Focus on structural reforms, Apec told
APEC countries must introduce structural reforms to strengthen their economy as some countries are suffering from trade deficit, which affects employment and private consumption.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said member countries cannot rely entirely on the "financial economy" for long-term growth.
"More significant to countries are the health of the real economy.
"Globalisation has brought the world closer both economically and socially. With the world's economies increasingly interconnected, the challenges faced have grown greater and it is important for each country to have sound economic management. Hence Apec members must focus on long-term growth," he said at the 20th Apec Finance Ministers' meeting here, yesterday.
Husni shared Malaysia's experience on the matter, saying that it was able to enjoy better growth compared with other countries because of the strength of its economy.
"This strength comes from the lessons learnt during the Asian financial crisis and the subsequent implementation of structural reforms, which still continues today.
"As an extension of the reforms, Malaysia is beginning to unlock its wealth through mechanisms such as subsidy rationalisation."
By doing this, the government is able to deliver savings to more vulnerable groups in society and channel higher allocation for development and investment activities.
"Fiscal sustainability must always be strengthened in order to maintain growth and be well-equipped to face any future crisis," he said.