Council of Ministers sets new criteria for SME designations

Prime Minister Hun Sen with his council of ministers at the Peace Palace yesterday. KT / Khem Sovannara

The definition of small and medium enterprise (SME) status has been newly defined and classified for the agricultural, industrial and services and commerce sectors, according to a statement from the Council of Ministers.

Signed by Council of Ministers Permanent Secretary of State Hing Thoraxy, the letter stated that the criteria used to classify SMEs will now be based on an organisations’ number of employees, its annual revenue and/or the value of assets held by it.

The announcement also states that for the second criteria (revenue), organisations can either use the higher of their annual revenue figure or company assets value to define that status, should their annual revenue fluctuate year to year. As denoted in the letter, the pertinent levels of employment, revenue and asset holdings for each classification is as follows.

For agricultural concerns, small enterprise status shall be conferred on organisations employing between five and 49 staff with annual revenues ranging from $62,500 to $250,000. The asset range for small enterprises has been set as $50,000 to $250,000. Medium enterprises will be defined as those employing between 50 and 199 staff with annual revenues of $250,001 to $1 million. The asset range for medium enterprises has been set as $250,001 to $500,000.

For industrial SMEs, small enterprise status shall be conferred on organisations employing between five and 49 staff with annual revenues ranging from $62,500 to $400,000. The asset range for small enterprises has been set as $50,000 to $500,000. Medium enterprises will be defined as those employing between 50 and 199 staff with annual revenues of $400,001 to $2 million. The asset range for medium enterprises has been set as $500,001 to $1 million.

For service and commerce SMEs, small enterprise status shall be conferred on organisations employing between five and 49 staff with annual revenues ranging from $62,500 to $250,000. The asset range for small enterprises has been set as $50,000 to $250,000 Medium enterprises will be defined as those employing between 50 and 99 staff with annual revenues of $250,001 to $1.5 million. The asset range for medium enterprises has been set as $250,001 to $500,00

The Council of Ministers’ letter added that the Ministry of Tourism and Ministry of Public Works and Transport must prepare inter-ministerial regulations to transfer the authority to issue licences for transportation services in the tourism sector to the Ministry of Public Works and Transport. Licences issued by the Ministry of Public Works and Transport have been deemed sufficiently qualified without a need for additional licensing from the Ministry of Tourism.

The Ministry of Tourism and Ministry of Health must add business licences for restaurants and hygiene certificates for restaurants and food courts into the Cambodia Data Exchange (CamDX) system. The inspections must be conducted simultaneously. The Ministry of Tourism will be required to amend its laws and regulations to adjust for the new classifications of SMEs in tourism from a required condition to a voluntary one.

The letter also added that the Ministry of Health must discontinue the issuing of Certificates of Sales and Hygiene of Food Product, except in drug, supplement and cosmetic categories.

The Ministry of Health must transfer this authority to the Ministry of Industry, Science, Technology and Innovation (MISTI), which has the ability and laboratory facilities to control hygiene, quality and food safety.

The issuing of the food hygiene certificates for products distributed locally and for the export market are to be on a voluntary base. The issuing of food hygiene certificates for imports is to be implemented for only high-risk products.

MISTI must organise its administration works to improve efficiency in a timely provision of licences and registration of domestic products designated as “Made in Cambodia” for SMEs.

Regarding inspections, the letter said the Ministry of Labour and Vocational Training (MLVT) must lead and facilitate the relevant ministries to adjust inter-ministerial directives on establishing inspection in the industry and tourism sectors by adding staff from the Ministry of Health into the inter-ministerial inspection group.

The MLVT must also lead and facilitate efforts with the Ministry of Agriculture, Forestry and Fisheries, Ministry of Environment, and relevant institutions to prepare an inter-ministerial directive (prakas) creating an inter-ministerial inspection group for the agriculture sector.

The letter added that the inspection task of MISTI will focus only on food and products at their production site. The Ministry of Health must focus on drugs, food supplements and cosmetics at their production site and in markets as well as in restaurants. The Ministry of Commerce is to focus on the food and products sold in the market.

The Counter Counterfeit Committee must cooperate with the economic crime police to focus on fake products or branding in the market and their production sites and be led by the authorised ministry during the inspection. Khmer Times