What are the main advantages of hosting locally in Cambodia or Asia?

The advantages of hosting locally are vastly increased page-load speeds for your website when it's accessed from within Asia. This can be very important to people who have web-based applications that they use on a daily basis. For example, a news or publication website that's constantly being updated by an office full of staff. Another example would be a food ordering website; 100% of its user base will be located in the same area. In geek speak, that's 5 milliseconds away instead of 300 milliseconds which is a huge difference in speed.
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