PM warns that growing global economic uncertainty, geopolitical tensions place increasing pressure on Cambodia’s economy

PM warns that growing global economic uncertainty, geopolitical tensions place increasing pressure on Cambodia’s economy

Prime Minister Hun Manet warned on Saturday that growing global economic uncertainty and geopolitical tensions are placing increasing pressure on Cambodia’s economy, underscoring the need for deeper reforms to strengthen the country’s competitiveness.

Speaking at a meeting with Cambodia’s SMEs on Saturday, the premier said global economic uncertainty is being driven by supply chain disruptions, rising trade protectionism, technological competition and geopolitical conflicts.

He added that Cambodia also faces challenges from cross-border tensions with Thailand and the economic impact of the government’s crackdown on online scam operations.

The prime minister said the global transition toward green growth, digital technology and artificial intelligence is reshaping international standards and raising the bar for competitiveness.

He also noted that Cambodia is set to graduate from Least Developed Country (LDC) status in 2029, bringing changes to trade preferences, development assistance and other preferential arrangements.

Prime Minister Hun Manet said stricter product standards, environmental requirements, quality management systems, food safety regulations and market rules are becoming increasingly important for Cambodian businesses seeking to compete internationally.

Within ASEAN, he added, harmonised standards, technical regulations and conformity assessment procedures are emerging as key measures of the competitiveness of Cambodia’s micro, small and medium-sized enterprises.

Despite the challenges, he said Cambodia retains significant advantages, including its strategic location in ASEAN, a young workforce, macroeconomic stability, sustained economic growth and broad market access through free trade agreements.

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