Skilling and Reskilling the Labor force towards Industry 4.0

Economic Progression in the Region

2

Policy 1.0Agriculture Based Economy

Policy 2.0Light Industry Based Economy

Policy 3.0Heavy Industry Based Economy

Facing Problems…- Middle Income Trap- Income Inequality- Imbalance

Policy 4.0Samples- Robotics- Digital Economy- Smart Electronics- Next-Generation

Automotive- Food processing- Medical Sector- Biotechnology- Automotive- etc.

3

Transformative Shifts towards 4.0

Traditional Farming Smart Farming

Traditional SMEs innovative Start Ups

Traditional Services High Value Services

Buy Technologies Make Technologies

To be successful, these shifts will require labor with advanced skills

& an environment that fosters innovation

Different country characteristics require different

approaches to modernize and expand skills training + TVET

4

ADB experience in TVET in Southeast Asia

Demographics :- Aging Country- Young Country

Economies :- Upper/Middle Income Country- Low Income Country

Labourmarket :- Majority of the working age population

still engaged in agriculture sector + informal sector

Education Level :- Low share of TVET graduates in the labourforce- Week knowledge on science and mathematics

(except Vietnam)- Lack of engineering skills

Traditionally TVET covers students from

grade 9 – grade 12

5

Major Challenges for ADB Investments

High quality TVET institutions located in

urban areas

Overall public spending for tertiary education is

limited and will be limited

No systematic strategy in place to train workers of small companies and youth and adult to upgrade their skills

Training Provision in rural areas is poor

upgrading TVET institution is costly

6

The way forward for ADB

Find new ways to increase finance TVET and skills training, partnership with private sector

Find new ways to improve skills training options for youths, adults, and rural population

Develop regional approaches, beyond the boundary of Ministries of Education + Ministries of Labour

Support policy planning with analytical work

Continue strengthen traditional TVET systems

• Major Challenges:

• Incentives for TVET teachers are poor

• most TVET teachers and managers lack industry experience

• Competencies for 4.0 occupations are complex and require bright and experienced TVET personnel

ADB’s response:

Support autonomy of institutions to adopt more attractive and flexible incentive schemes

Support entrepreneurial approaches in managing institutions and teaching

prepare teachers to integrate cognitive skills into curriculum to enable graduates to be more flexible and adapt skills and knowledge to changing requirements in the world of work

Distinct training programs for managers to strengthen communication and management skills and anticipate new competencies required for 4.0 occupations

TVET Personnel

Philippines• Comprehensive Review of the Philippines’ TVET National System

• Increase access (certificate-levels)

- Expansion of TVET institutes

- Cost-effective voucher skills training

• Improve quality

- Introduction of CBT

- Industry linkages (Internship program, sector skills council)

• Institutional capacity

- Cambodia Qualification Framework

• Meeting the industry’s needs

- Post secondary level TVET

- Higher value- added industries

• Addressing the gap & shortage

- Upskilling existing workforce

- Innovative TVET financing

• Industry participation & PPP

PhilippinesComprehensive Review of the Philippines’ TVET National System

Review Coverage:

• TVET development drivers

• Governance and policy framework

• Roles and functions of TESDA as the TVET authority in the Philippines

• TVET quality assurance

• Industry linkage and other partnership arrangements

• TVET financing

• Labor Market Information System accessibility and reliability

• Monitoring and evaluation of TVET system

• Training modalities

• TVET personnel

• Training Institutions infrastructure

Indonesia

• Long history of support to Senior Secondary Vocational Schools, Polytechnics and Universities.

• Current program• Support industry relevant programs proposed by public and

private polytechnics (over 40 programs)

• Support upgrading of four universities and strengthening curricula, research, and services in a specific area to meet local economic needs.

• One of the four universities will become a center of excellence in TVET teacher education, to meet the country’s requirement for more and better Senior Secondary Vocational School Teachers

Myanmar• Country & its TVET system face a legacy of decades of isolation &

under-investment

• ADB & other development partners reengaged in 2012, jointly supporting government’s Comprehensive Education Sector Review (CESR): 1st sector assessment in 2 decades

• CESR diagnosed sector challenges (including in TVET subsector) & informed National Education Strategic Plan, 2016-2020 (NESP)

• ADB-financed Equipping Youth for Employment Project (EYE)• ADB’s first-ever loan in Myanmar education sector, with $98.5 million ADB

financing• Provides cohesive support to key NESP reforms in 2 subsectors (secondary

education & TVET) to realign them to skill needs in Myanmar’s economic transformation

• TVET component supports Ministry of Education & Ministry of Industry in transforming TVET to a demand-driven, competency-based system

• EYE is largest international support for NESP’s strategic component on introducing competency-based modular short courses, which target disadvantaged youth previously locked out of TVET

• Project (2017-2022) in early stages, but expected to be expanded via additional financing

Cambodia• Strengthening TVET system • (early 2000- present)

• Increase access (certificate-levels)

- Expansion of TVET institutes

- Cost-effective voucher skills training

• Improve quality

- Introduction of CBT

- Industry linkages (Internship program, sector skills council)

• Institutional capacity

- Cambodia Qualification Framework

• Skills for Competitiveness

• Meeting the industry’s needs

- Post secondary level TVET

- Higher value- added industries

• Addressing the gap & shortage

- Upskilling existing workforce

- Innovative TVET financing

• Industry participation & PPP

Thank you!