Fi­nance Min­is­ter Aun Porn­moniroth on Cam­bo­dia’s eco­nomic fu­ture

Five years af­ter Aun Porn­moniroth be­came Cam­bo­dia’s fi­nance min­is­ter, he shares his vi­sion for the King­dom’s econ­omy with South­east Asia Globe

Southeast Asia Globe - - Banking - IN­TER­VIEW BY JANELLE RETKA PHO­TOS BY SAM JAM

What have been Cam­bo­dia’s great­est eco­nomic strides since you be­came fi­nance min­is­ter five years ago?

Dur­ing the last five years, the Royal Gov­ern­ment of Cam­bo­dia has made im­pres­sive achieve­ments, stem­ming from pru­dent macroe­co­nomic man­age­ment, pro-growth eco­nomic poli­cies and com­pre­hen­sive re­forms. Cam­bo­dia was named Asia’s new tiger econ­omy and at­tained lower-mid­dlein­come sta­tus in 2016 due to strong eco­nomic growth. The coun­try has sus­tained a high eco­nomic growth rate and GDP per capita jumped from $1,044 to $1,427 [dur­ing my term], re­flect­ing a bet­ter liv­ing stan­dard. Cam­bo­dia’s growth has also moved in an in­clu­sive path­way, which has led to a rapidly grow­ing mid­dle class that rep­re­sents an at­trac­tive mar­ket for trade and in­vest­ment – some­thing which is cru­cial to safe­guard­ing and re­in­forc­ing the growth.

Our rev­enue col­lec­tion has also re­mark­ably in­creased in the past five years to be on par with re­gional peers, while the gov­ern­ment has in­creased spend­ing on in­fra­struc­ture, ed­u­ca­tion, skilled labour, health and agri­cul­ture with the aim of en­hanc­ing pub­lic ser­vice de­liv­ery and eco­nomic pro­duc­tiv­ity. We’ve seen rapid eco­nomic ex­pan­sion within a sta­ble macroe­co­nomic en­vi­ron­ment. In­fla­tion has been con­tained at around 3%; the ex­change rate has been sta­ble; and gov­ern­ment’s debt level re­mains low at around 30.1% of GDP last year, for ex­am­ple.

Prom­i­nent re­forms, namely the Pub­lic Ad­min­is­tra­tive Re­form and a se­quen­tial Pub­lic Fi­nan­cial Man­age­ment Re­form Pro­gramme, have been promis­ing. The tax sys­tem has been stream­lined and mod­ern­ized, tak­ing ad­van­tage of the lat­est in­no­va­tions in ICT and mak­ing tax pay­ing ser­vices rel­a­tively more con­ve­nient and less time con­sum­ing – thus en­cour­ag­ing tax com­pli­ance.

Cam­bo­dian Fi­nance Min­is­ter Aun Porn­moniroth takes time out from a busy sched­ule over­see­ing the King­dom’s fi­nances

Newspapers in English

Newspapers from Cambodia

© PressReader. All rights reserved.