The government has instructed town and district administrations, along with relevant authorities responsible for small business registration, to temporarily suspend their services for informal businesses. This decision aims to support and assist individuals in this sector.

The action follows recent notifications from certain district administrations to encourage local small businesses to register, based on registration requirement which was introduced in 2016.

The development raised concerns among small business owners, occurring as the country grapples with the effects of the global economic crisis.

Prime Minister Hun Manet issued a decision on September 13, stipulating that registration of informal businesses must cease in several sectors, namely culture and fine arts, education and sport, tourism, industry and handicraft, mining and energy, and commerce.

In the culture and fine arts sector, encompassing the production and sale of paintings, stone statues, barber shops, nail salons, and small-scale salons, the registration requirement should be suspended.

Within the education sector, the obligation to register for shops selling sporting materials should also be discontinued.

Furthermore, registration for small food stalls, coffee shops, and tourist motodup services must come to a halt.

Starting in May, authorities in Srei Santhor district, Kampong Cham province, have been conducting a campaign to encourage business owners operating from fixed locations to obtain a license from the One Window Service Office, with mobile street vendors are exempt from this registration requirement.

Their aim was to enforce the directive issued by the Ministry of Commerce.

Manet said on September 13 through his Telegram channel that he had received recent complaints from the public regarding this matter. It was these grievances that prompted him to call for the suspension of registrations.

“The government prioritises individuals within the formal economy system, and, in line with this, it is in the process of developing a national strategy aimed at enhancing the understanding of vendors in the informal sector,” he explained.

He stated that the government intends to publish the “National Strategy on Informal Economy Development 2023-2025” to provide support for small businesses and the informal economy sector.

Sun Sreychan, a hairdresser in Phnom Penh, initially felt concerned when she heard that businesses like hers would be required to register. However, she now feels reassured by the government’s announcement to suspend this requirement.

“Now, the income from hairdressing has declined compared to the recent past. If we were obliged to register, it would have been a financial challenge for us. I am pleased to hear about the government’s decision to suspend this registration,” she remarked.

Vorn Pov, president of the Independent Democratic Association of the Informal Economy (IDEA), expressed his support for Manet’s decision to suspend registrations and commended his swift action on this issue.

“This is a good measure as the income of our people has dropped during the global economic crisis. His intervention comes right at the point when people really need it,” he said.

Pov requested that the government place a stronger emphasis on supporting individuals in the informal economy.

He suggested initiatives such as providing a health insurance scheme through the National Social Security Fund, incorporating them into a system that fosters business growth, and offering training opportunities.

Soeung Sen Karuna, spokesperson for the rights group ADHOC, echoed this support, highlighting that people are indeed experiencing the effects of the global economic downturn.

He noted that other countries have also supported their citizens through similar measures.

“Currently, some individuals are burdened with bank debts, and certain sectors, like the real estate sector, are facing a downturn. I believe the government should consider measures such as tax reductions or other means to assist vendors nationwide,” he remarked.