Wednesday, February 10, 2010

November 12, 2009 20:18 PM

APEC Finance Ministers To Focus On New Pathways To Growth

SINGAPORE, Nov 12 (Bernama) -- Asia- Pacific Economic Cooperation (Apec) Finance Ministers Thursday stressed the importance of focusing on structural reforms to raise the region's potential economic growth over the medium to long term, even as it begins to emerge from the worst financial crisis and global recession since the Second World War.

Joined by the heads of the International Monetary Fund (IMF), World Bank and the Asian Development Bank (ADB) for the 16th Apec Finance Ministers' Meeting (FMM), the ministers discussed challenges such as timing of exit strategies, private markets' risk appetites in the wake of the crisis, and the longer term challenge to public balance sheets arising from ageing populations.

Chair of the FMM and Singapore's Finance Minister Tharman Shanmugaratnam said Apec economies strongly felt that structural reforms had to be at the core of efforts to strengthen domestic demand over the medium to long term, and that Apec was well-suited to advancing these reforms.

"There is no one-size solution, but we agreed to cooperate and connect expertise from across member economies and work with the multilateral development banks on areas ranging from changes needed to attract infrastructure finance, develop social safety nets and pension schemes, and design sustainable urban solutions," he said at the end of the one-day meeting.

The ministers will task officials to study how Apec economies should partner with international financial institutions such as the IMF, World Bank and the ADB to work out best ways to share knowledge on key areas of priority in structural reforms, and draw on expertise and resources from economies and those with relevant experience.

The ministers also stressed the importance of improving the investment environment to attract private investment in areas such as infrastructure development.

Malaysia was represented by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah in the meeting at the Suntec convention centre.

-- BERNAMA

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