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.
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