Draft rubber law to reach Council of Ministers in 2019

20 Dec 2018 2130 | Business & Trade Fairs

The Ministry of Agriculture is now discussing the Rubber Law with industry players and plans to send a draft to the Council of Ministers for approval next year, according to a high-ranking official.

Pol Sopha, director-general of the General Department of Rubber, said the law is now being discussed at the inter-ministry level, including talks with companies in the industry, and that they are planning workshops to gather input from the private sector and other actors.

“We plan to complete the draft law on rubber in 2019, and will submit it to the Council of Ministers,” Mr Sopha said.

The law now has 11 chapters and 112 articles. According to the draft document, the law aims to ensure an efficient and transparent management of the sector as well as its sustainable development. It will also increase the income of households in the sector and help protect the environment.

“The law aims to control the management of rubber in Cambodia, and will cover all activities involved in rubber harvesting in the Kingdom,” it says.

Lim Heng, vice president of An Mady Group, told Khmer Times that far from boosting the rubber industry, the law will increase the burden on the private sector.

As per the current draft, businesses and investors involved in the rubber sector will have to secure a myriad of licenses before beginning operations. The amount of red tape involved will significantly increase, making it a much longer and arduous process for those interested in entering the market, he said.

“I believe the current draft law will provide little benefit, while increasing the burden on businesses,” Mr Heng said. “If it is approved, no investor will show interest in in the sector.”

“We should not approve this law. Instead, a proper rubber policy to assist farmers and investors needs to be put in place,” he said. “We should not approve a law for the sector until that policy has been established and we have had time to assess its impact on the sector.”

Men Sopheak, president of the Association for Rubber Development of Cambodia, said the law has the potential to be a positive development for all industry actors.

“The government should organise more workshops and consult the private sector,” he said. “This could be a good law if it is not too strict.

“If the law goes into too much detail, it could have a negative impact on those involved in the rubber sector. If we want to amend the law, we would need to go to the Council of Ministers, which could take a very long time,” Mr Sopheak said.