Kingdom of Cambodia
Nation Religion King
Opening Speech
by
Sr. Minister KEAT CHHON,
Minister of Economy and Finance
Chairman of the Steering Committee on Private Sector Development
At the
Workshop on Risk Management Strategy
27 February 2006, Le Royal, Phnom Penh, Cambodia
Excellency Sr. Minister Cham Prasidh, Minister of Commerce, Vice-Chairman of
the Steering Committee on Private Sector Development and Chairman of Sub
Committee on Trade Facilititions,
Excellency Lisa Filipetto, Australian Ambassador,
Colleagues in the Royal Government of Cambodia,
Distinguished representatives of Cambodia's Development Partners,
Excellencies, Ladies and gentlemen,
1. I am pleased and honored to address the opening speech to the Meeting of
the Steering Committee on Private Sector Development (PSD) and the
Dissemination Workshop on Risk Management (RM).
2. This workshop is jointly organized by the Royal Government of Cambodia,
the WB, AusAID, JICA, EC and the IMF. Taking this opportunity, I would like
to express my sincere thanks to the organizers of this important workshop
for their continued efforts and supports to Cambodia's competitiveness
through improving investment climate and trade facilitation.
3. On 20 December 2005, in this very meeting room, the Workshop on Risk
Management Strategy has been organized. Based on risk management policies
and principles, particularly international best practice experiences on RM,
the Workshop then laid down direction and strategy for the development and
implementation of RM in Cambodia. In realization of Prime Minister
instruction No 90 dated 6 December 2005, today workshop is the continuation
and culmination of efforts in the development of risk management strategy
which now is to consider and to endorse the draft Government Decree on the
Facilitation of trade through Risk Management and Guidelines, and consider
and approve the draft Joint Ministerial Prakas (or inter-agency service
level agreements – SLA) among and between key Government agencies having the
role in management and control of import and export clearance.
4. I would like to underline that today Workshop is a kind of high level
forum in which top decision makers of relevant Ministries as members of the
Steering Committee on PSD, are present. This is critical factor to success
as the Workshop will make policy decisions regarding the draft Government
Decree on the Facilitation of Trade through Risk Management and its
Guidelines, and also the Joint Ministerial Prakas on SLA.
5. In addition, today Workshop, as usual, also provides open opportunity to
business community to be aware of, and to make contributions, if any, to the
Government reform initiatives, which may have impact on the business
practices in Cambodia. That is why, in accordance with Royal Government
policy on Consultative Dialogue with the private sector, I, as Co-Chair of
the Working Group on Law, Taxation and Governance, also known as Working
Group "D" of the Government Private Sector Forum, have invited the
representatives of the business to this Meeting and Workshop. I would like
to welcome all members of Working Group "D" for attending this meeting and
considering its as its monthly meeting.
6. As Chairman of the Steering Committee on PSD, I would like to once again
stress that this Workshop is an integrated part of Government policy on
private sector development through improvement of investment climate and
trade facilitation. Many efforts have been made to implement the Twelve
Point Plan adopted in June 2004, and realization of Prime Minister
instructions. A number of retreats have been organized, 1st Workshop on RM
Strategy was held here on 20 December 2005, Workshop on Single
Administrative Document (SAD) also was held on 14 February 2006 in this very
room. The concept of "Single Window" was discussed at the fringes of many
meetings and workshops. In general, we have made progress in our reform
endeavor. However, more efforts and dedications are needed to achieve
ultimate goal of our reform agenda in this area.
Now I would like to touch upon some points of the RM.
7. The main objective to introduce risk management is to reduce the number
routine physical interventions of imported and exported goods and to
eliminate overlap or duplication of inspections of goods at the time of
their clearance. To achieve this, a number of studies, recommendations and
discussions have been made with the objective to redefine or rationalize the
roles and responsibilities of government ministries and agencies currently
involved in the clearance of imported and exported goods. This is the key
part which laid the fundamental basis for effective implementation of
overall risk management strategy. This, of course, requires a strong
political will and responsibility to achieve a new pattern of service
delivery by relevant agencies that ensure no-overlap, no-duplication,
coherent and well coordinated activities governing the clearance of import
and export of goods.
8. During the Workshop on SAD held here on 14 February 2006, I briefly
touched upon the cultural and ethical aspects in the reform process, which
exists alongside with policy, managerial and operational changes. This
aspect reflects in the way we serve, we interact with the trading community.
So, we need to change our public servant's mind set and perception toward
public service delivery - that we serve the trading community and we serve
the public.
9. The effect of risk management is that government staff will move away
from a routine, subjective and arbitrative decision to select shipments for
inspection. Under the RM environment, the selection will be made by the
system i.e. based on the principles of RM. This will eliminate favoritism
and nepotism, and at the same time, promote a fair, transparent and
non-discrimination treatment to all importers and exporters. At the same
time, the introduction of risk management system will require good
cooperation, in term of business practice compliance, from the business
community. I would specifically stress that reliable, truthful and trustful
business entities will enjoy greater facility. In this sense, the RM helps
to promote the development of private sector in Cambodia. As Chairman of the
Steering Committee on PSD and as Co-chair of the Working Group "D", I would
like to convey this message to our partners – the private sector that the
core idea of RM is to facilitate, but in exchange with consistent
compliance. So it will require changes in the private sector as well. This
message is addressed not only to importers and exporters, but also to all
business activities in Cambodia. Risk Management is being introduced by the
Tax Department of the Ministry of Economic and Finance as well. This is
truly part of private sector development.
Excellencies, Ladies and Gentlemen,
10. I am aware that risk management experts from AusAid were working
actively and closely with relevant ministries and agencies in preparing the
Draft Government Decree and its Guidelines, as well as the draft
inter-agency Service Level Agreements or SLA. Many points have been
discussed and agreed upon during separate and joint meetings of key
stakeholders. This will greatly facilitate the discussions and agreements
during this Workshop.
11. With the adoption of Government Decree on Facilitation of Trade through
Risk Management and establishment Joint Ministerial Prakas or SLA to
implement RM, we may say that we have made another step forward in our
reform endeavor in the area of private sector development and trade
facilitation. We will evidence new operational procedure, new way of service
delivery by the government staff, but at the same time we also expect new
pattern of business practices by the private sector.
12. Once again, on behalf of the Royal Government of Cambodia, allow me to
express my sincere gratitude to donor community, particularly, the WB,
AusAID, JICA, EC and the IMF for their cooperation and assistance extended
to the Royal Government of Cambodia in order to improve climate for
investment and trade. We look forward for your continued support to fulfill
our reform agenda in this area, which is part of Royal Government policy to
achieve sustainable economic growth and prosperity of the nation.
13. I wish you all fruitful and successful discussions in this workshop.
Thank you for your attention. !