Logo of Phnom Penh Post newspaper Phnom Penh Post - Gov’t rolls out 10th round of relief measures

Gov’t rolls out 10th round of relief measures

Content image - Phnom Penh Post
Garment workers leave from a factory in Phnom Penh. Hong Menea

Gov’t rolls out 10th round of relief measures

The government has rolled out the 10th round of economic relief measures to manage the impact on key sectors from Covid-19 and the ongoing recovery process, and bolster economic growth during and after the crisis.

Economists, however, say the move does not do enough to stimulate domestic growth.

The support measures centre on the severely-hit textiles, garments, footwear, travel goods and tourism sectors, aiming to keep businesses afloat in the fourth quarter of this year as the pandemic drags on, according to a government statement on October 28.

The government in October-December will continue to provide $40 per month to suspended workers in these sectors as part of its cash handout programme amid the pandemic.

The aid, however, will only be available to workers of businesses that meet the legal criteria to suspend employment contracts and have received the necessary permits from the Ministry of Labour and Vocational Training.

Factory owners must add $30 to the handout, increasing the total disbursement to $70. Employers in the tourism sector, on the other hand, are encouraged to voluntarily provide as much money as possible.

Additionally, hotels, guesthouses, restaurants and travel agents registered with the General Department of Taxation will be exempt from taxes for the fourth quarter.

The obligation to pay monthly contributions into the National Social Security Fund (NSSF) for occupational risk and healthcare schemes will also be waived during any period of business suspension over October-December.

The government has also extended the minimum tax exemption for domestically-registered airlines and allowed them to defer civil aviation fee payments, in the fourth quarter.

The statement said the 10th round aims to further reduce the socio-economic impact of the Covid-19 crisis, and rehabilitate and prop up businesses in the context of the gradual reopening, which is engineered in line with the “new normal”.

Royal Academy of Cambodia economics researcher Ky Sereyvath described the latest round of measures as part tax reduction policy, and part fiscal policy that is tailored to shift costs and help boost economic growth.

However, the outlined spending measures would likely not stimulate economic growth as much as public expenditure, Sereyvath told The Post on October 31.

On the other hand, the government could be looking to ensure adequate revenue generation that does not deviate too far from pre-Covid performance, he said.

He lauded the fresh round of stimulus measures as “a right and equitable strategy” for the society, which he said shows that the government “still stands behind and supports the people no matter the situation”.

The extended tax breaks for the tourism and aviation sectors promote employment in the country and the re-establishment of flights, he said, claiming that the waivers of NSSF payments would also encourage unemployed workers.

"The Cambodian government does not have a policy on this subsidy, but they can set a separate budget," he said without elaborating.

Pacific Asia Travel Association Cambodia chapter chairman Thourn Sinan welcomed the government's continued assistance to workers employed in the fields of tourism, as well as garments and textile-based products.

He said the stimulus measures are focused on relieving some of the burden on workers and employees in these areas.

Even as Cambodia reopens most domestic services and forges ahead with plans to welcome vaccinated international tourists in the near future, the aforementioned sectors are still reeling from Covid-19, he said.

"What the government should consider doing is to provide financial assistance or low-interest loans to business owners or tourism businesses to prepare for the return of tourists in the future,” Sinan said.

“That would last longer."

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro