PHNOM PENH: Before departing for China this morning, Prime Minister Hun Manet decided to relax the requirements for informal businesses to register for business licenses in accordance with his administration’s policy of supporting the informal economy.
On the night of September 13, the PM wrote on his social media that assisting workers in the informal economy is a main priority of his new administration. In 2022, The International Labour Organization (ILO) estimated that as many as 93% of those who are employed in Cambodia are part of the informal economy. For comparison, the informal economy represents only 18% of Japan’s total employment, making Cambodia one of five countries in Southeast Asia for whom the informal economy is the backbone of the economy.
Pursuant to a decision on September 13, the PM has ordered the suspension of some administrative requirements in businesses related to visual artists, salons, sports equipment vendors, local restaurants, motorbike rentals, tuk-tuk tourism, handicrafts, small battery installations, motorcycle repair, car rental, car and bike wash, and wholesale agricultural equipment.
He stressed that his administration is committed to improving the informal economy as outlined in the National Strategy for Informal Economic Development 2023-2028, which will provide social security benefits, foster growth and raise awareness for entrepreneurs and established workers in the informal economy.