Managing Labour Migration Under The ASEAN Economic Community: Key Issues

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.
Managing Labor
Migration under the
ASEAN Economic
Community: Key Issues
Giovanni Capannelli
Special Adviser to the Dean, ADBI
ADBI Tokyo,
y , 28 January
y 2014
The
4th
Tokyo, 27-28 January 2014

ADBI-OECD-ILO Roundtable on Labor Migration in Asia
Contents
1. ASEAN key
y labor market statistics
2. Institutional framework on labor
issues in ASEAN
3. Labor issues in the ASEAN
E
Economic
i Community
C
it (AEC)
4. Developing labor skills
5. Protecting migrant workers
The
4th

1. ASEAN key labor

market statistics
The
4th

ASEAN at a Glance
Association off Southeast
S
Asian Nations
ASEAN Basic Information
Established: 1967
10 Member Countries
2012 Data
Population
618 Million
(8.8% of world's)
GDP
$ 2,327 Billion
(3.2% of wolrd's)
Per-capita GDP
Total Exports
The
4th
$3,767
(1/3 of wolrd average)
$ 1,250 Billion
(7% of world's)

ASEAN basic economic data (2012)

Country
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Viet Nam
ASEAN
India
Japan
People's Rep. China
R
Republic
bli off K
Korea
World
Population
0.4
15.3
244.5
6.6
29 5
29.5
63.7
95.8
5.3
67.9
88 8
88.8
617.7
1,227.2
127.6
1,354.0
50 0
50.0
7,046.0
Gross Domestic Product

Trade
Total
Per Capita
Exports/ GDP (%) Share of
$ billion
($)
(%) share
World Exports
17.0
42,380
70.3
0.07
14.1
926
55.3
0.04
878.5
3,594
21.6
1.06
9.2
1,380
36.2
0.02
304 7
304.7
10 345
10,345
74 7
74.7
1 27
1.27
55.3
868
15.0
0.05
250.2
2,612
20.8
0.29
276.5
52,056
148.2
2.29
366.0
5,390
62.3
1.28
155 6
155.6
1 753
1,753
71 2
71.2
0 62
0.62
2,327.0
3,767
53.7
7.00
1,841.7
1,501
16.1
1.66
5,960.3
46,707
13.4
4.47
8,221.0
6,071
24.9
11.48
1 129 5
1,129.5
22 589
22,589
48 5
48.5
3 07
3.07
72,216.4
10,249
24.7
100.00
IMF: World Economic Outlook Database and Direction of Trade Statistics (2013).
The
4th

ASEAN Labor Statistics (2010)

(
)
Outward Labor
Migration ('000)
Country
Pouplation
('000)
Labor Force
('000)
Total
World
Inward Labor
Migration ('000)
Total
World
IntraASEAN
Net Labor
Inward Labor
Migration Stock Migrants / Labor
('000) *
Force (%)
IntraASEAN
Net Labor-Importing Countries

Singapore
5,184
2,632
297
122
1,967
1,163
1,670
74.7
414
202
24
148
121
124
73.3
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
Brunei Dar.
Net Labor-Exporting Countries

Cambodia
14,953
8,050
350
54
336
321
(15)
4.2
Myanmar
61,187
27,337
515
321
98
(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
Philippines
94 010
94,010
39 639
39,639
4 276
4,276
335
435
(3 840)
(3,840)
11
1.1
6,437
3,179
367
83
19
10
(348)
0.6
600,212
297,780
10,626
3,902
6,915
4,114
(3,710)
2.3
Lao PDR
ASEAN
ASEAN=Association of Southeast Asian Nations; Brunei Dar.=Brunei Darussalam; Lao PDR=Lao People's Democratic Republic.
( ) Refers to the Net Labor Migration Stock for the World's
(*)
World s Total
Total.
Source: World Bank. Bilateral Estimates of Bilater Migrant Stocks in 2010.
The
4th

ASEAN Migrant Labor Stock (2010)

2,500
OUT World
OUT ASEAN
IN World
IN ASEAN
1,500
500
(500)
(1,500)
(2,500)
OUT=Outward Stock
IN=Inward Stock
(3,500)
(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:
htt //d t
http://data.worldbank.org/indicator/SM.POP.TOTL
ldb k
/i di t /SM POP TOTL (accessed
(
d November
N
b 2013)
2013).
The
4th

