Cambodian Pawnshop Revenues Drop as Industry Expands

The number of licensed pawnshops in the country has surged since the government began registering them in 2010, leaving some pawnbrokers claiming revenue losses of 30 to 50 percent due to oversaturation in the market. Ly Seng Cheng, a pawnbroker at the Khlaing Rum Sev pawnshop in Tuol Kok district, said this week that due to the sharp increase in competition, his business has experienced a 30 percent decline in revenues since he registered his shop in 2010. “They are all competing with each other and reducing the rates to between 2.5 and 2 percent, while I hold mine at 3 percent,” he said. “The lower the interest rates, the lower our income.” The Ministry of Economy and Finance required pawnshops to buy operational licenses in January 2010 in order to ensure that collateral is accounted for and to prevent the sale of stolen goods. Brokers registered with the government must keep an updated list of inventory, along with documentation of its origin. …