As the global order transitions toward a multipolar landscape, smaller nations are increasingly focusing on infrastructure as a primary tool for maintaining strategic autonomy. Cambodia has emerged as a notable example of this shift, integrating artificial intelligence, digital finance, and foreign policy into a cohesive national strategy designed to navigate competing global powers.

Central to this approach is the development of the Bakong payment system. According to the National Bank of Cambodia’s 2024 annual report, the platform facilitated approximately $105 billion in transactions, serving a population with smartphone penetration exceeding 80 percent. By establishing cross-border QR interoperability with nations such as China, Thailand, and Malaysia, Cambodia has positioned itself as a connective node in regional financial ecosystems, reducing reliance on traditional foreign correspondent banking.

The nation’s leadership is also treating AI as a critical component of statecraft, utilizing it for public administration, tax collection, and service delivery. However, experts emphasize that the long-term success of this digital transition depends on building robust institutional guardrails, including transparency and independent oversight, to balance technical capability with governance.

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To further its strategic goals, Cambodia is encouraged to pursue a multi-faceted policy approach. This includes expanding the interoperability of its digital payment rails, establishing clear legal frameworks for algorithmic transparency, and diversifying its technology partnerships beyond single-source suppliers. Additionally, the government faces the challenge of fostering domestic human capital through digital literacy and vocational training to ensure that technological advancements translate into sustainable economic growth.

While Cambodia has made strides in reducing its reliance on single-creditor sovereign debt, analysts note that the country remains deeply interconnected with larger economies. The ongoing challenge for Phnom Penh will be to ensure that its digital and infrastructural investments lead to genuine domestic capacity rather than new forms of technological dependency.

Source: Phnom Penh Post