Colin Low GE President and Regional Executive - GE Growth Initiatives, south-east Asia

INTERVIEW

Colin Low
GE President and Regional Executive - GE Growth Initiatives, south-east Asia

What attracts a company like GE to Cambodia?
We see Cambodia, a young and optimistic population, as a key driving force toward development and reform of the business environment. As one of the dynamic countries in Asean today, Cambodia’s strategic location – being centrally located between Vietnam and Thailand – plays a strategic role in the rapidly-growing cross-border trade. Not to mention its 3-year double digit GDP growth and open economy of $7 billion that is driven by the private sector. It is rich in culture and resources that have great potential for growth. Cambodia can also boast of its young, hardworking and highly-skilled workforce with high education qualifications. GE recognises these opportunities and untapped growth potential that are just waiting to be discovered.
We are excited to partner with the government and the business community towards a total package solution that GE can provide for the development of the country. GE affirms its long-term commitment in the country as a partner for growth and development.

Has it been an easy process to establish a presence here?
The decision to establish presence in Cambodia was based on a relatively extensive market research and development process. It was vital to have the knowledge and full understanding of the market driving force, key players in key industry sectors vis-à-vis GE’s one-stop shop of innovative solutions for growth. Most importantly, GE is in Cambodia due to the support and strong encouragement of Senior Minister, Chanthol Sun. His Excellency Sun was a former GE senior executive and his encouragement provided substantial credibility for GE to establish an office and presence in Cambodia.
I think that establishing a strong presence in Cambodia is also a continuing process. As in other young countries, it takes time in getting the GE brand out into the market and increase brand awareness, but GE remains excited and driven in achieving significant presence in the country. To date, the number of GE businesses penetrating the local market is gaining. GE Healthcare and GE Consumer and Industrial have already appointed local distributors. NBC Universal, on the other hand, have recently acquired licensing rights to local TV cable distributors while GE Security has begun collaborations with potential local partners. We just have to consistently build our network base and develop partnerships both with the public and private sectors.
On corporate social responsibility, GE has recently commissioned $4.5M worth of medical equipment in 24 provinces in line with its Developing Health Globally initiative, and this has been in partnership with the Ministry of Health in Cambodia. His Excellency Minister Mam Bun Heng had graciously attended the commissioning held recently in three different hospitals.

In terms of ‘ease of doing business’, how would you say Cambodia compares to other least developed countries (LDCs)?
As compared to other LDCs, Cambodia enjoys low wages, liberal government policy on business, extensive opportunities for tourism and access to larger markets. Cambodia also has preferential access to the lucrative European and North American markets through its status as one of the least developed countries. This provides Cambodia the opportunity to reach out to some of the world’s richest markets for a number of products while enjoying tariff-free privileges for its exports to international markets. Cambodia also has a very “laissez- faire” way of allowing new businesses to grow in the marketplace. For instance, getting into banking and finance is fairly straightforward without a need for local partnership requirements. Companies that have scale can go directly into Cambodia and kick off a business.
In looking at economic opportunities in Cambodia, one always needs to look at them in the context of Cambodia’s larger relationship with the region:
- Asean.
- The Asia Free Trade Area (AFTA) is the economic manifestation of area economic integration.
- China–Asean Free Trade Area (CAFTA) will come into effect in 2010.
- Talks under way between India and Asean could create another trading relationship almost as large.
- In addition, as an LDC, Cambodia has preferential access to some of the world’s richest markets for a number of products and enjoys tariff-free privileges for its exports to international markets.

It is not to say, however, that Cambodia is not faced with needs or areas of improvements similar to many poor less developed countries (LDCs), such as poor healthcare, limited infrastructure, low government salaries, etc. but what is important is that with respect to doing business, the country does offer a progressive welcome to investors. Emblematic of this welcome, Cambodia takes the lead among LDCs in terms of market-friendliness.

What can make the country more attractive to investors?
Cambodia was a hidden kingdom but the sudden burst of interest is rapidly changing the society. I would say that investors need to seize the many opportunities that the country presents. Although legal and judicial reform and rule of law and transparency still need to be developed, the government remains committed in working certain government policies to address this; thus, providing investors and partners the confidence to partner toward reform and building a modern economy for economic growth.

