Govt backs business financing as 2026 growth projections dip to 4.1%

Govt backs business financing as 2026 growth projections dip to 4.1%

Pornmoniroth says the forum highlights the government’s ongoing efforts to sync public institutions and strengthen business financing, especially as Cambodia battles growing global economic pressures.

Deputy Prime Minister and Minister of Economy and Finance (MEF) Aun Pornmoniroth Friday reaffirmed the Royal Government’s commitment to strengthening Cambodia’s business financing ecosystem, describing it as key to sustaining economic resilience after revising the 2026 growth forecast down to 4.1 percent.

The commitment was made during the National Business Financing Forum 2026 (NBF Forum) themed ‘Integrating Government’s Financing Support for Economic Resilience’, a two-day event held in Phnom Penh from July 30 to 31

In his opening remarks, Pornmoniroth said that the forum reflects the Royal Government’s continued efforts to strengthen coordination among public institutions and improve businesses’ access to financing at a time when Cambodia is facing mounting external economic headwinds.

The Deputy Prime Minister noted that the forum demonstrates the government’s determination to build stronger policy coordination in support of private sector development.

“The NBF Forum is a clear reflection of the close cooperation between relevant government agencies in creating synergies and inter-agency policy coordination to promote private sector development,” he said.

He added that the government’s priority is to improve access to affordable financing and flexibility to ensure trade stability and promote economic activity in line with the forum’s objective of strengthening Cambodia’s business financing ecosystem.

Pornmoniroth emphasised that the forum is more than a policy dialogue, describing it as an important mechanism to build stronger links between businesses and government institutions.

The forum is also an essential factor in creating a resilient financial ecosystem through direct connections between the economy and key government support agencies,” he said.

He added that the forum also serves as an open platform to gather feedback from businesses and financial institutions, allowing policymakers to improve financing strategies and strengthen cooperation between the public and private sectors in addressing financial challenges while supporting sustainable economic growth.

The Deputy Prime Minister noted that the forum is taking place amid growing uncertainty in the global economy, with many countries continuing to grapple with geopolitical tensions, supply chain disruptions, trade wars, rising energy prices and the increasing impacts of climate change.

“Cambodia continues to face these challenges both directly and indirectly. It also requires continued efforts to overcome many domestic challenges,” he said, adding that these external and internal pressures continue to affect the Royal Government’s efforts to accelerate national development and economic growth.

Despite the difficult external environment, Pornmoniroth said Cambodia’s economy remained resilient in 2025, expanding by 5.3 percent, supported by strong growth in the garment, non-garment, wholesale and retail sectors.

However, he noted that MEF’s latest assessment projects economic growth to moderate to 4.1 percent in 2026 as global risks continue to weigh on the country’s outlook, particularly rising oil prices triggered by the conflict in the Middle East.

Pornmoniroth stressed that Cambodia’s development achievements have always depended on the active participation of the private sector, which he described as a fundamental pillar of the national economy.

“The achievement of development in almost all sectors, past, present and future, cannot be separated from the important and indispensable contribution of the private sector, which is an essential engine of economic growth and a strong backbone in the development of the national economy as a whole,” he said.

He noted that both micro, small and medium enterprises (MSMEs) and large companies continue to create employment opportunities, generate income, reduce poverty and contribute to economic diversification while promoting inclusive and sustainable growth.

Pornmoniroth said the current challenges present an opportunity for Cambodia to strengthen its domestic economy by increasing the competitiveness of local businesses and reducing dependence on imports.

“This is a special opportunity for developing competitiveness, diversifying local products, strengthening the competitive edge of the private sector, reducing dependence on imports, strengthening the independence of the national economy, and promoting economic growth to be more dynamic,” he said.

To help businesses withstand external shocks and improve access to finance, the Deputy Prime Minister added that the Royal Government has established eight specialised institutions to complement commercial banks and private financial institutions.

These included the Agricultural and Rural Development Bank (ARDB), Credit Guarantee Corporation of Cambodia (CGCC), Digital Economy and Business Committee (DEBC), Entrepreneurship Development Fund (EDF), Khmer Enterprise (KE), Skills Development Fund (SDF), Techo Startup Center (TSC) and SME Bank.

According to an MEF press release, the NBF Forum marks the first initiative to integrate the Royal Government’s financial support mechanisms under a single platform, aiming to help businesses better understand the range of available support programmes, financing options, eligibility requirements and application procedures.

The forum also served as a platform for stakeholders to provide feedback and recommendations to improve the effectiveness and responsiveness of existing support mechanisms, while fostering stronger partnerships, coordination and synergies among public and private sector institutions to create a more flexible, inclusive and sustainable financing ecosystem.

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