Managing Labour Migration under the ASEAN Economic Community: Key Issues

7/23/2019 Managing Labour Migration under the ASEAN Economic Community: Key Issues

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The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the

Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and

accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

Special Adviser to the Dean, ADBI

ADBI Tok o 28 Januar 2014

Tokyo, 27-28 January 2014

The 4th ADBI-OECD-ILO Roundtable on Labor Migration in Asia1


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Contents

1. ASEAN ke labor market statistics

2. Institutional framework on labor

3. Labor issues in the ASEANconom c ommun y

4. Developing labor skills5. Protecting migrant workers




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1. A EAN k l r

market statistics




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ASEAN at a Glance

Association of Southeast Asian Nations

Established: 1967

ASEAN Basic Information

2012 Data

618 Million

10 Member Countries

(8.8% of world's)

$ 2,327 Billion

(3.2% of wolrd's)

3 767

GDP

(1/3 of wolrd average)

$ 1,250 Billion

(7% of world's)

Per-capita GDP

Total Exports




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Total

billion

Per Capita Exports/ GDP

share

(%) Share of

World Ex orts

Country Population

Gross Domestic Product Trade

Brunei Darussalam 0.4 17.0 42,380 70.3 0.07

Cambodia 15.3 14.1 926 55.3 0.04Indonesia 244.5 878.5 3,594 21.6 1.06

Lao PDR 6.6 9.2 1,380 36.2 0.02

. . , . .

Myanmar 63.7 55.3 868 15.0 0.05

Philippines 95.8 250.2 2,612 20.8 0.29

Singapore 5.3 276.5 52,056 148.2 2.29

Thailand 67.9 366.0 5,390 62.3 1.28

. . , . .

ASEAN 617.7 2,327.0 3,767 53.7 7.00

India 1,227.2 1,841.7 1,501 16.1 1.66

Japan 127.6 5,960.3 46,707 13.4 4.47

People's Rep. China 1,354.0 8,221.0 6,071 24.9 11.48

epu c o orea . , . , . .

World 7,046.0 72,216.4 10,249 24.7 100.00

IMF: World Economic Outlook Database and Direction of Trade Statistics (2013).




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ASEAN Labor Statistics 2010

Total

World

Intra-

ASEAN

Total

World

Intra-

ASEAN

CountryPouplation

('000)

Labor Force

('000)

Outward Labor

Migration ('000)

Inward Labor

Migration ('000)Net Labor

Migration Stock

('000) *

Inward Labor

Migrants / Labor

Force (%)

Singapore 5,184 2,632 297 122 1,967 1,163 1,670 74.7

Brunei Dar. 414 202 24 9 148 121 124 73.3

Net Labor-Importing Countries

Malaysia 28,251 12,250 1,481 1,196 2,358 1,883 876 19.2

Thailand 63,878 38,977 811 263 1,157 448 346 3.0

Cambodia 14,953 8,050 350 54 336 321 (15) 4.2

Net Labor-Exporting Countries

Myanmar 61,187 27,337 515 321 98 1 (417) 0.4

Indonesia 237,641 117,578 2,504 1,519 397 158 (2,107) 0.3

Viet Nam 88,257 47,936 2,226 222 69 22 (2,157) 0.1

, , , , .

Lao PDR 6,437 3,179 367 83 19 10 (348) 0.6

ASEAN 600,212 297,780 10,626 3,902 6,915 4,114 (3,710) 2.3

ASEAN=Association of Southeast Asian Nations; Brunei Dar.=Brunei Darussalam; Lao PDR=Lao People's Democratic Republic.

* '



.

Source: World Bank. Bilateral Estimates of Bilater Migrant Stocks in 2010.


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1,500

2,500OUT World OUT ASEAN IN World IN ASEAN

(500)

500

(3,500)

(2,500)

(1,500)

OUT=Outward Stock

IN=Inward Stock

(4,500)

ASEAN=Association of Southeast Asian Nations; Brunei Dar.=Brunei Darussalam; Lao PDR=Lao People's

(*) Refers to the Net Labor Migration Stock for the World's Total.

Source: World Bank. Bilateral Estimates of Bilater Migrant Stocks in 2010. Available:


The 4th ADBI-OECD-ILO Roundtable on Labor Migration in Asia

p: a a.wor an .org n ca or . . accesse ovem er .