Do you foresee strong growth for GE in Cambodia?
The experience has been inspiring. The Cambodian government is highly supportive of GE’s presence. Recently, Minister of Health, his Excellency spent three days with GE personally as we initiated the Health programmes across 3 separate hospital sites. It shows the personal commitment of the government in supporting companies like GE and its efforts in Cambodia. At GE, I also see a great potential for growth in Cambodia and we remain to be committed to the country as a partner for growth and development especially at a time when emerging markets are leading the way in terms of revenue growth and foreign investment capital. GE’s particular focus is in the areas of healthcare, energy, oil & gas, water, transportation and commercial finance.
GE is a one-stop shop, with the ability to provide innovative solutions to all key sectors for growth through partnership. It is equipped with a comprehensive package of fundamental products and services for development. Combining these with Cambodia’s rapid development, visible expansions and progress within key sectors, accessibility to decision makers and quick response from the government, plus great enthusiasm and energy among Cambodians – and as partners, GE and Cambodia will have all the right ingredients to achieving long term growth and development.
I would say that GE has become a better company winning through this crisis. We would continue to invest in initiatives that will give GE a solid competitive advantage over the long term; accelerating growth by expanding local product lines, serving new customers, and creating strong partnerships with local champions. We have deep interests in developing the local talents available in Cambodia. GE will continue to invest in innovation, build relationships both with governments and large investors using its multi-business structure, and leverage on strengths centred on organic growth, operating excellence and leadership development.

What would your advice be to potential investors in Cambodia?
As Cambodia is a fairly new market, investors need to do their respective homework in terms of the industries they invest in. They need to do an extensive review of the area they are investing in, including capital and input resources such as land, labour, financing and tax implications. Take the example of the apparel and shoe industries. I believe that Cambodia is positioned very well for such industries as it enjoys special tax privileges as a LDC for large markets like the EU. As an investor in this market, I would do my pro-forma of the implications to the business from all these various financial and tax incentives and the cost of labour, rental and transportation of finished goods. Most importantly, get on the ground to meet with various local chambers including the American Chamber of Commerce or country respective chambers to get a bird’s eye views of all the challenges a new entrant into the market might face.

Developing Health Globally™ in Cambodia

Developing Health Globally™ is a GE corporate citizenship programme aimed at improving access to quality healthcare for some of the world’s most vulnerable populations. The programme has directly impacted more than 4.8 million people by addressing critical gaps in existing developing world healthcare facilities and providing products and expertise. The programme was originated in Africa and has since expanded to Latin America and Asia. In 2008, the programme expanded to Indonesia and Cambodia.

In 2009, GE announced that it was expanding its Developing Health Globally programme to include six sites in Cambodia - Kampot Referral Hospital, Takeo Provincial Referral Hospital, Kampong Speu Referral Hospital, Sihanoukville Municipal Referral Hospital, Phnom Penh Municipal Referral Hospital, and Kossamak National Hospital. The programme is donating GE Healthcare ultrasound equipment, mobile X-rays and patient monitors to Cambodia’s Ministry of Health, for distribution to 23 public health facilities throughout the country.

In addition, the 23 sites to receive products, determined by the Ministry of Health in Cambodia, will have proper training for the people using the donated products. Each site will also have a GE employee ambassador assigned from the GE Asia Pacific American Forum (GE’s Asian-America employee networking association) to ensure that improvements are sustained.

Recently, GE commissioned three of these hospitals – Kossamak National Hospital, Kampong Speu Referral Hospital and Phnom Penh Municipal Referral Hospital – in the Phnom Penh area of Cambodia. Each commissioning marks the completion of the product installation and training and provides each hospital the opportunity to share the news of the upgraded facility to the community.

More than 200 products have been donated through this programme to Cambodia, including patient monitoring devices, ventilators, operating theatres, surgical suite equipment, maternal and infant care products and diagnostic tools such as X-ray and ultrasound. Employees at the sites are trained to use this equipment, ensuring the programme’s sustainability and impact in the hospitals.

For more information on the programme, please visit GE’s website.