20 Aug 2019
The government has called on local small and medium-sized enterprises (SMEs) to list on the stock exchange as a way of enhancing access to funding and enabling expansion.
Heng Sokong, secretary of state at the Ministry of Industry and Handicrafts, said limited access to finance remains one of the top challenges for Cambodian SMEs and urged them to join the Cambodia Securities Exchange (CSX).
“By doing so they will be able to stay competitive as they will gain access to new sources of finance to allow them to expand.
“However, to become a publicly listed company, they first must formalise. They must register with the government and ensure they follow standard accounting practices,” Mr Kong said during a forum on the agri-processing business held Friday.
As outlined in the country’s Industrial Development Policy 2015-2025, the government’s goal is to have at least 80 percent of SMEs officially registered by 2025. At least 50 percent of those firms must follow proper accounting and bookkeeping standards.
“This target is simplistic but important as proper bookkeeping offers a window into a business’ situation and provides accountability to shareholders. Firms that keep their accounting books up-to-date will also receive support and incentives from the government, including training and technical assistance,” the country’s Industrial Development Policy says.
“The securities market can serve to mobilise financing for long-term investment,” it notes.
Micro-enterprises are businesses that employ 10 employees or fewer, while SMEs have more than 11.