Intra- ASEAN skill mobility of professionals seems to be ambitious yet attainable. The ASEAN Economic Community developed a strategy to move goods, services, investment, skilled labor, and flow of capital freely within all ASEAN countries promoting economic competitiveness. Based on reports from United Nations, Intra ASEAN migration comprises 6.5 million for the year 2013 from 1.5 million of the year 1990 which shows a big increase. This migrant workers comprises 87% unskilled workers.

                ASEAN member states to produce a certain procedure and standards to follow for skills mobility of professionals which is called Mutual Recognition Arrangements. The said includes occupations in six fields of engineering, nursing, architecture, medicine, dentistry and tourism, including accountants. MRA set standards on facilitating the mobilization of skilled professionals within ASEAN through recognition of qualifications, adoption of best practices and provide training and educations. It faces huge challenges like domestic policies in conflict with the goal of MRA, time consuming required experiences of professionals and complex migration process.  

                Skills mobilization within ASEAN provide benefits to destination countries which need skilled professional at most. This also benefits the origin countries for the remittances. This move benefits more on the destination countries for this become a long term investment by acquiring shared knowledge and skills from different origin countries. The origin countries suffer the loss of the industry related occupations from migration to destination countries. However, the sectors that least gain from this move is the low skilled or unskilled workers. MRA doesn’t cover the standards on mobilizing low or unskilled workers which often lead to illegal migration. With the ASEAN members focus on developing the MRA for professionals, the low skilled workers are pending on the other end sacrificing safety and stability through illegal migration.  

                On the other hand, professional workers benefits most for by the increased wage they receive. This widens the gap between the wages of professional workers and low/unskilled workers which gives sufferings to low/unskilled workers wages for not being able to cope up with the increased professional wage.

References:

Sugiyarto, Guntur, and Dovelyn Agunias. "A Freer Flow of Skilled Labor Within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond." International Organization for Migration. 1 Dec. 2014. Web. .

Katigbak, Ovito Jose. "Why the Delay in the Free(r) Flow of Skilled Labor in ASEAN?" Foreign Service Institute. Web. .

Orbeta, Jr, A. (2013, February 1). Enhancing Labor Mobility in ASEAN: Focus on Lower-skilled Workers. Retrieved from http://dirp4.pids.gov.ph/ris/dps/pidsdps1317.pdf

N. Lohani, Bindu, and Yoshiteru Uramoto. "Linking Wages to Productivity & Reaping the Benefits of Labour Mobility." ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity. Bangkok: International Labour Organization (ILO) and the Asian Development Bank (ADB), 2014. 65 - 99. Print.

Two Sides of the Coin - The Real Score in the ASEAN Integration Argument of Positive VS Negative Effects, Gainers and Losers

As a good practice, we must always start from the inside-out, and as I have previously stated in my initial discussion points, we must always know ourselves first, identify our problems/challenges and study if these arise internally, then solve them from within. This comes with a constant check with whatever is projected from our environs and analyze how the whole picture fits together. Self-realization  and awareness of the current situations can be a lamp post to our understanding of the bigger picture - because otherwise, how can we unite with a bigger truth that is waiting for us, just like the ASEAN integration.

In identifying who the losers or winners are in the ASEAN Integration, we must gain a thorough understanding of where these points of views are coming from. Getting a cut from various perspectives, stakeholders, discussion forums, we can perhaps make a deduction that at some point meet, all these lines will cross and intersect on a common ground.

Where do we stand in all of these? - When Something Perceived to Narrow Gaps Becomes a Limitation.

Let us begin with economic stance, particularly its effect on the workforce.  The article written by Manila Times reporter Catherine S. Valente (October 2013), "ASEAN integration in 2015 and its implications", contain insights from Philippine representative in Taiwan, Antonio Basilio regarding the ASEAN Agreement on the Movement of Natural Persons (MNP) as "one of the steps leading to the establishment of the ASEAN Economic Community in 20151" further stating that this is  essential to the implementation of the ASEAN Framework Agreement on Services (AFAS). Basilio notes that although this "covers the so called MOD4 in the delivery of services it "covers business persons" and that the MNP agreement is "limited to visitors, contractual services, suppliers and intra-company transferees"; it also particularly skilled workers, professional workers professional workers for their temporary entry. The article further states that however, the MNP does not allow permanent entry, nor does it allow movement of all persons e.g. unskilled labor, even on temporary basis.

Basilio, in the same article stressed that "impact will primarily be on skilled labor,” Basilio said, citing that it is “reciprocal” which means that our country “will also allow service providers from other Asean countries to send their skilled workers to the Philippines in the course of rendering a contracted for service.” He even mentioned the advantage of our skilled labor force against their counterparts -  having strong English proficiency and lower salaries (lower cost).  Furthermore he argued that as doors to the labor market opens up for us, so does our own market becomes a venue for other ASEAN service providers to conduct their own labor market activities. Our workforce intertwined with the rest of ASEAN. Sounds like an exciting idea. Three major points/assumptions included in the interview (also with excerpts from Budget Secretary Florencio Abad) 1. The Integration of ASEAN economies will provide  opportunities for our skilled workers to get employment in other ASEAN countries; 2. a mutual recognition of professional standards will be met, since our curriculum is now in alignment with ASEAN-wide requirements (afterthought: but K to 12 only started this year, and could be a bit young as a curriculum that supports this), and 3. free flow of goods and services across economic borders can mean opportunities for employment and investments.

My take - It's is likened to osmosis where we brake the membrane and let the external forces in while we try to test the water outside all at the same time. As Abad mentioned, the only concern is in the preparation meaning how we sharpen the saw and wean the workforce into a competitive one, and at the same time improve measures that will improve ease doing businesses from our end.

In the same interview the Kilusang Mayo Uno then VP, Elmer Labog believes otherwise and calls the ASEAN integration as part of neo-liberal policies that cripple the poor, marginalized, laborers, including the plight of agriculture workers and farmers who are in danger of losing their jobs and livelihood.

The Two Edged Sword - When Good Offsets the Bad

Labog further argues that this is about the rich, and a "consolidation of wealth and power of the multinational corporations and Forbes listed companies" and not a true distribution of wealth that will reach the poor. He further said  in the same interview that this claim on the creation of jobs will only be tantamount to the lowering of labor costs and salaries and "enhance the cheaper labor policy" of the government (which is pro rich, pro-business sector). Another labor sector representative from Federation of Free Workers (FFW) Antonio Asper disputes that instead of being positive, this would result to "liberalization, privatization and deregulation" of the policies on labor. He mentioned  although they were invited to forums and discussions, no concrete measure is made make safety nets that will protect the  smaller players in the industry. He identifies the integration as a would be stumbling block in the already slowly growing economy.

Government though has been optimistic as this article written two years ago, shows that the same problems exist at present, though growth is present, it is never an inclusive one and admittedly the government says that (at the time article was written) there are no assurances on the outcomes but we "can maximize the opportunities that goes along with it".2

The Big Picture - ASEAN Integration and its Impact to Labor

Important discussion points raised in the research document Asia: ASEAN integration and its impact on labour found in http://links.org.au/, a socialist publication states the following observations:

1. There is a flat rate of Intra-ASEAN Trade (25%)Vs. EU ( 67%) and NAFTA (48.7%)3  therefore the integration (according to this paper), is not necessary as it has over the years showed little or no impact on the intra-ASEAN trade.

2.  ASEAN itself competes with each other in terms of trade. This could spell disastrous for some countries like the Philippines who lack the agricultural, financial strength, investment capacity to compete.

3. How dangerous it is for a country who is unprepared to participate in this integration without realizing that it needs to prepare and fast.

•   To survive this we must consider how to support the low income groups during the transition (as they are at risk)
•  There could be an equivalent or possibly more job losses as opposed to the projected job creation
• Agriculture industries are at risk (particularly the sugar industry) and imperil 600,000 sugar workers as opposed to CMLV (Cambodia, Myanmar, Laos, and Vietnam) who have just been integrated in the ASEAN ahead of us due to their robust agri-aquatic industries.
• We have a pale banking system and to wit: (statistics for verification) that assets of all Philippine banks are equivalent to just 1 big bank in Malaysia; or 3 biggest banks in the Philippines is equivalent to one big bank in Thailand. Why banking industry is a loser : it is due to local owned banks who shift the earnings to their foreign investments and uses the savings of the local people to invest or manage local business activities.4

Regardless of whether we are ready or not, the integration is happening as we speak, across country, industries, sectors. So far we have taken small steps and a huge leap towards it. With our prayers that we can indeed take this plunge.

Sources:

1&2 http://www.manilatimes.net/asean-integration-in-2015-and-its-implications-on-labor/47994/ (two points of view, the government and concerned sectors)

3Source cited in this link  from ASEAN as cited from Ed Tadems elusive ASEAN Integration, PDI, May 4, 2014)

4 http://links.org.au/node/4046 (this is the activist's approach, mostly bad effects, PHL as a loser, reality/facts focus is the internal struggle of the country and that we are not ready to integrate, prepare safety nets before we hit the fan/mitigate the effects, install a government of the masses)

Supplementary Readings:(for further update on this response)

htttp://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf  (ILO and ADB perspective)

http://www.gmanetwork.com/news/story/369105/cbb/how-big-is-an-sme-s-impact-on-asean-integration

http://www.asean.org/resources/2012-02-10-08-47-56/speeches-statements-of-the-former-secretaries-general-of-asean/item/the-philippines-in-the-asean-free-trade-area

http://www.aim.ph/blog/asean-integration-2015-everything-entrepreneurs-need-to-know/

https://www.quora.com/In-ASEAN-integration-which-countries-will-have-the-most-influence-to-control-the-region

http://www.globalhealthaction.net/index.php/gha/article/view/27368

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_309610.pdf

http://www.up.edu.ph/developing-skills-and-competencies-for-asean-integration/

http://albainfo.org/

http://www.britannica.com/topic/Bolivarian-Alliance-for-the-Peoples-of-Our-America

For this particular question, I would like to focus on ‘who would lose the most from intra-ASEAN mobility’ for the reason that this information will be more essential in addressing the challenges of ASEAN integration, especially on the building of an ASEAN Economic Community (AEC).

One integral objective of the AEC is enabling the free flow of skilled labor within the region. The AEC Blueprint has outlined strategic actions in the achievement of this objective, which includes the establishment of skills and qualification framework, issuance of temporary visas and employment passes, creation of Mutual Recognition Agreements (MRAs) for major professional services, and enhancement of cooperation among ASEAN universities to increase mobility of students and staff. In 2012, ASEAN also introduced the Agreement on the Movement of Natural Persons in order to facilitate the movement of skilled professionals. Truly, skilled labor mobility is essential for effective implementation of services liberalization, as well as the goal for deeper economic integration in ASEAN.

This opportunity, however, entails various inevitable structural changes which would put to risk vulnerable workers. While regional mobility is generally beneficial for the region, intra-ASEAN labor market would remain to be dominated by low-skilled workers. Migration of low-skilled workers will increase with economic development by creation of more jobs. However, policies pertaining to low, as well as medium-skilled workers remain to be more restrictive, contrary to liberal policies adopted for high-skilled workers. Most of the region’s migrant workers are employed in low-skilled jobs in domestic service, agriculture and fisheries, construction, and manufacturing. These low-skilled jobs are usually limited to short or temporary stays with one or two-year renewable work permits. The temporary nature of their jobs may reduce their productivity, which is perceived to be a disincentive among employers who seek employees who devote more time and resources to skills upgrading and workplace integration.

The MRAs are seen as the main mechanism of skilled labor mobility in the region. To date, it covers eight professional occupations: dentistry, engineering, accounting, architecture, medical practice, tourism, surveying and nursing. However, critics suggested that these MRAs will do little effect in the mobility of these professionals due to language barriers, differences in training eligibility, and other professional practice requirements. As one business leader from multinational human resources agency in Singapore puts it, “There is little incentive for people in the region to move within ASEAN. Language barriers and work opportunities would make them rather move to Europe or the United States.” Given these prevailing constraints, as well as domestic regulations and practices of individual members, professionals may find it difficult to find a job because employers would prefer nationals with less complicated employment procedures.

Nevertheless, the increasing outflow of highly skilled workers from ASEAN to another country raises the issue of ‘brain drain’ and ‘brain gain’. Brain Drain can be problematic for local employers who need to recruit adequately skilled personnel, and for the entire country who seeks greater competitiveness in terms of economic status. On the other hand, Brain Gain would apply to receiving countries who would benefit from an addition of skilled human capital. Since most countries rely on human capital as basis of economic growth, government should not only focus on attracting skilled and talented workers, but also on retaining them.

Inevitably, the ASEAN economy will continue to depend on migrant workers to address labor shortages. As intra-ASEAN labor flow is increasing, there is also more pressure to address the challenges hounding skilled labor mobility.

References:

Asian Development Bank. (2014). ASEAN Economic Community 2015: Managing integration for better jobs and shared prosperity. Retrieved from http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

Chia, S. Y. (2011), Free Flow of Skilled Labor in the AEC, in Urata, S. and M. Okabe (eds.), Toward a Competitive ASEAN Single Market: Sectoral Analysis. ERIA Research Project Report 2010-03, pp.205-279. Jakarta: ERIA.

