IFC, a member of the World Bank Group, today signed a memorandum of understanding (MoU) with the Securities and Exchange Commission of Cambodia (SECC) to develop a roadmap for strengthening the country’s corporate governance policies and practices.
According to a press release of IFC AKP received this afternoon, the partnership aims to improve transparency and bolster investor confidence in Cambodia’s capital market, which will help entice more foreign investment to the country.
Under this MoU, IFC and the SECC will assess Cambodia’s corporate governance standards and practices then devise an action plan to improve them. With support from IFC, the SECC will develop and implement a corporate governance code, which will set best practices for Cambodian listed companies to follow. More foreign investment will lead to local job creation, a stronger business landscape and improved private sector efficacy.
Good corporate governance standards and practices are prerequisites to the development of a strong and sustainable capital market, said H.E. Sou Socheat, Director General of SECC.
“IFC and the World Bank will help us evaluate the existing regulatory framework to enhance our corporate governance practices. We will work together to raise market awareness of the importance of good governance, which will contribute to the sustainable development of Cambodia’s corporate sector,” he added.
IFC and the SECC will organize public seminars and workshops to promote best corporate governance practices, including a roadshow to introduce the Association of Southeast Asian Nations Corporate Governance Scorecard initiative. Once Cambodian companies adopt the scorecard, they can benchmark their practices against peers from ASEAN countries.