Ministry of Economy and Finance permanent secretary of state Vongsey Vissoth. Heng Chivoan
The government has allocated nearly $2 billion to stave off the spread of the novel coronavirus and to address the economic impact on key sectors through eight rounds of mitigation measures.
This is what Ministry of Economy and Finance permanent secretary of state Vongsey Vissoth told the 7th Joint Meeting of the ASEAN Finance Ministers and Central Bank Governors on March 30 via video link.
He said the government remained committed to implementing reform policies aimed at increasing the country’s competitiveness and creating a favourable environment for the private sector to do business and invest domestically and abroad.
The government allocated $1.164 billion in 2020 and has earmarked $719 million for this year, he said.
On March 25, the government announced its eighth round of economic mitigation measures, which centre on garments, textiles, footwear, travel goods, bags and tourism.
The government in April-June will continue to provide $40 per month to workers in the sectors as part of its cash handout programme amid the pandemic.
Factory and enterprise owners must add $30 to the handout, increasing the total disbursement to $70. On the other hand, employers in the tourism sector are encouraged to voluntarily provide as much money as possible.
Anthony Galliano, the group CEO of financial services firm Cambodian Investment Management Co Ltd, said continued government support will provide a lifeline for businesses to survive.
“The government continues to introduce further measures to support small businesses in this unprecedented difficult business environment.
“While providing liquidity to struggling businesses through guaranteed loans is extremely helpful, further tax incentives many be needed across other impacted sectors.
“At this point most businesses are hoping for some degree of reopening of the country to international tourism and growth in trade, which is not a unique desire globally,” he added.
According to Vissoth, the government is preparing to launch a three-pronged 2021-2023 economic recovery plan.
The first part of the strategy, dubbed “Revival and Survival”, focuses on building a solid foundation for economic recovery.
“Reform” grapples with transforming crises into opportunities, with a focus on the diversification and protection of economic competitiveness.
And “Resilience” concentrates on achieving effective preparedness for possible crises going forward, from either natural causes or human activity.
