## Policies Need to be Flexible, Creative to Speed up Pandemic Recovery, Say IMF Reps in Asia ## Source details **Canonical URL:** [Policies Need to be Flexible, Creative to Speed up Pandemic Recovery, Say IMF Reps in Asia](https://www.imf.org/en/countries/resrep/oap-home/2020/regional-webinar-07302020) ## Other formats - [Markdown version](/en/countries/resrep/oap-home/2020/regional-webinar-07302020/index.md) - [Structured JSON version](/en/countries/resrep/oap-home/2020/regional-webinar-07302020/index.json) - [Bundle manifest](/en/countries/resrep/oap-home/2020/regional-webinar-07302020/bundle-manifest.json) ### Media Inquiries International Monetary Fund Regional Office for Asia and the Pacific Press Officer: Yuko Maeda Tel: 81-(0)3-3597-6719 Email: [oapmedia@imf.org](mailto:oapmedia@imf.org) --- ### Event summary and context - The event was held on July 30, 2020, Tokyo, Japan and was a public webinar hosted by the IMF Regional Office for Asia and the Pacific (OAP) as the first of a new Asia-Pacific Regional Webinar series. - More than 400 people participated in the webinar from 18 countries within and beyond the region. - Resident representatives from the IMF for Malaysia, the Philippines and Singapore presented assessments and policy advice on economic impacts of COVID-19 and recovery strategies. ### Economic outlook and sectoral impacts - Singapore: - Singapore is going through “its worst severe downturn since Independence” in 1965. - Construction and customer-facing services, including tourism and retail sales, were most affected. - The unemployment rate increased significantly in the second quarter. - IMF commended Singapore’s swift policy response with substantive monetary and fiscal measures to support the economy and people’s livelihoods. - Investment in innovation including fintech and upskilling of the workforce could help Singapore emerge stronger from the crisis. - Malaysia: - The government’s movement control order had been effective in containing the spread of COVID-19. - The pandemic shock hit the economy hard, prompting the government to take robust measures amounting to 20.4% of GDP. - Recovery so far is uneven by sector, unemployment has risen sharply, and inflation remains low. - COVID-19 could accelerate digitalization, innovation and adoption of new technology; Malaysia is well positioned for that. - Philippines: - The pandemic had a severe impact on the Philippine’s economy, which had been “a top performer in the region with a strong structural reform momentum”. - A sharp GDP contraction in 2020 is expected before a rebound in 2021, as the Philippines continues its effort to flatten the infection curve. - The government responded with timely easing of monetary and fiscal policies and targeted assistance to affected households and businesses, especially micro, small and medium enterprises. ### Policy recommendations and priorities - Broad guidance emphasized by IMF resident representatives: - Policymakers need to be creative and flexible to support recovery. - Policy interventions should focus on saving lives and protecting livelihoods. - Balance immediate spending against preserving fiscal space for the future: “It’s a delicate balance: how much you spend now and how much fiscal space you reserve for the future.” - There is no one-size-fits-all solution; each country must work through fiscal space, liquidity situation and long-term development goals. - Specific measures to mitigate medium- and long-term scarring: - Strengthen social protection programs. - Increase support for small businesses, particularly micro, small and medium enterprises. - Mitigate loss of workers’ skills and reduce bankruptcies through targeted measures. - Invest in innovation, fintech and workforce upskilling to support structural adjustment and recovery. ### Discussion highlights and participant concerns - A key concern among participants was how macroeconomic policies can effectively deal with prolonged effects of the pandemic given limited resources in many countries. - IMF representatives echoed the need for creativity and flexibility in policy choices to address pressing issues along the recovery process. ### Speakers and credentials - Jochen Schmittmann: - Head of the IMF’s Resident Representative Office in Singapore covering Asian financial markets as well as Malaysia and Singapore macroeconomic analysis. - Previously worked in the IMF’s Asia and Pacific, Western Hemisphere, Finance and Monetary and Capital Markets departments. - Published on behavioral finance, sustainable finance, currency hedging and the economic impact of demographic change in Asia. - Holds a Ph.D. in Financial Economics from Goethe University Frankfurt. - Yongzheng Yang: - IMF’s Resident Representative to the Philippines. - Previously a Deputy Division Chief in the Asia and Pacific Department and IMF mission chief for Myanmar. - Served as the IMF’s Resident Representative in Pacific island countries from 2010 to 2014 and was mission chief for Papua New Guinea and Samoa. - Worked on countries in Africa and Central Asia; joined the IMF in 2001. - Taught at The Australian National University (ANU) and Macquarie University for 10 years. - Holds a Ph.D. in economics from the ANU. --- ## Content in this bundle - **IMF Response to COVID-19 Crisis – Exceptional Times Call for Exceptional Actions** - [IMF Response to COVID-19 Crisis – Exceptional Times Call for Exceptional Actions (Markdown version)](/-/media/files/oap/oap-home/2020/imf-support-slide-as-of-2020-07-29.pdf.md){rel="alternate" type="text/markdown"} - [IMF Response to COVID-19 Crisis – Exceptional Times Call for Exceptional Actions (PDF)](/-/media/files/oap/oap-home/2020/imf-support-slide-as-of-2020-07-29.pdf){rel="external" type="application/pdf"} - **Malaysia – Current Economic Developments** - [Malaysia – Current Economic Developments (Markdown version)](/-/media/files/oap/oap-home/2020/mys-jschmittmann-07302020.pdf.md){rel="alternate" type="text/markdown"} - [Malaysia – Current Economic Developments (PDF)](/-/media/files/oap/oap-home/2020/mys-jschmittmann-07302020.pdf){rel="external" type="application/pdf"} - **Welcome to a visually integrated Fund** - [Welcome to a visually integrated Fund (Markdown version)](/-/media/files/oap/oap-home/2020/phl-yyang-07302020.pdf.md){rel="alternate" type="text/markdown"} - [Welcome to a visually integrated Fund (PDF)](/-/media/files/oap/oap-home/2020/phl-yyang-07302020.pdf){rel="external" type="application/pdf"} - **Singapore – Current Economic Developments** - [Singapore – Current Economic Developments (Markdown version)](/-/media/files/oap/oap-home/2020/sgp-jschmittmann-07302020.pdf.md){rel="alternate" type="text/markdown"} - [Singapore – Current Economic Developments (PDF)](/-/media/files/oap/oap-home/2020/sgp-jschmittmann-07302020.pdf){rel="external" type="application/pdf"} --- ## References - [OAP Home](https://www.imf.org/en/countries/resrep/oap-home) _Source: https://www.imf.org/en/countries/resrep/oap-home/2020/regional-webinar-07302020_