Cambodia Boosts SME Access to Securities Market with Financing Workshop

The Securities and Exchange Regulator of Cambodia (SERC) and the Young Entrepreneurs Association of Cambodia (YEAC) are actively encouraging Small and Medium-sized Enterprises (SMEs) to consider the country's capital market as a viable channel for long-term financing. A workshop held in Phnom Penh on September 4th, supported by the Cambodia Association of Securities Firms (CASF), brought together 125 representatives from government bodies, business associations, and the financial sector. The event focused on equipping SMEs with a better understanding of the opportunities, requirements, and preparatory steps involved in raising funds through the securities market. During the workshop, discussions centered on how SMEs can leverage the securities market to secure substantial long-term capital for business expansion, while simultaneously enhancing their transparency, corporate governance, and operational sustainability. SERC Director General Sou Socheat emphasized that developing SMEs is an investment in a key driver of Cambodia's economic growth. "Accessing financing through the securities market is not only about mobilizing long-term capital sources, but it is also the first step toward enhancing business operational efficiency with transparency and good governance," he stated. Socheat further noted that participation in the capital market can bolster an enterprise's reputation and competitiveness, positioning the securities market as a crucial bridge connecting SMEs with essential long-term funding. He also underscored the necessity of cooperation among government institutions, financial entities, and the private sector to foster a financial ecosystem capable of supporting sustainable SME development. YEAC President Pech Bolen highlighted that access to finance will remain a leading strategic priority for the association through 2030. YEAC has been diligently working to strengthen the capacity of its members and other Cambodian entrepreneurs in securing funding from both traditional banking channels and the securities market. The association is collaborating with entities such as the Association of Banks in Cambodia, Cambodia Microfinance Association, SERC, the Trust Regulator, and the Cambodia Securities Exchange to improve credit access, attract investment, and prepare businesses for potential Initial Public Offerings (IPOs). This initiative aligns with broader national efforts to diversify financing options for Cambodian businesses, many of which have historically relied heavily on bank lending, private capital, or internally generated funds. Engaging with the securities market typically necessitates companies to improve their financial reporting, governance structures, internal controls, and disclosure practices. While these prerequisites can present hurdles for smaller enterprises, regulators and industry stakeholders contend that robust corporate structures are fundamental for sustainable growth and cultivating investor confidence. The workshop featured participation from various key organizations, including SERC, YEAC, CASF, the Cambodia Chamber of Commerce, the Federation of Associations for Small and Medium Enterprises of Cambodia, and the Cambodia Women Entrepreneurs Association. Speakers included Tan Tepikanika, Under Secretary of State at the Ministry of Commerce; Chea Layhy, Deputy Director General at the Ministry of Industry, Science, Technology and Innovation’s General Department of Small and Medium Enterprises and Handicraft; and Chin Samnang, a member of the Cambodia Chamber of Commerce and an advisor to the Royal Government. Organizers stated that the gathering aimed to provide entrepreneurs with practical insights into the advantages of capital market financing and the essential preparations required before approaching investors. Additionally, the workshop sought to facilitate connections between entrepreneurs and regulators, advisors, and securities firms that can provide support as companies advance towards greater investment readiness and potential participation in Cambodia's capital market. Source: Cambodia Investment Review