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The visit by Marcos Jnr, the first by a Philippine president since 2016, may spur growth in the agriculture and tourism sectors

Philippine President Ferdinand Marcos Jnr is set to begin a state visit to Cambodia on Sunday in a bid to revitalise bilateral relations and address shared challenges such as transnational crime, in what analysts say is a platform for both countries to realise their untapped trade opportunities.

Marcos and first lady Liza Araneta-Marcos are scheduled to be in Cambodia until Tuesday for a three-day visit, following an invitation from King Norodom Sihamoni.

The visit is seen as a reciprocal gesture after Cambodian Prime Minister Hun Manet visited the Philippines in February, when the two leaders signed eight agreements on key areas, including trade and investment, agriculture, education, tourism and information and communications technology.

The state visit by Marcos to Cambodia is the first by a Philippine president since 2016.

At a press briefing on Friday, Department of Foreign Affairs spokeswoman Angelica Escalona characterised the visit as “highly important,” with Marcos aiming to expand economic ties and cooperation between both countries in addressing transnational crimes and human trafficking.

In August, 24 Filipinos who were alleged victims of trafficking by online scam syndicates returned to the Philippines following a rescue operation. They were recruited through Facebook job advertisements and were promised high-paying work as encoders or customer service staff, but were forced to operate as love scammers, according to the Bureau of Immigration.

During the visit by Marcos, the Philippines and Cambodia are expected to sign agreements on combating transnational crime, higher education and air service.

Marcos will also hold talks with Hun Manet as well as business leaders.

The Philippine leader and his wife will be received by the acting Head of State and Senate President Hun Sen and the former Cambodian leader’s wife, according to a statement issued by Phnom Penh. The meeting between Marcos and Hun Sen will address cooperation in combating transnational crimes and enhancing connectivity, as well as the agriculture, higher education and tourism sectors.

Resolving border control issues between the two countries is critical, according to Alexander Ramos, a former undersecretary and executive director of the Cybercrime Investigation and Coordinating Centre.

Manila and Phnom Penh should work on providing more guard rails to protect people from falling victim to trafficking, such as setting up anti-trafficking desks at departure points and enhancing traveller data registration, Ramos said.

“This is where it is crucial that a host country provide insights as last-minute reminders to all travellers of the dangers of syndicated and forced labour. Warning signs must be emphasised,” he said.

Marcos is expected to attend a round table dialogue with key business leaders from the Philippines and Cambodia to explore ways to diversify sources of goods and broaden market access to stimulate bilateral and intra-Asean trade.

He is also scheduled to meet with the 7,000-strong Filipino community in Cambodia, who are mostly employed in the education and service sectors.

Potential in agriculture, tourism

The visit presents a timely opportunity for Marcos to deepen economic engagement between Manila and Phnom Penh, as Cambodia emerges as a viable alternative for supply chain diversification, according to analysts.

“Beyond traditional trade, the Philippines can explore strategic sectors such as agriculture, manufacturing and digital services. Cambodia’s growing role as a manufacturing hub and its strategic location in the Mekong subregion make it an attractive partner for supply chain diversification,” Carlo Asuncion, chief economist of the UnionBank of the Philippines, told This Week in Asia.

The Philippines could leverage its expertise in electronics, information technology and business process outsourcing to support Cambodia’s modernisation efforts, Asuncion added.

“Additionally, infrastructure development and logistics cooperation – particularly in industrial parks and transport connectivity – offer avenues for Philippine investments that can strengthen intra-Asean trade flows.”

Michael Ricafort, chief economist of the Rizal Commercial Banking Corporation, said the Philippines could reap excellent trade opportunities “if the Cambodian economy grows and develops further as a hub for agricultural, lower-skilled manufacturing, tourism and other services”.

Among the Philippine sectors that stand to benefit from a stronger Cambodian economic performance are food and beverage, fast food, renewable energy, toll roads and utilities, according to Ricafort.

Trade between the Philippines and Cambodia totalled only about US$110 million last year – a figure that analysts have said reflects the untapped business opportunities between both countries.

“This figure underscores that current trade ties are underdeveloped, but it also signals significant growth potential,” said Asuncion, who contrasted it with the billion-dollar trade between the Philippines and other members of the Association of Southeast Asian Nations.

“Both governments have expressed interest in scaling up trade, with Cambodian business leaders projecting the possibility of reaching US$800 million within the next few years. This ambition reflects a shared recognition that stronger economic linkages can enhance resilience and competitiveness within Asean,” Asuncion added.

Ricafort said there was great potential for growth in agriculture and other agro-industrial products, given the much lower costs of labour and production in Cambodia.

“Just like in other Indochina countries such as Vietnam, there lie opportunities to hedge additional sources of cheaper agricultural products such as rice, as well as cheaper manufactured goods,” Ricafort told This Week in Asia.

Asuncion agreed that the agriculture sector in the two countries could benefit from more trade flows.

“Cambodia can supply raw materials such as rice, rubber and cassava, while the Philippines can contribute agro-processing technology, farm machinery and food innovation expertise,” he said.

Philippine agribusiness companies can invest in Cambodian processing facilities to become key players in the Mekong agricultural value chain while ensuring a stable supply of commodities for the Philippines and enhancing its food security amid climate-related risks, according to Asuncion.

Another key sector that the two countries could explore for growth opportunities is tourism.

For instance, the Philippines could attract more Cambodian visitors by increasing direct flight connectivity and holding joint marketing campaigns, Asuncion said.

“While current arrivals from Cambodia are small, Cambodia’s rapidly growing outbound tourism market offers an opportunity for the Philippines to capture niche segments, particularly for beach destinations, English language learning and ecotourism.”

Source : scmp