ASEAN migrants
g
to OECD: Key
y figures
g
ASEAN Countries' Migrants' Stock (15+) to OECD in 2005-06
Emigrants
Country
(`000)
Education level (%)
180
Age range (%)
Low
Mid
High
g
15-24
25-64
65+
160
PHI
2,502
14
34
52
10
78
12
140
VIE
1,758
34
39
28
82
10
120
THA
347
31
36
33
21
76
100
INO
336
18
40
42
11
65
25
LAO
256
41
39
20
87
CAM
255
45
35
20
84
10
MAL
246
12
30
58
18
75
SIN
119
16
31
53
17
76
MYA
78
25
30
44
10
72
18
BRU
10
18
31
51
24
74
Source: Managing Migration to Support Inclusive and Sutainable Grow th, OECD and ADBI,
http://w w w .adbi.org/files/2013.01.11.book.managing.migration.sustainable.grow th.pdf
The
4th
ASEAN Migrant population flows

to OECD countries ('000)
2001
165167
2010
88
80
60
51
40
22
20
20
1 0
2 3
BRU
LAO
SIN
CAM
32
25
5
11
10
6 7
29
52
MYA
LAM
INO
THA
VIE
PHI
Source: ADBI & OECD (2013) Managing Migration to Support Inclusive and Sutainable Grow th.
Available: http://w w w .adbi.org/files/2013.01.11.book.managing.migration.sustainable.grow th.pdf

2. IInstitutional
2
tit ti
l
f
framework
k on llabor
b
issues in ASEAN
The
4th

Background on ASEAN labor issues

Focus on competitiveness, social progress,
and protection of migrant labor
Recognition that human capital plays a key
role to enhance ASEAN competitiveness and
social progress
Institutional framework with labor ministers
under the socio-cultural pillar of the ASEAN
Communityy ((to be formed in 2015)) but the
majority of implementation arrangements fall
under the economic pillar, which covers
services
i
lib
liberalization
li ti
10
The
4th

ASEAN Cooperation Structure

ASEAN Community
ASEAN Coordinating Council (ACC)
ASEAN Socio
Socio-Cultural
Cultural Community (ASCC)
ASEAN Labour Ministries Meeting (ALMM)
ASEAN Senior Labour Officials Meeting (SLOM)
SLOM Working Group

on Progressive Labour
Practices to Enhance
ASEAN
Competitiveness
11
Commiittee on the
Implementation of the
SLOM Working Group
ASEAN Occupational
ASEAN Declaration on
on the HIV Prevention
Safety and Health
and Control on the
the Protection of the
N t
Network
k (OSHNET)
Workplace
Rights of Migrant
Workers
th
The 4 ADBI-OECD-ILO Roundtable on Labor Migration in Asia
ASEAN Community pillars and

labor related issues
labor-related
ASEAN
Community Pillar
P liti l S
Political-Security
it
Labor-related issues included in the ASEAN Community Blueprints

g
criminal jjustice responses to trafficking
g in persons
Strengthen
Protects victims of trafficking
Issuance of visas and employment passes of business persons and skilled labor
Work toward the recognition of professional qualifications
Negotiate and implement mutual recognition arrangements
Economic
Strengthen human resource development and capacity building:

- priority to be given to service sector
- development nf core competencies and qualifications in priority areas
- promote effective national labor market programs in member states
Facilitate investment in human resource development
- focus
ocus on
o improving
p o g entrepreneurial
e ep e eu a sskills
s
Socio-Cultural
Promote 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
Protect and promote the rights of migrant workers
12
The
4th

ASEAN Institutional Mechanisms-I

ASEANLaborMinistersMeeting(ALMM)
Startedin1975Recently,ALMMarebeingorganizedeverytwoyears,
supportedbySeniorOfficialsMeetings(SLOM)andASEANrelatedagencieson
pp
y
g (
)
g
laborissues:Next(23rd)ALMMplannedforMay2014 inNayPyiTaw
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
Theme: Human Resources for Economic Recovery and Development
Adoption of Guidelines on Good Industrial Relations Practices
Adoption of the ALM Work programme (2010-2015)
19th ALMMCebu,, 2007
Theme: ASEAN Declaration on the Protection and Promotion of the Rights
of Migrant Workers
General principles, obligation and commitments of ASEAN members
Heads of State/Government of Member Countries
13
The
4th

ALMM Work Program 2010-2015

ObjectiveImprove quality of life, promote productive employment,
and ensure social protection
Enhancing workforce competitiveness
Creating a harmonious and progressive workplace
Promoting decent work for all citizens
K R
Key
Recommended
d d Actions
A ti
14
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
The
4th

ASEAN Institutional Mechanisms-II

ASEAN Forum on Labor Migration (AFML)
Aim
Aim: Develop
De elop recommendations to implement the ASEAN Declaration
on Protection and Promotion of the Rights of Migrant Workers
Participants: Governments, workersand employersorganizations,
and stakeholders from the civil society
Key Issues:
(i) enhancing awareness and information services on the protection 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)
15
The
4th

