Term of office Report of Interim Coordinating Minister of Economic Affairs
The Minister of the Presidency of the Council of Ministers, Fidelis Manuel Leite Magalhães, met today, July 17th 2020, with the Coordinating Minister of Economic Affairs (MCAE), Joaquim Amaral, to present his work during his mandate in the coordination of economic affairs, from June 2019 to May 2020.
The main goal of the meeting was to make a status report and present to the new cabinet minister the work described in the Term of office Report of Minister Fidelis Magalhães, during the last year in which he took office as interim minister, with the main results achieved, challenges encountered, pending issues and recommendations for the future having been presented.
During the meeting, the main areas in the economic development, namely activities related to the Government representation as a shareholder of the National Commerce Bank of Timor-Leste (BNCTL), with the accession process of Timor-Leste to World Trade Organization (WTO), with the leadership of the Interministerial Commission for COVID-19 socioeconomic impact research, with the monitoring of the autonomous agencies work under the MCAE, with the support to the private sector and with the strengthening of the relationship with development partners, have been addressed.
Regarding to the response to the COVID-19 pandemic socioeconomic impact, Fidelis Magalhães was appointed by Prime Minister’s order, to lead the interministerial commission, with responsibility to research the COVID-19 impact on national economy and to create a plan to mitigate these negative effects.
Based on this premise, the interministerial commission has developed an economic stimulus and response package, responding to the expected negative effects of the new coronavirus in economy, consisting of 19 strategies, integrated into six components: connectivity, essential utilities, essential services, and access to credit, tax exemptions and direct support. This economic stimulus was essentially projected with the goal to protect people, saving jobs, maintain expenditure and support the private sector activity.
In relation to the Timor-Leste accession to WTO, during his mandate, as Interim Minister of Economic Affairs, after identifying the status report, the process was reactivated and an interministerial commission led by MCAE was established.
Among the various activities carried out in the context of this process, stands out the Timor-Leste's participation in December 2019, at China's 8th Annual Round Table on WTO Accessions, a platform for exchanges between acceding governments and WTO members on topics and experiences related to joining the organization, which took place in Moscow, Russia, and the submission to the WTO, in May, of a questionnaire with 75 requested answers by the organization and the legislative action plan.
In the meeting, the results achieved, challenges and recommendations of the autonomous agencies under the supervision of MCAE, were also mentioned, including the National Centre for Employment and Professional Training (CNEFP) in Tibar, the National Centre for Professional Training (CNFP) in Becora, the National Institute for Manpower (INDMO), the General Labour Inspection, the Business Development Support Institute (IADE), Food, Sanitary and Economic Activity Inspection Authority (AIFAESA), TradeInvest and SERVE.
Regarding to SERVE, the interaction with the Public Administration Reform Program was presented, focusing on the component related to the Business Environment (Doing Business). The objective of this component is to improve the efficiency of administrative services provided to companies, reducing delays and transaction costs. This program was initiated by the Ministry of Legislative Reform and Parliamentary Affairs and, with the change in the organic structure of the Government, it moved to the Presidency of Council of Ministers. To ensure a favourable business environment, it is intended to guarantee a set of political, institutional, regulatory, infrastructural and cultural conditions, to manage formal and informal commercial activities.
In relation to the representation of the Government as the sole shareholder of BNCTL, it is worth highlighting the implementation of Decree-law no 16/2019, which reinforced the statute of BNCTL, as a commercial bank with State's share capital, as a sole shareholder, and the implementation of a competent and efficient executive management, in charge of professional and experienced executive directors in the banking sector, maintaining the bank’s strategic vision at the service of the population’s best interests.
