Access to Finance for SMEs Promoted

The Khmer Enterprise (KE), a unit under the Ministry of Economy and Finance, and the Cambodia Microfinance Association (CMA) has entered a cooperation agreement on promoting the access to finance for entrepreneurs and SMEs in the ecosystem of Cambodia.

The MoU on the cooperation was signed by H.E. Dr. Chhieng Vanmunin, CEO of KE, and Mr. Phal Vandy, Executive Director of CMA late last week, according to a press release issued on Nov. 29.

The MoU will create a collaboration framework for both parties to improve access to financial services and co-organise on programmes/events such as pitching events, trade fairs, business matching and networking, entrepreneur cultural promotion, workshops, seminar conference and trainings for the development of Cambodia's SMEs and startups.

The cooperation is aimed to provide access to financial information including related fees, rates, understanding risks, and available financial instruments to startups and SMEs in Cambodia ecosystem, said H.E. Dr. Chhieng Vanmunin.

“The Royal Government of Cambodia has many policies to create additional funds in the financial system and to relax compulsory criteria for financial institutions. However, it is ultimately up to the financial institutions to pass down those benefits to SMEs and startups in Cambodia,” he said.

Cambodia’s fast-growing economy means SMEs and startups have become increasingly important in providing jobs and boosting economic growth, said Mr. Phal Vandy, adding that having contributed to poverty alleviation in recent decades, the microfinance has been evolving from serving only the poor to providing people with all financial needs.

“The microfinance sector has been working closely with the government to support SMEs. CMA has played crucial roles in recent initiatives of SME Bank and Credit Guarantee Cooperation of Cambodia, both of which aim solely at boosting SME,” the CMA executive director said.

Source: Agency Kampuchea Press