Cambodia has established a new inter-ministerial steering committee to coordinate implementation of the country’s National Strategy for Micro, Small and Medium Enterprise (MSME) Development, as the government places greater emphasis on strengthening domestic businesses, productivity and competitiveness.
Prime Minister Hun Manet signed the sub-decree on September 15, establishing the committee with more than 30 officials from relevant ministries and government institutions. The committee will coordinate implementation of the national MSME strategy and report progress and challenges to the government through the Economic and Financial Policy Committee.
The move comes as the government continues to identify MSMEs as an important source of employment, domestic production and economic resilience.
More Than 30 Officials Appointed to Steering Committee
The new steering committee brings together representatives from multiple government institutions involved in Cambodia’s economic and productive sectors.
Members include officials from:
- Ministry of Industry, Science, Technology and Innovation
- Ministry of Agriculture, Forestry and Fisheries
- Ministry of Commerce
- Ministry of Planning
- Ministry of Mines and Energy
- Other relevant ministries and institutions
The cross-ministerial structure is intended to improve coordination rather than leave MSME development to a single institution.
Under the sub-decree, the committee must meet at least once a year to review implementation of the national strategy, assess progress and identify challenges requiring attention.
It must also report its findings to the government through the Economic and Financial Policy Committee.
Four Areas of MSME Development
The committee has been assigned a broad coordination role covering the business environment and enterprise development.
Its responsibilities include:
| Priority Area | Intended Focus |
|---|---|
| Business environment | Create more favourable conditions for MSMEs |
| Enterprise capacity | Strengthen business capabilities |
| Productivity | Improve efficiency and production performance |
| Competitiveness | Help enterprises compete in domestic and international markets |
| Economic participation | Increase MSME contribution to national development |
The approach places MSME development within a wider economic policy framework rather than treating individual enterprises separately.
Hun Manet Calls for More Strongly Developed SMEs
Speaking at the inauguration of the TH Automotive Manufacturing GAC plant in Kampong Chhnang, Hun Manet said Cambodia should strengthen its SME sector rather than rely excessively on large corporations and multinational companies.
He said the country should develop a larger number of specialised SMEs, with individual businesses focusing on particular products and areas of expertise.
The Prime Minister also stressed that increasing domestic production needs to be sustainable and should focus not only on production volume but also on product quality and access to long-term markets.
His comments underline the government's emphasis on building a broader domestic business base alongside attracting larger investments.
Key Facts
| Indicator | Detail |
|---|---|
| Steering committee established | September 15, 2026 |
| Establishing authority | Prime Minister Hun Manet |
| Committee membership | More than 30 officials |
| Main mandate | Implement National Strategy for MSME Development |
| Minimum meeting frequency | At least once a year |
| Reporting channel | Economic and Financial Policy Committee |
| MSMEs in Cambodia | 750,000 |
| Employment | 3 million people |
| Share of GDP | 63% |
| Share of employment | More than 70% |
The MSME figures above are official figures cited by AKP in June 2026.
MSMEs Central to Cambodia’s Domestic Production Strategy
The government's recent policy direction has increasingly linked MSME development with domestic production.
In June, Hun Manet said Cambodia had around 750,000 SMEs, employing approximately 3 million people, and that the sector contributed about 63 percent of GDP and more than 70 percent of total employment, according to official figures reported by AKP.
The Prime Minister also said Cambodia needs to strengthen domestic production while ensuring that local enterprises compete through quality, affordability, transparency and business responsibility, rather than relying solely on consumer preference for Cambodian products.
Digital Technology Becomes Part of MSME Competitiveness
Technology is another element of the government's MSME agenda.
In a June 2026 message marking National MSME Day, Hun Manet encouraged local enterprises to use digital technologies to improve product quality, business management, production efficiency, marketing and data analysis.
The government has also identified digitalisation, financing, skills development and business ecosystem support as mechanisms to help MSMEs increase their productivity and expand the value of Cambodian-made products.
This creates a direct connection between the new steering committee's mandate and Cambodia's broader digital transformation agenda.
Government Seeks Input From Businesses
The new committee also comes amid a wider push for greater consultation with the private sector.
In July, Hun Manet called on SME owners and operators to provide feedback on the challenges they face and recommend practical solutions. He tasked Deputy Prime Minister and Economy and Finance Minister Aun Pornmoniroth, as chairman of the Economic Policy Committee, with leading work on additional measures to address SME challenges.
That consultation approach could become important as the new steering committee reviews implementation and identifies areas requiring policy changes.
Business Groups Call for Sector Specific Solutions
Keo Mom, president of the Chamber of Professional and Micro Enterprises of Cambodia, welcomed the establishment of the committee, according to the supplied report.
She argued that government support should be designed around the specific circumstances of individual sectors and informed by businesses directly involved in those industries.
For example, agricultural policy should incorporate input from farmers and agricultural businesses, while industrial policies should involve manufacturers and trade measures should consider the experience of traders.
She also called on relevant officials to visit operating businesses to better understand their level of development and technology adoption.
From Policy Coordination to Practical Business Support
The establishment of the committee provides a formal mechanism for coordinating MSME policy across government institutions.
However, the effectiveness of the strategy will depend on how its priorities are translated into practical support for businesses.
Potential areas include access to finance, digital adoption, skills development, product standards, market access, business formalisation and connections with larger domestic and international supply chains.
Cambodia has already been pursuing several of these areas through separate initiatives. For example, the government has been working to formalise informal businesses and expand access to government services, finance and social protection.
A recent national supply chain forum also sought to connect MSMEs and local producers with distributors, supermarkets, financial institutions, technology providers and digital commerce platforms.
Angkor Times Analysis
The new steering committee gives Cambodia a more formal mechanism for coordinating MSME policy across multiple ministries and institutions. Its significance will ultimately depend on implementation, particularly whether policy coordination translates into easier access to finance, technology, skills, markets and business services. With MSMEs representing a large share of Cambodia's businesses and employment, strengthening productivity and competitiveness could also help connect smaller domestic enterprises with larger manufacturers and regional supply chains. The government's recent emphasis on consultation, digitalisation and domestic production suggests that MSME development is increasingly being treated as part of Cambodia's broader industrial and economic transformation.
Frequently Asked Questions
What is Cambodia's new MSME steering committee?
It is an inter-ministerial committee established to coordinate implementation of Cambodia's National Strategy for Micro, Small and Medium Enterprise Development.
When was the committee established?
Prime Minister Hun Manet signed the establishing sub-decree on September 15, 2026.
How many officials are on the committee?
The sub-decree appoints more than 30 officials from relevant ministries and government institutions.
How often must the committee meet?
The committee is required to meet at least once a year to review implementation, progress and challenges.
What are the committee's main responsibilities?
Its responsibilities include improving the business environment, strengthening enterprise capacity, improving productivity and competitiveness, and increasing MSME participation in national economic development.
Why are MSMEs important to Cambodia?
According to official figures cited by AKP, Cambodia has around 750,000 SMEs, employing approximately 3 million people, contributing about 63 percent of GDP and accounting for more than 70 percent of employment.