September 9, 2025
MANILA – Philippine President Ferdinand Marcos Jr’s state visit to Cambodia from Sept 7 to 9 places a spotlight on one of South-east Asia’s most urgent and complex security challenges: the rise of transnational scam hubs.
At the heart of the visit was an expanded police cooperation agreement between the Philippines and Cambodia, aimed at tackling cyber fraud, human trafficking and cross-border syndicates that have turned parts of the region into hubs for online crime.
The memorandum of understanding (MOU) signals a rare alignment of security priorities between two countries that have historically diverged on geopolitical issues, particularly in their approaches to China.
Analysts say the agreement reflects a growing recognition that regional stability now depends as much on combating criminal ecosystems as on managing strategic rivalries.
Signed on Sept 8 in Phnom Penh and witnessed by Mr Marcos and Cambodian Prime Minister Hun Manet, the agreement amends a 2019 MOU between the Philippine National Police and the Cambodian National Police.
It broadens cooperation to include cybercrime, arms trafficking and human trafficking, and introduces an automatic renewal clause – signalling intent to sustain long-term coordination on cross-border threats.
In a joint press conference, Mr Marcos called the agreement a step towards a “new phase” in Philippine-Cambodian relations.
“We recognise that the growth and resilience of our economies depend on opening new avenues of cooperation,” he said. “We also ensure that our region is less vulnerable to the effects of external uncertainties.”
The proliferation of scam hubs – organised fraud operations often run by Chinese syndicates – has plagued Manila, Phnom Penh and neighbouring countries in recent years.
These operations typically lure South-east Asians into fake job offers for high-paying tech or customer service roles. Once trafficked, victims find themselves trapped inside guarded compounds and forced to work punishing hours under surveillance, targeting foreigners through online scams on dating apps or social media.
Cambodia has emerged as a key node in this criminal infrastructure , along with Laos and parts of Myanmar. At least 65 scam compounds have been identified across Cambodia. Despite high-profile crackdowns that have led to about 2,700 arrests to date, the broader ecosystem has proven resilient.
Experts say these hubs benefit from local protection, corruption and cross-border logistical support, allowing them to shift tactics and locations when pressured.
The signing of the MOU on transnational crime is a “welcome development” in Philippine-Cambodian cooperation, even as both countries differ in their approach towards China, said Dr Aries Arugay, visiting senior fellow at the ISEAS – Yusof Ishak Institute.
“The scam hubs are the most pressing issue of mutual interest where the two countries can really leverage their relations,” said Dr Arugay. “Both countries play host to a lot of these scam hubs, but at the same time have citizens falling victim to these operations. This is a welcome development, and hopefully it can be pursued at a more regional level.”
The two countries also signed agreements on higher education and air services. The education MOU promotes training programmes and collaboration on science and technology. The third MOU allows Philippine and Cambodian airlines to enter code-sharing alliances, among other things.
Dr Arugay views the MOUs as a critical confidence-building step ahead of the Philippines’ Asean chairmanship in 2026.
“Asean is facing a lot of issues now: the US-China rivalry, South China Sea, Rohingya refugees, the Thai-Cambodian conflict. It’s a very turbulent regional environment, so it would be challenging for the Philippines to assume the Asean chairmanship. It’s going to need all the help it can get,” Dr Arugay said.
He noted that while the Philippines has been one of China’s most vocal critics – filing a landmark arbitration case in 2016 and regularly protesting against incursions in the South China Sea – Cambodia is seen as one of Beijing’s closest allies in Asean.
When Cambodia chaired Asean in 2012, it was accused of blocking a joint statement that would have criticised Beijing’s actions in the South China Sea – causing friction with the Philippines.
In contrast, the latest agreement reflects a strategic convergence, even if temporary, on shared non-traditional security threats, said Dr Arugay.
Geopolitical analyst Don McLain Gill of De La Salle University in Manila welcomed the bilateral deal but urged caution, saying it would take time for the Philippines and Cambodia to eradicate scam operations in their respective jurisdictions.
“This shows you that because of the exacerbating conditions brought by such elements in South-east Asia, it is difficult to completely eradicate them. So, cooperation is vital, and hopefully this level of cooperation between the Philippines and Cambodia could lead to addressing these issues,” Mr Gill said.
He added that the real benefit lies not just in enforcement, but also in building stronger diplomatic and operational linkages in the years to come.
“This is of course another aspect of confidence-building, which may also yield long-term benefits for the countries,” he said.
Among the agreements signed, it is the security deal that resonates most in the region’s current context. With South-east Asia now widely seen as a global epicentre for online fraud , and both the Philippines and Cambodia under growing pressure to act, the agreement may serve as a template for future bilateral or Asean-wide mechanisms.
“This problem goes beyond Cambodia and the Philippines, and it requires the cooperation with other Asean countries and even neighbouring countries, China included,” said Dr Arugay. “The approach for both countries is to highlight what issues they can work on together now (rather than what divides them).”