For Cambodia, the road to becoming a high-income country by 2050 is dotted with formidable challenges. No one can deny that between 2000 and 2019, the Kingdom was among the fastest-growing economies globally, with over 7 percent of annual GDP growth, but then the economic expansion slowed down in recent years, especially after the COVID-19 pandemic. A widening chasm between national aspirations and economic realities has crept into the system. A recent AmCham Business Outlook 2026 Survey highlights those gaps in great detail. Khmer Times talks with an array of experts to find out what Cambodia should do. Cambodia’s GDP, according to them, would need to grow by more than 8 percent each year to stay on course. They also have reservations about what they term as “regulatory frictions” that are holding Cambodia back from achieving higher growth. While there’s unanimity among them that without bold reforms to reduce regulatory burdens and open up the economy, the country risks falling short of its high-income ambitions, the silver lining, however, is the committed leadership of the country that has shown a willingness to listen to private sector concerns, and remains open to new ideas, offering a foundation for progress in the years ahead.

Cambodia must accelerate economic liberalisation and sustain strong long-term growth if it hopes to achieve its ambition of becoming a high-income country by 2050, according to new insights from experts and organisations such as the American Chamber of Commerce (AmCham) in Cambodia.

The Cambodian government has set an ambitious target of reaching high-income status—defined as a per capita income of nearly $14,000—within the next quarter century. However, Casey Barnett, the outgoing president of AmCham, has warned that current economic trends fall short of what is required to meet that goal.

“Unfortunately, Cambodia is not on track to achieve the required annual GDP growth rate of 6.4 percent for the purpose,” Barnett told Khmer Times recently. Based on his projections, the country would need to sustain even higher levels of expansion when population growth is taken into account. Assuming an annual population increase of around two percent, Cambodia’s GDP would need to grow by more than eight percent each year to stay on course.

Such figures highlight a widening gap between national aspirations and economic realities. While Cambodia was among the fastest-growing economies globally between 2000 and 2019 with over seven percent of annual GDP growth, the economic expansion has moderated in recent years, especially after the COVID-19 pandemic. During its earlier boom period, the country benefitted from a combination of favourable conditions—limited bureaucracy, strong inflows of foreign investment, macroeconomic stability supported by US dollarisation, and the peace that followed the end of decades of conflict in 1998.

Today, however, businesses say structural challenges are slowing momentum. According to the AmCham Business Outlook 2026 Survey, governance issues and high electricity costs are the most pressing concerns for the private sector. Among these, regulatory bottlenecks—particularly licensing requirements—stand out as a key obstacle to productivity and investment.

Companies report that obtaining licences, especially for importing and exporting goods, is both time-consuming and unpredictable. This issue is particularly acute in sectors such as agriculture and information and communications technology (ICT), where access to modern inputs and equipment is essential for competitiveness.

One frequently cited barrier is Sub-Decree 110, which mandates approval from the Ministry of Posts and Telecommunications for a wide range of ICT equipment, artificial intelligence technologies, and digital services. While internet usage has become widespread among Cambodian businesses, the process for importing ICT equipment remains cumbersome. In addition, Cambodia has lagged behind regional peers in rolling out advanced telecommunications infrastructure, including 5G networks.

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Hundreds of tuk tuk drivers in Phnom Penh took to Koh Pich on Friday, voicing growing frustration with ride hailing platform Grab. Their message was clear. Rising fuel costs are eating into already thin margins, and drivers say the current fare structure is no longer sustainable. The protest reflects mounting pressure on gig economy workers who rely heavily on daily earnings to cover fuel and basic living expenses.

Why Drivers Are Demanding Change?

At the center of the protest is a call for higher fares and reduced commission fees. Drivers say recent increases in LPG prices have made it difficult to earn a reasonable income. One representative of the group explained the situation bluntly.

“We are asking the company to increase fares per trip because LPG costs have gone up significantly,” he said.

Drivers are proposing a base fare of 1,200 riel per kilometer, higher than current rates. They are also pushing for commission fees to be reduced to between 12 and 15 percent. According to the same driver, many are now struggling just to break even.

“We face so much struggle currently, as the income that we earn is only sufficient for the price of fuel and LPG,” he said.

Grab Responds with Existing Measures

Grab Cambodia has responded by stating that several of the drivers’ requests have already been addressed. The company’s Public Affairs and Policy Manager, Kan Chhunnat, explained that fares currently range from 950 to 3,500 riel per kilometer depending on factors such as time of day and weather conditions.

