Manulife Financial, the Canadian asset management firm, has received an "approval in principle" from the Ministry of Economy and Finance in Cambodia to set up a wholly foreign-owned life insurance operation in the country.

In entering the market, Manulife has agreed to support the Cambodian government's efforts to develop the insurance industry and build industry confidence mostly through improved consumer education. The company is currently finalising details on its license and is preparing to open an office in Phnom Penh.

"Manulife's last new entry was Vietnam in 1999. We hope that in Cambodia we can match the achievements of Manulife in other ASEAN markets and help develop the industry to better serve the emerging life insurance needs of its population," said David Wong, senior vice president, ASEAN operations for Manulife Financial. 

Cambodia is Manulife Asia's 11th territory. With a population of 14.4 million, the country is experiencing rapid economic growth and significant foreign investment. As a sign of this development, the country opened the Cambodia Securities Exchange in 11 July, with trading expected to begin before the year ends.