Hun Manet: US$1.244 billion plan aims to stabilise the economy and livelihoods

Facing pressure on economic growth and challenges from the external environment, Cambodia’s government is increasing fiscal spending to support people’s livelihoods through tax and fee reductions and cash assistance. It has also introduced a comprehensive intervention plan worth about US$1.244 billion to strengthen the economy’s resilience. Speaking at an event in Siem Reap province on July 21, Prime Minister Hun Manet said thatin the current period of economic difficulty, the government needed to spend more to help people cope with rising prices.
Hun Manet said the government had introduced a series of tax and fee reductions in recent years to ease the burden on households and businesses, including adjustments to fuel taxes and lower import duties on some electrical equipment. These policies reduce government revenue by about US$50 million to US$60 million a month. The government also continues to provide cash assistance to poor households and affected groups to safeguard their basic living needs.
The Ministry of Economy and Finance previously announced that it would implement a “Comprehensive Intervention Plan to Respond to Multiple Crises” worth about US$1.244 billion. Its priorities include protecting livelihoods, promoting employment, strengthening technical and vocational education and training, and upgrading energy infrastructure and advancing the energy transition.
The International Monetary Fund (IMF) previously projected that Cambodia’s economic growth could slow to about 3% in 2026, amid global economic uncertainty, the situation in the Middle East, tensions along the Cambodia–Thailand border and the ongoing crackdown on online scams. In response, Cambodia’s government said it would continue structural reforms, including improving the business environment, digitalising public services and simplifying administrative approvals, to strengthen competitiveness and resilience to external risks and lay the foundations for stable long-term growth.