The $50M in ABD funding will focus on micro, small and medium-sized enterprises (MSMEs) as they are the backbone of the economy. Post Staff
The Asian Development Bank (ADB) announced the approval of a $50 million policy-based loan to support the Kingdom’s efforts to make the business environment more investment-friendly, upgrade businesses toward higher competitiveness and ease trade barriers.
According to the ADB, this second subprogramme of the ongoing “Trade and Competitiveness Program” will reinforce the government’s efforts to leverage private sector investments to achieve higher, inclusive, and sustainable growth to improve the lives and livelihoods of its citizens.
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“This programme supports ADB’s continued commitment to advancing Cambodia’s economic potential and creating a more robust enabling ecosystem for business to grow, leading to increased investment, job creation and sustainable economic growth. It focuses on micro, small and medium-sized enterprises (MSMEs) as they are the backbone of the economy, and their growth is crucial to drive competitiveness. Through targeted incentives, we aim to empower them to diversify, integrate digital solutions and increase productivity,” said ADB country director for Cambodia Jyotsana Varma, via a November 26 press release.
“The programme also seeks to facilitate smoother, more efficient cross-border trade by improving regulatory frameworks, streamlining procedures and reducing barriers to trade, leading to Cambodia being better positioned to participate in regional and global markets,” she added.
The release detailed three main interlinked constraints contributing to Cambodia’s broader development challenges: a sub-optimal enabling environment for investment and business, underdeveloped MSMEs and barriers to cross-border trade.
It explained that when combined, they reduce productivity and competitiveness and prevent the economy from fully realising its growth potential.
The “Trade and Competitiveness Program” aims to support the government’s efforts to address these challenges and boost the Kingdom’s competitiveness.
“It will help streamline business regulations and enhance public services, making it easier to do business in Cambodia. By 2027, the program would lead to some 50,000 MSMEs being formally registered in the online business registration system, and digitally secure necessary business licenses, certificates and permits,” noted the statement.
“In parallel, the programme provides incentives and technological support to MSMEs to encourage them to expand in strategic sectors and move up the value chain. The programme also supports flagship reforms to improve border facilitation to boost trade,” it added.
The ADB reiterated its commitment to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
