In a bid to reduce costs for businesses and make Cambodian products more competitive, the government will eliminate several district-level agencies as well as Kampuchea Shipping Agency and Brokers, also known as Kamsab.
Speaking to a crowd of garment workers on Friday, Prime Minister Hun Sen said that to reduce the burden on local businesses he has decided to “remove” certain agencies at district-level with overlapping duties.
The premier also said Kamsab, an agency of the Ministry of Public Works and Transport, will be eliminated to cut down expenses and red tape for traders.
“Soon we will remove the bureaus of some ministries at the district level,” Mr Hun Sen said. “We will keep those agencies associated with the military, police, health, education and urban management. The rest will be removed and combined into a single agency.
“Kamsab is responsible for a loss of around $500,000 per year for Cambodians. Removing it will make our economy more competitive and facilitate trade,” Mr Hun Sen said.
“This type of reform will help our national economy grow more efficiently,” he added.
The measures follow an announcement by the government earlier this month that it has adopted a new strategy to boost economic self-reliance by reducing costs for businesses.
As part of that strategy, Prime Minister Hun Sen earlier this month ordered the removal of Camcontrol officials from border checkpoints.
Lim Heng, vice president of the Cambodia Chamber of Commerce, applauded the government’s decision.
“We have asked the government to cut down red tape, so we believe this is a good move for the trade sector.
“Having so many agencies to deal with increases the time it takes to process documents and makes procedures more costly,” he said.
Sin Chanthy, president of the Cambodia Freight Forwarders Association, also agreed with the government’s move.
“If we reduce exporters’ costs we will make our products more competitive,” he said, adding that the government should also aim to reduce corruption, which also take a big toll on businesses’ bottom lines.