Hun Manet: scam centers destroying Cambodia's economy

Cambodian Prime Minister Hun Manet stated that scam centers are undermining the economy and damaging the country's international image.

Cambodian Prime Minister Hun Manet has declared that scam centers are devastating the nation's economy and tarnishing its global reputation. "The scam networks, what we call the black economy, are destroying our legitimate economy. They have given Cambodia a bad name", Manet told AFP on 25/2 while on a trip to Belgium.

According to the Prime Minister, these centers are also harming Cambodia's tourism and investment sectors. "Therefore, we must deal with this issue thoroughly", he said, emphasizing the urgent need to address the problem.

Cambodia has emerged as a hotspot for organizations operating multi-billion USD scam networks. Criminals running these operations lure internet users worldwide into elaborate romance scams or fake cryptocurrency investment traps.

Experts stated that there are dozens of scam centers in Cambodia, involving about 100,000 people in online scam activities. Many of these individuals are victims of human trafficking and coercion. Initially, these groups primarily targeted Chinese speakers, but they later expanded to multiple other languages to fleece victims worldwide.

A 2024 report from the United States Institute of Peace estimated profits from online scam operations in Cambodia to be over 12,5 billion USD annually, equivalent to 50% of the country's GDP. Despite these figures, Prime Minister Manet refutes the notion that Cambodia's economy relies on these illicit activities. "Many believe Cambodia's GDP depends on scams. That is not the case. We rely on transparent economic sectors such as tourism, manufacturing, and other areas", he stressed.

Prime Minister Manet acknowledged that these criminal activities indirectly boosted some local businesses and created jobs, but denied that Cambodia truly benefited from them. "Yes, scam centers may bring some direct results to the real estate, investment, construction sectors, or procurement for their establishment", he said. "However, the majority of the profits do not reach the Cambodian government."

Cambodian Prime Minister Hun Manet during an interview in Brussels, Belgium, on 25/2. Photo: AFP

Cambodian Prime Minister Hun Manet during an interview in Brussels, Belgium, on 25/2. Photo: AFP

Last year, a large-scale crackdown by Beijing helped rescue thousands of people from scam centers in Myanmar and Cambodia for repatriation. This operation led to the arrest of Chen Zhi, an alleged scam network kingpin, who was once considered a prominent businessman in Cambodia.

"We had no idea he was the mastermind", Prime Minister Hun Manet said. According to him, background checks showed no suspicious signs about Chen, and he noted that Chen's Prince Group, an entity accused by US authorities of being a front for a scam empire, was present in many countries, not just Cambodia.

US prosecutors stated that from around 2015, Prince Group operated in over 30 countries under the guise of legitimate real estate, financial services, and consumer businesses. Before the allegations emerged, for Cambodia, Chen "was merely a businessman contributing to the economy", Manet said. The Prime Minister added that Cambodia was unaware of Prince Group's illicit activities, asserting that authorities acted immediately upon receiving information about the alleged wrongdoings.