PHNOM PENH: Prime Minister Hun Sen has stated that the Royal Government considers small and medium enterprises (SMEs) and handicrafts businesses to be the backbone of the national economy and, therefore, an indispensable pillar for economic development.

The Prime Minister made this statement at the gathering and solidarity dinner with small and medium enterprises and handicrafts businesses on Monday afternoon, 10 April 2023.

He said that the Royal Government has established a Policy Action Committee for the Promotion of Small and Medium Enterprises, an inter-ministerial mechanism for studying, evaluating and addressing the challenges faced by SMEs in Cambodia.

He stressed that the Royal Government has also been preparing a draft law on SMEs, as well as a new policy for the development of SMEs, to better address current challenges.

The Prime Minister added that in 2022, the Royal Government established the Small and Medium Enterprise Bank to support the development of SMEs, particularly in the context of Covid-19. The bank has thus far disbursed US $400 million in loans to more than 3,000 enterprises.

Further more, in order to reduce production costs, the Prime Minister shared that the Royal Government has prepared a number of policies, laws and regulations specifically geared towards supporting registered SMEs in priority sectors.