KUALA LUMPUR: The enhancement of Asia's economic resilience is expected to be one of the issues to take centre stage in the upcoming Asia Pacific Economic Cooperation (APEC) Summit 2020 Virtual Finance Ministers' Meeting (AVFMM), as member countries look into swift and effective solutions to remedy its economy back to health post Covid-19.
The pandemic has served as a wake-up call, where there is a pressing need for APEC economies to come out with more innovative solutions that can speed up efforts to rebuild the regional economies, and a review of current practices to ensure a sustainable recovery ahead.
APEC has long acknowledged the importance to beef up efforts in digitalising its economy and the massive impact of the pandemic has served as a much-needed push to further enhance its digital economy landscape.
Another approach has become increasingly highlighted across multiple industries globally is Sustainable and Responsible Investments, which really has resilience embedded as a core objective.
Digital capabilities and sustainable practices to increase efficiency and nurture long-term growth
The internet and digital economy offer many possibilities for APEC member economies, including opportunities in electronic commerce and digital trade. It enables greater economic integration, more innovation, as well as robust, sustainable, and inclusive economic growth for the region.
In addition, such a move could also help the region in attracting investors and encourage human capital development as well as research.
On top of the technological pursuit, globally, more and more investments are being poured into sustainable businesses, in an effort to ensure inclusive, lasting benefits for the communities and the surrounding ecosystem.
The South East Asian region alone requires investment of around US$3.2 trillion between 2016 to 2030 to build climate-resilient infrastructures and to finance sustainable growth, according to the Asian Development Bank.
From a demand perspective, more investors globally are increasingly moving towards funds or companies that demonstrate a clear commitment towards principles in support of long-term social and commercial viability.
This month, ASEAN and the UN have agreed to advance their comprehensive partnership, including in the implementation of the 2030 Agenda on Sustainable Development Goals. Efforts towards ensuring sustainability of businesses and resources in the region must be streamlined to facilitate its success, that could be a critical factor towards growing the regional economies.
Already governments, businesses and the people are embedding sustainable practices across multiple fronts, from financing to operations and future planning.
Streamlining finance, border practices, and the fight against Covid-19
The AVFMM, to take place on Friday and chaired by Malaysia's Finance Minister Tengku Zafrul Tengku Abdul Aziz, will be attended by APEC finance ministers, top ministries officials, central banks and financial regulators of member economies as well as international organisations.
The meeting serves as a platform to share and exchange good practices of fiscal and monetary interventions, to mitigate and recover from the Covid-19 pandemic impacts as well as to rebuild more resilient economies.
The meeting is expected to deliberate on the impact of Covid-19 pandemic on the region's financial markets and economic conditions as well as ways for member countries, with assistance from international organisations, to cope with the aftermath via emergency financing, appropriate policy responses and technical assistance as part of a coordinated global response.
APEC recognises the critical role of digitalisation in ensuring financial integration and inclusion as well as the importance of disaster risk financing and insurance.
In the APEC Business Advisory Council (ABAC) 2020 Report, on Accelerating Recovery and Reshaping Financial Services, one recommen
dation was to come up with emergency credit programmes to save micro, small- and medium-sized enterprises (MSMEs) from liquidity crisis.
In addition, the report also deliberated on inclusive digital finance, and the digitalisation of 'Know-YourCustomer' processes.
The AVFMM is also expected to follow up on the recommendations highlighted during a recent ABAC meeting this year to open up trade borders as a vital move towards the economic recovery of APEC member countries.
For this effort to be effective, APEC economies should foster the development of more secure, accessible and affordable digital infrastructure for all and of free and secure flows of data across borders.
With the pandemic an overarching theme in any discussions currently, there should also be a commitment towards sharing of research findings and vaccine solutions on a free and open basis.
APEC economies must also work collaboratively to plan for the re-opening of borders. Free trade and a more open market are some of the vital components needed in the region's economic recovery plan and also to improve the livelihood of its people, which has over the years proven to help lift millions out of poverty.
Despite the global panic caused by the pandemic, it is important for the region to stay the course on trade and investment liberalization and not regress from free trade.
Malaysia committed towards driving growth
Even before Covid-19, the Malaysian government has been committed to drive the development of digital economy to boost the nation's economic growth.
Earlier this month, the Cabinet has approved the National 4IR and Digital Council to steer socio-economic development of the country through the use of technologies. The council will provide "policy leadership" on matters regarding the fourth industrial revolution (IR 4.0) and digitalisation.
The formation of the council would ensure the growth of the economy moves in tandem with the adoption of artificial intelligence, robotics, drone and sensor technologies while synergising the capabilities of 5G infrastructure.
Malaysia's upcoming Budget 2021 is expected to incorporate digitalisation as a key focus, where the nation acknowledges the need to address the digital divide and understands the efficiency that digitalisation can provide through automation and Big Data towards business operations and public delivery services.
Under the Budget, Malaysia is also giving a big emphasis on sustainable development goals, with an approach that would encompass multiple sections of the economy including sustainable production, consumption, investments and the conservation of natural resources.
In addition to this, the government will also focus on increasing the supply of local talent who are highly skilled in innovation and technologies. This will drive research and development, innovation and high-tech entrepreneurship, and reduce the country's dependency on external talents.