Asian Development Bank (ADB) or the Asian Development Bank encourages governments of countries in the Southeast Asian Region to invest in the health sector because it will be able to increase economic growth. Health investment increases economic growth through increased participation and labor productivity," said ADB President Masatsugu Asakawa in an official statement in Jakarta, Wednesday, March 16, 2022. The ADB report presented at the Southeast Asia Development Symposium (SEADS) stated that health investment can increase economic growth through increased labor participation and productivity. For example, Southeast Asia's economic growth could increase by 1.5 percentage points if health spending in the region reaches around 5% of GDP compared to 3% in 2021. ADB's push for countries in the region to allocate more resources to health systems also to improve disease surveillance and respond to potential future pandemics. In addition, ADB also recommends the government continue to push for structural reforms to improve competitiveness and productivity, including simplifying business procedures and reducing trade barriers.
This effort is also carried out by encouraging small businesses to adopt new technology and providing skills training to help workers cope with labor market disruptions and job relocation in various sectors. According to ADB, the government also needs to maintain fiscal prudence to reduce the deficit and debt and modernize the tax administration to increase efficiency and broaden the tax base. ADB is also committed to continuing to work closely with policymakers as countries continue to seek to rebuild their economies. ADB's cooperation with policymakers is also carried out as these countries seek to improve their national health systems and streamline domestic regulations to strengthen business competitiveness. "We encourage all governments in Southeast Asia to invest in smart and green infrastructure and adopt innovations in technology to further stimulate economic growth," said Asakawa.
