Global health and financial insti-tutions such as the World Health Organisation (WHO) and the World Bank play a crucial role in coordinating the global response to the coronavirus outbreak and its ensuing economic fallout, Deputy Prime Minister Heng Swee Keat said yesterday.
Mr Heng said at the ST-BT Budget 2020 Roundtable that each of these institutions shapes the response at different levels and facets of the global economy. The WHO, for example, brings together global resources and knowledge on how to handle viral outbreaks.
Hence, it is important for all countries to cooperate with it to provide up-to-date information and not hide bad news, he said. "It is important to be transparent about this so we can make a proper assessment of how the virus is, or is not, spreading."
The various parties can also look into improving testing facilities and whether there should be a set of minimum responses that all countries ought to have, he said.
Mr Heng added that within the region, Asean and its Plus Three partners - China, Japan and South Korea - can coordinate responses to the outbreak as well as the economic and financial situation.
Earlier this week, Asean economic ministers issued a statement committing to collective action to mitigate the impact of Covid-19. This includes working with industry to instil confidence in South-east Asia as a trade, investment and tourism destination, and better trade facilitation to improve supply chain connectivity.
Globally, the Group of 20 - which started off as a group of finance ministers and central bank governors of the world's largest economies - as well as global financial institutions such as the International Monetary Fund (IMF) and the World Bank, will also need to coordinate policy, in particular, monetary policy, said Mr Heng.
The IMF maintains the stability of the international monetary system by keeping track of the economies of member countries, lending to countries with balance-of-payments difficulties, and giving practical help to members. It is also where countries can share their assessment of global economic stability, Mr Heng said.
The World Bank combats global poverty - and this is important, given that Covid-19 does not respect global boundaries or make income distinctions, he added.
Mr Heng pointed out that the World Bank, and other multilateral institutions such as the Asian Development Bank and Asian Infrastructure Investment Bank, play a key role in implementing "good measures" across all countries.
"They can all play a role in strengthening our global and regional responses to this outbreak," he added.