Hall, A. (2011). Migrant Workers’ Rights to Social Protection in ASEAN: Case Studies of Indonesia, Philippines, Singapore and Thailand. Friedrich-Ebert-Stiftung; Singapore

Pasadilla, G. (2011, November). Social Security and Labor Migration in ASEAN. Asian Development Bank Institute; Japan

Rynhart, G. & Chang, J. (2014, May). The road to the ASEAN Economic Community 2015: The challenges and opportunities for enterprises and their representative organizations. International Labor Organization. Retrieved from http://www.ilo.org/public/english/dialogue/actemp/downloads/publications/working_paper_n7_en.pdf

The top professionals who would stand to gain from intra-regional mobility are engineers, nurses, surveyors, medical and dental practitioners, and accountants. These semi- to high-skilled and technical professionals will experience higher demand as featured in an article published at the Manila Bulletin online in 2015. These professionals, including architects were approved under the Mutual Recognition Agreements (MRA) of ASEAN in 2005-2009. This means that MRA enables these groups of professionals to practice in any country within the ASEAN region.

Other sectors on the rise, in some but not all ASEAN countries, are wholesale and retail trade, construction, manufacturing, and private services based on the publication ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity by the International Labour Organization and the Asian Development Bank.

The challenges for ASEAN member nations are to upgrade the level of education, as well as offer training in technical, personal, character-building, and organizational skills. Countries in the ASEAN region also need to address brain-drain, and standardize/ implement labor and social protection policies as an effect of labor migration (i.e. ASEAN Declaration on Strengthening Social Protection).

On the downside, women as a group and those employed in the agriculture and food processing sectors are vulnerable to ASEAN integration, as stated in the ASEAN Community 2015. In these cases, ASEAN should standardize/ implement policies on trade and labor market so as not to aggravate the condition of those already in the vulnerable sectors; taking into consideration that majority of those from the agriculture sector are considered poor. Moreover, it will be essential to support agriculture-related manufacturing and services jobs as a means to provide aid to workers leaving the agriculture sector.   

Sources:

ASEAN Framework Agreement on Mutual Recognition Agreements. Retrieved from http://www.asean.org/communities/asean-economic-community/item/asean-framework-agreement-on-mutual-recognition-arrangements-2.

Bongat, B. (23 September 2015). 5 Professions Which Will See Higher Demand with the ASEAN Integration . The Manila Bulletin. Retrieved from http://www.mb.com.ph/5-professions-which-will-see-higher-demand-with-the-asean-integration/.

International Labour Organization and Asian Development Bank. (2014). ASEAN Community 2015: Managing integration for better jobs and shared prosperity. Retrieved from http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf.

Luz, J. (25 September 2014). The Asean Economic Community and the Free Flow of Skilled Labor: A Game- Changer for Higher Education Institutions. Retrieved from http://www.britishcouncil.ph/sites/default/files/juan_miguel_luz.pdf.

Foreign chambers of commerce in the Philippines have been requesting for the removal of the practice of professions from the Foreign Investment Negative List (FINL), thinking that a liberalized entry of foreign professionals in the country will highly benefit the country. It could, if there would be an equal elasticity of supply and demand of professionals among ASEAN member states.

According to Amante (2014), “elasticity of demand refers to the response of employers to hire more or less a certain group of skills or occupations, depending on changes in pay rates and other compensation” while “elasticity of supply refers to the response of professionals or skilled workers to changes in pay rates and other compensation.”

Despite Philippine laws that do not provide for reciprocity in allowing foreigners to practice their profession — criminology, forestry, pharmacy, radio technology and law — the country has committed itself to the General Agreement on Trade in Services (GATS), ASEAN Framework Agreement on Services (AFAS), and Mutual Recognition Agreements (MRAs) with other ASEAN countries.

The MRAs include accountancy, engineering, architectural services and health professions. Ironically, rural health professionals are among the most critically needed by the country. Once free mobility intensifies, affluent member states or organizations would be able to attract and retain the region’s best health experts while financially disadvantaged ones would have less talent/workforce hence more underserved regions.

Similarly, a study entitled Health professional mobility in the European Union: Exploring the equity and efficiency of free movement explains the merits and drawbacks of free movement of professionals in EU. It shows that both destination- and source-countries experience positive and negative effects, but suggests more evidence on the drawbacks.

References:

Amante, M. (2014, November 17). Convergence in Work Systems, ASEAN Integration and Implications to Professional Practice. Retrieved October 6, 2015, from http://www.up.edu.ph/convergence-in-work-systems-asean-integration-and-implications-to-professional-practice/

Glinos, I. (2015). Health professional mobility in the European Union: Exploring the equity and efficiency of free movement. Health Policy. doi:DOI: http://dx.doi.org/10.1016/j.healthpol.2015.08.010

That is quite a tricky question. On one hand you have the source of labor which could potentially reap the economic gain from remittances but also potentially suffer brain drain. On the other, you have the host country in need of the professional that can potentially gain from the ideas and labor of its expatriates while also considering the possibility of raising unemployment and redistribution of its wealth to other countries.

We can also look at it in terms of the ASEAN MRAs on eight Professions vs the low-skilled to unskilled labor. Personally, I think there are just too many factors (political, cultural, economic, environment, etc.) to consider which would seem to make it almost impossible to determine who stands to loose or gain from the intra-ASEAN mobility of professionals. We would have a better grip of the situation, I think, once the initiative goes mainstream. But some researches, papers, and studies seem to all say that low-skilled and unskilled laborers would stand to gain once the labor mobility initiative gets implemented because of the constraints faced by professionals and with the advent of Movement of Natural Persons Agreement. 

Philip Martin and Manolo Abella (2013) predicted a lower-than-expected professional mobility and a surge in low skilled migration http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/presentation/wcms_229972.pdf

Yoshifumi Fukunaga (2015) presented the challenges faced by the inter-ASEAN professional mobilization initiative. http://www.eria.org/ERIA-DP-2015-21.pdf

The Philippine Institute of Development Studies (2013) provided insights on the possible effects of the MRA in the Philippines. http://dirp3.pids.gov.ph/ris/dps/pidsdps1304.pdf

In his presentation, Atty. Eliseo Zuniga, Jr. the Quisumbing Torres law firm featured the challenges of labor mobility in the ASEAN region and even provided some possible solutions to these challenges. http://36mfjx1a0yt01ki78v3bb46n15gp.wpengine.netdna-cdn.com/wp-content/uploads/2015/03/AMCHAM-Breakfast-Meeting-Labor-Mobility-Within-ASEAN-Economic-Community-7-April-2015-166947-v1-HCMDMS.pdf

Featured in the 11th issue of International Organization for Migration and the Migration Policy Institute's Issue in Brief, is the "Freer Flow of Skilled Labor within ASEAN: Aspirations, Opportunities, and Challenges in 2015 and Beyond." The paper featured how the AEC does not guarantee nor does it seek full labor mobility even among the higly skilled. The paper also claimed that, similar to Martin and Abella, the labor mobility inititative would mostly involve low-skilled workers. http://www.migration4development.org/sites/default/files/mpi-iom-issue-no-11-skilledlabour-movement.pdf

The ASEAN Economic Community’s (AEC) stand on the mobility of professionals involves the Mutual Recognition Arrangement (MRA) wherein professionals will be assessed based on standards for certifications. As of writing, less than 10 job descriptions have been calculated.

I think there are pros and cons in the intra-ASEAN mobility of professionals.

For the professional, it is a good career move to be able to work within ASEAN regions freely. It will enhance personal skills as well as diverse interaction with other countries. Hence, his/her background will grow. It is also good for the companies who prefer to have people outside their country to hire easily based on AEC’s MRA.

I can see a problem outside the ASEAN territories to emerge with this kind of “freedom”. Some may think that the ASEAN are conniving with each other, making others an “outcast” in the improvement of one’s nation. Also, a professional might abuse his/her leeway from one country and company to another. This will boil down to internal assessment and agreement that the ASEAN should look into.

In addition to this, the low-skilled to unskilled labour workers will not benefit from the AEC’s aim. The criteria required of them are a bit too high to achieve considering economic factors are not consistent at all classes. I think the companies will gain most in this effort and low-skilled workers will not benefit from this.

References:

Trade Secrets: The last mile toward 2015 and beyond; Toward intra-ASEAN labor mobility. Retrieved date 07 Oct 15. Retrieved from http://www.ey.com/SG/en/Industries/Government---Public-Sector/EY-the-asean-economic-community-toward-intra-asean-labor-mobility.

Lockyer, B. Labour mobility under ASEAN 2015 integration seen as limited. Retrieved date 07 Oct 15. Retrieved from http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/.

       To answer the question " Who would gain the most or lose the most from the infra- ASEAN mobility of professionals brought about by ASEAN economic integration?" , I want to focus on the area of physician mobility.

      According to the article I had read, the medical mutual recognition agreement ( MRA) of ASEAN stands to benefit the member countries whose rural health facilities are bereft of equipment and personnel. Since they are not going to receive high payment for their services, the receiving country like the Philippines should take care of the medical practitioners especially the ones who are deployed in the provinces, or else, they would rather serve in other countries such as U.S and Australia. 

    On the other hand, the receiving body of the overseas migration have the fear that the locals will be displaced because of the foreigners that inhabiting their job opportunities.

Reference:

http://thefilipinoconnection.net/intra-asean-physician-mobility-less-appealing

         To answer the question, " Who would gain the most or lose the most from the intra- ASEAN mobility of professionals brought about by ASEAN economic integration", I would like to focus on the physician mobility.

          The medical mutual recognition agreement (MRA) of ASEAN stands to benefit the countries whose rural health facilities are bereft of equipment and personnel. And so, the receiving country like the Philippines should take care of the medical practitioners who serves here, making sure that their hard work and sacrifices are appreciated. These handpicked doctors are exchanging the prosperous lives to a more challenging lives in the ASEAN countries to serve.

        On the other hand, the receiving society of the overseas migration have fear that their locals might get displacement because of the foreigners have their job opportunities.

Reference: 

http://the filipinoconnection.net/intra-asean-physician-mobility-less-appealing/

A greater intra-regional mobility among professionals would be the most ideal gain that ASEAN Integration would bring in. It will not only strengthen institutional capacities and support ASEAN regions in developing efficient policy instruments for accreditation and licensing of professionals but will create an ASEAN Economic Community (AEC) emphasizing a single market and production base, a highly competitive economic position, equitable economic development and full integration into the global economy.

It can even probably establish a single trading currency in the region and integrate the transitional economies that will not only bring gains to investors, private sectors, government institutions and to the general public consisting of top professionals, semi- to high-skilled and technical laborers. However, Melencio presented his “Links International Journal of Socialist Renewal”... few of the stumbling blocks to the integration are as follows:

(a) investment capital- considering that majority of investment comes from the big trading players such as China, Japan EU and US but not among ASEAN countries;

(b) technology – which will require massive investment by the developed capitalist economy to ASEAN; and

(c) industrial complementation – which is something that has yet to be developed even among ASEAN countries ourselves. We cannot deny the fact that the ASEAN economies have been competing with each other.

We can also pinpoint the labour concerns such as the increasing migration between ASEAN countries driven by demographic and wage disparities. Medium and low skilled workers more likely to migrate due to high demand of construction, agriculture and domestic workers. Women as a group and those employed in the agriculture industries, manufacturing and food processing sectors are vulnerable to ASEAN integration, as stated in the "ASEAN Community 2015". While the strengthening of the small & medium enterprises (SMEs) might be an alternative to the elite’s domination and monopoly of economic resources in the Philippines, they only account a small percentage compare to Singapore or other progressive countries. This translates into far fewer high-paying jobs on the local level for Filipino employees and exacerbates the huge income disparity across the country.

Now my take with the question is that who is best prepared for the ASEAN Integration’s AEC? Not just to answer who will greatly benefit or be hardest hit once the agreement take place but have we really settled our differences and similarities as members of this ASEAN Economic Community? Should we take stock of our situation first before we enter into the competitive field of AEC?

There are few concerns we have to address, we need to understand the challenges and opportunities of the AEC in terms of strengthening regional cooperation mechanisms, facilitating structural change and improving job quality, enhancing skills development, boosting productivity and wages, and managing labour migration. I believe it is our continuous challenge to solve our own problems first (unemployment, poverty, hunger & lack of education) and look at solutions available to us in order that we become a stronger economic force.

References:

http://links.org.au/node/4046

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

“Decision-makers have opened their eyes to the fact that we cannot speak of competitiveness for the future, thus of enduring and stable growth, if our workers do not have their skills upgraded.”

-          Excerpt from the statement at the 13th ASEAN Labor Ministers Meeting, Yangon, Myanmar, 14 May 1999

Analyzing the content of the Statement in the 13th ASEAN Labor Ministers Meeting in year 1999,  policy makers have predicted the possible challenges of the region integration if portion of the communities are not equip to embrace the changes and collaboration, there will surely be a winner and a loser.

