PM invites feedback to strengthen SMEs

PM invites feedback to strengthen SMEs

Feedback from SME operators on the challenges they face and possible solutions will serve as important data in designing more effective and targeted support measures.

Prime Minister Hun Manet has urged small and medium-sized enterprises (SMEs) and the general public to submit direct feedback to help shape upcoming government policies aimed at fortifying the sector and accelerating domestic production.

In a social media post yesterday, Mr Hun Manet said the government welcomes suggestions from citizens under the spirit of collective participation for the benefit of Cambodia.

“Small and medium-sized enterprises (SMEs) are a key engine of Cambodia’s economic growth and a major source of employment for its people. Successive governments have introduced a series of policies and measures to promote and strengthen the development of the SME sector. Under the seventh-mandate Royal Government, additional initiatives have also been rolled out to encourage entrepreneurship and make it easier for SMEs to establish and operate their businesses,” he wrote.

Mr Hun Manet acknowledged that despite Cambodia’s significant achievements, the country still faces challenges that must be addressed to further strengthen SMEs. He emphasised that expanding domestic production to replace imports has become increasingly important, making the role of SMEs even more critical.

To achieve this goal, Prime Minister Hun Manet said he had assigned Deputy Prime Minister and Minister of Economy and Finance (MEF) Aun Pornmoniroth, who chairs the Economic Policy Committee, to lead the development of urgent and necessary measures to address challenges and provide greater support for SMEs.

He noted that previous SME-related policies have been formulated through extensive consultations with SME representatives, the private sector, and relevant ministries and institutions. The government is now inviting additional feedback, particularly from SME operators, on the challenges they face and possible solutions. These recommendations will serve as important inputs in designing more effective and targeted support measures.

Speaking at the Customs and SME Alliance Forum in June, DPM Pornmoniroth reaffirmed that SMEs remain a government priority because of their contribution to employment, local production, and economic growth.

“The government is also working to streamline SME registration and classification by introducing a fully online system through the CamDX digital platform. The new mechanism will allow business owners to register and receive official SME classification in a single process, reducing processing time and eliminating the need to submit paper documents to multiple ministries,” he said.

Under the new mechanism and procedures, SME owners will be able to complete business registration and obtain official SME classification through a single integrated process, significantly reducing processing time. They will also receive all the necessary legal documents and official recognition from relevant ministries and institutions at the same time, eliminating the need to submit paper documents in person to multiple government agencies, he said.

Pornmoniroth went on to add that the draft National Strategy for SME Development, which aims to strengthen and expand the SME sector as a cornerstone and key driver of Cambodia’s economic growth, is nearing completion. The strategy is expected to be submitted to the Economic and Financial Policy Committee for review in the near future, following a proposal by the Ministry of Industry, Science, Technology and Innovation (MISTI).

He expressed confidence that the strategy will be officially approved and launched in the second half of 2026. Under the strategy, SMEs that complete registration and obtain official recognition through the CamDX digital platform will be eligible for a package of government incentives, including both tax and non-tax benefits.

According to the 2022 Cambodia Economic Census, the country had 753, 670 economic establishments, including more than 60,500 small and medium-sized enterprises. The sector employs nearly 3 million people, contributes about 63 percent of Cambodia’s GDP, and accounts for more than 70 percent of non-agricultural employment, underscoring its critical role in the national economy.

Keo Mom, president of the Chamber of Professional and Micro Enterprises of Cambodia (CPMEC), expressed her appreciation to the Royal Government for its continued attention and support for the small and medium-sized enterprise (SME) sector.

Speaking to Khmer Times yesterday, she said that domestic industries continue to face a number of challenges, particularly the influx of imported goods from neighbouring countries. She noted that despite the permanent closure of the Cambodia-Thailand border, products from Thailand continue to enter Cambodia through other border crossings without proper tax payments. She added that goods imported through both land and water routes are also often subject to insufficient tax collection.

Mom said that if the government wants to accelerate the growth of domestic industries, it should strengthen border import controls and ensure strict enforcement of customs regulations. She stressed that the objective is not to stop imports, but to ensure that all imported goods are taxed in accordance with the law.

khmertimeskh