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KUALA LUMPUR: The finance ministers of the Asia-Pacific Economic Cooperation (APEC) have emphasized the need for coordinated multilateral cooperation to ensure a strong and sustainable economic recovery from the impact of the Covid-19 pandemic among member economies.
In a joint statement, the ministers said that member economies also need to continuously exchange experiences and good practices.
“In light of the severe regional economic downturn and the challenge that Covid-19 is posing for fiscal sustainability, we strongly reaffirm our commitment to promoting tax certainty and addressing tax avoidance and evasion in the APEC region,” said the Ministerial Declaration of Virtual Finance of Apec. on mitigation and recovery from the Covid-19 pandemic on Friday.
The statement was issued after a discussion at Apec’s Virtual Meeting of Finance Ministers chaired by Finance Minister Tengku Zafrul Abdul Aziz.
In the statement, the ministers also emphasized the importance of the OECD / G20 Inclusive Framework on Base Erosion and Profit Shifting (OECD BEPS) to continue advancing work on fiscal challenges arising from digitization with a view to reaching a framework global and consensual. solution.
They also recognized that the Covid-19 outbreak would have major ramifications on global gross domestic product (GDP) growth.
“With the contraction of GDP growth estimates and public spending on response and recovery measures, the fiscal position of the economies is under pressure.
“We recognize the continued need to promote stimulus measures to assist with recovery, while underscoring the importance of improving fiscal sustainability and transparency to support long-term resilient development and future financing needs,” they said.
The ministers expressed their determination to continue using all available political tools to support the immediate response to the Covid-19 pandemic and to move towards a strong, sustainable, balanced and inclusive recovery.
“This includes supporting the most exposed sectors and workers, as well as addressing the disproportionate economic and social impact of the crisis on the most vulnerable segments of society.”
The ministers also recognized the importance of the work of international financial institutions to facilitate the management of public finances in this regard.
Additionally, they pledged to support the development of safe and effective Covid-19 diagnostics, therapies, and vaccines, with the goal of supporting equitable and affordable access for all.
The ministers of the member economies said that Apec would consider the possibility of integrating future pandemics into the disaster risk financing and insurance (DRFI) agenda.
“We will continue existing work on DRFI solutions to explore practical sources and schemes to mitigate and respond to present and future disasters or shocks, and we will also consider the possibility of integrating future pandemics into the DRFI agenda,” they added.
The ministers expressed their appreciation for Malaysia’s effort to seek viable and tangible solutions from APEC member economies to improve the financial health of workers in the gig economy through the APEC Gig Economy Challenge, launched on March 18, 2020.
The ideas presented in the Apec Gig Economy Challenge showcase the many roles of digitization in helping financial inclusion, including workers in the gig economy who have been hit hard by the pandemic.
“We welcome Malaysia’s initiative to promote the digital economy, which could further fuel and sustain the economic recovery of member economies from the Covid-19 pandemic,” the joint statement said.
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