The Cambodian government is set to launch a digital onboarding platform next week to promote the transition of small and medium enterprises (SMEs) in the informal sector to the formal economy, Hem Vanndy, Minister of Industry, Science, Technology and Innovation said on Tuesday.
“The digital onboarding platform to be launched on December 16 will provide access for those in the informal economy to benefits such as skills development, social security and formal financial services,” Vanndy said while receiving a delegation from the World Bank led by Tania Meyer, Country Manager for Cambodia.
The platform will streamline the process of formalizing businesses and accessing government services, reducing bureaucratic hurdles and promoting economic growth.
The Royal Government aims to speed up the transition of its substantial informal economy to enhance economic growth and stability. Helping micro, small and medium enterprises (MSMEs) to access finance and motivating them to register into the formal economy is a major part of this process.
As the SME sector is the backbone of the economy, Prime Minister Hun Manet has encouraged the ministry and other stakeholders to jointly work to motivate informal ventures to integrate into the formal economy and create more SME clusters.
The government has offered various tax incentives for micro, small and medium-sized enterprises (MSMEs) currently operating in the informal economy to register their businesses with the Ministry of Commerce and the General Department of Taxation.
Vanndy also highlighted the need for industrial diversification, particularly within Special Economic Zones to help small and medium enterprises adapt to the new economic and market reality.
Of Cambodia’s more than 770,000 business establishments and enterprises, only two percent are officially registered, according to the latest data from the Ministry of Planning’s National Institute of Statistics.
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Reporter: Chea Varnyuth
Publication date: December 12, 2024
Source: Khmer Times
