The BGA Cambodia Team, led by Managing Director Bora Chhay, wrote an update to clients on the recent appointment of the country’s new prime minister.

Context

  • Cambodia’s king on August 22 issued a royal decree appointing Prime Minister Dr. Hun Manet to lead the new government. The new Cabinet comprises young leaders of the ruling Cambodian People’s Party (CPP), many of whom were educated in the West. This marks the first time since 1985 in which power was transferred from CPP veterans to a new generation of party leaders.
  • The new Cabinet members have diverse backgrounds and experiences. They will seek to strengthen public administration, expand institutional capacity and capabilities and build human capital to create new opportunities for businesses and investors in the next five years.

Significance

  • The National Assembly passed the vote of confidence on August 22 to approve the formation of a new government under Hun Manet’s leadership. The outcome of the vote of confidence was widely expected. The new Cabinet comprises a prime minister, 10 deputy prime ministers, 21 senior ministers and 30 ministers.
  • The new premier made “five guarantees” to the public:
    • Maintain peace and stability, independence, sovereignty and territorial integrity.
    • Drive governance reform and socioeconomic development across all sectors.
    • Deliver livelihood improvement, high-quality education, vocational training, job opportunities and improved working conditions.
    • Expand the social safety net.
    • Build resilience to climate change.

Implications

  • Companies should engage Cambodia’s new leadership early on to provide valuable private-sector insights, shape future government policy, identify industry challenges and recommend strategies to overcome them. About three-quarters of Cambodia’s Cabinet members are new. They are eager to accomplish more than their predecessors and help Cambodia become an upper-middle-income country.
  • Cambodia’s bilateral trade with the West is expected to increase under Hun Manet’s leadership. Hun Manet’s foreign policy will continue to prioritize a strong relationship with China, but his administration will likely engage in more open dialogue with Western countries to overcome trust issues.

We will continue to keep you updated on developments in Cambodia as they occur. If you have any comments or questions, please contact BGA Cambodia Managing Director Bora Chhay at bchhay@bowergroupasia.com.

Best regards,

BGA Cambodia Team

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Managing Director

Bora leads BGA’s practice in Cambodia. He is a highly regarded government affairs and public policy expert who helps clients resolve business issues, navigate regulatory and legal challenges, expand operations, explore new investment opportunities and enter Cambodia’s market.  Prior to joining BGA, Bora served for five years as a fast-moving consumer goods (FMCG) corporate and regulatory affairs professional. In this role, he helped transform his company’s government relations and corporate affairs unit into a more effective business-driven group. Notwithstanding Cambodia’s difficult and highly regulated macro environment, Bora played a key role in developing and executing government relations and corporate affairs ... Read More