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ASEAN mi rants to OECD: Ke fi ures

Low Mid High 15-24 25-64 65+

ASEAN Countries' Migrants' Stock (15+) to OECD in 2005-06

Education level (%) Age range (%)Emigrants

(`000)Country

167165

160

180ASEAN Migrant population flows

to OECD countries ('000)

PHI 2,502 14 34 52 10 78 12

VIE 1,758 34 39 28 8 82 10

THA 347 31 36 33 21 76 388

100

120

140

2001 2010

INO 336 18 40 42 11 65 25

LAO 256 41 39 20 4 87 9

CAM 255 45 35 20 6 84 1025

51

2932

52

40

60

80

SIN 119 16 31 53 17 76 7

MYA 78 25 30 44 10 72 18

BRU 10 18 31 51 24 74 3

0 37

10

20

1 26 4 2

11

0

20

BRU LAO SIN CAM MYA LAM INO THA VIE PHI

Source: Managing Migration to Support Inclusive and Sutainable Grow th, OECD and ADBI,

http://ww w.adbi.org/files/2013.01.11.book.managing.migration.sustainable.grow th.pdf Available: http://www.adbi.org/files/2013.01.11.book.managing.migration.sustainable.growth.pdf

Source: ADBI & OECD (2013) Managing Migration to Support Inclusive and Sutainable Grow th.




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. ns u onaramewor on a or




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Background on ASEAN labor issues

Focus on competitiveness, social progress,

and rotection of mi rant labor

Recognition that human capital plays a key

social progress

under the socio-cultural pillar of the ASEAN

Community (to be formed in 2015) but themajority of implementation arrangements fall

under the economic pillar, which covers



serv ces era za on10


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ASEAN Cooperation Structure

ASEAN Community

ASEAN Coordinating Council (ACC)

ASEAN Labour Ministries Meeting (ALMM)

-

ASEAN Senior Labour Officials Meeting (SLOM)

SLOM Working Group

on Progressive Labour

Practices to Enhance

SLOM Working Group

on the HIV Prevention

Commiittee on the

Implementation of the

ASEAN Declaration onASEAN Occupational

Safety and Health



Competitiveness

Workplace

Rights of Migrant

Workers

etwor

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ASEAN Community pillars and

-ASEANCommunity Pillar

Labor-related issues included in the ASEAN Community Blueprints

Strengthen criminal justice responses to trafficking in persons

Protects victims of trafficking

Issuance of visas and employment passes of business persons and skilled labor

Work toward the recognition of professional qualifications

o ca - ecur y

Negotiate and implement mutual recognition arrangements

Strengthen human resource development and capacity building:

- priority to be given to service sector

Economic

-

- promote effective national labor market programs in member states

Facilitate investment in human resource development

- focus on im rovin entre reneurial skillsPromote the application of labor standards and decent work regulations

Promote the introduction of comprehensive domestic welfare systems

- including protection mechanisms aganists the negative effects of globalization

Socio-Cultural



Protect and promote the rights of migrant workers


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ASEAN Institutional Mechanisms-I

ASEAN

Labor

Ministers

Meeting

(ALMM)Startedin1975Recently,ALMMarebeingorganizedeverytwoyears,

su ortedb SeniorOfficialsMeetin s SLOM andASEANrelateda encieson

laborissues:Next(23rd)ALMMplannedforMay2014inNayPyiTaw

22nd ALMMPhnom Penh, 2012

Theme: Improving Social Protection and Skill Development

Issues: youth unemployment, vulnerabilities, unsafe migration, education and

skills training (particularly in rural areas)

21st ALMMHanoi, 2010

Adoption of Guidelines on Good Industrial Relations Practices

Adoption of the ALM Work programme (2010-2015)

19th

ALMMCebu 2007Theme:ASEAN Declaration on the Protection and Promotion of the Rights

of Migrant Workers

General principles, obligation and commitments of ASEAN members



13


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ALMM Work Program 2010-2015

ObjectiveImprove quality of life, promote productive employment,and ensure social protection

Creating a harmonious and progressive workplace Promoting decent work for all citizens

ey ecommen e c ons Promote best practices in labor policy & laws (migrants rights)

Build capacity in inspection for labor law compliance Strengthen occupational safety, social security and protection

Promote employment services

Strengthen tripartite cooperation

Promote corporate social responsibility

Promote progressive labor practices

Improve labor market information and analysis



Enhance labor mobility

14


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ASEAN Institutional Mechanisms-II

