BGA Cambodia Adviser Siriwat Chhem wrote an update to clients on the modernization of Cambodia’s public sector.

Context

  • The Cambodian government has launched a nationwide census of civil servants under a formal inter-ministerial directive, covering permanent staff, contract officials and subnational employees across ministries and provincial administrations. Cambodia has about 232,000 civil servants, 55,000 of them at the national level and 177,000 at the subnational level. This marks the first civil service census in more than a decade and signals a significant push toward modernizing Cambodia’s public sector.
  • The primary objectives of the census are to eliminate “ghost employees,” improve workforce transparency and streamline the government’s wage bill. Ministries are now required to verify physical presence and employment records, digitize their personnel databases and submit consolidated reports to the Ministry of Civil Service and the Ministry of Economy and Finance. These initiatives will be implemented through the action plan of the National Committee for Promoting the Implementation of Key Measures in Public Administration Reform, with broad implications for both governance and economic engagement.

Significance

  • For Cambodia’s civil service, the census will likely trigger the internal restructuring of bloated and misaligned ministry staffing, including potential downsizing, reassignment and the reclassification of roles. The changes are intended to improve human resource efficiency, reduce fiscal leakages and reallocate budgetary resources to higher-priority sectors such as education, health and digital infrastructure. Moreover, these efforts will lay the groundwork for performance-based personnel management, enhanced service delivery and stronger institutional credibility.
  • The private sector should expect temporary administrative delays. Many ministries and provincial departments may reallocate their operational focus to complete the census, which could slow licensing processes, project approvals and joint initiatives involving government agencies. Firms with ongoing engagements should adjust their timelines accordingly and maintain close communication with their public-sector counterparts.

Implications

  • The long-term impact is more promising for multinational corporations and foreign investors. A verified and digitized civil service workforce will help reduce bureaucratic obstacles and improve regulatory consistency. This is particularly important for companies operating in or entering regulated sectors such as infrastructure, energy, telecommunications, finance, health care and manufacturing. The presence of a more accountable and responsive bureaucracy improves the reliability of public-private partnerships and enhances investor confidence.
  • Overall, the civil servant census represents a credible step in Cambodia’s broader public sector reform agenda, reinforcing the country’s commitment to good governance and improved public service delivery. While short-term administrative friction is likely, the medium- to long-term outlook supports a more transparent and business-friendly regulatory environment.

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 Adviser Siriwat Chhem at schhem@bowergroupasia.com.

Best regards,

BGA Cambodia Team