ADB said on a blog that the government supports an integral element for seeking value-for-money through PPPs. The bank emphasized that Asia Pacific countries should revisit their public-private partnership frameworks as demand for existing infrastructure sharply declines because of the coronavirus pandemic.
The blog also mentioned that other industries, like airports and infrastructure witnesses drying up of demand while others, including health and information & communications technology (ICT), experiences an unprecedented rise in demand.
The blog, written by Sanjay Grover, Hanif Rahemtulla, and Colin Gin, said that the costs of service delivery across all sectors are rising as governments rush to make a pandemic-proof service delivery.
The blog also noted that public-private partnerships (PPPs) are becoming an essential modality for governments to attract private capital and expertise into infrastructure in Asia in seeking value for money.
The pandemic and its effect on Asian banks
The novel coronavirus struck economies in the Asia Pacific. The damage to the region’s economy is evident as the nation’s rushed to apply for loans to fund each of their coronavirus battles. Almost every sector suffered the economic constraint brought by the pandemic.
Finance is one of the vital sectors of every nation’s recovery. Asia Pacific nations started initiatives to back their banks threatened by bad loans, an indirect effect of the coronavirus pandemic.
Some banks are struggling to recover from the losses they accumulated because of bad loans. The government-imposed home quarantines prevented people from doing business since mid-March. People failed to pay obligations since some lost their jobs or closed their businesses. During the early months of the pandemic, banks shut down operations in some countries.
Online banking helped financial institutions continue their operations. Banks accelerated their digital transformation programs to adapt to the changes brought by the pandemic.
Bank clients’ behavior changed because of lockdown and social distancing practices. People now relied on their gadgets to perform bank transactions. Banks in Southeast Asia reported the increase in the number of registrations in their online banking platforms since the start of the novel coronavirus.