continues restoration of Angkor Wat’s northern pond steps and embankment. Health Misinformation: China’s embassy rejected a Japanese report alleging a Chinese kidney transplant at a Cambodian hospital as fake news. Digital Cooperation: Cambodia’s digital minister highlighted verify.gov.kh and invited partners to UN AI governance efforts. Business & Finance: KB PRASAC Bank received a license to offer retention/escrow services for safer property deals. Cybercrime Link: A Gujarat man was arrested over a “digital arrest” scam that allegedly used 1,000 SIM cards smuggled to Cambodia. Tourism Connectivity: Cambodia announced a seasonal direct charter flight from Prague to Sihanoukville starting Dec 19, 2026.

ADB Forecast Cut: The Asian Development Bank trimmed Cambodia’s 2026 growth outlook to 4.1% and warned inflation may rise to 4.5%, citing the global energy crunch and the prolonged Cambodia–Thailand border closure. IMF Follow-Up: The ADB’s move comes days after the IMF projected growth slowing to 3% in 2026 before rebounding in 2027. Border Diplomacy: Cambodia’s Senate President Hun Sen reiterated that the Cambodia–Thailand border dispute must be handled through international law and ICJ rulings, while Cambodia welcomed Vietnamese officers to the ASEAN Observer Team to monitor the ceasefire. Defence Ties: Cambodia and Malaysia’s armed forces chiefs pledged deeper military cooperation and peace-focused dialogue, with Malaysia again highlighting its role in border mediation. Commerce Probe: Cambodia’s Ministry of Commerce opened an internal investigation after a Japan Times report raised questions about a 2021 company registration amendment. Finance Fallout: Liquidators said H-Pay operated beyond its license and is insolvent, after the payment service halted withdrawals. Rice Exports: Cambodia earned over US$367m from milled rice exports in H1 2026, shipping 630,319 tonnes to 64 destinations. Environment: A dugong was spotted in Kep’s marine protected area, a sign of improving marine ecosystem protection.

Cambodia–Malaysia Defence Ties: RCAF Commander-in-Chief Gen. Vong Pisen met Malaysia’s Defence Forces chief, agreeing to deepen military cooperation and reaffirm peaceful dispute resolution, with Cambodia urging faster defence MoU signing. ASEAN Border Monitoring: Cambodia welcomed two Vietnamese officers to the ASEAN Observer Team to observe the Cambodia–Thailand ceasefire and report on border conditions. Economy Watch: The IMF projects Cambodia’s growth slowing to 3.0% in 2026, citing higher energy prices, weaker tourism, and reputational damage from scam activity. Logistics Push: Cambodia’s National Logistics Council met to modernise the logistics system to boost trade competitiveness and supply-chain efficiency. Water Reform: Cambodia and the World Bank reviewed water-sector reform, including plans for an independent regulator and progress toward universal clean water access. Digital Governance: Cambodia highlighted AI governance and digital upgrades, including the verify.gov.kh platform, during UN-led global dialogue talks. Scam Hub Pressure: A separate report looks at Cambodia’s efforts to shake its “scam hub” label as tourism remains hit. Environment & Wildlife: Cambodia’s heat stress threatens garment output, while a debate continues over bringing tigers back to the Cardamom Mountains. Finance/Legal: REACHS & Partners filed a court request related to continuing liquidation of H-Pay Service Plc., raising concerns about possible unlicensed banking operations.

IMF Outlook: The IMF says Cambodia’s growth will slow to 3% in 2026 (from 5.3% in 2025) before rebounding in 2027, citing higher energy prices, weaker external demand, and reputational damage tied to scam activity—along with inflation projected to rise to 5.6% in 2026. Food & Trade: Cambodia’s rice exports are surging: 630,319 tonnes of milled rice in H1 2026 worth over $367m, up 63% in volume, with fragrant rice leading and buyers including ASEAN, China and the EU. Border & Security: Malaysia’s top defence chief visited Cambodia’s Banteay Meanchey border area, briefing with ASEAN observers as the region monitors the Cambodia–Thailand ceasefire after the 2025 border confrontation. Sports: Cambodia’s women’s national team has begun its second phase of prep for the AFF Women’s Cup 2026 in Kuala Lumpur, drawn in Group B with Indonesia and Timor-Leste. Environment & Safety: Lightning deaths in Cambodia fell 48% in H1 2026, with officials urging people to seek shelter during storms. Business & Innovation: Cambodia and WIPO signed an MoU to set up an Intellectual Property Business Centre to help the private sector use IP for innovation and growth.

