September 18, 2025
KUALA LUMPUR – Despite a temporary ceasefire has been reached in the Thai-Cambodian border conflict, anti-Thai sentiment in Cambodia continues to rise.
On the other hand, Cambodians hold high regards for Malaysia in playing the role to mediate the conflict by Prime Minister of Malaysia Datuk Seri Anwar Ibrahim as the rotating chair of ASEAN.
President of the Malaysian Business Chamber of Cambodia (MBCC) Oknha Tan Kee Meng told Sin Chew Daily the current situation offers a good opportunity for Malaysian firms to enter Cambodian markets.
“Both the government and the people of Cambodia have a particularly good impression of Malaysia, and they are very friendly toward us.
“They often say that when looking for alternatives to Thai products, Malaysia will be their first choice besides Vietnam—it’s a spirit of mutual support,” said Tan.
He emphasized that the market is already there—Malaysian businesses must take the initiative.
Although imports from Malaysia have risen, Chan said that most are driven by Cambodian traders sourcing from Malaysia, rather than Malaysian companies actively expanding into Cambodia.
He added that Malaysian products are generally perceived in Cambodia as mid- to high-end, with trusted quality and food safety standards.
Chan suggested that Malaysian firms make use of cross-border rail routes via Laos to transport goods into Cambodia.
He is also in discussions with the Malaysia External Trade Development Corporation (MATRADE), urging the government to help more Malaysian businesses seize this opportunity.
Cambodia is a typical consumer-driven country, and Malaysian businesses have strong potential in fuel, retail, and medical tourism, as Cambodians spend heavily each year on health checks and treatments, according to Tan.
However, in the past, higher shipping and tariff costs often made Malaysian goods slightly more expensive than those from Thailand, Vietnam, or China.
With locals shunning away from Thai products, Vietnam has become the biggest winner.
Vietnam’s agricultural, food and energy exports to Cambodia have surged.
Vietnam’s Ministry of Industry and Trade reported that Vietnam-Cambodia trade hit US$6.2 billion (RM26.08 billion) in the first half of this year, up 16.8 percent year-on-year, with Vietnamese exports to Cambodia rising 4.6 percent.
The figure is expected to keep growing.
China, leveraging its low-cost advantage, has quickly filled the gap in building materials.
In the first half of 2025, Cambodia’s investment in the construction sector exceeded US$1.24 billion, more than 30 percent higher than the same period last year, with most supplies coming from China.
Cambodia and Thailand share a border and have long-standing close ties, with high dependence on supply chains. But since the border clashes, nationalism in both countries has flared up sharply.
Official data showing heavier casualties on the Cambodian side has further fueled public anger, sparking a boycott movement and even “de-Thai-ization” in some businesses.
The locals are refusing to buy Thai goods, eat Thai food, and even companies with Thai executives are facing boycotts.
“This wave of anti-Thai sentiment is the most severe I have seen in 25 years,’’ said Tan, who lives in Phnom Penh.
Supplies of petroleum, natural gas, coal, agricultural products, fruits and vegetables, daily necessities, and food have been switched to other countries.
“Restaurants run by Thai owners are definitely affected, but the situation is better if a Thai restaurant is operated by locals or non-Thais, because it’s just cuisine, not Thai-owned,” Tan said.
“The Cambodian boycott is already very comprehensive—people won’t buy, eat, or use Thai products, and they’re shifting toward Vietnamese, Malaysian, and Chinese goods,” he said.
Thai businessmen in Cambodia are keeping a low profile, leaving business dealings to locals or foreign representatives.
Some Thai factories have even withdrawn all their executives, replacing them with local or foreign managers to keep operations running.
“Even Thai executives themselves don’t dare stay for long,” he said.
Beyond consumer goods, Thailand’s national energy brand PTT has also been targeted.
Most distributors have terminated contracts and switched completely to a homegrown brand, Peace Petroleum Cambodia (PCC). PTT’s Café Amazon chain, Carabao energy drinks, and 7-Eleven convenience stores have also been hit.
Tan believes that the anti-Thai sentiment and boycotts in Cambodia will not subside in the short term, likely lasting three to five years.
Even if the borders reopen, Thai businesses will need time to rebuild their market, he said.