Cambodia Investment Review
At the annual Fintech Festival held in Zurich, Switzerland from July 1-3, the Point Zero Forum once again provided a platform for innovation and collaboration, focusing on Artificial Intelligence, ESG, and Digital Money. Among the notable attendees were Jean Pierre Gagnon, Deputy Chief of Sathapana Bank, and His Excellency Sovannorak Rath, Deputy Governor of the National Bank of Cambodia (NBC), who participated in a roundtable discussion on enhancing financial services for micro, small, and medium-sized enterprises (MSMEs).
This event follows closely on the heels of the recent Memorandum of Understanding (MoU) between Singapore and Cambodia, aimed at creating the Financial Trade Corridor (FTC). This MoU is expected to significantly boost trade and cross-border financial services for SMEs, marking a significant step towards integrating Cambodia into global payment systems.
Importance Of MSMEs In Cambodia’s Socio-Economic Development
During the roundtable, Deputy Governor H.E. Sovannorak Rath highlighted the importance of MSMEs in Cambodia’s socio-economic development. He discussed the challenges these enterprises face, particularly in accessing financial services, and outlined the Royal Government and NBC’s efforts to support MSMEs. These efforts include introducing policies to promote local production and increase employment within the sector.
Read More: Cambodia and Singapore Launch Financial Transparency Corridor to Boost SME Trade
“Our goal is to ensure that MSMEs have the necessary support to thrive,” said H.E. Rath Sovannorak. “The UTC project, which is a collaboration between the United Nations Development Program (UNDP) and the Monetary Authority of Singapore (MAS), aims to create a robust database to help MSMEs address challenges, especially access to financial services from banking and financial institutions.”
Jean Pierre Gagnon echoed these sentiments, emphasizing the importance of international collaboration. “The Fintech Festival in Zurich has opened new doors for us to explore cutting-edge technologies and strategies that will revolutionize the financial sector in Cambodia,” he said. “Our collaboration with international partners is key to driving forward innovative solutions that make financial services more accessible to underserved communities.”
Gagnon also stressed Sathapana Bank’s commitment to financial inclusion and innovation. “Our commitment to financial inclusion and innovation is strengthened through these international exchanges, paving the way for a more connected and inclusive future,” he added.
Support MSMEs In Overcoming Barriers To Financial Access
The UTC project, initiated by the UNDP and MAS, in collaboration with central banks across Asia, Africa, and Europe, aims to enhance the financial environment for businesses, particularly MSMEs. The project focuses on creating a comprehensive database to support MSMEs in overcoming barriers to financial access.
This roundtable discussion at the Point Zero Forum underscored the critical role that MSMEs play in Cambodia’s economy and the significant strides being made to support their growth and development. With initiatives like the FTC and UTC project, Cambodia is poised to enhance its financial infrastructure, providing MSMEs with the tools and resources they need to succeed on a global scale.
The participation of Cambodian leaders in such high-profile international forums highlights the country’s commitment to fostering a more inclusive financial system. As Cambodia continues to engage with global partners, the future looks promising for its MSMEs, with improved access to financial services and increased opportunities for growth and development.