Perhaps, we have to define what ASEAN Economic Community (AEC) means and its purpose. AEC aims to launch a free flow of goods and services and the free movement of skilled professionals and capital throughout the region by the end of this year.  AEC is usually defined as a single market and production base, it is a highly competitive economic region, a region of equitable economic development and a region fully integrated into the global economy (AEC Blueprint 2008)

In the study released by the International Labor Organization (ILO) and Asian Development Bank (ADB), there will be 14 million jobs that will open through ASEAN Economic Community (AEC), an increase of 7.1% growth by 2025. Given this potential in development, gain will not allocated evenly.

“Unless decisively managed this could increase inequality and worsen existing labor market, deficits­­-- such as vulnerable and informal employment and working poverty,” the study states

AEC is expected to embark in December 2015, a few months from now- looking on its target it is ambitious to produce a single market that consist of ten (10) countries that composed the Association of Southeast Asian Nations (ASEAN). This covers a freer movement of goods, capital and labor, which has both positive and negative implications.

ASEAN Sec-Gen Dr. Surin Pitsuwan, pointed-out these consequences in one of his forum on ASEAN integration. He said, “We (in ASEAN) are diverse and will continue to be diverse and our people will have to continue to live within diversity. Mutual respect, helping each other, understanding each other and helping and sharing with each other in these challenges that we certainly will face in the future. Economic progress is well and good, but what is even more important than just 6.7% growth, better than 2.4 trillion dollars worth of GDP, what is more important is equitable distribution of growth and the fruits of the development process. This distribution will depend on the quality, competitiveness and readiness of all people and communities here in ASEAN. If they are not qualified, competitive and ready, they are not going to be able to fully benefit from the growth.”

As Southeast Asian Nation move towards the single community, more jobs will be created but it might also somehow destroy jobs because it will open competitions among companies and it would mean upgrading in their operations. Therefore, they will compete more intensely for limited talent giving uneven increase to the incomes of those who have the right skills. Higher skilled workers could feel their incomes grow faster than lower-skilled ones, as a result there will be widening wage inequality.

ILO and ADB study findings states that, “AEC will deliver benefits but risks leaving some behind and increasing inequality.” It also highlighted the risk of greater disparities- a result that would run counter to the ASEAN objective of equitable economic development and inclusive growth.

To capitalize the possible benefits of the AEC and alleviate its risks, ILO and ADB suggested measures such a linking education and training system to private sector demand, investing in infrastructure and connectivity, and establishing social protection floors, including for migrant workers. This also include mutual recognition arrangements, which currently only cover highly skilled workers, be extended to cover medium-skilled ones.

Yoshiteru Uramoto, ILO Assistant Director-General and Regional Director for Asia and the Pacific have stressed out that “Ultimately ASEAN’s plan for greater regional integration will be judged on how much it benefits ordinary working men and women in the region”

Freer trade would definitely bring various jobs and would require greater demand for labor force. To take advantage of this potential, it is essential to provide people especially the youth the appropriate skills required by the labor market.  Capitalizing on the quality education and training will mitigate the skills shortage and skills mismatches.

I would like to end this article in this quote by Joseph E. Stiglitz (from Globalization and It’s Discontent), “Globalization today is not working for many of the world’s poor.”

References:

Severino, Rodolfo C. (1999). ASEAN Rises to the Challenge. The ASEAN Secretariat

http://www.asean.org/archive/5187-10.pdf

http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

http://www.anderson.ucla.edu/faculty/sebastian.edwards/Stiglitz.pdf

Who would gain (or lose) the most from the Intra-ASEAN Mobility of Professionals?

Let us first see the current implementation status of ASEAN Economic Community labor mobility initiative. AEC’s labor mobility has focused on the Mutual Recognition Arrangements (MRAs). This is a sort of establishing the skills and or experience that professionals need in order to get a certification in another ASEAN member states. ASEAN has developed the ASEAN Qualification Reference Framework (AQRF) that will enable qualifications to be compared across member states and providing benchmark for current national qualification framework. This movement is to support the said MRAs.

In October 2014, each country is expected to voluntarily comply with the AQRF using their own capabilities and the referencing process will begin by 2016 and the latest by 2018 (Task Force AQRF). As of now, ASEAN had seven MRAs as of 2011. The engineering MRA was signed December 9, 2005, nursing was signed December 8, 2006, architects and surveyor was signed November 19, 2007, and doctors, dentists, and accountants were signed February 26, 2009. Some countries require foreigners seeking local licenses to demonstrate proficiency in the local language.

According to “ASEAN Community 2015: Managing integration for better jobs and shared prosperity” the implementation of the MRAs remains difficult for several reasons: First, countries vary significantly in the education and testing they require for granting professional recognition, and professional associations are often reluctant to alter their existing standards or to admit potential competitors from abroad. Second, some countries require such positions as teachers, lawyers, civil servants or soldiers to be filled by citizens and explicitly exclude migrant workers from these. Third, differences in language, culture, and social acceptance can create practical barriers to labor mobility beyond any provisions that may be set down in law. Finally, MRA negotiations to date have generally been conducted bilaterally and most contain loopholes for implementation. Seven of the occupations currently covered by MRAs account jointly for only between 0.3 per cent and 1.4 per cent of total employment in Member States.

Other issues also include national immigration and visa policies and the so-called facilitated entry for the “movement of natural persons" engages in the trade of goods services and investments. This provision is still subject to the prevailing regulations of the receiving country.

Now, who would gain (or lose) the most? If we look into the current status in the implementation of MRAs, it is only between 0.3% and 1.4% occupations are currently covered by MRAs. Unless there is a universal agreement or at least 70 percent of AQRF is implemented in all member states there the competition begin. Another aspect is how the member nations manage HIGH and LOW skilled workers and what working visas or passes are given to non-local employee. One example is in Singapore: Professionals earning at least US$2,500 a month and with a credential (usually a college degree) receive Employment Passes, including an EP-1 for those earning more than $7,000 a month, EP-2 for those earning $3,500 to $7,000 a month, and EP-3 for those earning $2,500 to $3,500 a month. S-Passes are available to technicians who earn at least S$1,800 a month and satisfy education and job-in-Singapore requirements. Firms may have up to 25 percent S-Pass holders in their workforces (Southeast Asia: ASEAN 2015).

We can still refer to the education system that produces both high and low skilled workers and the professional regulatory board integrated in every member states. Every nation must also consider “ASEAN universities“ and put emphasis to flexible learning systems and programs to be competitive.

References:

[1] ASEAN Community 2015: Managing Integration retrieved from http://goo.gl/jU3KAO

[2] Flor A.G. Carving ICT Niches Within the ASEAN in a Globalized Educational and Knowledge Environment

[3] Southeast Asia: ASEAN 2015 retrieved from https://goo.gl/4n4YjX

[4] Trade Secrets: The last mile toward 2015 and beyond Toward intra-ASEAN labor mobility retrieved from http://goo.gl/ixfzkQ

The ASEAN Agreement on the Movement of Natural Persons (MNP) covers skilled workers, professionals and executives as the labor groups who stand to benefit most in an ASEAN Economic Community.  The Mutual Recognition Arrangements (MRA) further specified Engineers, Nurses, Surveying providers, Architects, Accounting service providers, Medical  practitioners, Dental practitioners and Tourism professionals as the type of Skilled workers who can perhaps find easy employment in ASEAN countries. 

Since AEC is inevitable, the MRA is critical so that our labor force can prepare adequately in terms of getting and learning core competencies and skills needed in the job so they become viable outside the Philippines.  However, the level of education and testing requirements may be different in the Philippines from that of other ASEAN countries.  This may be a challenge because even if the skilled worker has the necessary credentials, he may still not be accepted or fall short of requirements because the country work destination has different work skills conditions.  The ASEAN Secretariat recognized this that is why they are endorsing the quick implementation of the ASEAN Qualifications Reference Framework (AQRF) as “part of AEC to facilitate mutual recognition and certification of skills and qualifications region-wide”.  1

The outflow of skilled workers, while good for the workforce and for our economy in terms of remittances, is also a disadvantage because we lose our skilled workers to serve in other countries instead of staying in the country to serve its own.  In the same token, the inflow of skilled workers from other ASEAN nations, while it may be good for our country because we have new infusion of skills and competencies which our local workforce may not have, hence we learn new things from them, this may also cause labor displacement.  Instead of hiring our own, we hire someone else from another country.  Nevertheless, it serves as an impetus for the government to make the labor field as competitive as other countries so our skilled workers will stay and work here instead of going out or create more work opportunities for our skilled workers to mitigate displacement and give equal opportunities. 

The labor group who stands to lose in an integrated AEC are the unskilled workers. If AEC is inclusive, meaning equal opportunities for ALL, the MRA should be inclusive as well and not for selective  professionals.  While we are gearing for an integrated ASEAN, the inclination for most ASEAN nation is to give local employment opportunities for its citizens rather than to outsiders.  This is perhaps something that needs to be addressed because not all citizens of ASEAN nations know the advantage of an AEC is for them.  Dr. Benje Flor, in her paper “Ten Countries One,Nation?” aptly described it when she said that while there are advantages of an integrated ASEAN economically, the ordinary citizen have limited, if not  zero knowledge what an integrated ASEAN community is and how does this affect them. Ethnic and grassroot communities also stand to lose in an integrated ASEAN because they are not even considered in the MNP and MRA.  But the ASEAN Charter explicity defined this under its purposes:  “...enhance the well-being of ASEAN by providing them with equitable access to opportunities for human development, social welfare and justice”2.  ALL citizens of ASEAN, whether skilled, unskilled, indigenous should get their fair share of the labor opportunities in an integrated ASEAN community.  And it is the government’s mandate to prepare and teach them how to become competitive and viable in AEC.

1  East Asia Forum (2014), ‘The AEC needs to include  unskilled labor migration provisions”

2  ASEAN Charter

3 Flor, BG (2015), ‘Ten Countries One, Nation?”

In the year 2007, ASEAN created the ASEAN Economic Community (AEC) that aims to create a single market for goods, services, capital and labor, which has the opportunity to become one of the biggest markets and economies in the world by 2015. Although the region aims to emulate the free movement of EU nationals and other worldwide unions, there are certainly many major differences that made the intra-ASEAN mobility of professionals slow and uneven in development. As compared to the EU nationals who are entitled to look for a job in an EU country without needing a working visa and are given the equal opportunity and treatment to have access to employment, the AEC uses a different platform to accomplish the goal of intra-ASEAN mobility of professionals. Instead, MRAs or Mutual Recognition Arrangements were implemented by the ASEAN. It has been noted in the “Mutual Recognition Agreements in the ASEAN Region” under the Global Forum on Migration and Development that Mutual Recognition Agreements also known as MRAs has been formalized among ASEAN Member States (AMS) for the mutual recognition of education and experiences obtained in 7 priority sectors- architectural services, surveying, medical practitioners, dental practitioners, engineering services, nursing and accounting services and tourism professionals. MRAs serve as a regulatory cooperation and create harmony in the region in terms of mutual recognition of rules and regulations between countries. AMS must conform to the standards, rules, policies and regulations of each other though MRAs.

In light of the intra-ASEAN mobility of professionals wherein there is a movement for the purpose of work between ASEAN countries, there are various sectors that experience substantial advantages and disadvantages from the present job landscape in the region. One of the affected sectors in terms of the intra-ASEAN mobility of professionals brought about by the ASEAN economic integration is the education sector. In this case, the education sector gains in terms of the development of educational standard. The migration of education professionals from one ASEAN member state to the other helps develop the education sector of the chosen country and has the opportunity to improve its faculty and/or teaching force. It also highlights the importance of student mobility which encourages students from the 10 nations to participate as exchange students. The opportunity to study in another member state increases the knowledge of the participating individual and prepares the student to adapt in the international working environment.

The University of the Philippines Forum in its May-June 2014 issue discussed “ASEAN 2015 Higher Education in the ASEAN Economic Community.” UP President Alfredo Pascual acknowledged the importance of creating collaborations with other leading public ASEAN universities such as National University of Singapore, University of Malaya, Mahidol University and Chulalongkorn University who can help improve the quality of education provided by the only national university in the Philippines- UP. According to President Pascual, the term “services” which is part of the aim of the AEC covers education. By the end of December 2015, the ASEAN Economic Community will be formalized which further entails that the integration will allow foreign universities to set up schools in the Philippines and vice versa. The opportunity brings an advantage and disadvantage to the Philippine Higher Education. According to President Pascual, the Philippine Higher Education may face a tough competition against other leading universities in our own homeland; however, such case will also give us the opportunity to expand our services to the other member states. The intra-ASEAN mobility of professionals in the case of the education sector, challenges the advantage of the graduates from the Philippines.  UP President Pascual also reiterated that intra-ASEAN mobility of professionals creates a greater competition among graduates of ASEAN universities for jobs in the home country or from other member states.

