THE Asia-Pacific Economic Cooperation (Apec), comprising 60% of the world’s economy, must play a central role in driving post-Covid-19 economic recovery, Prime Minister Muhyiddin Yassin said today.

In his opening keynote address for the Apec CEO Dialogue Malaysia 2020, Muhyiddin said trade and economic priorities will now have to be viewed through “a pair of Covid-19 lenses”.

He said while the core pillars of the economic grouping remains the same, there is now a real and specific necessity to ensure a delicate balance between health priorities and economic needs.

“I suppose that, perhaps, given the realities that exist in a Covid-19 world, a reimagined Apec has indeed become somewhat necessary,” he said.

“In my view, a reimagined Apec will still be defined by the priorities that form the crux of the region, at present.

“These priorities are free and open trade and investment, regional economic integration, as well as economic and technical cooperation,” he added.

Apec must cooperate constructively to navigate the region along a path of robust, inclusive and sustainable economic recovery and growth, he said.

“We need to trade and invest our way out of the current economic downturn.

“Apec has always been an effective incubator of ideas, perhaps even a trendsetter of sorts, for novel collaborative concepts on areas such as economic and technical cooperation, as well as trade facilitation.

“Today, as we embrace the new norms brought about by the pandemic, Apec is aptly placed to capitalise on our ability to voluntarily explore initiatives that will hasten the region’s recovery,” he said.

As an economic entity, Apec must work closely with business communities and remain sensitive to the needs of the private sector, while continuing to cultivate an environment that enhances business confidence, he added.

In addition, a strong partnership between governments and the private sector is pivotal to overcome the pandemic and mitigate its economic impacts.

Muhyiddin said while governments can continue undertaking measures to preserve an ecosystem oriented towards trade and investment, it is the drive, resilience and adaptability of the private sector that will enhance Apec’s economic prosperity.

Three key priorities

Reaffirming support and commitment for the rules-based multilateral trading system is one of the three priorities going forward, Muhyiddin said.

This is important for businesses as market stability and predictability are the central pillars that ensure trade and investment continue to flow, even during times of crisis.

He added it is critical to have a well-functioning dispute settlement mechanism at the World Trade Organisation (WTO), which serves as a primary pathway for countries to settle their differences.

“Of similar importance is the need to recommit ourselves to Apec’s core and enduring goal of free and open trade and investment in the region. This is integral to our efforts to rebuild our economies in the aftermath of the pandemic,” he said.

“However… we must also underscore the fact that benefits accruing from trade and investment have not permeated across all segments of our society.”

This can be resolved through Apec’s Post-2020 Vision, which will replace the Bogor Goals set in 1994 during the leaders’ meeting in Indonesia and expires at the end of this year, will contain enablers to drive economic growth and prosperity in the region, he added.

The second priority, meanwhile, is to bolster the digital economy, given the need to generate jobs and return workers to the employment market, he said.

“The pandemic has shown all of us that technology can step in and sustain communities, even when our movement is restricted.”

However, without sufficient infrastructure and cooperation between the public and private sectors, “we run the risk of excluding vulnerable groups due to their lack of access to digital tools”.

The third priority is inclusive economic growth to ensure no one is left behind, particularly women and youth.

Citing a World Bank study, Muhyiddin said a country’s income per capita is likely to grow significantly if economic barriers are removed or minimised for women.

“The youth must also not be left behind as we turn our eyes to the future, in a post-Covid-19 world. With youth unemployment expected to rise, we must ensure that the younger generation is equipped with the right skills and knowledge that enable them to contribute effectively to the society.” – November 19, 2020.