The International Finance Corporation (IFC) launched a corporate governance initiative yesterday aimed at enhancing the efficiency of Cambodia’s private sector to strengthen the business climate and spur foreign investment and job creation, it said in a release.

The Cambodia Corporate Governance Initiative (CCGI) is a joint collaboration with the National Bank of Cambodia (NBC) and the Securities and Exchange Commission of Cambodia (SECC). The initiative has formed a working group that will support regulatory bodies to improve regulations and standards, as well as provide direct assistance to companies to raise their governance quality, it said.

In addition, the IFC and SECC have completed a country diagnostic that has analysed corporate governance shortcomings, especially in regards to the legal framework for large and publicly listed companies, the release added.

“[The] findings and recommendations will help market regulators bring the corporate governance regulatory framework on par with regional peers,” it said.

Kyle Kelhofer, IFC country manager for Cambodia, Laos and Vietnam, said the initiative would be geared towards the emerging private sector.

“Cambodian companies with good corporate governance are better positioned to attract external financing, increase profitability, and hire and maintain a quality workforce,” he said.