The education sector gains from this perspective of the intra ASEAN mobility of professionals brought by the ASEAN economic integration. The capacity to bring in foreign students to our country and bring out our own students to other parts of the region to experience international studies only show that students and faculty members from the Southeast Asian nations are competitive enough to prepare their people for leadership in this newly integrated ASEAN community.

However, this is just the case of UP. We also have to consider the situation of other universities, colleges and educational institutions in the Philippines that do not have the same quality assurance in education. With all honesty, educators in the Philippines or any other country for that matter would rather choose to transfer or migrate to other leading public universities in Southeast Asia because of the undeniable opportunities that will be given to them (i.e. the opportunity to publish papers, the chance to be part of in depth research and studies, the opportunity to be part of international university affiliates that Philippine schools don’t normally have). The intra ASEAN mobility of professionals also poses an important question whether the influx or out flux of professionals in the education sector in the Philippines will be equal after the integration? I would say that this is not just a concern for the Philippines but also for other developing member states. The intra ASEAN mobility of professionals will cause brain drain in the education sector primarily because normally professionals would seek employment to a nation who can afford to provide a high paying job and has the capacity to open new opportunities to the working sector. Brain drain will then become a major problem in other developing member states because the opportunity to migrate and work within the region in the education sector would encourage educators to transfer and leave their homeland which can affect a nation’s stability.

Based on the International Labor Organization Working Paper Series entitled “Reaping the economic and social benefits of labour mobility: ASEAN 2015:

Most of the issues linked to the migration of professionals have been in migrant-sending rather than migrant-receiving countries. The major issue is the brain drain, or the fear that poorer countries lose “too many” professionals educated at government expense to richer countries of destination. During the 1960s and 1970s, there were calls for richer countries to compensate poorer countries for the professionals they accepted as immigrants (Bhagwati, 1976). More recent analysis suggests that sending professionals abroad can accelerate development at home via remittances and the return of new ideas and skills, so there can be a “brain gain via a brain drain” for migrant-sending countries (Boeri et al., 2012).

Another sector that is deeply affected by the intra ASEAN mobility of professionals is the agricultural sector. According to Dr. Amelia L. Bello in her paper Ensuring Food Security- A Case for ASEAN Integration, some of the benefits of the economic integration:

“ The intensification of competition within the region and the convergence towards regional best practices. It also allows for greater economies of scale. Third, it reduces transactions costs and enables companies to exploit their comparative advantages. It creates a larger market that is more attractive for foreign direct investments and stimulates domestic policy reforms. Finally, it gives the regional trading bloc greater leverage in trade negotiations.”

However, the Philippine agriculture is losing its competitiveness against other Southeast Asian countries. The ASEAN Economic Integration would somehow solve the region’s problem about food security but in terms of mobility of professionals in the agricultural sector, Philippines would definitely lose from this case. Looking back, Philippines is known to be a “net exporter” of agricultural products, today we are now considered as primary “net importers.” In the 1960s and 1970s, neighboring countries sent their students in our country to study agriculture but today’s generation of Filipino youth won’t even consider taking up courses inclined to agriculture. The intra ASEAN mobility of professionals would bring opportunities to our own agriculture experts because they will be given the chance to learn and experience the technological advancements of other ASEAN member states. However, this opportunity to enhance skills and knowledge would also trigger piracy of homegrown talents and experts in the field of agriculture by being offered enticing job opportunities. This will evidently be the case of the agriculture experts in the Philippines. Given the fact that Philippine agriculture is way behind other nations in terms of technology and management techniques, agriculture experts and professionals would tend to accept job offers that would definitely improve their skills and talents, which is typically offered outside our country.

References:

Asian Development Bank (2014). ASEAN Economic Community: 12 Things to Know. Available at http://www.adb.org/features/asean-economic-community-12-things-know. Last accessed 9 October 2015.

Asian Development Bank Institute (2015). Growth Intra-ASEAN Labor Mobility. Available at http://adbi.adb.org/research-policy-brief/2011/11/28/4814.social.security.labor.migration.asean/growth.of.intraasean.labor.mobility/. Last accessed 10 October 2015.

Bello, Amelia. Ensuring Food Security- A Case for ASEAN Integration. Available at http://ageconsearch.umn.edu/bitstream/165783/2/AJAD_2005_2_1%262_8Bello.pdf. Last accessed at 7 October 2015.

European Commission Free Movement- EU Nationals. Available at http://ec.europa.eu/social/main.jsp?catId=457. Last accessed 8 October 2015.

Gayo, Jose Rene (2015). Future of Philippine Agriculture: How can we compete in the ASEAN Economic Community. Available at http://business.inquirer.net/194680/future-of-ph-agriculture-how-can-we-compete-in-the-asean-economic-community. Last accessed 9 October 2015.

Global Forum on Migration and Development (2014). Mutual Recognition Agreements in the ASEAN Region. Available at http://www.gfmd.org/pfp/ppd/1690. Last accessed 8 October 2015.

Martin, Philip and Manolo Abella (2014). International Labor Organization Asia Pacific Working Paper Series Reaping the economic and social benefits of labour mobility: ASEAN 2015. Available at apirnet.ilo.org/resources/reaping-the...and...mobility-asean.../file1. Last accessed 10 October 2015.

University of the Philippines Forum (2014). ASEAN 2015 Higher Education in the ASEAN Economic Community. Available at http://www.up.edu.ph/wp-content/uploads/2014/10/may-june2014.pdf. Last Accessed 10 October 2015.

Yaakub, Mohammad Naim. ASEAN 2015: Intra-Extra Implications. Available at http://www.cbie-bcei.ca/wp-content/uploads/2014/01/Dr.-Mohammad-Naim-Yaakub.pdf. Last accessed 8 October 2015.

One of the major projects of the Association of the Southeast Asian Nation is the establishment of an ASEAN Economic Community. One of its objectives is to integrate Southeast Asia's diverse economies within the region. it is defined by four pillars: creating a single market and production base, increasing competitiveness, promoting equitable economic development and integrating ASEAN into the global economy.

There were several analysis conducted concerning the AEC model. For the Philippines-based think-tank Ibon Foundation, they claim that AEC is biased in favor of corporate interests and traditional elite. According to them, it will further impoverish the poor while enabling the foreign corporate take over the region's resources. To boot, it is also detrimental to ordinary people because it will lessen the access to social services because of AEC's stronger support for liberalization and privitization. Morever, there will also be a gerater inequality between and within ASEAN countries, problems in labor mobi;ity, job insecurity and the undermining of local and small farmers. Ibon foundation also believes that AEC is an example of a one-sided protection measure in favor of corporate power beacuse it gives investors the right to sue government whe their profits are in danger. The foundation proposes an integration which is truly people-centered by focusing more on people's concerns and respecting their human and collective rights.

In addition, according to the report of Asian Development Bank, AEC's tructure results in the decline of the significance of agriculture which accounts for 40 percent of total employment. It has been overtaken by services at 40.6 per cent. Also, changes in the sectoral distribution of employment in the Southeast Asia region would lead to shifts in occupations that are in demand. Demand will increase rapidly for some skills, but decrease for others. This means that there is a need to move up the skills ladder and address skills gap by strengthening education and training system. These challenges reflect broader skills shortages and mismatches throughout ASEAN.

With those said, better management of structural change and decisive action is necessary to realize the full potential of AEC. The economic gains should lead to shared prosperity not only to big businesses and corporations but also to low-skilled and agricultural workers while also strengthening regional cooperation.

References:

Who will Benefit from the ASEAN Aconomic Community? http://thediplomat.com/2015/05/who-will-benefit-from-the-asean-economic-community/

ASEAN Community 2015: Managing Integration foer better jobs and shared prosperity

http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

Dear Dr. Flor,

According to Ernst & Young (n.d.), “a highly mobile labor force helps to encourage diversity of experience and thought leadership, as well as provides access to the best talent from a larger population, rather than from a limited pool in the local job market.”  I agree with this statement because a good mix of experience and work style can be beneficial to the growth of a company.  Although it is important to seek a potential candidate from home first as it does not help the country if there is a high rate of unemployment, it is also more effective for a company to hire a person based on the fulfillment of the job profile regardless of a person’s nationality to ensure that the position is filled with the right person who can actually do the job. 

The Q4 quarterly briefing prepared by ICAEW (2014) stated that in highly specialized, high value-added industries, the physical movement of human capital is essential to allow the transfer of skills.  It was also mentioned that there is little point in relocating production to a cheaper-wage economy if the skills do not exist.  It is imperative for companies to always find the right employees that will help achieve the company’s goals and long-range plans.

Companies who open their doors to qualified professionals from fellow ASEAN member states can gain from increased productivity and efficiency.  At the same time, professionals who go abroad have the potential to earn more and achieve better status in life.  It is worth mentioning that established and secured policies protecting both corporations and workers are required.  As mentioned by the Asian Development Bank Institute (2014), “the absence of legal status places undocumented migrants at risk of abuse, in terms of living conditions, working conditions, or wage.”

Countries with labour shortages can also benefit from acquiring qualified professionals from other ASEAN member states.  Unfortunately according to The Straits Times, over 80% of migrants from countries like Thailand and the Philippines find work outside of ASEAN.

In my opinion, if policies are in place that could protect both employers and employees and if labour mobility is executed for the right reasons, the company and the employee (in this case, professionals in the field of Engineering, Nursing, Surveying, Architecture, Dentistry, Medicine, and Accountancy) will have a direct gain mostly on a financial perspective.  On a bigger picture, an increase in companies’ profitability will have a good impact on a country’s GDP therefore contributing to the status of the country's economy.  If done successfully, the ASEAN region could potentially benefit from the intra-ASEAN mobility of professionals.

References:  

Asian Development Bank Institute. (2014). Labor Migration, Skills & Student Mobility in Asia. Tokyo. Retrieved from http://www.oecd.org/migration/Labour-migration-skills-student-mobility-in-Asia.pdf

Ernst & Young. (n.d.). Trade Secrets: The last mile toward 2015 and beyond. Retrieved from Ernst & Young: http://www.ey.com/SG/en/Industries/Government---Public-Sector/EY-the-asean-economic-community-toward-intra-asean-labor-mobility

ICAEW. (2014). Economic Insight: South East Asia. Retrieved from ICAEW: http://www.icaew.com/~/media/corporate/files/about%20icaew/what%20we%20do/economic%20insight/2014/south%20east%20asia%20q4%202014%20web.ashx

Susantono, B. (2015, October 1). Stemming the flow of Asean's brain drain. The Straits Times. Retrieved from The Straits Times: http://www.iesingapore.gov.sg/Media-Centre/News/2015/10/Stemming-the-flow-of-Asean-s-brain-drain

There are occupations, generally high-skilled ones, which will benefit from ease of mobility within ASEAN based on agreements in place. These are engineering, nursing, architecture, medicine, dentistry and tourism. Because people often leave their country for economic reasons, this will tip the balance in favor of countries offering higher wages such as in Singapore, Brunei and Malaysia. This, in turn, could leave a void in the migrants’ countries of origin.  

As it is, countries like the Philippines already suffer from skills and work mismatch. Unemployment, particularly youth unemployment, is significantly high because graduates do not meet the skills necessary for the jobs available. A joint International Labour Organization and Asian Development Bank study (2014) shows more than half of high skilled work in the Philippines, Cambodia, Indonesia, Laos, Thailand and Vietnam will be filled by workers lacking in qualifications by 2025. This may dampen improvements in labor productivity and wages, so outward migration will continue, keeping countries in a vicious cycle of skill-job mismatch, low productivity and uncompetitive labor market.

To avoid falling into this trap, it is incumbent upon governments to raise their standards of education, including technical-vocational (tech-voc) courses, which continues to be seen as sub-par compared to college degree courses but are needed in the growing industries of information and communications technology (ICT competency niches-Flor 205), construction and automation. Moreover, education must address gaps in required work skills particularly communication and critical thinking. Alongside raising standards of education is improving labor standards as well. These strategies can improve the marketability of its labor force within and outside a country, and potentially make the entire nation a hub for companies much like what Singapore is now.

If countries do not adapt to these realities, it will continue to lag behind its neighbors and further slowdown their progress that could potentially cause a contagion to the rest of the ASEAN bloc, much like what is happening in the EU. So the entire region must work together in coming up with rules to address trafficking, policies to protect migrant workers, and strengthened social protection programs—healthcare and social security—for workers who may be displaced by the inevitable structural changes e.g. shifts from agriculture to service industries.

Every citizen of ASEAN nations must know the critical issues about labor mobility—the threats, but more importantly, the benefits. Communicators have a role to play in this. Negative sentiments from fears of foreigners “stealing” their jobs must be tempered with realities than in some nations, like Singapore, a limited labor force—due to ageing and low population—necessitates migrants to fill vacancies. And labor-exporting nations must have citizens who demand from their governments specific institutional improvements to make their nations globally competitive.

References:

International Labour Organization Asian Development Bank. 2014. ASEAN Community 2015: Managing integration for better jobs and shared prosperity.

