Phnom Penh in the spotlight

As regional political tensions ease, Cambodia takes over Asean chair with a golden opportunity to help group pursue economic goals.

More peaceful Cambodian-Thai relations, modest democratisation in Burma, and hopes for reduced tension with Beijing over the South China Sea are among the factors that should help Asean focus on creating a truly integrated economic community in the next three years.

Chairing the 10-country group this year is Cambodia, and the early days have been smooth given the improving atmosphere between often-antagonistic Bangkok and Phnom Penh. Asean foreign ministers will meet in Siem Reap from tomorrow to set the agenda for the year.

Cambodia, like other smaller members in the group, fully understands the need to catch up with others in light of globalisation, says Edmund Sim, an international trade lawyer and adviser to the Asean Secretariat. As long as potential distractions such as the Preah Vihear temple dispute can be avoided, Cambodia could follow up on Indonesia's successful term as Asean Chair, he said.

Mr Sim said Cambodia's challenges in 2012 include moving closer to a definitive resolution on Preah Vihear, working with Vietnam on selecting a new Asean secretary-general, monitoring developments in Burma, and pushing forward the Asean Economic Community agenda.

Restored peace and business relations between Thailand and Cambodia in the medium and longer term will be a plus in both the bilateral and regional context.

"Negative sentiment remains on both sides. We do not rule out small incidents along the border or some verbal attacks against one another. But overall and at the policy level, things have improved very much, particularly psychologically," said Doungjai Chanton, the vice-chairwoman of the committee on border affairs for the Board of Trade of Thailand.

This month will also feature a series of trade and business seminars and exchange visits with the support of the Hun Sen and Yingluck Shinawatra governments, added Somsak Ringruengsin, a veteran Thai businessman in Cambodia and chairman of the Thai-Cambodian Business Association for the past decade.

Thailand's market share in Cambodia of consumer products has been gradually eaten into by Chinese, Vietnamese and Malaysian competitors, said Ms Doungjai. But she strongly believes the popularity of Thai products and services remains strong, as does Cambodian consumers' desire to buy them.

"We do not expect a big boom or a big jump in either border trade or bilateral trade as [Cambodians] are also being more selective due to their decreasing purchasing power amid the global economic downturn," she said.

Mr Somsak says Thai businesses had endured a difficult recovery from the Phnom Penh riots of January 2003, but is optimistic that rules and regulations will gradually be improved in Cambodia to support those doing business there.

"On the one hand, Thai businessmen are not quite [committed], but on the other hand, Thai governments do not support their overseas ventures to the same extent that the governments of China, Korea, Japan and Malaysia help their private sectors," he said.

Mr Somsak speaks from experience as the president of Thai Modern Plastic and Packaging, which lost $12 million (excluding the opportunity loss) _ the biggest among Thai companies _ during the 2003 incident, in which the Thai embassy was also torched and diplomatic relations had to be downgraded.

Thai businessmen remain individualistic, and that is why only a handful of Thai conglomerates such as Charoen Pokphand and the Siam Cement Group have been able to comfortably survive in Cambodia and neighbouring countries, he observed.

But while the business community is keeping its fingers crossed about Cambodia's promising future, civil society organisations remain worried about trends inside the country.

According to Human Rights Watch, the government of Hun Sen and his Cambodian People's Party (CPP) continues to use the judiciary, penal code and threats of arrest or legal action to restrict free speech, jail government critics, disperse peaceful protests by workers and farmers, and silence opposition party members.

"Human rights defenders are regularly at risk, and police and military officials use violence with impunity against those who oppose their interests, and the interests of the government," said Phil Robertson, HRW's deputy director for Asia Division.

"The judiciary is not even remotely independent or impartial. ... This is perhaps best symbolised by the chief justice of the Supreme Court, Dith Munthy, who also happens to be a member of the [CPP's] highest decision-making body."

Cambodia still maintains very tight restrictions on freedom of assembly, requiring permits for public protests, which would be an important issue during the Asean meetings when NGOs aim to meet in Phnom Penh.

Last year, it was one of only two countries _ the other being Zimbabwe _ to ban a public assembly to celebrate the 100th anniversary of International Women's Day.

"One of the biggest human rights issues ... is the epidemic of land-grabbing by well-connected businessmen and government officials, who use intimidation and violence to force rural farmers and urban poor alike off of increasingly valuable lands where they have lived for generations," said Mr Robertson.

The Cambodian Land Law, he said, was disregarded in a "might makes right" political culture where those with power take what they want.

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