Asian Vision Institute, Mekong Connect Volume 2, Issue 2, December 2020 (Link)
Cambodia’s
response to Covid-19 can be seen through the simultaneous implementation of two
major approaches, “saving lives, saving livelihoods”.
Saving
lives
The
first approach focuses on health security and is managed by the National
Committee to Fight COVID-19 established on 18 March 2020. The committee is
responsible for formulating policies and national strategies; leading the
implementation of those strategies; managing impacts on political, economic and
social aspects at the national and international levels; and leading as well as
coordinating the execution of inter-sectoral and inter-institutional measures
at the national and sub-national levels.
Headed
by Prime Minister Hun Sen, the Ministry of Health (MoH) is the core actor in
this committee dealing mainly with technical health response, resource
mobilisation as well as public relations. Having the prime minister at the top
helps enforce an effective coordination across the country and avoid possible
delays by inter-institutional bureaucracy in times of emergencies.
Strong
cooperation of international partners in terms of equipment provision,
dispatching of experts, and technical as well as financial assistance has also
contributed to Cambodia’s fight against the pandemic. In the country, good
cooperation of the World Health Organization (WHO), the US Centers for Disease
Control and Prevention, and the Pasteur Institute in Cambodia is commendable
for supporting MoH’s efforts.
The
Cambodian government, with supports from WHO and those partners, has developed
and implemented the ‘National Master Plan for COVID-19’. WHO provides policy
advice and technical support to each of the plan’s nine priority areas in order
to respond to the pandemic, while at the same time preparing for the
possibility of widespread community transmission.
The
government’s core public health responses including case detection, isolation,
contact tracing and quarantine have been central to Cambodia’s overall response
strategy in preventing community transmission and controlling the spread of
Covid-19. In addition to the universal preventive measures such as hand hygiene
and cough etiquette, the government has also been implementing a number of
physical distancing measures. Schools were closed in mid-March; international
travel restrictions were imposed in late March and gatherings at entertainment
venues were restricted in early April. The prime minister also ordered the
cancellation of Khmer New Year holiday in mid-April and placed restrictions on
travel between provinces during that time. Screening and quarantine measures
were introduced to respond to a large number of Cambodian migrant workers
returning from Thailand. The quarantine measure was also implemented to deal
with some garment workers and company employees who had violated the
government’s order by taking leave to visit their villages during Khmer New
Year.
The
early vigilant approach to the outbreak is an effective way in curbing the
danger through the ‘5Es’ mantra: Early detection, Early tracing, Early
isolation, Early treatment, and Early prevention. As of November 2020, Cambodia
has recorded zero death and had no community transmission.
Cambodia
can tell a humble story of how a small country has been effective in
controlling the Covid-19 pandemic based on real efforts, leadership, good
cooperation and carefully-planned approaches, not based on luck. Mindful of its
limited capacity and resources, Cambodia cannot afford to be careless, and such
a mindset has underscored the vigilant mentality of Cambodia’s healthcare providers
and recipients alike.
Taking
firm measures against fake news is also important. In fighting against the
unknown disease, preventing public fear is paramount. Fake news can obstruct
the government’s efforts and reduce public confidence in dealing with the
outbreak and impact of Covid-19. Swift provision of facts, reliable information
and scientific data has helped keep the public informed and manage fear in a
rational manner.
Saving
Livelihoods
This approach
is coordinated by the Committee on Economic and Financial Policies headed by
the Ministry of Economy and Finance. This inter-ministerial institution is
mandated to formulate, coordinate and monitor the implementation of economic
and financial policies of the government.
For the
Covid-19 related actions, the committee is responsible for designing
comprehensive fiscal, financial and social security measures. As of early
November 2020, six rounds of measures have been unleashed by the government.
Fiscal
measures include, among others, the exemption of monthly taxes for the
hospitality sector in Phnom Penh, Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet
and Poi Pet for 11 months starting from February to the end of 2020. Income
taxes in 2020 have been relieved or waivered for one year for factories producing
garments and bags. Garment factories have been relieved from paying social
security. The minimum tax has been waivered for 10 months until the end of 2020
for aviation companies.
Financial
measures include, among others, co-financing and risk-sharing of up to USD100
million through SME Bank. The scope for credit provision has been extended to
cover companies that produce medical equipment and medicine. A credit guarantee
fund has been allocated in the amount of USD200 million. Another USD300 million
has been earmarked for growth stimulus during and after the pandemic crisis.
Through the Agriculture and Rural Development Bank (ARDB), a USD50 million
worth of funding has been set up to provide low-interest loans for SMEs.
Social
security measures include, among others, Cash for Work Programme, which hires
labour for small infrastructure development. This programme is supported by
USD100 million funds. A cash handout programme for poor and vulnerable
households has also been implemented, targeting 560,000 families. The programme
spends USD25 million per month out of the total USD300 million reserved for
this purpose.
Supporting
workers’ livelihoods has also been considered. Those whose jobs have been
suspended in the garment and tourism sectors receive an allowance of USD40 per
month. Those workers can also have access to reskilling and upskilling training
programmes while receiving a monthly stipend of USD120 for up to six months.
The National Employment Agency (NEA) has also been assisting them in finding new
jobs.
Other
important measures
The
above-mentioned measures are not exhaustive. There are other long-term measures
for economic recovery such as infrastructure development and negotiations for
free trade agreements, just to name a few.
Large
scale infrastructure development has not been noticeably hampered by the
Covid-19 pandemic. The Cambodian government has disbursed USD350 million to
build road infrastructure in Preah Sihanouk province with a goal to transform
the coastal city into a multi-purpose special economic zone, international
financial centre and potentially the industrial hub of Cambodia. Sihanoukville
Airport is being refurbished with an extended runway up to 3,800 metres and
will be put into operation later this year. The renovation of the passenger
arrival terminal will be completed by 2022.
In Siem
Reap province, a budget of USD150 million has been earmarked for the
development of 38 roads. Once completed, the roads will highly ease people’s
livelihoods and boost national economic growth in the post Covid-19 era.
The
construction of a second airport in Phnom Penh has been ongoing despite the
recent flood caused by tropical storms in October. The government is developing
the new Phnom Penh International Airport on a 2,600 hectares piece of land
stretching between Kandal and Takeo provinces. The new airport will be a
4F-class type, which means it will be able to accommodate large aircrafts such
as Airbus A380-800s and Boeing 747-800s. A total investment of USD1.5 billion
comes from loans from foreign banks and local investment.
The
Ministry of Commerce has made a tremendous endeavour in negotiating Free Trade
Agreements (FTAs) with China and the Republic of Korea to substitute job losses
and diversify market access for Cambodia’s export goods after the EU withdrew
partially the Everything-But-Arms (EBA) trade preferences from Cambodia, affecting
many garment workers. FTA with China was signed on 12 October 2020, making it
the first FTA Cambodia has with external partners. The negotiation of FTA with
the ROK is on-going.
Conclusion
Both in the immediate and long term, it is
observed that the government has managed the situation well in terms of
protecting health security and mitigating the socio-economic impacts caused by
the pandemic. However, while the health impact is not severe, the scale of
socio-economic impact is relatively huge and widespread, and no one really
knows when this crisis is going to end. The gradual reopening of their
countries is being pondered by many states at the risk of a possible
re-emergence of infected cases. Countries cannot be over-optimistic; preventive
measures should be consistently in place while awaiting mass production of
vaccines that will help restore normality in international travel. A vaccine is
possibly the only hope for countries to reopen their borders, but it will take
a while to realise the hope.