Sugiyarto, G., Aguinias, D. December 2014. A Freer Flow of Skilled Labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. Joint Series, International Organization for Migration

It may be inferred that the biggest gainers with the intra-ASEAN mobility among professionals are these – engineers, nurses, architects, surveyors, medical and dental practitioners, accountants and tourism professionals – as they are already covered by the Mutual Recognition Arrangements (MRAs). In effect, other professions that will be under the MRAs, in the near future, would probably enjoy the same career gains.

However, as pointed out in Free Flow, Managed Movement: Labour Mobility Policies in ASEAN and the EU, the key feature of the “citizen of the European Union” concept is that the EU labor mobility framework espouses that the “free movement of labour in the economic region has been regarded as a fundamental right,” whereas the objective of the intra-ASEAN mobility of professionals is to “facilitate or manage the movement of skilled labor.” It appears that the stark difference is the freedom of movement among workers accorded through the EU Economic Community as compared to the facilitated flow of labor in the upcoming ASEAN Economic Community.

It might be interesting to argue then, the possible biases that the ASEAN Qualifications Requirement Framework (AQRF) may have. In the Philippines, for instance, occupations that do not have corresponding professional licenses or government regulations may be sidelined, possibly for difficulty of harmonizing or standardizing educational qualifications and work experiences. Another remarkable aspect of the intra-ASEAN mobility of labor is the need for accelerated standardization and accreditation of the educational curriculum of member-nations. Following the concept of competitive advantage, the ASEAN educational system, especially higher education and the technical and vocational courses, should already recognize their roles and impacts in the regional labor market that are most advantageous to its graduates.

Nonetheless, I think that the other professional group who may be considered as gainers is the development professionals, which have also been described as “integrators, who are able to understand multiple specialties and how they impact each other while fostering effective collaboration among stakeholders.” One of the niches for development professionals may be the infrastructure sector whose strategies are aimed at achieving equitable economic development particularly in the less developing nations like Cambodia, Lao PDR, Myanmar, and Viet Nam. Business and management professionals should also find themselves at the doorsteps of various intra-regional companies, especially with business practices being shared and implemented across the economic region, particularly on implementing public-private partnerships. Information technology professionals will also be part of the career gainers as we move towards information-based economies.

---

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

https://books.google.com.ph/books?id=kQ4KcnfSKRQC&pg=PA112&lpg=PA112&dq=ASEAN+intra-regional+mobility+of+labor&source=bl&ots=4UlabWjgOI&sig=EsBFE79Qz-hVw0RXtiv5XrRDGvI&hl=en&sa=X&ved=0CCAQ6AEwATgKahUKEwiWpa7Qs83IAhVnIKYKHRfvBaQ#v=onepage&q=ASEAN%20intra-regional%20mobility%20of%20labor&f=false

https://www.devex.com/news/who-will-you-be-working-beside-in-10-years-86354

Lean Alfred Santos. Who will you be working beside in 10 years?. June 2015.

Jennee Grace Rubrico. Free Flow, Managed Movement: Labour Mobility Policies in ASEAN and the EU. October 2015.

Syetarn Hansakul. ASEAN Economic Community: A potential game changer for ASEAN countries. Deutsche Bank Research Management. June 2013.

Carving ICT Niches within the ASEAN in a Globalized Educational and Knowledge Environment.

Dr. Flor,

Policy frameworks on migration and labor mobility such as the ASEAN Mutual Recognition Arrangements (MRA), ASEAN Framework Agreement on Services (AFAS), ASEAN Qualifications Reference Framework (AQRF), among others, are geared towards promoting the flow of high-skilled workers in the ASEAN. The ASEAN Framework Agreement on Services provides for the movement of natural persons who are on business trips, those travelling on temporary basis, intra-company transfers of executives, managers and other high-skilled professionals whose works are related to investment promotions.

To further boost mobility of high-skilled professionals within the region, the Mutual Recognition Agreement (MRA) was formulated to put in place mechanisms that will identify and certify relevant professionals who can be given professional mobility in the ASEAN region. This agreement is supported by the ASEAN Qualifications Reference Framework (AQRF) which aims to standardize skills requirement for ASEAN professionals. Currently, the MRAs have allowed labor mobility for professionals in the areas of engineering, nursing, architecture, surveying, medical, dental, accountancy and tourism services.

However, there are nuances in the implementation of these agreements, which are mostly bilateral in nature (agreement between two countries). Also, the implementation of the MRAs proved to be very challenging for ASEAN because of (1) varying education and testing requirement for granting professional recognition; (2) sensitive and classified professions like teaching, law, civil service and military service, can only be filled by locals and exclude migrant workers; (3) barriers to labor mobility due to differences in language, culture and social acceptance; and (4) the bilateral nature of most MRA negotiations between the country of origin and the country of destination

There are at least eight fundamental conventions related to labor mobility but only Cambodia, Indonesia and the Philippines, all labor-exporting countries, have ratified these frameworks. None of the destination countries like Singapore, Malaysia and Thailand have ratified these labor conventions including the Discrimination Convention (Employment and Occupation), which prohibits distinctions, exclusions or preferences made on the basis of a person’s race, color, sex, religion, political opinion and national extraction such as place of birth, origin, ancestry and social origin.

The ASEAN Economic Community (AEC), which is the goal of the integration, does not address movements of low- and semi-skilled workers. Their exclusion from the policy negotiations were borne out of the assumptions that (1) closer economic integration will result to more efficient production in all ASEAN member countries, thereby creating more jobs and income opportunities that can be enjoyed by low- and semi-skilled workers within their respective countries; (2) the economic integration will result to convergence in wage rates in the ASEAN region that will eliminate incentives for migration of low- and semi-skilled workers; and (3) next-shoring where companies re-allocate production on the basis of steady sources of demand and innovation and not on lower labor cost. (These assumptions seem to make ASEAN walk on eggshells with loopholes that could lead to an economic hollowing out)

However, even prior to the ASEAN integration, intra-ASEAN labor mobility is already a regional phenomenon and involves mostly low- and semi-skilled workers who migrate through informal channels. From 1990 to 2013, intra-ASEAN migrants increased from 1.5 million to 6.5 million. During this same period, intra-ASEAN labor mobility increased from 20.3 to 34.6 percent. The top intra-ASEAN destination countries are Singapore (with 52.9 percent migrant stock), Malaysia (61.2 percent migrant stock) and Thailand (96.2 percent migrant stock). These three top destination countries account for approximately 90 percent of the total migrant stock in the ASEAN region and 97 percent of intra-ASEAN migration.

Intra-ASEAN labor migration mostly involves low- and semi-skilled workers who do not have tertiary education and were employed as machine operators and assemblers, agricultural, forestry and fisheries workers. This trend in labor mobility is characterized by a single country of origin. In Singapore, 45 percent are from Malaysia, in Malaysia 42.6 percent are from Indonesia and in Thailand, 50.8 percent are from Myanmar. Hence, bilateral negotiations were framed to provide some level of social protection and fight trafficking. For the Philippines, Indonesia, Thailand and Vietnam, most of their migrant workers go to Gulf Arab States, East Asia, Europe, North America and to some parts of China. 

Labor mobility in the ASEAN region is attributed to structural factors such as demography and economy. In the destination countries (like Singapore, Malaysia and Thailand), the significant demographic factor is the ageing population, which results to labor shortages. In the countries of origin, the demographic factor is the swelling number of young population that impacts on job creation, unemployment and underemployment.

On the economic side, the differences in output, wage and taxation rates among the ASEAN member countries encourage workers who are not getting enough compensation to seek greener pastures by migrating in the hopes of earning better income that are commensurate to the amount of work that they do. In Thailand, the average wage is three times more than in Cambodia while in Malaysia, the wage rate is about three and half bigger than in Indonesia.

Intra-ASEAN labor mobility is no longer just an assumption but an on-going phenomenon. Even before ASEAN has included labor mobility as one of the pillars of the ASEAN Economic Community (AEC), intra-ASEAN migration and labor mobility has been happening at increasing rates. At present, low- and semi-skilled migrants composed majority of the labor stock in ASEAN while professionals account for approximately 10 percent. Even the MRA is not a one-size-fits-all policy for all the ASEAN member states. Nuances in its implementation, impacted by relevance of profession to market needs, language proficiency, specialized skills, social acceptance, cultural diversity, political difference, etc. could reduce this agreement to a mere token effort to create a semblance of integration and ASEAN-ness.

Therefore, with the ASEAN integration, there should be no dichotomy between who should or should not gain from this phenomenon. At the onset, ASEAN should be careful in making distinctions between low-, semi- and high-skilled workers to avoid a “race to the bottom” and an economic hollowing out if a certain group of workers get displaced. An economic hollowing out brought by displacement or relocation of a particular group of workers will cause great harm to both the migrant-sending and migrant-receiving countries. Aside from institutionalizing labor migration, ASEAN should recognize the existing dynamics of labor mobility and ensure that policies are in place to promote and protect the rights of migrant workers. ASEAN must strive to promote and protect the welfare of all migrant workers. These should not be limited to high-skilled professionals but should include the vast majority of low- and semi-skilled migrant workers. This is a cross-cutting issue for all workers who stand to lose if the issues on increasing social protection and labor rights are not addressed.

The key is for ASEAN to leverage and harmonize its policies on labor mobility to ensure that all intra-ASEAN workers, low-, semi- and high-skilled workers alike, benefit from whatever gains the ASEAN integration could bring through equitable distribution of opportunities, resources and social protection floors. This way, economic growth will redound not only to a particular sector or group of workers but to a bigger majority to create big and meaningful impacts on poverty and economic disparities in the ASEAN region.

-----------------------------------

References:

Asian Development Bank. October 2013. Asian Economic Integration Monitor. Mandaluyong City, Philippines.

http://www.adb.org/sites/default/files/publication/31119/aeim-oct-2013.pdf

Asian Development Bank and International Labour Organization. 2014. ASEAN Community 2015: Managing Integration For Better Jobs and Shared Prosperity. Printed in Bangkok, Thailand.

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

International Labour Organization. 2012. Equality and Non-Discrimination at Work in East and South-East Asia: Guide. Bangkok, Thailand.

http://www.ilo.org/wcmsp5/groups/public/@asia/@ro-bangkok/@sro-bangkok/documents/publication/wcms_178415.pdf

Jurje, Flavia and Lavenex, Sandra. January 2015. ASEAN Economic Community: What Model For Labour Mobility? Swiss National Centre of Competence in Research.

http://www.wti.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

The Asean Economic Community (AEC), which will come into full play by 2016, is a scheme to create a single market that makes up the Southeast Asian region. The purpose of the AEC is to create a better economic relationship among the countries of the Asean, a much freer movement of goods and resources, labor and capital.   

However, while the plan is good, many experts believe that although it would be good in terms of job creation, they fear that it would to a much wider gap and inequality.

In a study published by the International Labour Organization and Asian Development Bank on August 2014, they agree that Vietnam and Cambodia will benefit when it comes to creating employment opportunities. However, based on actual numbers, it is the former who benefits the most, with a projected total of six million AEC-generated jobs (compared to Cambodia’s 9.8% or 1.1 million only) by the year 2025. The Philippines comes in third with a projected 6% growth or about 3 million.

The study also presented the different sectors that will benefit from the AEC. The agriculture, trade and transportation, and construction sectors are bound to enjoy growth by 2025. But as predicted, it will present an uneven distribution against the different sectors.

For example, the trade and transportation sector will produce about three million jobs in Vietnam and about a million in the Philippines. While in the food processing industry, Indonesia, Laos, and Cambodia will most likely suffer, yet the Philippines and Thailand will see major improvements.  The tourism industry, however, is the sector that is expected to benefit more as seen in the current progress in the region in the last four years.  

It is ironic, however, that there will be a negligible percentage of effect when it comes to the movement of professional workers. Freer movement of nurses, engineers, medical practitioners, accountants, surveyors will only account to 0.3 to 1.4% growth in the region.

Another fact the study has revealed is the wide disparity when it comes to salaries and wages between high-skilled and low-skilled workers the AEC will produce. Companies are expected to upgrade their processes, thus the more need to look for high-prized talents. In effect, there will be more disproportionate increase to wages among those workers.

Since this study was released last year, the challenge for the 10-member Asean region was to get ready once the AEC comes into full swing. The question is, have we prepared enough for the possible stumbling blocks ahead so that we will all be able to enjoy the overall development we all seek?

References:

http://www.rappler.com/world/specials/southeast-asia/66835-aec-14m-jobs-widen-inequality

http://www.asean.org/archive/5187-10.pdf

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

http://www.asean.org/communities/asean-economic-community/category/asean-tourism-ministers-meeting-m-atm

http://www.asean.org/archive/5187-10.pdf

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

http://www.asean.org/communities/asean-economic-community/category/asean-tourism-ministers-meeting-m-atm

Good day, Dr. Flor and followers of this question.

