PM calls on MSMEs to be a pillar in socio-economic growth of Cambodia

PM calls on MSMEs to be a pillar in socio-economic growth of Cambodia

Prime Minister Hun Manet Tuesday called on the owners of Micro, Small and Medium-sized Enterprises (MSMEs) and all stakeholders to work unitedly to be a pillar of the socio-economic development of the country.

In a message on the first National Day of Small and Medium Enterprises to be celebrated on June 27, Mr Hun Manet congratulated MSMEs saying he was very pleased and would like to applaud the celebration of the First National Day of Small and Medium Enterprises 2024.

Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance shall preside over the first National Day of Micro, Small and Medium-sized Enterprises (MSME Day 2024) under the theme ‘Better MSME Ecosystem for Better Growth’ at Hyatt Regency Phnom Penh.

“This sector covers all kinds of economic activities and provides benefits to all people and businessmen by creating jobs, increasing income, reducing migration, helping vulnerable people to have a stable life, promoting economic development, social stability and contributing to the growth of the private sector,” Mr Hun Manet said.

“I call on the owners of micro, small and medium enterprises and all stakeholders to continue to support the leadership and coordination of the Ministry of Industry, Science, Technology and Innovation to promote this sector to become a basis of social and economic development in Cambodia.”

The Premier went on to say that despite the competitive environment of free trade in the regional and global framework, as well as the uncertainty of the global economy, all Micro, Small and Medium-sized Enterprises have been playing an important role in producing, supplying and providing service.

All MSMEs are striving to develop and evolve in response to new trends, especially the changes in market demand, environmental requirements and technological developments, he added.

According to the Ministry of Industry, Science, Technology and Innovation (MISTI), the United Nations General Assembly has designated June 27 as the International MSME Day to highlight the critical role MSMEs play in sustainable, inclusive, and resilient economic growth. Globally, MSMEs constitute 90 percent of businesses, 60-70 percent of employment and 50 percent of GDP.

In Cambodia, MSMEs are the backbone of the economy, playing a crucial role in employment, food security, and poverty reduction. With the potential to increase value-added, diversify products and services, expand markets, and integrate into global value chains, MSMEs are key drivers in Cambodia’s journey to becoming an upper-middle-income country by 2030 and a high-income country by 2050.

“Ongoing to build and strengthen MSME Ecosystem is a priority that the Royal Government of Cambodia is striving for and encourages all enterprises and stakeholders to support this mission,” Mr Hun Manet emphasized.

He added that small and medium-sized enterprises will continue to be the backbone of the future economy. Therefore, the Royal Government of Cambodia has been expanding public investment in addition to the necessary physical infrastructure that serves the development of the sector, as well as strengthening all kinds of institutional mechanisms and provision of all types of public services.

“In fact, the private sector plays a key role in sustaining and strengthening ecosystems. The Royal Government encourages and urges the private sector to continue to contribute to the development of investment capacity by strengthening the standards and quality of its products and services.”

The celebration of the National Day of Micro, Small and Medium-sized Enterprises shows the great achievements of small and medium enterprises in contributing to the national economic growth in the past with efficiency and inclusion.

“The Royal Government strongly hopes that all enterprises will continue to have a more positive impact in the future and may the theme of this First National Day of MSMEs become a source of strong energy and motivation for promotion collaboration, mutual support with all actors of the entrepreneurial ecosystem,” Mr Hun Manet stressed.

According to the National Report on the Final Results of the 2022 Economic Census in Cambodia of the National Institute of Statistics of the Ministry of Planning, Cambodia has 753,670 small and medium enterprises, a total workforce of 2,980,569, of which 1,841,362 are women.

The National Day of MSMEs aims to increase awareness and provide MSMEs with practical insights for unlocking their growth potential and global competitiveness through formalization and compliance, adoption of good standards, providing access to finance and market intelligence.

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