PM HUN SEN: The Implementation of Intervention Policies to Balance Socio-economic Aspects, Combating Against COVID-19
Prime Minister Hun Sen reaffirmed the implementation of appropriate government intervention on the adoption of public financial policy, monetary policy, and structural reforms in attempts to accomplish two significant objectives.
First and foremost, the ultimate objective is to achieve socio-economic balance with ongoing combat against COVID-19 through the increase of government expenditure on health service and promotion of public health; stabilize the business activities through fiscal incentives, tax relief scheme, credit relief scheme, and liquidity expansion as well as sustaining people’s livelihood through wage subsidiaries, training programs and social assistance programs.
Second, another purpose of the intervention policy is to capture the rebound of economic growth through the strengthening of market competitiveness, market diversification and structural reforms. During the Global Manufacturing and Industrialization Summit (GMIS 2020) under the theme “Restoring Prosperity in the Post-Pandemic World”, prime minister Hun Sen reinstated via video conferencing precisely that the Royal Government of Cambodia reaffirmed the commitment to tackle the spread of the novel coronavirus and the measures have been effectively implemented as Cambodia has neither reported any community infection case nor reached the stage of imposing curfew or lockdown restriction.
Nevertheless, the COVID-19 pandemic has brought impacts on several critical sectors include textiles, tourism, aviation and other service sectors. With this regard, the Royal Government has already implemented five phases which aim to stabilize productions and businesses that supply domestic and oversea markets, and especially sustaining the living condition of vulnerable groups.
The social intervention measures include tax relief scheme and exemption of social security fund contribution, credit relief scheme, liquidity expansion, wage subsidiaries in the garment industry and tourism, special finance scheme to help rehabilitate and promote small and medium enterprises (SMEs), training programs for employees, working capital financing programs for factories, enterprises, and businesses nationwide.
For the social aspect, the Royal Government has adopted cash for work programs for rural development and support farmers through better community infrastructure and additional job opportunities during this period. Furthermore, the Royal Government has implemented the subsidiaries program for temporary aid to the poor and vulnerable groups of people in an effort to sustain their livelihood during the pandemic. For the education sector, after months of the closure, the Royal Government released “The Strategy on Reopening Educational Institutions” which requires all institutions to apply mixed learning methods, distance learning through technological and online means and in-class learning with the strict adherence to social distancing rule and other precautionary measures instructed by the Ministry of Health.
Prime Minister Hun Sen emphasized that despite the fact that COVID-19 pandemic has caused severe impacts and socio-economy, the government never steps back toward the development and social reforms in all sectors. In fact, the government has adopted in-depth reforms, aiming at solving challenges encountered by investors and businessmen to strengthen competitiveness through easing and creating a favorable environment for businesses and investments.
In addition, to capture the maximum opportunities of the 4.0 Industrial Revolution, the Royal Government of Cambodia has formulated and initiated digital economy policies and e-government frameworks. Prime Minister Hun Sen added that during the official visit of His Excellency, Li Yong, Director-General of UNIDO, to Cambodia in 2017, Cambodia signed “A Joint-declaration on a Programme for Country Partnership for 2018-2023” in order to enhance industrial development, wherein the current circumstances, the Programme for Country Partnership is expected to play a significant role in supporting economic recovery in the post-COVID-19 crisis.
SOURCE: Ministry of Information | By: Kimlong HAK