This question is one of those that can also be answered after the actual integration has happened. That is so because we all would like to see the real movement first before we can identify the strengths and weaknesses of the intra-ASEAN mobility of professionals. Many things can happen and what we thought of as winners may become the losers due to the source of unpredictable events or vice versa. As we speak (or write), what we have right now are analyses and foresights of the objectives, plans, opportunities, and challenges of the issue; comparative studies of AEC Blueprint 2008, NAFTA, EU, and MERCOSUR; and opposing arguments why this free flow of skilled workers would simply not work as planned.

Based on some of the great materials I found online, I would like to throw in my thoughts on the matter.

WIN. The countries with stronger economies; reasonable visa policies; balanced welfare-benefits-cost-of-living; more stable political and national security; better education system and government support; who are more open and accepting to multi-cultural individuals; and who are quick to respond to the impending needs of the current issues have an edge already.

Currently, skilled laborers such as engineers, architects, and nurses flock to countries like Singapore and Malaysia for employment. Although countries that are traditionally “receivers” of these skilled laborers will continue to benefit from the free flow, they will see emerging competitors for these individuals in the future. It is also predicted that countries such as Vietnam, Indonesia, Thailand, Laos, the Philippines, and Cambodia would gain more jobs in agriculture, trade, transportation, and construction.

On the other hand, the Philippines, for instance, can be a winner due to its years of experience in sending migrant workers abroad. It has established different government agencies to deal with the processes that a migrant worker goes through before his or her departure, during the employment period, and after returning to his or her home country. Setting aside the flaws of each agency and the process itself, it can be a model for other ASEAN member countries in handling labor mobility and migration.

LOSE. ASEAN members with high tax rates; unfavorable working conditions; complicated visa policies; no standard language; poor education system; who are not willing to adjust to and accept other cultures; and who are slow to respond to the impending needs of the current issues.

One of the reasons why an individual migrates or works in another country is to find greener pastures - may it be in wages, welfare, job security, satisfaction, professional training, among others. Therefore, why would an individuals work for another country when they can earn the same amount of salary, enjoy the same employment benefits, and be with their family in their hometown?

Countries with restrictive foreign labor policies will not benefit. In the article on The Brunei Times, the author emphasized that the Philippines has accessible professionals. On the other note, Indonesia needs skilled workers to fill in positions. However, these two countries do not maximize what they can benefit from each other due to the policies and constitutional laws binding them. Therefore, creating a single market and “regionalisation” is an utmost problem.

Not only will the skilled workers be discouraged to work for these countries, but the local skilled individuals will be driven away also by these negative characteristics. These countries will lose their most talented members, otherwise known as brain drain, to countries who have more attractive employment and social packages.

Meanwhile, Philippines’ Senator Angara argues that high tax rates in the Philippines may drive away Filipino workers, as well as possible foreign skilled laborers. Changing national regulations and laws for the advantage of the people and not just the business sector must be deliberated to cope with this nearing integration.

WIN. The small percentage of the total employment in member countries stated in the MRA which are engineering, architecture, nursing, accountancy, surveying services, medicine, and dentistry may be winners. Although they are the favored professions, there are still barriers such as language, culture, visa policies, and social acceptance that can discourage skilled workers to migrate; and force those who are already in their host land to go back to their home country.

LOSE. Unskilled or semi-skilled workers will lose since they are not included in the blueprint for the free mobility. It seems that the MRA is very limiting to the upper business sectors and intra-company employees.

WIN. On this level, those who can adjust to the culture and learn the host country’s language may be winners. Living in another country is difficult especially if the culture and language are different from what one knows. Adjustment must come from both parties. Receiving countries must be ready socially to accept, or at least adjust to, the foreign workers.

LOSE. Individuals with impossible expectations of what their life is going to be once they have migrated will not be successful. Moreover, those who cannot adjust with their new environment, culture, and language will have a hard time.

WIN-LOSE.  In contrast to the traditional reasoning why or how brain drain will happen, Harris and Schmitt (2011) argue that it can be beneficial. People who cannot adjust to or are not successful in their host country will either go back to their home country or go to another. Therefore, “human capital may increase in the source country even in the presence of Brain Drain” (Harris and Schmitt, 2001). Furthermore, the two authors explain that skilled workers who immigrated to another country can provide the means for foreign direct investments since they know their home country better than the foreign workers there. In their paper, the authors introduced the phrase “Brain Circulation” in lieu of Brain Drain (Harris and Schmitt, 2001).

For further readings, I recommend these resources.

An extremely interesting contrasting views of Imee Marcos, Ng Yeen Seen, and Prof Chayodom Sabharsi on labor mobility can be read here: http://www.cpps.org.my/upload/AseanAffairs_May-June_11_Bold%20New%20Asean_Ms.%20Ng%20Yeen%20Seen_interview.pdf. All parties raised and pointed out valid reasons.

In the article below, Singaporeans share their experience with the flock of skilled migrants in their country. http://www.channelnewsasia.com/news/singapore/asean-leaders-push-for/1779890.html

Some very good points to ponder can be found on the analytical paper wrote by Guntur Sugiyarto and Dovelyn Rannveig Aguinas, A ‘Freer’ Flow of Skilled labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. It can be downloaded here: http://www.migrationpolicy.org/research/freer-flow-skilled-labour-within-asean-aspirations-opportunities-and-challenges-2015.

One of the four pillars of AEC is to increase competitiveness. It is a well-known fact that the economic state, cost of living, education, labor and visa policies of every member nation of the ASEAN hugely differ from each other. How would the weaker countries cope with all these if they are struggling internally already?

In line with building regional identity, ASEAN countries must think about what each can contribute the whole region’s prosperity. In order for the people and the integration to be successful, the ten nations must work together by augmenting and strengthening their physical and human capital foundation.

Angara: High taxes may drive Filipino workers to ASEAN neighbors. (2015, October 25). Rappler. Retrieved from http://www.rappler.com/business/211-governance/110619-angara-tax-rates-asean-integration

Chia, S.Y. 2013. The ASEAN Economic Community: Progress, Challenges, and Prospects. ADBI Working Paper 440. Tokyo: Asian Development Bank Institute. Retrieved from http://www.adbi.org/working- paper/2013/10/25/5916.asean.economic.community.progress.challenges/

Das, S. D. (2014, September 27). The ASEAN Economic Community’s labour policy needs work.East Asia Forum. Retrieved from http://www.eastasiaforum.org/2014/09/27/the-asean-economic-communitys-labour-policy-needs-work/

Labour mobility in ASEAN. (2014, January 27). Retrieved from http://bt.com.bn/business-national/2014/01/27/labour-mobility-asean

Orbeta, A. C. (2013). Enhancing labor Mobility in ASEAN: Focus on Lower-skilled workers. Philippine Institute for Development Studies. Retrieved from http://dirp4.pids.gov.ph/ris/dps/pidsdps1317.pdf

Sanchez, C. (n.d.). Jollibee Foods Corp on Labor Mobility - Getting jolly real on AEC 2015. Retrieved from http://adedge.com.ph/jollibee-foods-corp-on-labor-mobility-getting-jolly-real-on-aec-2015/

Sugiyarto, G. and Aguinas, D. (2014). A ‘Freer’ Flow of Skilled labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. Issue in Brief. Retrieved from http://www.migrationpolicy.org/research/freer-flow-skilled-labour-within-asean-aspirations-opportunities-and-challenges-2015

William Walter Fierbaugh

17 November 2015

ICT is driven by Economics and Politics

These thoughts are not intended to be scholarly tonight - just real world responses to stimuli.

Here I sit in Manila, freshly returned from a conference in China. Today I have limited Internet flow mostly because of others also using the pipeline in the sky. Last week there was limited internet flow and RESTRICTED internet flow because of my then location far north of the Philippines in the country of China. From my seat the state of the ICT (Information and Communication Technology) in the Southeast Asia sphere, and in fact – worldwide appears driven by economics and politics.

Again this week we are tested worldwide by ISIS terrorist events and political elections over wide geographical areas. For example, ISIS is credited with terrorism attacks in Paris, France last Saturday. In other news, Burma, now known as Myanmar, has a new elected president. The Philippines will hold elections in 2016 as will the United States. The current expansion of China into the Southeast Asian sphere, via the expansion of China into the South China Sea, is held up by some as an example of the impotence of   “The ASEAN Way.” This author, though writing with a western paradigm, believes differently. As I have said before it is my belief the current situation in Southeast Asia  is a perfect example of the effectiveness of The ASEAN Way. The ASEAN has continued to exist because of “The ASEAN Way.” Three days ago I returned from a week long visit to China.  As a tourist I was surrounded with examples of exploding growth upon ever side. Natives joked that the ever present large construction cranes are the state bird. They have a point. The high construction cranes are abundant in the cities. Yet, upon arriving back here in the Philippines I find the South China Sea conflict over territory between China and the Philippines still a hot topic. And, along with ISIS headlines, here in the Philippines business prepares for the APEC summit. Ah Ha…!

How could ASEAN change at this point and time… it is not to ASEAN’s economic nor security advantage. Keep the status quo ASEAN. Economics and politics will keep their status quo. The politicians and lawyers will gain the most from ASEAN 2015.

Hi Dr. Flor,

Starting with the integration of commodities, there will always be losers and winners. As per The Rappler "Winners and losers in ASEAN 2015" by Mendoza and Siriban, "Separate simulation studies by Caesar Corporation (International Food Policy Research Institute) and Randy Tuaño (Ateneo de Manila) predict that the reduction of protection in this sector (e.g. tariff reduction and elimination of quotas) could produce welfare gains for Philippine consumers and industries that use sugar as an input."

But it is hard to gauge the same result on people. Professionals going back and forth between ASEAN countries will bring great benefit to the Private Sector. Current policies on Expatriate has a lot of limitation such as the availability of the similar skill in the country, if policies are made lenient to give way to an Open-Professional exchanges, this will impact the existing pool of talents in that company, leading to unemployment of the citizens.

This however, will create competition and hopefully improve the quality of professionals available in the entire ASEAN region, making them more in demand outside the region.

Resource:

Winners and losers in ASEAN 2015, 2014, Ronald Mendoza and Charles Siriban, Rappler

Let's start with education, looking back why do people want to travel from one country to another. If it is for education, there is lack of expertise on certain fields to make people look out in other countries where they provide this education. We can see that people from different ASEAN countries are travelling to US for higher education because some of the ASEAN countries can't provide the appropriate education or the career path for the younger generation.

Today we can see Singapore, one of the ASEAN countries, investing and scaling up for these needs. People who can't afford to get a scholarship or pay huge amount of money for education to US and UK sees Singapore as an alternative.  It's not about Singapore being fancy, it is more on the infrastructure for education, research laboratories and the system they have built which is highly competitive on a global scale.

Why  I talked about education is because work requirement is based on the education needs as well. If a country lacks certain education system on any specific vertical, that will attract talent on those industries across the globe.  Let's take Philippines as an example; If you exclude ASEAN countries and US, and Philippines need to attract talent across the world, we need to look at what are the list of things an expatriate need to go through. Let's do a simple comparison when a talent from ASEAN country member travelling to Philippines they can easily travel to the Philippines and look for a job opportunity and live in the Philippines and do the work, vs. any other citizen outside ASEAN, then he has a list of requirements PEZA that the person needs to apply for such as Work permit, Invitation Letter, and company guarantee letters. These expats can't stay in the country for more than a year unless their work  permit renewed. If fails to renew the contract the visa will be downgraded to a tourist visa and the worker should leave within 21 days unlike a Thai national who can still stay in the country and look for other jobs. So this puts a lot of insecurity of job stability in the country, not a lot of expats would want to move the Philippines.

Because of the ASEAN goals, this provides comfort and freedom from these 10 countries.  This is a Win-Win situation across ASEAN countries in comparison to the rest of the world who does not have this opportunity.

Article Liberalizing and Facilitating the Movement of Individual Ser...

The free labor market within the ASEAN allows specialists and professionals to work anywhere they like across the region. The Mutual Recognition Agreements for engineering, architecture, medicine, nursing, dentistry, tourism, surveying and accounting are yet to be implemented. This opportunity may eventually expand, covering all fields and levels of jobs. Indeed, this would attract professionals and other skilled workers who wish to seek opportunities in a foreign country.

While the ASEAN free labor market may sound lucrative to others, there will be a tight competition in terms of education, skills as well as the capability to adapt. Those who are proficient with the English language already have the advantage as communicating with the other nations would be easier for them. English proficiency also allows one to have a wider access to information as most of the information available is written in English. Companies engaged in tourism, trading, information technology and telecommunications seek employees who can speak English fluently.

Member-countries that provide quality education and training produce more competent and productive labor force as these were the pillars of a competitive economy. Since the integration aims to create a single market, ASEAN member-countries have to harmonize their educational and capacity building structure to produce the quality of workforce that they all need.

 “There is mounting evidence that migrants in the region are often unable to put their skills to productive use because their qualifications, experience and knowledge are not readily recognized in their destination countries.” (Sugiyarto and Agunias, 2014)  The ASEAN Qualification Framework aims to harmonize regulatory arrangements between participating countries by developing mutually comparable national qualifications frameworks based on a common reference frameworks. This framework is especially beneficial to the migrant workers as this will provide them equal opportunities.

