A Little Contribution That Might Make A Big Change in Cambodia Economic
As stated by the former British Prime Minister William Gladstone about the importance of finance for the economy in 1858 as follows: “Finance is, as it were, the stomach of the country, from which all the other organs take their tone.” In the financial system, funds flow from those who have surplus funds to those who have a shortage of funds, either by direct, market-based financing or by indirect, bank-based finance. For instance, the wealthy people deposit their money in the bank in purpose of earning the interest while the not better-off people borrow money from the bank for housing. Other example like people invests their surplus capital in stock market. In the case of Cambodia, we can see that this mechanism has not yet happened.
In the past 5 years, Cambodia has achieved tremendous economic growth. For instance, from 2003 to 2006, the growth rate was approximately 9 percent. According to the National Institute of Statistic, the overall economy, in terms of gross domestic product (GDP), the growth rate is 10.8 percent. In addition, for the year of 2007, Cambodia expects to have economic growth around 9 percent. This is according to the estimation of IMF in Cambodia. However, this growth has not reached its peak while Cambodia can attain much more than that if the Cambodia financial system can functioned properly.
In 2009, Cambodia will establish its stock market although it is a limited stock market. With the introduction of a financial market, it will help this economy to mobilize the Cambodian people’s savings and channel them into long-term investments in private, social, economic and infrastructure projects. This new emerging will take Cambodian to the world of investing.
Have you ever wondered how the rich got their wealth and then kept it growing? It’s because of investing. So, why keep your money idle at home or under your pillow while you can make it bigger and bigger. What does it really mean by investing? Investing means the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. To be simpler, investing means putting your money to work for you. There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, or real estate (among many other things), or starting your own business.
Let’s invest in our Cambodia future upcoming stock market, all Cambodian!!! Although it is with a little money, it might lead to extreme economic growth of this country.