H.E. Aun Pornmoniroth, Senior Minister, Minister of Economy and Finance, H.E. Chea Chanto, Governor, National Bank of Cambodia, Excellencies, Distinguished Guests, Ladies and Gentlemen. Good morning.
Allow me to begin by saying that it is an honor for me to address this distinguished gathering and I wish to thank the Royal Government of Cambodia for hosting this important event – the workshop to launch the English version of Cambodia’s Financial Sector Development Strategy (FSDS) 2016–2025. On behalf of the Asian Development Bank (ADB), I extend a very warm welcome to you all.
Developing deeper and more sound financial systems has been a priority for the region since the 1997–1998 Asian Financial Crisis. In response to a request from the Royal Government of Cambodia, ADB has been supporting Cambodia’s financial sector development since 1999 with the preparation of the first 10-year Financial Sector Development Strategy (FSDS 2001–2010). Adopted in 2001, the first FSDS (the Blueprint) provided the long-term vision, objectives and framework to guide Cambodia in rebuilding and developing its financial sector. Financial sector development strategy 2001–2010 was shared widely, amongst relevant stakeholders, to forge cooperation in the government’s efforts towards achieving its long-term vision for the sector.
In 2006, with ADB technical assistance, the government updated the 2001–2010 ‘blue print’ as the Financial Sector Development Strategy 2006–2015, and in 2011, once again with ADB assistance, the government updated the 2006–2015 sector strategy as the 2011–2020 financial sector development strategy. Each of these instances enabled the government and related stakeholders to review the accomplishments achieved over the previous 5 years, and identify lessons, emerging issues and constraints to be addressed over the following 10 years. That process contributed towards the relevance and successful implementation of the 10–year rolling financial sector strategies.
Looking back over the past 10 years, Cambodia has achieved so much in this sector. The banking system has contributed substantially to Cambodia’s economic activities (in 2007 private sector credit to GDP was 18% and in 2016 it is close to 70% of GDP), a securities exchange market was established in 2011 and continues trading today, a privately-owned credit bureau was established and is now widely utilized by the public, a national payment and settlement system was established with several legislative instruments enacted to guide financial and commercial activities. These are only a few of the achievements of which the Royal Government of Cambodia can be proud. The people of Cambodia are now able to transact electronically and workers outside of their home provinces are now able to remit funds back to their families and relatives on pay day. Above all, foreign investments and transactions with the region and the rest of the world have greatly increased and the financial system has contributed significantly to this.
Today’s event celebrates the launch of the most updated FSDS 2016–2025. I wish to acknowledge all parties who contributed to this effort; in particular, the leadership provided by the Steering Committee and also the inter-ministerial Technical Working Group in overseeing the day-to-day development of Strategy 2016–2025, in close cooperation with the ADB team. This updated Strategy before us, is aligned with the Government’s Rectangular Strategy Phase III and the current National Strategy and Development Plan. Development partner coordination was further strengthened during the preparation of this Strategy.
The high priority given by the government to the preparation of this Strategy is in line with the current pace of Cambodia’s economic growth and the expectations of this sector. The formal finance sector needs to be further developed and made more efficient in supporting economic activities, and be accessible to all ordinary citizens as well as being aligned to regional and international financial systems.
Following the initial launch of the Khmer version of the financial sector development strategy 2016–2025 in October 2016, ADB commenced the implementation of the Strategy through the approval of the Inclusive Financial Sector Development Program (IFSD) in November 2016. Under this Program, the Government developed the national strategy for financial inclusion using demand side analysis of the financial sector. On the financial stability side, work on developing a depositors’ protection scheme is on-going among relevant supervisors. In addition, the further development of capital markets including government and corporate bonds, is gaining momentum.
Excellencies, ladies and gentlemen.
ADB is pleased to have worked in close partnership with the Royal Government in the development of Cambodia’s financial sector over the past 18 years and to provide continuous support to the Government’s efforts to update the 10-year rolling financial sector development strategy. ADB recently celebrated its 50th anniversary of Partnership with the Royal Government of Cambodia. ADB continues to maintain its commitment to the people of Cambodia, through its various programs to support Cambodia’s development, contributing to the country’s achievement of inclusive economic growth and to the reduction of poverty. We look forward to building on our fruitful partnership for many years to come.
Thank You.
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