How Cambodian Migrants’ US$2.7B Contribute to Real Estate Investment and Economic Growth

• 29 March 2023
• Local News
• 1352 Views

More than 1.3 million Cambodians living and working overseas contribute to their home country’s economic growth by remitting approximately US$2.7 billion annually to their families. The remittances, which are often invested in the real estate sector and saved for future business opportunities, support the well-being of working families.

According to a report from the Ministry of Labour released on 24 February 2023, there are currently 1.3 million Cambodian workers working abroad. Thailand has 1 23 1508 Cambodian migrants, followed by South Korea with 49 738 migrants, Japan with 16 562 migrants, Malaysia with 22 621, Singapore with 851, Hong Kong with 215, and Saudi Arabia with 11.

“At least 80 percent of the 300 Khmer workers in South Korea sent home remittances which are allocated for real estate investment, saving, house building, and business opportunities,” said Grace Rachany, CEO of Century 21 Cambodia.

According to Rachany, A team of real estate experts from Cambodia has provided training and knowledge sharing regarding safe investment in real estate to these workers in Korea.

Cambodian workers allocate their salaries into various packages, including savings, remittances to their families, and real estate investment. Ms. Hak Senghorn, a resident from Tbong Khmum province who travelled to work in South Korea, said that “some people received US$ 1,000 to US$ 1,500 for those who work in the agricultural sector, while construction workers could possibly get between US$ 1,500 to US$ 2,000.”

Similarly, another worker who comes from Prey Veng province sends back about US$ 1,000 to his mother in Cambodia every month, and she has helped him allocate some of the money to buy a house.

These remittances have contributed significantly to Cambodia’s economy and the well-being of working families. According to the World Bank, remittances from Cambodian migrants accounted for 10.7% of the country’s GDP in 2021.

• Economy and Finance
• Investment and Funding