ASEAN Forum on Labor Migration (AFML)

m: eve op recommen a ons o mp emen e ec ara on

on Protection and Promotion of the Rights of Migrant Workers Participants: Governments, workersand employersorganizations,

and stakeholders from the civil society

Key Issues:i enhancin awareness and information services on the rotection and

promotion of the rights of migrant workers; (ii) introduction of effective

recruitment practices and regulations for migrant workers; (iii) promoting

strategies for effective return and reintegration for migrant workers

1st Meeting (March 2009, Bangkok)

6th Meeting (November 2013, Bandar Sri Begawan)




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ASEAN Framework Agreement on

Promote service sector liberalization beyond GATS commitments(market access and national treatment) and facilitate working abroad

through mutual recognition of professions and employment

qualifications to improve ASEAN countries competitiveness,productivity, and efficiencyCompleted 8 rounds of negotiations

Workers can migrate from low-wage to high-wage countries under

GATS Mode 4 (movement of natural persons)issues: (i) Facilitate the

issuance of visas and work permits; (ii) Develop core competencies andqualifications; (iii) Enhance corporation within the ASEAN University

Network; (iv) Strengthen research capabilities of each ASEAN country

Covers twelve sectors: Air trans ort; Business services; Construction;Distribution; Education; Environment; Financial services; Healthcare;

Logistics; Telecommunication; Transport; Tourism

Mi rant Workers Protection, Inte ration, and Securit



Immigration Procedures

16


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-

AFTA=ASEAN Free Trade Area; APEC=Asia-Pacific Economic Cooperation; ASEM=Asia-Europe Meeting; ASEAN=Association of

Southeast Asian Nations; CEPT=Common External Preferential Tariff; EAFTA=East Asian Free Trade Area; EAS=East Asia Summit;

EU=European Union; FTA= Free Trade Agreement; FTAAP=Free Trade Area of Asia and the Pacific; Lao PDR=Lao People's Democratic

Republic; RCEP=Regional Economic Comprehensive Partnership; TPP=Trans-Pacific Partnership.

* **



.

17


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. a or ssues n e




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ASEAN Economic Community (AEC)

Structural Components



ASEAN=Association of Southeast Asian Nations; CEP=Comprehensive Economic Partnership;

FTA=Free Trade Agreement; ICT=Information and Communication Technology.Source: ASEAN Secretariat and ADBI staff elaborations

19


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AEC Implementation Issues-I

Progress

procedures harmonization faces many resistances

non-tariff barriers (NTBs) applied particularly to

technical regulations and product standardsFree flow of capital and investment is also slow

Free flow of skilled labor: several issues remain still

unreso ve




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AEC Implementation Issues-II

Reasons of delays Slow ratification of signed agreements and protocols

Inability to complete specific commitments by member

countries

,

regulations to align them with AEC requirements

Lack of implementation of specific initiatives andmeasures

Problems

Absence of effective monitoring and sanctioning

system



on track21


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AEC: Free Flow of Skilled Labor-I

Trend of Liberalization and Harmonization

Measures

Difficult to assess because the ASEAN Secretariat does not monitorsubsectors by profession (but through scorecards measuring

Mutual Recognition Arrangements (MRAs)

alread in lace for the followin 7 rofessional cate ories:Engineers (2005); Nursing (2006); Surveying services (2007);

Architects (2008); Accounting services (2008);

Medical practitioners (2008); Dental practitioners (2009)

Plus other MRAs signed as part of AFAS for:- Tourism professionals and a few providers of



-

22


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Signed MRAs on Professional

Qualification in ASEAN

Doctor Architect

Nurse Engineer Surveyor

Dentist Accountant



Source: Department of Trade Negotiation (DTN), Thailand

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Source: ASEAN Studies Center, Chulalongkorn University

24


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AEC: Free Flow of Skilled Labor-II

ASEAN Agreement on the Movement of Natural

ersons s gne y econom c m n s ers

Allows temporary movement of skilled workers across

,

relocation is not yet permitted

Covered cate ories so far: Executives and rofessionals

such as business visitors, contractual services, intra-

company transferees (as in GATS Mode 4)

All MRAs for professional services expected to be

ready by 2015 (under AFTA and the AEC)




