Khmer Times’ May Kunmakara met with His Excellency Vong Seyvisoth, Secretary of State at the Ministry of Economy and Finance, on the sidelines of ADB’s annual conference in Manila, Philippines, last week.
KT: Tell us about ADB’s annual meeting in Manila. How did it go? What were the main issues discussed?
Mr Seyvisoth: It was a very productive meeting and we learned a lot about what ADB is doing in the region, as well as their plans for the future.
We learned about ADB’s role in this rapidly changing region. ADB continues to be one of the main development players in the continent, trying to balance and manage the impact of the four big trends we are seeing in the world: a shift of the engines of economic growth from Europe to Asia, change in weather patterns as a result of global warming, Asia’s aging population and the rise of digital technology.
ADB is now preparing its new strategy to help member countries deal with the effects of these four trends. ADB wants to make sure the entire region develops equitably and contributes to global economic growth. Its aim is to play a bigger role in making the 21st century the “Asian century”.
To reach its goals, ADB will help countries adapt to new technologies by capacitating local populations to take on more value added jobs. Also, while continuing to directly provide financial help to members, ADB will play an active role attracting more investment and engagement from development partners as well as the private sector.
ADB knows that technology is now key for the development of national economies, but it is also aware of the importance of physical infrastructure, which is still lacking in many countries in the region. First we need to develop the telecommunications sector, then our electric power industry and, finally, our digital capabilities. Without good roads and infrastructure, we cannot transition to a digital economy.
Another important topic of discussion during the meeting was the disruption upcoming technological advancements might have on jobs. We reached the conclusion that it was necessary to put in place effective retraining and capacity building programmes for those that cannot develop the skills required by today’s and tomorrow’s jobs, as well as stronger social safety nets.
KT: While on the topic of technology, can you tell us what policies should Cambodia put in place to minimise technology’s disruption on the job pool?
Mr Seyvisoth: We are now in the first stages of the development of a policy framework to deal with the effect of technological advancements on job creation, which will, of course, include the creation of retraining programmes for people with an outdated skill set.
We need to be able to manage the development of the digital economy and the changes that come with it, which means we need to focus on developing infrastructure, creating retraining and capacity building courses for our workforce, revamping the tax system, supporting young entrepreneurs, and digitalising all paper-based systems in public administration.
Developing our fintech (financial technology) capabilities is also key, as it will help us create effective e-payment platforms and promote financial inclusion by reducing the cost of conducting transactions online and making them more accessible to everyone. If we can successfully develop this sector, it will also help us reduce interest rates, which is something Cambodians are always complaining about. We have a big job to do in this regard because this industry is quite young in Cambodia.
