ADB Asks Southeast Asian Countries To Invest In Health Sector

Illustration (doc. Antara)

JAKARTA - The Asian Development Bank (ADB) has just released its report regarding the steps that need to be taken, especially for Southeast Asian countries, to boost the economic growth of their respective countries.

In the report, ADB emphasized the importance of investing in the health sector in an effort to recover the economy, because it is considered to increase labor participation and productivity.

"Investing (in the health sector) increases economic growth through increased participation and labor productivity," said ADB President, Masatsugu Asakawa, in his official statement, in Jakarta, as reported by Antara, Wednesday, March 16.

Asakawa presented his report at the Southeast Asia Development Symposium (SEADS).

According to Asakawa, the important role of health investment in economic recovery efforts can be seen from Southeast Asia's record economic growth, which is claimed to increase by 1.5 percentage points if spending in the health sector in the region reaches around five percent of GDP, compared to three percent in 2021.

Therefore, ADB also encourages countries in the region to be able to allocate more resources to health systems, in order to improve surveillance of diseases and respond to potential pandemics in the future.

In addition, continued Asakawa, ADB also recommends the government to continue to push for structural reforms to improve competitiveness and productivity, including simplifying business procedures and reducing trade barriers.

"This is done by encouraging small businesses to adopt new technologies and providing skills training to help workers cope with labor market disruptions and job relocation in various sectors. The government also needs to maintain fiscal prudence to reduce deficits and debt and modernize tax administration to increase efficiency and expand tax base," said Asakawa.