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-

Need to facilitate issuance of visas and

workers engaged in cross-border trade and

investment

Definition of core competencies for job and

especially in services



26


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4. Develo in

labor skills




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Creation of an ASEAN skills

recogn on ramewor Incremental Approach: Establishment of National

Skills Frameworks

Included under ASEAN Labor Ministers Work Program-

Strategic objective of the ASCC Blueprint

ASEAN countries still use very different systems and

standards for labor skills regulations and certification

Need for a systematic approach to facilitate mutual

recognition and mutual certification of skills and




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Qualifications Reference Framework

Progress Promoted by ASEAN+1 FTA

Mutual recognition of National Qualification Frameworks (NQF) is

promo e un er a spec c pro ec o e - us ra a- ew

Zealand FTA (AANZFTA) AANZFTA provides capacity building for NQFs as a means to

en ance e uca on an ra n ng governance

Multi-sectorial Working Group established in 2012 to design an

ASEAN Qualifications Reference Framework (AQRF) However, not all ASEAN member countries have already created their

NQFs

Usin the ASEAN-minus-X formula: oint work towards mutual

recognition of labor skill frameworks still proceeds although not all

ASEAN member countries have NQF in place

Besides the establishment of NQF involves several



line agencies

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Policy Options for Skills Development-I

Increase investment in education

r mary e uca on sys ems nee o arge ose un-serve , espec a y

in rural areas

Secondary and tertiary systems have to be restructured to provide

graduates the skills to fill emerging labor market demands especially in

service sectors

Hi her education has to see as its clients not ust oun eo le but

also adults who wish or need to develop new skills over their lifetimes

Refocus overall focus of curricula taking into account the need

promote innovation and R&D collaboration with the private sector

IT sector development requires not only software

-



the hardware)

30

P li O ti f Skill D l t II


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Policy Options for Skills Development-II

Support the creation of the AEC and beyond Better harmonize national systems in labor regulations related to:

Educational and vocational training qualifications

Mutual recognition of skills and qualifications in key jobs Access to social services for mi rant workers

Minimum conditions of employment and child labor

Health certificationsoster stu ents teac ers exc ange programs

A new Credit Transfer System has been introduced under the

ASEAN Universit Network to allow student mobilit

Regional scholarship programs similar to the Erasmus program of

the EU could be introduced: undergraduates to spend a

few months of colle e in forei n universities



receiving full credit for taken subjects

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5. Protectin

migrant workers




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Protectin Mi rant Workers: Ke Issues

Enhance overall governance of ASEAN labor migration system

Avoid exploitation and mistreatment of migrant workers

Step-up regional fight against human trafficking

Improve statistics and information flows across countries

Improve occupational safety and health conditions of work places

Development instruments to ensure the protection and promotion

Protection and Promotion of the Rights of Migrant

WorkersCEBU Declaration Signed by ASEAN Leaders in 2007

Work Plan adopted at the 1st meeting



Implementation Committee established in same year

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Cebu Declaration on Migrant Labor


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Cebu Declaration on Migrant Labor

Migrant labors origin and destination countries commit to:

romo e e u po en a an gn y o m gran wor ers

Take into account the fundamental rights of migrant workers andtheir families already residing in destination countries

Cooperate to resolve cases of migrant workers who become

undocumented due to no fault of their own

improvements of healthy work places and occupational

safety

The ASEAN Occupational Safety and Health Network (OSHNET)was created in 1999 to promote cooperation in improving

safety and health in the workplace in the ASEAN region



K Obli ti b T f C t


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Key Obligationsby Type of Country

Destination countries: Protecting workers human rights, welfare and dignity

Facilitating access to resources and remedies

Providing access to decent working and living conditions

Providing access to the legal and judicial system Facilitating access to consular functions of workers origin country when a

migrant worker is arrested or taken into custody

Origin countries:

Ensuring access to employment and livelihood opportunities Facilitating the orderly process of labor migration, including the introduction of

policies on recruitment, pre-departure preparation, protection of nationals when

abroad, and repatriation and reintegration

valid labor contract

Eliminating malpractices by introducing proper regulation and

accreditation of recruitment agencies and employers



ac st ng o neg gent un aw u a or agenc es

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Thank You! :

Giovanni Capannelli

Special Adviser to the DeanAsian Development Bank Institute, Tokyo



Managing Labour Migration under the ASEAN Economic Community: Key Issues

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