ASEAN Framework Agreement on

Services (AFAS)
(AFAS)1995
1995
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 and
qualifications; (iii) Enhance corporation within the ASEAN University
Network; (iv) Strengthen research capabilities of each ASEAN country
p ; Business services;; Construction;;
Covers twelve sectors: Air transport;
Distribution; Education; Environment; Financial services; Healthcare;
Logistics; Telecommunication; Transport; Tourism
Migrant
g
Workers Protection,, Integration,
g
, and Security
y
Immigration Procedures
16
The
4th

ASEAN-related
ASEAN
related FTAs and CEPs Framework
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.
Notes: (*) Under Negotiation; (**) Proposed
Proposed.
17
The
4th

3. L
3
Labor
b issues
i
in
i the
th
ASEAN Economic
Community (AEC)
18
The
4th

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
The
4th

AEC Implementation Issues-I

Progress
Tariff liberalization: largely completed but customs
customs
procedures harmonization faces many resistances
Free
Free flow of goods and services hampered by many
non-tariff barriers (NTBs) applied particularly to
technical regulations and product standards
Free flow of capital and investment is also slow
Free flow of skilled labor: several issues remain still
unresolved
l d
20
The
4th

AEC Implementation Issues-II

Reasons of delays
Slow ratification of signed agreements and protocols
Inability to complete specific commitments by member
countries
Long time required to revise domestic laws
laws, rules and
regulations to align them with AEC requirements
Lack of implementation of specific initiatives and
measures
Problems
Absence of effective monitoring and sanctioning
system
Lack of policy actions to put trend back
on track
21
The 4th ADBI-OECD-ILO Roundtable on Labor Migration in Asia
AEC: Free Flow of Skilled Labor-I

Trend of Liberalization and Harmonization
Measures
Difficult to assess because the ASEAN Secretariat does not monitor

subsectors by profession (but through scorecards measuring
compliance to agreements)
Mutual Recognition Arrangements (MRAs)

already in place for the following 7 professional categories:
Engineers (2005); Nursing (2006); Surveying services (2007);
Architects (2008); Accounting services (2008);
Medical p
practitioners ((2008);
) Dental p
practitioners ((2009))
Plus other MRAs signed as part of AFAS for:

- Tourism professionals and a few providers of
business related services (including IT)
business-related
22
The
4th

Signed MRAs on Professional

Qualification in ASEAN
Doctor
oc o
Architect
c ec
Engineer
Nurse
Dentist
Surveyor
Accountant
Source: Department of Trade Negotiation (DTN), Thailand
23
The
4th

ASEAN MRAs on Tourism Professionals
Source: ASEAN Studies Center, Chulalongkorn University
24
The
4th

AEC: Free Flow of Skilled Labor-II

ASEAN Agreement on the Movement of Natural
P
Persons
(2012)signed
(2012)
i
db
by ASEAN economic
i ministers
i i t
Allows temporary movement of skilled workers across
companies within ASEAN countries; however
however, permanent
relocation is not yet permitted
Covered categories so far: Executives and professionals
Covered
such as business visitors, contractual services, intracompany transferees (as in GATS Mode 4)
All MRAs for professional services expected to be
ready by 2015 (under AFTA and the AEC)
25
The
4th

Free Flow of Skilled Labor in AEC

AEC-III
III
Areas for Improvement
Need to facilitate issuance of visas and
employment passes for skilled
workers engaged in cross-border trade and
investment
Definition of core competencies for job and
occupational skills are urgently required
especially in services
Collection of statistics
26
The
4th

4. Developing
p g
labor skills
27
The
4th

Creation of an ASEAN skills

recognition
iti framework
f
k
Incremental Approach: Establishment of National
Skills Frameworks
Included under ASEAN Labor Ministers Work Program
2010 2015
2010-2015
Strategic objective of the ASCC Blueprint
Issues
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
qualifications
28
The
4th

Qualifications Reference Framework

Progress Promoted by ASEAN+1 FTA
Mutual recognition of National Qualification Frameworks (NQF) is
promoted
t d under
d a specific
ifi project
j t off th
the ASEAN
ASEAN-Australia-New
A t li N
Zealand FTA (AANZFTA)
AANZFTA provides capacity building for NQFs as a means to
enhance
h
education
d
ti and
d ttraining
i i 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
Using
g the ASEAN-minus-X formula: jjoint 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
29
The
4th

Policy Options for Skills Development-I

Increase investment in education
Primar
Primary education
ed cation systems
s stems need to target those un-served,
n ser ed especiall
especially
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
Higher education has to see as its clients, not just young people, but
also adults who wish or need to develop new skills over their lifetimes
Refocus overall focus of curricula taking into account the need
for subjects in science, technology, engineering, and maths to
promote innovation and R&D collaboration with the private sector
IT sector development requires not only software
engineers but semi
semi-skilled
skilled technical personnel for
the hardware)
30
The
4th

