21 - 27 MAY | KEEPING YOU INFORMED: RECENT ANNOUNCEMENTS BY THE ROYAL GOVERNMENT

With the COVID-19 situation continuing to impact in Cambodia, EuroCham will be regularly disseminating the official announcements from the Royal Government to ensure our network is updated as efficiently as possible. 

Due to the significant number of incoming announcements, we are unable to translate these in full so please refer to our summaries below and the attached official notices in Khmer.

Official Announcements: 21 - 27 May

(English summaries provided by EuroCham Cambodia, subject to corrections by relevant authorities)

1. Royal Government Press Release on the Additional Measures to Support the Private Sector and Workers Seriously Impacted by the COVID-19 Pandemic – 4th Round of Measures  

On 26 May, the Royal Government issued a press release outlining its fourth round of measures to support the private sector and workers seriously impacted by the COVID-19 pandemic, and to recover and promote economic growth after the end of the pandemic. This package of measures includes two main components: (1) Extending the validity of the existing measures; and (2) Further setting out new measures. These measures include: 

Measures to finance working capital and establish an additional financial facility  

  • The Ministry of Economy and Finance will establish a “credit guarantee fund” with a fund of $200 million. This fund may guarantee loans through banks and financial institutions using the market policy to alleviate the pressure of cash flow and working capital of businesses in all sectors for an amount of at least $2 billion. 
  • The Ministry of Economy and Finance will prepare additional financing of $300 million to support and act as a catalyst for promoting growth in key sectors during and after the crisis. 

Further measures to support tourism 

  • Provide further exemption from all monthly taxes for two more months from June to July 2020 for the hotels, guesthouses, restaurants and travel agencies registered with the General Department of Taxation, and whose business activities are operated in Phnom Penh, Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet city, and Poipet city. 
  • To further permit the non-payment of the National Social Security Fund (NSSF) during the business suspension. 
  • To exempt from the renewal fees for tourism licenses of all types for 2021. 

Measures to support aviation  

  • Exempt all airlines registered in Cambodia from minimum tax for two more months from June to July 2020. 

Measures to business financing 

  • Adjustments to the special financing plan of $50 million through the Agriculture and Rural Development Bank. 
  • Adjustments to the special financing plan of $100 million for loans between financial institutions and small and medium enterprises.  

Measures to increase financing to restore and promote growth after COVID-19 

  • Decreasing the level of withholding tax on new loans for banks and financial institutions to 5% for 2020 and 10% for 2021. 
  • Decreasing the level of withholding tax on existing loans for banks and financial institutions to 10% for 2020.

2. Phnom Penh Capital Administration Instruction on Educating Citizens about the Implementation of Preventive Measures against the Second Wave of COVID-19  

On 25 May, the Phnom Penh Capital Administration issued an instruction to the 14 districts and departments under the Phnom Penh Capital Administration:  

  1. Continue educating citizen and especially factory workers to respect the preventive measures, such as wearing masks, covering mouths when coughing, cleaning hands, and implementing mandatory social distancing and individual distancing policies.  
  2. Continue restricting gatherings, parties, and religious gathering until September 2020. 
  3. Monitor restaurants, food courts and any shops to implement measures against the spread of COVID-19. Owners of the above businesses shall prepare hand sanitizer and temperature checks at the entrance. If the owners do not comply with these measures, the Phnom Penh Capital Administration will temporary shutdown the business. 
  4. Monitor the suspension of gyms, movie theaters, KTVs, clubs, massage wellness, and spas 
  5. Gather statistics of citizens who have just returned from abroad and instruct them to complete 14 days quarantine. 
  6. Monitor the situation of citizens who have been quarantined at home. 
  7. Implement the other preventive measures from the Ministry of Health.   

3. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Employees in the Garment and Tourism Sectors  

On May 26, the Ministry of Labour and Vocational Training notified that 33,231 employees from 111 suspended enterprises and factories of the garment and tourism sectors, will receive a message from Wing Specialized Bank about the subsidised allowance. The employees can withdraw the allowance at any branch of the nearest Wing agents by bringing their Khmer ID card and phone number, and there will be no service fee required for the withdrawal.  

4. Ministry of Civil Service Letter on the Postponement of the National and Sub-National Civil Servant Recruitment 

On 21 May, the Ministry of Civil Service issued a letter to the Deputy Prime Ministers, Senior Ministers, Ministers and Governors of the Capital and Provinces that the recruitment of national and sub-national civil servants is temporarily postponed, in reference to the Royal Government decision on postponing civil servant recruitment for 2020.  

5. State Secretariat of Civil Aviation Instructions on Strengthening Preventive Measures Against the Spread of COVID-19 in the Passenger Air Transport Sector

On 26 May, the State Secretariat of Civil Aviation issued instructions to all aviation companies operating in and out of Cambodia that all Cambodian and foreign travellers shall have an original health certificate which certifies them as COVID-19 free within 72 hours and health insurance documents coverage for foreigners of at least $50,000 during their stay in Cambodia. These documents shall be issued by reliable hospitals, health institutions, agents, or companies which can be contacted.  

Aviation companies cannot fly their passengers into Cambodia if the above instructions are not fulfilled. 

6. Phnom Penh Capital Administration Notification on Waste Collection Service Fee 

On 25 May, the Phnom Penh Capital Administration issued a warning to people, businesses and service owners in Phnom Penh who failed to pay the waste collection fee on time. The Capital Administration will enforce measures, such as releasing their name to the public, closing their businesses or services and other measures. 

7. Ministry of Civil Service to Inform Chief of Municipal and Provincial Civil Service Departments on Teachers' Overtime Wage

On 25 May, the Ministry of Civil Service informed their municipal and provincial Civil Service Departments to suspend monthly wages for teachers who teach two classes and extra time until further notice. If the wages are already paid, the Ministry of Civil Service will work with other relevant Ministries and Institutions to find solution to settle this payment. 

8. Royal Government Notification on Identifying Poor Families during the COVID-19 Crisis 

On 25 May, the Royal Government issued a notification to the chairpersons of the Royal Government’s working groups on monitoring and supporting activities conducted by sub-national frontline officials. The working groups are urged to support frontline authorities in the process of identifying poor families, following the Ministry of Planning’s mechanism on identifying poor and vulnerable groups who need support during COVID-19. Once identified, poor families will be given Equity Cards which will be used to redeem the forthcoming financial support.  

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