KUALA LUMPUR: The Asean Business Advisory Council (BAC) has called on leaders in the region to take urgent measures to contain the economic impact caused by the Covid-19 outbreak.
The council urged leaders to ensure uninterrupted supply chains of essential food, intensifying Asean-wide trade facilitation and plans for the gradual reopening of the economy to restore market confidence.
“On the economic front, we fully appreciate and support the reaffirmation by the leaders of their commitment to take collective action and coordinate policies in mitigating the economic and social impact from the pandemic, safeguarding the people’s well-being and maintaining socio-economic stability’.
“However, we believe these unprecedented and extraordinary times, urgently warrant bold and decisive action to create confidence and assure our markets, businesses and people at national and regional levels.
“At this critical juncture, we have to work together and gradually get the Asean economic engine up and running again – with all critical health and science-related issues carefully considered in such a delicate transition,” the statement read.
Among the measures suggested by the council was on food security, where it recommended government leaders in the region prevent delays and ensure uninterrupted production and supply chains of essential food and beverage.
This includes the preservation of open borders for goods both at the up and downstream levels, the council said.
It also suggested for those working in logistics to be given access to transport these goods, while ensuring their safety by providing them with protective measures.
“Ensure public and private consultation for any policy decision around the supply of food to mitigate the effects of the crisis as much as possible,” it said.
Due to the extension of the lockdown in Asean countries recently, the council suggested a gradual reopening of the economy by implementing a well-calibrated resumption of economic activities in cities, municipalities and towns.
On trade facilitation, the council suggested for the public sector to be given the mandate to fast track ease of regional trade reforms and eliminate non-tariff barriers especially for essential and critical goods and services.
“The reforms will also enhance the preparedness of Asean to absorb redirection of supply chains from China to Southeast Asia to preclude recurrence of shortages of key inputs especially for medical purposes produced solely or mainly from China as highlighted by the pandemic.
“(Also), mobilise the private sector to produce standard face masks and shields and personal protective equipment (PPE), and to use supply chain connections to make ventilators and other medical equipment available at national and regional levels.”
The council also called on Asean leaders to encourage the private sector especially large corporations to provide financial and other assistance to the effort, as well as to continue payment of salaries to their employees.
“While governments are doing their best to provide assistance to those affected by mass layoffs, daily wage earners and those belonging to the lower level of the economic pyramid, we see the need to strengthen unemployment insurance, universal healthcare, workers’ compensation and paid sick leave and allow more investments in public health.”
Further, the council also urged Asean leaders to ratify the Regional Comprehensive Economic Partnership (RCEP) soon as it was important to generate regional economic growth and cooperation to compensate for the failing global trade order.
“Asean BAC and its partners convey its readiness to help Asean drill down on these immediate short-term measures for their effective roll out and execution.”