He also pointed to new incentives introduced on March 10. These include replacing a fixed 300 riel per trip bonus with a cashback system. Under this scheme, drivers receive five percent of their daily earnings if they complete fewer than 19 rides, and 10 percent if they complete more than 20 rides.

In addition, the company is offering weekly fuel support in the form of LPG and gasoline vouchers valued between 5 and 15 US dollars for around 2,000 high performing drivers. Other support measures include distributing drinks during periods of extreme heat.

Fuel Prices Driving the Crisis

The broader issue goes beyond company policies. Global fuel prices have been rising due to geopolitical tensions, including the recent US Israeli strike on Iran, which has disrupted supply routes. Cambodia is feeling the impact directly.

In Phnom Penh, long lines of tuk tuks have become a common sight at LPG stations, especially those offering lower prices. Limited supply points and increasing demand have intensified the strain on drivers.

As of this week, LPG prices are hovering around 3,900 riel per liter at Kampuchea Tela Oil and Gas Company. For drivers who depend on fuel daily, even small price increases significantly affect their income.

What This Means for Cambodia’s Ride Hailing Economy?

This protest highlights a deeper tension within Cambodia’s fast growing ride hailing sector. Platforms like Grab offer convenience and flexible income opportunities, but drivers remain vulnerable to external shocks such as fuel price volatility.

If costs continue to rise without adjustments in fares or commissions, more drivers may be pushed to the brink, potentially affecting service availability and quality for users. The situation calls for a balanced approach where both platforms and drivers can sustain their operations.

Conclusion

The protest by hundreds of tuk tuk drivers in Phnom Penh is a clear signal that rising fuel costs are reshaping the economics of ride hailing in Cambodia. While Grab has introduced incentives and support measures, many drivers feel these steps are not enough to offset the growing financial pressure. Moving forward, meaningful dialogue and practical adjustments will be essential to ensure a fair and sustainable system for both drivers and platforms in an increasingly challenging environment.

Chea Serey, Governor of the National Bank of Cambodia, is calling on Cambodians to use the riel more actively in their daily transactions, highlighting its importance for the country’s financial stability and policy control. Her message is straightforward: increasing the use of the national currency gives the central bank stronger tools to respond quickly when economic challenges arise.

Speaking at the launch of the second phase of cross border QR code payments between Cambodia and Singapore, she emphasized that the riel is fully issued and managed by the central bank, allowing authorities to monitor and stabilize the financial system more effectively.

Why Riel Matters for Economic Control?

Chea Serey explained that relying heavily on foreign currencies, especially the US dollar, limits the central bank’s ability to intervene during times of volatility. When fluctuations occur, managing the situation becomes more complex because the bank does not have direct control over dollar supply.

She noted, “Using dollars is easy when there is no problem, but when there is a currency fluctuation, it is not easy for the bank to control. The bank uses fiscal measures to resolve the situation, but if the money is in dollars, we have a reduced ability to resolve the issue.”

This highlights a critical point for individuals and businesses. Choosing riel over dollars is not just a personal preference but a contribution to national economic resilience.

QR Code Payments Make Riel More Practical

To support this shift, the central bank is promoting digital payments through QR codes. Vendors are encouraged to display both riel and dollar QR codes, making it easier for customers, including international visitors, to pay seamlessly.

This approach aligns with Cambodia’s broader push toward a cashless economy, where convenience meets financial inclusion. By offering dual currency options, businesses can cater to all users while still encouraging greater adoption of the riel.

What You Need to Do as a Consumer or Business?

For everyday users, the steps are simple. Use your riel account more frequently when making payments, especially through QR code systems. Most bank apps in Cambodia already allow users to switch between riel and dollar accounts easily.

For business owners, displaying both payment options is key. This not only improves customer experience but also supports national efforts to strengthen the local currency.

Another important point raised by the governor is that opening a riel account should be free. If any financial institution charges a fee for this service, it goes against the guidelines set by the National Bank of Cambodia.

Conclusion

The message from the National Bank of Cambodia is clear. Increasing the use of the riel is not just a policy direction but a shared responsibility between citizens, businesses, and financial institutions. By choosing riel in daily transactions and adopting QR based payments, Cambodians can help build a more stable and resilient financial system while maintaining convenience in an increasingly digital economy.