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 migrant
g
workers
Minimum conditions of employment and child labor
Health certifications
F
Foster
students
d
& teachers
h
exchange
h
programs
A new Credit Transfer System has been introduced under the
ASEAN University
y Network,, to allow student mobilityy
Regional scholarship programs similar to the Erasmus program of
the EU could be introduced: undergraduates to spend a
g in foreign
g universities
few months of college
receiving full credit for taken subjects
31
The
4th

5. Protecting
g
migrant workers
32
The
4th

Protecting
g Migrant
g
Workers: Key
y 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
Promote dialogue among stakeholders in the regional labor system
Improve occupational safety and health conditions of work places
Development instruments to ensure the protection and promotion
of migrant workers rights
Protection and Promotion of the Rights of Migrant

WorkersCEBU
Workers
CEBU Declaration
Signed by ASEAN Leaders in 2007
Work Plan adopted at the 1st meeting
Implementation
I l
i C
Committee
i
established
bli h d iin same year
33
The
4th

Cebu Declaration on Migrant Labor

Protection (2007)
Migrant labors origin and destination countries commit to:
Promote
P
t the
th full
f ll potential
t ti l and
d dignity
di it off migrant
i
t workers
k
Take into account the fundamental rights of migrant workers and
their families already residing in destination countries
Cooperate to resolve cases of migrant workers who become
undocumented due to no fault of their own
Agreed to create a dedicated regional facility to promote

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
34
The
4th

Key Obligationsby Type of Country

Destination countries:
Protecting workers human rights, welfare and dignity
Facilitating access to resources and remedies
Promoting fair and appropriate employment protection
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
Establishing proper measures to regulate recruitment practices and the use of
valid labor contract
Eliminating malpractices by introducing proper regulation and
accreditation of recruitment agencies and employers
Blacklisting
Bl kli ti off negligent/unlawful
li
t/ l f l llabor
b agencies
i
35
The
4th

Thank You!
For more information
information:
Giovanni Capannelli
Special Adviser to the Dean
Asian Development Bank Institute, Tokyo
gcapannelli@adbi.org
36
The
4th


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

Tokyo, 27-28 January 2014

Tokyo, 27-28 January 2014

1. ASEAN key labor

Tokyo, 27-28 January 2014

Tokyo, 27-28 January 2014

ASEAN basic economic data (2012)

Gross Domestic Product

Tokyo, 27-28 January 2014

ASEAN Labor Statistics (2010)

Net Labor-Importing Countries

Net Labor-Exporting Countries

Tokyo, 27-28 January 2014

ASEAN Migrant Labor Stock (2010)

Tokyo, 27-28 January 2014

Education level (%)

Age range (%)

ASEAN Migrant population flows

Tokyo, 27-28 January 2014

Tokyo, 27-28 January 2014

Background on ASEAN labor issues

Tokyo, 27-28 January 2014

ASEAN Cooperation Structure

ASEAN Coordinating Council (ACC)

ASEAN Labour Ministries Meeting (ALMM)

ASEAN Senior Labour Officials Meeting (SLOM)

SLOM Working Group

ASEAN Community pillars and

Labor-related issues included in the ASEAN Community Blueprints

Strengthen human resource development and capacity building:

Promote the application of labor standards and decent work regulations

Tokyo, 27-28 January 2014

ASEAN Institutional Mechanisms-I

Tokyo, 27-28 January 2014

ALMM Work Program 2010-2015

Promote best practices in labor policy & laws (migrants rights)

Tokyo, 27-28 January 2014

ASEAN Institutional Mechanisms-II

Tokyo, 27-28 January 2014

ASEAN Framework Agreement on

Tokyo, 27-28 January 2014

Tokyo, 27-28 January 2014

Tokyo, 27-28 January 2014

ASEAN Economic Community (AEC)

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

Tokyo, 27-28 January 2014

AEC Implementation Issues-I

Tokyo, 27-28 January 2014

AEC Implementation Issues-II

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

AEC: Free Flow of Skilled Labor-I

Difficult to assess because the ASEAN Secretariat does not monitor

Mutual Recognition Arrangements (MRAs)

Plus other MRAs signed as part of AFAS for:

Tokyo, 27-28 January 2014

Signed MRAs on Professional

Source: Department of Trade Negotiation (DTN), Thailand

Tokyo, 27-28 January 2014

ASEAN MRAs on Tourism Professionals

Source: ASEAN Studies Center, Chulalongkorn University

Tokyo, 27-28 January 2014

AEC: Free Flow of Skilled Labor-II