Japan’s JCBI Expands Its Businesses in Cambodia, Bangladesh and Brazil

JCB International Co. Ltd. (JCBI), the international subsidiary of JCB, the only global payment brand based in Japan has expanded its footprints in Bangladesh,Cambodia and Brazil.

The company announced that BRAC Bank Limited, a leading commercial bank in Bangladesh, starts JCB merchant acquiring operations in Bangladesh based on a license agreement.

With this agreement, JCB cards will be accepted at over 3,400 BRAC Bank merchants throughout Bangladesh by the end of October this year.

With the world’s large attention to Bangladesh’s growing economy, JCB has been planning to expand its existing merchant network in the region in order to meet the demands of JCB card members visiting Bangladesh mainly for business purpose.

Kimihisa Imada, Dy. President of JCBI said, “I am sure that an increasing number of JCB acceptance locations in Bangladesh will bring more benefit and convenience to JCB cardmembers visiting this country. This will be strong business opportunity for our future card issuing business in this region”.

In Cambodia, JCBI has signed a memorandum of understanding with Singapore Banking Corporation Ltd. for JCB card issuing.

SBC Bank will phase in JCB card acceptance at all SBC Bank merchants in Cambodia by the end of 2013 and plans to issue JCB card in the near future.

Andy Kun, Executive chairman of SBC Bank said, “The Collaboration with JCBI marks another milestone for SBC Bank in expanding its card business and this joyous occasion coincides with our bank’s 20th anniversary of establishment”.

“The acceptance of JCB cards will open up a world of financial freedom of JCB cardmembers visiting Cambodia for business or pleasure whereby JCB cardmembers can use their cards at over 500 SBC bank merchants as well as over 100 SBC Bank ATMs by the end of 2013”, he added.

The strong economic growth of the Cambodia market is creating more potential for card issuing business.

JCBI has also signed an agreement with Caixa Economica Federal (CAIXA), the largest public sector bank in Latin America, for the issuing of JCB cards in Brazil aiming to start in April 2014.

Starting with credit cards for a total of 5 million accounts in the next 3 years, CAIXA plans to add debit and prepaid JCB brand cards in the near future.

Koremitsu Sannomiya, President and COO of JCBI commented, “Brazil has become the focus of world attention by hosting the 2014 FIFA World Cup and the 2016 Olympic Games, and we anticipate the payment market to grow in this country”.

JCB is a global payment brand with over 24 million merchants and 80 million cardmembers around the world.

Source: Yahoo  News| 10 September 2013

Cambodian Banking System Remains Strong Even During Global Financial Crisis

As volatility strikes Asian markets in anticipation of the US Federal Reserve winding down quantitative easing – the practice of injecting money into the economy – the National Bank of Cambodia says the Kingdom will remain largely insulated thanks to an investment market still in its infancy.

National Bank of Cambodia director general Nguon Sokha told the Post yesterday that while the country may have benefited from the Fed’s stimulus that began in 2008 in response to the global financial crisis, the expected wind-down will have little impact due to the Kingdom’s nascent securities market, its non-existent bond market and its favourable conditions for foreign investment.

“For Cambodia, we have a different environment compared to other countries in Asia,” she said.

Asian markets tumbled yesterday, continuing a slide from last week after the Fed indicated it would pull back from stimulus later this year, AFP reported.

Cambodia’s emerging market “means capital coming in is mostly in the form of foreign direct investment, which means long-term and not speculative investment [short-term capital flow],” Sokha said. She said other countries in the region with short-term markets are vulnerable because capital could flow just as quickly in or out.

Sokha said Cambodia’s welcoming economic climate will also mitigate any impact from the potential slowing of foreign direct investment from a lack of global liquidity.

“In terms of competition for FDI, we have to look at whether Cambodia has favourable conditions for investors to come compared to Myanmar, compared to Vietnam. Our legal framework, our infrastructure, our administration, are good enough for foreign investors to have a long-term interest in our economy, that is the difference between foreign direct investor versus a portfolio investor [short-term investor].”

On the question of currency pressure, Sokha expected the riel to remain stable if the demand for the US dollar increases.

“We are also a dollarised economy . . . which means we don’t need to sterilise; if other countries have to sterilise, they have to absorb the capital inflow by issuing local currency,” she said.

Kang Chandararot, president of the Cambodian Institute for Development Study, is more cautious.

“Tightening the quantity of the dollar would directly constrain Cambodia’s growth. We will face stiffer competition to attract FDIs.” he said.

Source: Phnom Penh Post | June 25, 2013 | By: Daniel de Carteret

Cambodia Post To Tie Up With Thailand

Cambodia Post, a state-owned enterprise with plans to list on Cambodia’s bourse, will sign a memorandum of understanding (MoU) today with the Thai Post intended to provide electronic money transfer services between the two ASEAN neighbours. The initiative hopes to tap the growing remittance via brokers from Thailand to Cambodia.

Ork Bora, general director of Camobida Post, said remittance from Thailand sharply increased in recent years with the growing number of Cambodian migrant workers seeking work in the neighbouring country.

“We co-operate with them by providing this service because we noticed that a lot of our people are working there and sending a lot of money home with illegal brokers who charge too much,” said Bora.

“We will provide convenient and fast service for them. At the same time, our service charge is pretty low, even compared to commercial banks, and the service is very secure.” The service will officially commence today.

According to data from local human rights group Adhoc, about 400,000 Cambodian migrant workers were working legally in Thailand in 2012.

According to Bora, Cambodia Post signed a similar memorandum of understanding with Vietnam late last year and hopes to do the same in all ASEAN countries. So far, CP has about 30 offices nationwide.

Source: Phnom Penh Post (March 6, 2013)