The BGA Cambodia team, led by Managing Director Bora Chhay, wrote an update on the approval of a controversial constitutional amendment. The update examined the context for the amendment, its political and economic significance, and the implications for companies either operating in Cambodia or with an interest in the country.

Context

  • Cambodia on August 6 signed into law a controversial constitutional amendment that gives prime ministers a more direct choice in their successors, removing significant legislative oversight. The National Assembly and Senate approved the amendment on July 28 and August 5, respectively.
  • Proponents of Cambodia’s 10th amendment say it will ensure the smooth functioning of the country’s national institutions, while rights advocates and critics in Cambodia’s opposition parties and civil society say the amendment will further entrench Prime Minister Hun Sen’s power. The consolidation of Hun Sen’s power could clear a path for his son, Hun Manet, to become the country’s next premier.

Significance

  • The new amendment will avert potential political deadlock after the country’s next general election in July 2023.
  • The ruling Cambodia People’s Party is expected to secure a decisive victory, but the opposition may win a few seats — particularly the new Candlelight Party, which performed surprisingly well in the country’s June 5 commune elections.

Implications

  • Businesses should watch for new policy and regulatory reforms to improve Cambodia’s ease of doing business. The government will continue to emphasize attracting more investment over the next five to six years.
  • With the political status quo all but assured, the government will look to continue opening key sectors of its economy. These sectors include energy, manufacturing, digital, infrastructure, automotive, agriculture and other emerging industries.

BGA 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.

A small ginko leaf

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