Intellectual Property & Business: Cambodia’s Commerce Minister Cham Nimul met WIPO chief Daren Tang in Geneva and signed an MoU to set up an Intellectual Property Business Centre to back private-sector innovation and IP awareness. Rice Exports: Cambodia exported 630,319 tonnes of milled rice in H1 2026, worth over $367m, up 63% year-on-year, with fragrant rice leading and shipments reaching 64 markets. Economy Watch: The IMF sharply downgraded Cambodia’s outlook, projecting growth slowing to 3% in 2026 and inflation rising to 5.6%, citing energy costs, weaker tourism, and reputational damage from scams. Human Trafficking/Scams Crackdown: Cambodia denied a viral claim about a May 31 exit deadline for African nationals, calling the document fake, as authorities intensify cyber-scam enforcement. Organ Transplant Probe: Japan arrested three people over alleged paid organ-transplant brokering involving Cambodia, after a patient reportedly traveled for a kidney transplant. Green Garments Push: Cambodia and Germany signed FABRIC Cambodia II phase two to help factories shift to greener production and meet international standards. Infrastructure & Logistics: PM Hun Manet floated turning the old Phnom Penh airport into a regional logistics hub, alongside plans for Sihanoukville port development.

Roads & Growth: PM Hun Manet inaugurated the upgraded 45.489-km National Road No. 7 section in Kampong Cham, saying better roads cut travel time and logistics costs and help attract investment. AI Governance: Cambodia joined a Geneva global dialogue on AI governance, with Post and Telecommunications Minister Chea Vandeth outlining a five-point approach on trust, risk mitigation, and inclusive policy. Climate Diplomacy: Cambodia and the UAE pledged to deepen climate action, including stronger enforcement on pollution and a major reforestation push toward carbon neutrality by 2050. Human Trafficking & Scams: India’s NIA carried out raids across Bihar, Uttar Pradesh and Delhi in a Cambodia-linked human trafficking and cyber slavery probe, seizing phones, laptops and documents. Prison Overcrowding: Cambodia’s prison population hit 67,677, raising alarms over mental health risks like suicide amid overcrowding. Wildlife on Social Media: Authorities warned creators against dangerous snake and crocodile videos that can normalize risky behavior. Regional Security: Malaysia’s defence chief will visit Phnom Penh July 8-11 to strengthen military ties and discuss cooperation. Business & Industry: Germany-backed FABRIC Cambodia II advanced supply-chain transparency and compliance efforts for Cambodia’s garment, footwear and travel goods sector.

El Niño Watch: Cambodia is bracing for a potentially long El Niño through early 2027, with ordered steps to boost monitoring, drought and disaster response, and food support as temperatures rise and rainfall drops. Wildlife Survey: The Ministry of Environment reports 14 rare and threatened species recorded in Cardamom Mountains National Park, underscoring the need to strengthen protection. Border Diplomacy: Acting FM Eat Sophea briefed diplomats on Cambodia–Thailand border developments, stressing the internationally recognized border line and calling for early resumption of JBC survey and demarcation to help displaced families return. Anti-Scam Crackdown: Phnom Penh authorities raided 94 sites, arresting eight foreign nationals and dismantling a tech-scam “pig-butchering” operation with laptops, phones, and counterfeit US banknotes seized. Transport Push: PM Hun Manet inaugurated upgraded National Road No. 7 and reiterated plans for logistics hubs and the Funan Techo Canal to shift more freight onto waterways. Preah Vihear Commitment: Hun Manet reaffirmed Cambodia’s restoration pledge for Preah Vihear on its UNESCO anniversary, citing damage from 2025 clashes and ongoing work with UNESCO and experts. Health & Aid: Banteay Meanchey raised 100 million riel for Kantha Bopha via a community cycling drive, while Cambodia also reported SDG progress but warned institutions and governance will decide the next gains.

Cambodia–Thailand Border Tensions: Four Cambodian soldiers were injured by an explosion during a patrol in Oddar Meanchey’s cashew plantation area on Sunday; Cambodia says Thai forces were on the other side of a barbed-wire fence and an investigation is underway, while Thailand says the blast was not caused by its troops. Diplomacy & Border De-escalation: Cambodia briefed diplomats on border developments, saying Thai forces have reinforced occupied areas and urging early resumption of Joint Boundary Commission survey and demarcation work. Logistics & Trade Facilitation: DPM Sun Chanthol met EuroCham to discuss strengthening Cambodia’s transport and logistics, including port digital tools like PASNet and links to customs systems. Cybercrime Crackdown & Investment Pitch: Cambodia’s DPM for education and youth, Hang Chuon Naron, urged Japanese businesses to invest as Cambodia shifts toward a technology economy and tightens action against online scams. Public Health: Dengue cases surged in Kandal’s Kaoh Thum district, with 593 confirmed infections in three weeks and serious cases transferred for specialist care. Microfinance Confidence: Cambodia’s microfinance sector grew in 2025, with loan portfolio reaching $6bn (+15%) and deposits rising to $2.99bn (+17.6%), including more riel-denominated lending. Conservation Win: A critically endangered white-rumped vulture returned to Lomphat Wildlife Sanctuary for the first time since 2016, with signs of breeding success. Heritage Restoration: As Preah Vihear marks 18 years since UNESCO listing, Cambodia pledged restoration after 2025 damage and ongoing UXO contamination.