Logo of Phnom Penh Post newspaper Phnom Penh Post - Postal reform due in new year

Postal reform due in new year

Postal reform due in new year

CAMBODIA’S postal system is set to become a public enterprise on New Year’s Day, with assets and investment worth up to US$17 million.

Minister of Posts and Telecommunication So Khun said yesterday that the government would invest $3.7 million of cash capital to the new agency, in addition to the transfer of $13.3 million worth of assets – such as the land and buildings associated with the services’ 88 existing branches.

According to So Khun, whose ministry currently runs the service, the government currently garners more than $5 million a year through mailing and shipping packed goods.

He declined to speculate on the earning potential of the new state-run enterprise, which has been previously tipped by officials as being set to list on Cambodia’s new stock exchange, due to launch next year.

“We cannot estimate how much this new agency will earn, we have to wait and see its initial three-month transactions,” he said.

Staff changes
Currently, the postal service employs around 700 staff.

Under the new scheme, the Minister said that number could be cut to 432 – with the remaining employees retained by the Ministry of Posts and Telecommunications (MPTC).

But despite the pull back in staffing, commentators said that the newly structured service could improve quality.

Chan Sophal, president of Cambodia Economic Association, said that, in general, such institutions had increased flexibility.

They also had potential to generate more income, because such companies could increase salaries to motivate employees.

“I think this trend is really good because it is easy to generate more income and serve public interest,” said Chan Sophal.

When the scheme first came to light in July, government representatives said the move would improve the service’s financial responsibility and transparency, while allowing increased autonomy within the telecommunications and information technology sector – also regulated by MPTC.

The new board of the new organisation, according to previous reports, is set to be composed of representatives from MPTC, the Ministry of Finance, the Council of Ministers, a government-appointed CEO, and a staff representative.

The new CEO is believed to be the director of postal services in  Banteay Meanchey province.

Council of Ministers spokesman Phay Siphan could not be reached for comment.

The government has said that at least three state-run enterprises are set to list on Cambodia’s first bourse.

Phnom Penh Water Supply Authority, and Telecom Cambodia have been named as two of the companies concerned. Last month, officials said the third company was subject to a further announcement, despite initial reports it would be Sihanoukville Autonomous Port.

MOST VIEWED

  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • Cambodia nabs 12th place in best retirement destinations

    Cambodia is an expatriate hotspot for those dreaming of living a more luxurious lifestyle at an affordable cost, according to International Living’s Annual Global Retirement Index 2019. For the fourth year in a row, Cambodia took the top spot in the Cost of Living category.

  • EU starts EBA withdrawal

    The EU on Monday announced that it has begun the 18-month process of withdrawing the Kingdom’s access to its preferential Everything But Arms (EBA) agreement over “a deterioration of democracy [and] respect for human rights”. However, the Garment Manufacturers Association of Cambodia (GMAC) said

  • PM: War result of foreign meddling

    Prime Minister Hun Sen said on Sunday that Cambodia’s recent history of conflict was caused by foreign interference. “The wars that happened were caused by provocation, incitement, support, smearing and interference from foreign powers, and the group of ignorant people who pushed Cambodia to