Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s SMEs set to submit concerns to the prime minister

Kingdom’s SMEs set to submit concerns to the prime minister

Content image - Phnom Penh Post
Workers work at LY LY Food Industry in Phnom Penh in 2015. Hong Menea

Kingdom’s SMEs set to submit concerns to the prime minister

Some of the Kingdom’s small- and medium-sized enterprises (SMEs) are set to submit some of the sector’s main challenges to Prime Minister Hun Sen at the 21st Government-Private Sector Forum, which will be held at the end of this month.

More than 100 member SMEs from the Federation of Association for Small and Medium Sized Enterprises of Cambodia (Fasmec) on Monday gathered at Tonle Bassac II restaurant to raise the main sectoral challenges, including unfair competition, tax enforcement, transportation, import/export obstacles and financial access to the SME Bank.

Fasmec president Te Taingpor said: “We are looking for transparency for the sector, such as fair competition, tax compliance as well as fair trade, to promote our SMEs.

“After the meeting, we figured out the main challenges for the SME sector, and will submit them to the relevant ministries and seek further solutions from Prime Minister Hun Sen at the Government-Private Sector Forum this month,” he said.

No access

Taingpor said imported products are easily entering Cambodia’s market through exhibition events, but the Kingdom’s products find it difficult to access neighbouring countries.

“While we are talking about free markets, we should consider why we cannot access neighbouring markets as products from countries such as Thailand do in Cambodia’s market,” he said.

Laim Kim Leng, the Ministry of Industry and Handicraft’s Department of SMEs director-general, said SME policy is under review by the Minister of Industry and Handicraft and relevant ministries, as well as private sector entities to add their input to promote comprehensive awareness and efficiency.

“We understand the challenges of SMEs – that’s why we set up the policy to promote them” he said. “We have a lot of policies in place such as tax incentives and exhibitions to promote domestic products.”

The government issued a sub-decree on tax incentives for SMEs in priority sectors, signed by Prime Minister Hun Sen on October 2, which identified six priority sectors.

These included agro-industry and food production and processing, both of which will receive an income tax exemption for three to five years from the date of tax registration for newly registered enterprises, or from the date of tax registration update for enterprises already registered.

Lim Kim Hong Fish Sauce Enterprise Co Ltd director Leang Hong said though SMEs are key players in promoting the country’s economy, the government should seek a way to support SMEs by taking an effort to solve the sector’s challenges.

“We are SMEs, we face a lot of issues. It is not a challenge to reach out for exports, but we are facing the challenge of competition with imported products, which look the same as our products but are cheaper than ours,” he said.

MOST VIEWED

  • Ministry issues warning over coronavirus outbreak

    The Ministry of Health on Wednesday asked the public to be on “high alert” as a new virus wreaks havoc across Asia. However, no cases have been reported in the Kingdom thus far. The 2019 Novel Coronavirus (2019-nCoV) has raised the alarm for its similarity to

  • Call for boycott of Angkor unacceptable

    Dear Editor, I wish to express my strong disagreement on the article published by Traveller for their website with the title Best places to go in 2020: 12 destinations you should avoid. Below is my opinion of the article. It is obviously free for the Traveller to

  • Probe underway after wreckage of drone with Chinese characters found

    Air Force Command spokesman Prak Sokha said on Sunday that investigations are underway regarding the wreckage of a drone that was recovered in Koh Kong province’s Koh Sdech commune in Kiri Sakor district. The wreckage has been taken to the capital for further examination,

  • Gov’t slams UN rapporteurs over Sokha trial statement

    The Ministry of Foreign Affairs and International Cooperation and the Permanent Mission of the Kingdom of Cambodia to the UN Office in Geneva deplored the statement of three UN special rapporteurs who claimed that Kem Sokha’s trial was “tainted” due to irregularities. The reaction

  • No power shortages next dry season, says energy minister

    Minister of Mines and Energy Suy Sem has assured the public that Cambodia will not suffer power shortages during the next dry season. Speaking on local TV on Tuesday, Sem projected a rise in power demand during 2020’s dry season – which starts in November and

  • Gov’t takes steps to lower logistics, transport costs

    With the threat of losing trade privileges in the EU drawing closer, the government is taking measures to reduce logistics and transportation costs to safeguard the Kingdom’s competitiveness. The EU is due to decide whether or not to withdraw the Kingdom’s trade privileges