Social protection for migrant laborers should also be established. The increasing number of women as low-skilled migrant workers providing domestic services highlights their vulnerability to exploitation. It is good to note that last November 21, during the 27th ASEAN Summit and Related Summits in Malaysia, the 10 leaders of the region signed the ASEAN Convention Against Trafficking in Persons, Especially Women and Children.

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http://www.migrationpolicy.org/research/freer-flow-skilled-labour-within-asean-aspirations-opportunities-and-challenges-2015

http://www.migration4development.org/sites/default/files/mpi-iom-issue-no-11-skilledlabour-movement.pdf

http://www.thesundaily.my/news/1616892

http://president.gov.ph/news/asean-inks-anti-human-trafficking-agreement/

Good day, Professor!

The ASEAN makes an impression of being a hub of Asian regionalism. It shows so much promise that other countries willingly enter into partnerships with ASEAN, such as the ASEAN+3 (China, Japan, Korea) and ASEAN+6 (ASEAN+3 plus India, Australia and New Zealand) because of the perceived mutual benefits.

AEC has the attraction of being the world’s seventh largest economy as of 2013, projected to be the fourth by 2050, a potential market that is larger than the European Union or North America, and the world’s third largest – and relatively young – labor force.

The way I understand it, the sectors that would benefit most from the ASEAN economic integration would be the business/industry and manufacturing sectors. These are sectors that are very dynamic and can easily adapt to the intra-regional mobility, especially because integration is market-driven. Gains are expected from low, if not zero, tariff for intra-ASEAN trade, a more liberal cross-border service trade, and opportunities in financing and future investments. These sectors’ successes can pull along successes in support sectors such as those involved in tourism and services.

But these sectors can only win if they are up to the challenge, as the AEC ups the ante for them to be more innovative and remain competitive so as not to be “killed” by the influx of foreign trade from neighbouring countries. There is also a necessity to create jobs to maximize and enhance the skills of available human capital.

The sector predicted to suffer the most is agriculture. In the Philippines, for example, sugar and rice farmers may bear the brunt of importations from Thailand and Vietnam, respectively. The main problem is the lack of arable land to plant in as more agricultural lands are being converted into residential or commercial areas, and farmers becoming a “dying breed” due to age and lack of receptiveness to newer farming technologies.

Education will play an important role in helping ASEAN nationals cope with AEC. The sector must ensure that people, especially the youth, must be employable because they will benefit the most from the integration. Businesses should therefore be a proactive partner of the academe to help generate competencies through career guidance, adjustments in curricula, faculty training, and acquisition and provision of equipment.

In all of these, governments need to draw and implement enabling and supporting policies, reduce corruption and red tape, tap into partnerships, provide subsidies to cushion the impact for losing sectors, and build infrastructure. Sectors will aim to be more efficient and productive so that they can keep up with competition. The key is to maintain efficiency and help losing sectors compensate.

Sources:

http://www.adb.org/news/speeches/keynote-speech-asean-integration-and-private-sector-stephen-p-groff

http://www.irinnews.org/report/97550/filipino-farmers-a-dying-breed

http://www.gmanetwork.com/news/story/373616/money/economy/phl-services-sector-a-winner-in-2015-asean-integration-agri-likely-to-lose-business-execs

http://opinion.inquirer.net/89261/educations-responsibilities-in-integrated-asean

http://www.rappler.com/thought-leaders/54766-winners-losers-asean-2015

http://www.rappler.com/world/specials/southeast-asia/asean-journey/65528-philippines-sectors-asean-integration

According to Philippine Statistics Authority, there's an estimated 2.3 million Filipino OFWs around the world. Saudi Arabia contained the biggest percentage of this number  and Singapore, being one of the ASEAN member nation employs 6.4% of  the total Filipino migrant workers population. Skilled individuals or laborers has the biggest amount of percentage which is  33.8%  and only 11.4 % of Filipinos work in the professional level.

 Given this scenario, we can see the trend of Filipino foreign migrant workers around the world and how  it can  be comparable to the inter-ASEAN work mobility program that goes hand in hand with a single market community bought about by the Asean Economic Community.  The program has not been "officially" launched yet and I believe we should be positive about what it can bring. But we are not new to this inter- ASEAN migration, and the question "who will gain most" is a complex one to answer  given the circumstances that the scope of coverage of the program at present has limited policy frameweorks on migration and labor mobility under certain skilled professions  defined in the  Mutual Recognition Arrangements or  MRAs.  Professionals under Engineering, Nursing, Surveying, Architecture, Dentristry, Medicine, Accounting and also in tourism also require corresponding years in experience to be able to qualify.  This will also make it challenging for newly graduated individuals to be able to benefit on this agreement.

Philippine OFW  statistics of 2014 shows us  the reality that there's only 11.4% of the entire workforce population as "professional" level that can be more or less be qualified on of this agreement.  There is great potential in this promising partnership at the same time it requires deeper understanding and implementation of Policies, regulations and qualifications and standardizations member states. For now the great divide is the great challenge. 

AQRF ( Asean Qualifications Reference Framework) enables qualifications to be compared across member states and functions as a benchmark and as what Dr. Malou Nicholas mentioned in her article, starting from education QA is expected to ensure that educational standards are harmonized and benchmarked among universities in the region. Education, particularly higher education, as the core action line to promote integration through enhanced human resource development in the region.  The article did not fail to mention that educational cooperation can narrow down development gaps in the region and increase the competitiveness of ASEAN nationals. 

Sources: 

http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

http://www.up.edu.ph/asean-integration-and-quality-assurance/

http://ceap.org.ph/upload/download/20138/27223751388_1.pdf

http://www.asean.org/communities/asean-economic-community/item/asean-framework-agreement-on-mutual-recognition-arrangements-2

http://ceap.org.ph/upload/download/20138/27222725873_1.pdf

https://psa.gov.ph/content/2014-survey-overseas-filipinos¹

ASEAN integration has been a buzz for quite some time now. In terms of its intra-ASEAN mobility, it has its pros and cons or the wins and losses:

WIN. A lot of migrants will gain employment, especially to a country like Singapore. According to Michelle Bruni, over 90 percent of 15-44 year old workers in Singapore have a secondary or tertiary education, compared with less than half in Cambodia, Laos and Vietnam, and urged creation of an Employment Migration Fund to channel monies from ASEAN migrant-receiving countries to migrant-sending countries in order to defray some of the cost of educating migrants to receiving-country standards. With the research conducted, Singapore became the major ASEAN destination for skilled migrants from other ASEAN countries, mostly from Malaysia and the Philippines.

WIN: Developing of a Mutual Recognition Agreement (MRA) to speed the recognition of credentials earned outside the country of employment, harmonize training and qualification requirements, and increase the mobility of students and faculty between member states.

            Furthermore, it has been seen as another important step towards greater mobility and regional integration.

LOSE. Despite the establishment of a Mutual Recognition Agreement (MRA) among ASEAN state member, implements such MRA is difficult for the following reasons

“First, countries vary significantly in education and testing requirements to earn professional recognition, and professional associations are often reluctant to change standards to accommodate individuals trained elsewhere or to admit foreign-trained individuals who could be competitors. Second, particular professions are licensed in some countries but not others. If a person migrates to a country that licenses a profession, it can be hard to obtain a license if she does not have a license from the country of origin. Third, some countries require persons filling some jobs, from teachers to lawyers, to be citizens.” -Michelle Bruni, 2013

As stated by a working paper entitled, “ASEAN Economic Community: what model for labour mobility?”, An MRA does not equate automatic recognition and does not imply free movement of professionals in the ASEAN region For the rest of professions, the MRAs in place only lay down the principles and framework for negotiating the recognition and mobility conditions for professionals on a bilateral or multilateral basis and remain subject to various national regulations.

So you see, despite the presence if these MRAs, an assurance of a smooth employment of skilled workers to neighboring ASEAN member states is still a question especially to the developing countries.

WIN:  Slightly the same with The North American Free Trade Agreement (NAFTA) pattern,  a regional declaration on migrants’ rights have been signed

LOSE:  Labour migration of lower skilled workers is not addressed at the regional level, not much progress has been done with implementation.

Source

https://migration.ucdavis.edu/mn/more.php?id=3868

http://www.nccr-trade.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

By next year, 2016, professionals from ASEAN member-states will have better mobility within the ASEAN Economic community. According to a study of the Asian Development Bank and the International Labour Organization, the mobility will focus on the exchange of expertise. Currently,  “business visitors for sales, negotiations, natural persons on a temporary basis and intra-company transfers of executives, managers and high skilled professionals” are among to those who  benefit on the inter-regional mobility. The ASEAN Mutual Recognition Agreements just cover the following careers: engineering services, nursing services, architectural services and surveying qualifications, medical practitioners, dental practitioners, and accountancy services and tourism professionals.

Although the flow of low skilled workers will continue to flow, workers form this sectors will not directly benefit from the regional mobility. Low skilled workers are not addressed by the AEC upon the arguments that the "closer economic integration" will lead to a production improvement. Low skilled workers will indirectly benefit from the development on the economic activity which will later demand for low skilled workers in various sectors, causing a temporary "migration hump".

Asian Development Bank and International Labour Organization. (2014). ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity. Retrieved from: http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

This year, the Association of Southeast Asian Nations (ASEAN) started to implement the ASEAN Economic Community (AEC) blueprint for market integration that involves “free flow of goods, services and investment, unhindered flow of financial capital, enhanced connectivity and expanded opportunities for intra-regional labour migration” (Lockyer, 2015).

The labor mobility aspect of the AEC blueprint focuses on the Mutual Recognition Arrangements (MRAs) that establish the skills and experience that professionals need to have to acquire the certification in another country and work there. MRAs for occupations for nurses, engineers, medical practitioners, and accountants have been completed as of early this year.

Clearly, the MRAs will make the few skilled and educated benefit from the intra-mobility of professionals. It could widen the gap between the skilled professionals and untrained laborers as the only people who will be allowed to work in other ASEAN countries are those who match the skills and education required as stated in the MRAs. Low and semi-skilled workers in the agriculture sector, for instance, cannot compete with opportunities in other ASEAN countries with skilled workers and professionals.

Another labor mobility aspect of AEC is the “movement of natural persons” who are engaged in trade of goods, services, and investments. This facilitated entry from an ASEAN country to another is only for people who will do business trips or visits and contractual servicing, and similar activities. Again, this involves only skilled workers, professionals, and business executives.

According to Ibon International, the AEC integration must focus on people and developing their skills and training them rather than achieving to be an economic superpower. It must be people-centered that helps in the development of the unskilled/semi-skilled and not elite-centered that caters to the gains of those who are already able and made. After all, ASEAN is dominated by unskilled and semi-skilled workers.

Sources:

Labour mobility under ASEAN 2015 integration seen as limited by Bryan Lockyer http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

Are businesses ready for the ASEAN Economic Community? by Laura Southgate http://globalriskinsights.com/2015/07/are-businesses-ready-for-the-asean-economic-community/

Enhancing Labor Mobility in ASEAN: Focus on Lower-skilled Workers by Ancieto Orbeta, Jr. http://dirp4.pids.gov.ph/ris/dps/pidsdps1317.pdf

Good day Dr. Flor,

Labor mobility as stated in the ASEAN Economic Community (AEC) Blueprint would create opportunities for skilled workers to work abroad, specifically in other ASEAN member state. With ASEAN establishing a single market with a single production base, there could be free flow of capital and labor, thus creating new business and employment opportunities. However, there are restrictions concerning the mobility of workers that may hinder in achieving a full ASEAN economic integration.

The ASEAN has signed mutual recognition arrangements (MRAs) in eight professions, namely engineering, nursing, architecture, medicine, dentistry, surveyors, accounting, and tourism. Through MRAs, ASEAN countries may recognize the education and experience for these eight professions. In theory, this would allow easier mobility among professionals around ASEAN states. However, the MRAs do not guarantee greater worker mobility because those allowed to migrate are still subject to the host’s domestic rules and regulations. For example, in Singapore the government prioritizes in hiring locals first before looking into the pool of foreign applicants; in Indonesia, foreigners are only hired when no local can fill the position.

Also to support the MRAs, ASEAN also developed the ASEAN Qualifications Reference Framework (AQRF), which will allow qualifications to be compared across member states, as well as providing a common benchmark for current national qualifications frameworks. This will allow ASEAN member states to recognize the skill sets of citizens from other member state.

Based on these, skilled workers have better chances of finding opportunities in other ASEAN state, allowing cross-border trade an investment. On the other hand, the MRAs do not cover low-skilled workers and irregular migrants who make up of majority of the migrants thus putting them in a disadvantage.

In addition, the ASEAN University Network (AUN) was established to encourage cooperation among universities in ASEAN countries to increase movement for students and researchers. This allows prospect labor migrants to have better information and knowledge about the potential jobs in the host country.

Full integration is still far from reality; ASEAN member states will need more time to work on each difference in development status. Moreover, current policies from each member state needs to be reframed in order to achieve full integration.

