PHNOM PENH: (Bernama) Cambodia rolled out a US$1.24 billion (RM5 billion) economic stimulus package on Friday (Sept 4) as the government moves to shield its economy from external and domestic headwinds.
The Kingdom is grappling with multiple challenges, including rising fuel costs caused by the West Asia conflict, the elimination of online scam hubs, a decline in tourism and reduced trade due to closed borders with Thailand amid a territorial dispute.
These factors have collectively slowed domestic economic activity since the beginning of this year.
The Economy and Finance Ministry announced the comprehensive intervention programme to shore up economic activity, protect businesses and jobs, and sustain household incomes at this critical juncture.
"These interventions are not limited to providing temporary assistance. They are also intended to help people get through and emerge from the crisis, strengthen their capacity to recover and build resilience,” Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth said at the launch of the package in the capital, reported The Phnom Penh Post.
Cambodia’s economy is now projected to grow at a slower rate of 4.2 per cent this year, down from an earlier forecast of more than five per cent.
The minister attributed the shrinking economy to rising oil and gas prices, inflationary pressures and higher costs for sectors that rely heavily on fuel, such as tourism, agriculture and transport, the newspaper reported.
The government plans to provide four monthly cash payments starting in September, generate around 200,000 jobs and transition 60,000 fuel-powered tuk-tuks in Phnom Penh to electric vehicles.
According to the Cambodian Tourism Ministry, nearly two million international tourists arrived between January and July this year - down 46 per cent compared to the same period last year.
Inflation shot up to 5.8 per cent in April this year. - Bernamatimulus
