The other day I took my car to battery shop to have the battery replaced. Since it’s important to have a car that will start every time you turn on the ignition, I was hoping to pick up a good, reliable battery, preferably a brand I can trust.
However, none of the batteries offered at the shop had a brand I could recognize. There were several labeled “Japan” in large letters on their boxes, but I found that they were actually made in Thailand. Besides not wanting to patronize Siam products, I wouldn’t trust a car battery whose manufacturer wanted to fool consumers into thinking that it was made in a country where it wasn’t. I finally decided on what I was told a “high-end” brand from South Korea that should last me about 2 years. I paid almost $70 for the battery, but I think I could have gotten a comparable one for around $50 back in the US.
Batteries are one of the most ubiquitous items in Cambodia. People need batteries for their cars, motorcycles, construction tools, even to power small light bulbs and TVs in remote countrysides inaccessible to electricity.
That made me to thinking that if these batteries were manufactured in Cambodia, we’d be able to produce much more cheaply, thanks to cheap labor, locally available battery-making materials, the absence of tariffs, and lower transportation costs. Plus, we’d have a domestic market big enough to consume them (and thus do not even have to rely on export). A domestically produced car battery comparable to the $70 Korean-made one that I bought might go for just $30. Besides saving Khmer consumers money, thereby raising their standards of living, making batteries in srok Khmer will create many jobs for our people, not just manufacturing jobs but a whole range of occupations related to the production, distribution, marketing and sales of the batteries.
Making car and motorcycle batteries shouldn’t be that difficult. I refuse to believe that the descendants of the builders of Angkor can’t even make car batteries. In fact, you can make a simple working car battery from a diagram in a high school textbook or even an article from Wikipedia.com. The science behind behind battery-making is exceedingly simple; it’s just the engineering aspects of it that needs attention. Instead of starting from scratch, a Khmer battery maker might invest in technology and equipment from abroad. Initially, they might need to hire technical expertise from countries Korea and China, so that they could set up a plant and produce commercial-quality batteries right from the start.
I think when we talk about building a nation, it doesn’t have to necessarily involve some complex grand scheme that seems beyond reach. Rather, it’s just a matter of putting all the right pieces together. Manufacturing our own batteries, as opposed to importing them, would certainly qualify as a “right piece”.
But why go through all the hassles of building a battery making plant, acquiring technology and equipment from abroad, and marketing and distributing Khmer batteries while we can simply buy them from Thailand, China and Korea? After all, importing also creates employment for Khmer people in transportation, logistics, distribution, and retailing of imported goods.
The answer is, if we don’t start making the goods we use everyday, we’ll all end up as peddlers of finished products from other countries. In fact, much of the Khmer economy revolve around the peddling of foreign goods, ranging from batteries, to toilet paper, soap, whiskey, and even toothpicks. Granted, international trade is a necessity if we are to be a successful player in today’s global economy. But running huge trade deficits with foreign countries is a sure-fire way to bleed the nation to death. Last year Cambodia managed to rack up a whopping $3.2 billion deficit with just Thailand, Vietnam and China alone.
Furthermore, the goods that the Cambodia exports tend to be raw materials like timber that pose a threat to our dwindling natural resources, while we import finished goods and pay premium prices for them. For instance, a $100 piece of timber exported to Vietnam might find its way back to Cambodia in the form of ten thousand boxes of toothpicks costing Khmer end-consumers $3,000 to $4,000. Is it so hard to make our own toothpicks?
Making batteries shouldn’t be much harder than making toothpicks. Of course, there are some hurdles to overcome. Setting up a modest battery manufacturing operation might require a $2 to $3 million initial investment in infrastructure, technology and equipment. Despite huge potentials returns, it may take a few years just to recoup the initial costs.
A Khmer entrepreneur with $2 million to invest in business might choose the easy, tried-and-true route of having a few container-loads of batteries shipped from abroad. He might make a couple dollars in profit from the sale of each battery to the battery shops, which in turn will make a few more dollars from the end-consumer.
Traveling around Phnom Penh I can easily spot 20 or 30 business opportunities in a single day– not silly ideas that can’t make money, but ones that are profitable as well as ethical, socially responsible, and “nation-building” in nature. But for these ideas to work, our mentality has to change, from a narrow focus on individual wealth to collective prosperity, from instant gratification to investing in the future.