•    Excellency Pen Thirong, Secretary of State, Ministry of Economy and Finance,
•    Members of the Technical Working for the National Financing Policy Framework, 
•    Representatives from line ministries of the Royal Government of Cambodia, 
•    Colleagues and distinguished guests.

Good morning, Chom Reap Sour.

The Pentagonal Strategy and the Vision 2050 define an ambitious growth trajectory that would require a clear and solid financing strategy to achieve it. It is under these premises that the elaboration of the National Financing Policy Framework started more than a year ago. The National Financing Policy Framework aims to support decision-makers in identifying potential sources of funding and securing needed financial resources to achieve the Kingdom’s development ambitions and accelerate the Sustainable Development Goals.

The National Financing Policy Framework will enable the Royal Government to strategically mobilize, prioritize, and manage financial resources for medium- and long-term development. A key component of this framework is the Financing Strategy, designed to unlock innovative and blended public -private finance from both domestic and external sources. By doing so, it will accelerate sustainable development, reduce reliance on concessional loans as they will progressively become more expense after LDC graduation, and create a more diversified financial ecosystem.

The foundation of the National Financing Policy Framework is rooted in the Integrated National Financing Framework approach (INFF), first introduced at the Third International Conference on Financing for Development in Addis Ababa in 2015. This approach has since been adopted by 86 countries, with over 50 actively implementing financing policy reforms shaped through their INFFs. Many are now using these frameworks to align their financial strategies with their Nationally Determined Contributions (NDCs) under the Paris Agreement, channelling investments into climate resilience and sustainable growth.

Excellencies and Distinguished Guests,

Cambodia is at a critical juncture. The country’s economic trajectory has been remarkable in the past two decades, leading to its confirmed graduation as a Least Developed Countries (LDC) by December 2029. While this marks a major milestone, it also presents new financial and economic challenges and opportunities to harness. The transition will lead to a gradual reduction in international trade-related support, concessional financing, and development assistance. At the same time, Cambodia must navigate an increasingly complex global landscape shaped by trade uncertainties, climate risks, and geopolitical shifts. On the other hand, opportunities can bring improved creditworthiness, economic diversification, higher-value exports, and the ability to attract more diverse investments. It also presents a unique opportunity to rebrand the country as a responsible trade partner. To reduce risks and harness opportunities, anticipatory planning, timely preparedness, and concerted efforts are necessary to implement structural, socioeconomic, and environmental transformations and adjustments. 2029 is closer than we think!

As such, Cambodia must proactively adapt its financing strategies to ensure a smooth and durable transition and avoid later the middle-income trap. This means accelerating the transition from funding to financing by shifting from the reliance on traditional Official Development Assistance (ODA), whether in the form of grants or concessional loans, to a more diversified financing mix, including domestic revenues, blended finance, impact investments, and enhanced public-private collaboration. UNDP remains committed to supporting Cambodia in this transition, working alongside national and international partners to accelerate sustainable, inclusive, and resilient development.

The National Financing Policy Framework would drive this transition, building on three strategic pillars:

• The first one focuses on enhancing public finance management, improving budget efficiency, and ensuring fiscal policies align with national priorities.

• The second pillar emphasizes expanding public-private collaboration, utilizing innovative financing mechanisms to increase private sector contributions to national development.

• The third pillar aims to accelerate private sector development by strengthening financial markets, supporting Micro, Small, and Medium Enterprises (MSMEs), and promoting impact investment.

Excellencies and Distinguished Guests,

The success of this framework depends on strong government leadership, inter-ministerial coordination, and active stakeholder engagement. Ensuring that these strategic options are practical, actionable, and aligned with national priorities requires sustained collaboration across ministries and sectors. While some options may seem too progressive in the current context, anticipatory management and dedicated engagement of line ministries is crucial for shaping a comprehensive and actionable financing strategy that responds to current needs and drives Cambodia’s long-term development vision.

The work has reached a stage where key decisions and tradeoffs need to be made.  The expert teams would need this strategic orientation to complete the NFPF.

Excellencies and Distinguished Guests,

The road ahead is complex, but it is not impossible. With the right policies, partnerships, and financial mechanisms, Cambodia can chart a prosperous and sustainable future. Your contributions today will be instrumental in shaping Cambodia’s financial landscape for the years to come. Today’s validation meeting is a crucial milestone in this process. I commend the Ministry of Economy and Finance for its leadership in driving this agenda forward.

I look forward to a productive discussion and wish you all a successful meeting.

Thank you. Som Arkun!