Australia Boosts Cambodia's Social Protection with A$3 Million Aid

Australia has pledged an additional A$3 million (US$2.1 million) to strengthen Cambodia’s social protection system, bringing the total development assistance to the country this year to an expected A$94.4 million (US$65.7 million). International Development Minister Anne Aly announced the new funding in Phnom Penh on Thursday during her first visit to Cambodia in the role. The support will expand the second phase of the Improving Social Protection and Health project (ISPH 2), a partnership between Australia, Germany and the Cambodian government aimed at building a more inclusive and resilient system. Aly said the additional funding would provide technical assistance, policy analysis and modelling to help Cambodia respond more effectively to current and future shocks. She noted Australia’s broader aid program covers health, agriculture, infrastructure, education and security cooperation. Pen Sopakphea, Secretary of State at the Ministry of Economy and Finance and Chair of the National Social Protection Council’s Executive Committee, said Cambodia’s national social assistance programs reached about 4.86 million targeted beneficiaries as of June 2026. The government has allocated around US$282 million to social assistance this year, while social security schemes cover 3.7 million people with state contributions of about US$487 million. Sopakphea said Australian support has helped improve the effectiveness, inclusiveness and sustainability of Cambodia’s social protection system. Canberra previously provided A$4.5 million to the ISPH initiative before the latest A$3 million commitment. The partnership reflects Australia’s long-term engagement in Cambodia’s development, with both sides emphasising the importance of stronger systems to protect vulnerable communities and support economic resilience.