- ADB has approved $250 million in concessional financing to support Cambodia in addressing the social protection requirements, health response, as well as revival of SMEs threatened by the COVID-19 crisis.
- At this difficult time of the COVID-19 crisis, ADB wants to ensure it responds to the most pressing needs and helps builds resilience within the Cambodian economy.
- Like the rest of the world, Cambodia is now facing unprecedented challenges posed by the COVID-19 pandemic. ADB is with Cambodia during this difficult time and optimistic that Cambodia’s economy will emerge stronger.
Over the last 25 years, Cambodia’s strong economic growth has led to significant progress in poverty reduction and human development.
But, like the rest of the world, Cambodia is now facing unprecedented challenges posed by the COVID-19 pandemic.
So far, Cambodia has recorded one of the lowest rates of COVID-19 infections in Southeast Asia.
Cambodia’s Ministry of Health was quick to institute school and university closures, shutter non-essential businesses and services, restrict air and cross-border travel, and roll out health service information for the country’s population.
An economic slowdown is now putting pressure on poor and marginalized groups and threatens to push an additional 1.3 million people into poverty.
The COVID-19 pandemic could lead to an estimated 390,000 job losses in Cambodia in 2020.
The tourism sector has been the hardest hit with a 90% drop in air passenger volume and a 99.5% decline in monthly revenue from the country’s world-famous Angkor temples.
The pandemic is already having an impact on Cambodia’s economic growth. However, with the right reforms, ADB is optimistic that the country’s economy will emerge stronger.
ADB has approved $250 million in concessional financing to support Cambodia’s COVID-19 response.
The assistance, provided through ADB’s COVID-19 Active Response and Expenditure Support (CARES) Program, will support the Government of Cambodia’s efforts in addressing the social protection requirements, the health response, as well as the revival of small and medium sized enterprises.
At this difficult time, ADB wants to ensure that ADB’s support addresses the most pressing needs and builds up the resilience of Cambodia’s economy, with an immediate focus on preventing the spread of the disease and minimizing income losses that lead to poverty.
In the longer term, ADB will support Cambodia’s development through economic revival, competitiveness, stronger human capital, better social and environmental sustainability, and improved institutions.
Transcript
Over the last 25 years, Cambodia’s strong economic growth has led to significant progress in poverty reduction and human development.
But, like the rest of the world, Cambodia is now facing unprecedented challenges posed by the COVID-19 pandemic.
So far, Cambodia has recorded one of the lowest rates of COVID-19 infections in Southeast Asia.
Cambodia’s Ministry of Health was quick to institute school and university closures, shutter non-essential businesses and services, restrict air and cross-border travel and roll out health service information for the country’s 16 million + population.
An economic slowdown is now putting pressure on poor and marginalized groups and that threatens to push an additional 1.3 million people into poverty.
Mom Sophana, Drink Vendor at Siem Reap:
“I am concerned about this disease continuing for longer because many tourists have stopped coming here. I am also afraid of catching this disease from selling to possibly infected people.”
“I worry about the future because every day its more difficult for me. I only have a low education so it’s not very easy to find a job now and I don’t have enough money to even feed my children.”
The COVID-19 pandemic could lead to an estimated 390,000 job losses in Cambodia during 2020.
The tourism sector has been the hardest hit with a 90% drop in air passenger volume and a 99.5% decline in monthly revenue to the country’s world-famous Angkor temples.
Tes Chhaya, Tour Guide at Angkor Archaeological Park:
“Most people work for tourism in Siem Reap so when COVID-19 happened tourists stopped coming here and people lost their jobs. So we are worried about how to make a living.”
The pandemic is already having an impact on Cambodia’s economic growth
Sunniya Durrani-Jamal, Country Director, Cambodia Resident Mission, Asian Development Bank:
“ADB expects the economy to contract by 5.5% this year and move back to positive growth in 2021. The Government of Cambodia has prepared a strong policy response including provision of income support for the poor, wage support for workers, tax relief for businesses especially small-and-medium-sized enterprises. We at the ADB are confident that these measures will help minimize the negative impacts of COVID-19, on families and farms firms. With the right reforms the Cambodia’s economy will emerge stronger.”
ADB has approved $250 million of concessional financing to support Cambodia’s COVID-19 response.
Ramesh Subramaniam, Director General, Southeast Asia Department, Asian Development Bank:
“The Cambodia CARES program will support the RGC’s efforts in addressing the social protection requirements, the health response as well as the revival of small and medium sized enterprises. Cambodia is only the second country in the GMS to receive support from ADB for pandemic response. In addition to this support ADB is also working with Cambodia in addressing the health sector requirements through the GMS Regional Health Security Project and ADB will also be working on generating knowledge as well advising the Cambodian authorities.”
ADB is preparing to support Cambodia’s recovery with financing, knowledge, and innovation.
Ahmed M. Saeed, Vice President (Operations 2), Asian Development Bank:
“At this difficult time, we want to ensure that ADB support responds to the most pressing needs and builds resilience within the Cambodian economy. Our immediate focus is on preventing the spread of the disease and minimizing income losses that lead to poverty. In the longer term we will support Cambodia’s development through economic revival, competitiveness, stronger human capital, better social and environmental sustainability, and improved institutions.”
Cambodia’s economy is expected to rebound to 5.9% in 2021, if the pandemic ends and economic activity normalizes.