References:

Huelser, S., & Heal, A. (2014). Moving freely? Labour mobility in ASEAN. Retrieved from: http://artnet.unescap.org/pub/polbrief40.pdf

Ismail, S. (2015). ASEAN leaders push for greater regional labour mobility. Retrieved from: http://www.channelnewsasia.com/news/singapore/asean-leaders-push-for/1779890.html

Jurje, F., & Lavenex, S. (2015). ASEAN economic community: What model for labour mobility. Retrieved from: http://www.nccr-trade.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

Lockyer, B. (2015). Labour mobility under ASEAN 2015 integration seen as limited. Retrieved from: http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

Susantono, B. (2015). Stemming the flow of ASEAN's brain drain. Retrieved from: http://www.iesingapore.gov.sg/Media-Centre/News/2015/10/Stemming-the-flow-of-Asean-s-brain-drain

Intra ASEAN mobility is a core part of ASEAN integration and allows specialists and professionals to work freely in the ASEAN region. While it is a good plan for the ASEAN workforce, this presents a lot of challenges and opportunities for member nations.

Reading the ASEAN Agreement on the Movement of Natural Persons (MNP) and The Mutual Recognition Arrangements (MRA), one can clearly see that it covers skilled workers, professionals and executives from several professions like engineering, accountancy and the medical field. You are left to ponder about the unskilled citizens, normal laborers and members of ethnic groups. Where do they fit in an agreement that is supposed to be inclusive and advantageous for everyone?

While both the MNP and MRA encourages free labor movement within the ASEAN and hopes to entice high-level professionals to use their expertise within the ASEAN region, it should also aim to give equal labor opportunities to everyone.

Given that ASEAN leaders are able to establish a harmonized education and testing requirements, MNP and the MRA will unknowingly give advantage to only some of its member nations.

The Philippines for example will stand to gain from this agreement, with our long history of sending migrant workers and our proficiency in English; our professionals stand more chance in being hired in ASEAN countries and we have long established government agencies that protect the rights of our workers internationally.

Member nations with unfavorable working conditions, labor disputes stand to lose in these agreements as their skilled workforce can easily seek job opportunities in neighboring countries and leave their homeland. This poses a risk of outward migration or brain drain.

Countries with difficult foreign labor policies and high income tax rates will also not benefit much from this agreement, as professionals will be discouraged to apply in these unfavorable conditions.

Sources:

http://www.asean.org/communities/asean-economic-community/item/asean-mutual-recognition-arrangement-framework

http://thediplomat.com/2015/03/aec-dreams-failure-still-a-success/

http://artnet.unescap.org/pub/polbrief40.pdf

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

According to two separate researches ASEAN Economic Community (AEC) could lead to increase in overall economic growth but gains will not be distributed equally.

The study conducted by the International Labor Organization (ILO) together with the Asian Development Bank (ADB) states that with AEC there will be 14 million additional jobs and 7.1% increase in overall growth in 2025. In general, sectors such as agriculture, trade and transportation, and construction will generate the most jobs. However, majority of the countries will experience job losses in the food processing industry (Damazo-Santos, J., 2014).

This claim is further supported by a research conducted Banomyong (2015) and her team. They used a Geographical Simulation Model (GSM) to project the economic effects of ASEAN in 2030. Simulation results showed that sectors with existing industrial activity will experience more Gross Domestic Product (GDP) growth than other areas. As competition intensifies, companies will also strive harder to employ higher-skilled workers. This will give disproportionate boost to their income compared to the lower-skilled workers.

If not decisively managed, it AEC can create and at the same time destroy jobs. It can also lead to a wide income disparity between the high skilled and the low skilled workers. Investing in infrastructure as well as linking education and training to private sector is highly recommended to address possible drawbacks and maximize the benefits of AEC.

References:

Banomyong, R. (2015). Business potential of the ASEAN economic community in 2030. Retrieved November 2015 from http://cmp.smu.edu.sg/amb/article/20150804/business-potential-asean-economic-community-2030

Damazo-Santos, J. (2014). ASEAN integration: More jobs, wider inequality. Retrieved November 2015 http://www.rappler.com/world/specials/southeast-asia/66835-aec-14m-jobs-widen-inequality

This actually is one of those tricky questions you can only answer when you experience it yourself. I have no experience on the matter, but my brother does. He is an engineer working and living in Singapore for the past 8 years. I would say that as a professional, he is one of those who gain the most if we relate his employment to the intra-ASEAN mobility of professionals. He graduated here in the Philippines at the Mapua Institute of Technology, and got his license here too. When he decided to move to Singapore, applying for a job was not that easy. It took him almost two months before a company called and hired him.

What is to be noted though is that he didn't have to enroll for subjects or study further in Singapore to be able to work there. Singapore took his educational credentials and work experience (he worked for two years at DMCI, one of the biggest construction firms in the Philippines) at par with the requirements for the job he was applying for.

Taking that example, I'd like to believe that the people who are going to gain the most are the professionals whose credentials are accepted by the country they would like to work for. However, it should be noted that "ASEAN member states are at different stages of development" (Lockyer, 2015), and thus, it would mean that it would still depend on the person's credentials, and from what I've heard, the schools people graduated from are still one of the important things that employers look for. The Asian Community 2015 Report states that the implementation of the MRAs are difficult because of the challenges that include "the disparity in education and testing requirements for granting professional recognition alongside differences in languages and cultural and social acceptance" (Lockyer, 2015). In addition, according to Lockyer "to date, MRAs (Mutual Recognition Arrangements) have been completed for eight occupations: engineers, nurses, architects, surveyors, medical and dental practitioners, accountants, and tourism professionals." But of course, as we know from news and online job searches, skilled labor are also one of the most hirable jobs that Filipinos apply for in foreign countries, not just in any of the ASEAN nations or countries in Asia, but also in countries like Canada, Australia, and New Zealand.

However, countries who hire foreign employees mostly do so for temporary entry, they would have to work hard and prove themselves to be able to keep their employment. Looking at things from this angle, I find it difficult to say, but I think the people who would lose the most would be the skilled workers and foreign domestic helpers who have the possibility of not holding on to their work simply because they can be easily replaced. To be honest, even my brother who has a stable job is still not granted permanent residency in Singapore. So when he resigns or loses a job, he only has a month to find another because he would need to come back to the Philippines if he hasn't to avoid overstaying.

In reality, yes, both professionals and skilled workers can all go to different countries for work, with all their credentials and experiences, but I guess it would still fall on how they would perform once employed, after all, if you are already hired, the most important thing then would be how you would contribute to the success of the company you are working for.

REFERENCE:

Lockyer, B., January 29, 2015, Labour mobility under ASEAN 2015 integration seen as limited

ASEAN had MRAs which includes engineering, nursing, architecture and surveyors, doctors, dentistry, accounting, tourism professionals, and so on.

The ASEAN Member States do not aim to facilitate an entire unrestricted, free-flow of skilled labour as understood from the literature and other regions. Some agreements do not apply to individuals seeking employment, citizenship, residency in another ASEAN Member State.

The ASEAN Economic Community does facilitate the movement but not guarantee full mobility even to those who are highly skilled. Some countries require foreigners seeking local licenses to demonstrate proficiency in the local language. However, the ASEAN region would like to gain more from adopting a much comprehensive approach to facilitate mobility on skills. Benefits that was brought by foreign skilled workers to the economy of Singapore for example, as well as Thailand and Malaysia to a certain extent, have exemplified. It is important to develop and embrace a long-term vision for the exchange of human-capital development and economic growth, and the role that skilled labour mobility the region can plain in them.

In terms of Healthcare, this sector is not prioritized yet is considered one of the key areas for potential gain for the migration of skilled workers in the ASEAN region. Telecommunications and financial services are prioritized and open wide possibilities for IT workers. Other sectors on top priority would be under tourism, air, and maritime industry. There is a lot to be done considering the diversity of cultures and languages within an individual member-state too.

The intra-ASEAN mobility focuses primarily on the professionals, managers and technical specialist whom we believe would gain the most in the MRA. However, a list of existing domestic rules and regulations as well as labor laws will continue to present obstacles that may impede the agreements and hinder the mobility of high-skilled professionals all over the region.

Corporations or small companies may come in the form of inconsistencies between regional authorities within the country. The documentation requirements for a visa may differ between government offices of different states. Such incident may create confusion as well as frustration for foreign applicants, and may serve as roadblocks in terms of bringing new employees abroad efficiently.

Citizens of ASEAN member states may find it easier to immigrate to countries outside the region, while same goes for citizens from non-ASEAN member states. Citizens who has Western education may carry greater recognition which would discourage the mobility amongst ASEAN countries.

The risk of brain drain may be encountered by the developing member states. The free flow may result to uncontrollable or unmanageable influx of people seeking better opportunities in much more developed states, which may result to social challenges.

Lastly, immigration rules within the member states must be implemented with great care to make policies liberalized which may address migration concerns.

REFERENCE:

http://www.asean.org/archive/aadcp/repsf/docs/04-007-FinalMainReport.pdf

http://thefilipinoconnection.net/intra-asean-physician-mobility-less-appealing/

https://migration.ucdavis.edu/mn/more.php?id=3868

Dear Dr. Flor,

The ambitious attempt of ASEAN Economic Community (AEC) to integrate ASEAN market by 2015 through free flow of goods & services, investments and free flow of financial capital, and wider opportunities for intra-ASEAN labour migration has reached at least 85% of its goal.

For AEC’s labour mobility initiative, it has focused on the Mutual Recognition Arrangements (MRAs) wherein professionals should have relevant skills or experience to have certifications in other country and work abroad. The ASEAN Qualifications Reference Framework (AQRF) was developed to support MRAs by providing bilateral benchmarks of intra-ASEAN qualifications. However, this framework is still far from completion and MRAs have been fulfilled for 8 occupations only: engineers, nurses, architects, surveyors, medical/ dental professionals, accountants, and tourism. This only represents less than 2% of the total employment.

In addition to this, the disparity in education, requirements on professional recognition, and languages have been a great challenge in completing this program, according to Asian Development Bank and the International Labour Organization. This can be a big disadvantage to “non-english speaking” countries. Professionals from developing countries would also be likely to reprocess their certifications in other countries to be recognized.

Furthermore, the disparity on educational structure has been one disadvantage for other countries or local schools and universities. Recognition of each other’s qualifications and experience does not ensure market access. Citing my personal experience, I applied on a job post to Singapore from Philippines. Out of hundred applicants, only graduates from “Top 5 colleges/ universities” have been accepted. Reason being told: “Graduates from these schools are given 100% approval for work pass.” How about other schools with the same quality of education like ours?

While labor mobility is important step for a more successful ASEAN integration in AEC, there would more likely be an imbalance (in the long run) between talents in domestic market and talents going overseas. Demand for skills will increase and foreign talent is needed to expand the domestic pool. For countries like Singapore that offer higher compensation compared to Philippines, more and more foreign talents will compete. Hence, it is also important that “source” and “receiving” country should relook into inward and outward immigration policies.

AEC’s Labour Mobility also targets free movement scheme for persons engaged in trade of goods, services & investments. The acceleration of temporary visa issuance for ASEAN professionals and skilled labour is only available for business visitors, contractual service suppliers and intra-company transferres. Other types of workers are not included in this regional integration framework.

 Sources:

http://www.eria.org/publications/research_project_reports/images/pdf/y2010/no3/Chapter4.pdf

http://www.nccr-trade.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

file:///C:/Users/admin/Downloads/MPI-IOM-Issue-No-11-Skilled-Labour-Movement.pdf

The ASEAN Economic Community (AEC) Blueprint envisioned that by 2015, there will be a freer flow of skilled labor and “no substantial restrictions to ASEAN services suppliers in providing services and in establishing companies across national borders within the region” (ASEAN 2008).  To facilitate this, the AEC formalized the Mutual Recognition Arrangements (MRAs) recognizing the education and experiences obtained in seven (7) priority occupations – architectural services, surveying qualifications, medical practitioners, dental practitioners, engineering services, nursing services, accountancy and tourism services (Tansinsin,L.,  no date indicated). 

While this is the aspiration of the AEC, literature says that, interestingly, these seven professions involve less than 1.5 percent of the ASEAN labor force as most intra-ASEAN migrants are unskilled workers or low-skilled (more than 87%) (Sugiyarto, G. and Agunias, D., 2014).  This means that the AEC is confined mostly to the mobility of high-skilled workers but the reality is that, ASEAN’s migrant workers are low-skilled and undocumented (ADB-ILO, 2014). 

I will answer the question posed by Dr. Flor in two ways based on my readings. 

Sectoral gains in the intra-ASEAN mobility of low-skilled workers 

For the low-skilled labor force, the sector that will gain most from ASEAN intra-migration is agriculture, particularly for middle income and low income ASEAN countries. Agriculture is not a priority sector under the MRAs obviously because majority of the labor force involved in this sector are not the high-skilled professionals that the AEC is prioritizing.  Cambodia, Lao PDR, Myanmar and Vietnam, Thailand, Indonesia have selected agriculture, and for the Philippines, agro-industry, as their selected priority development sector.  Laborers in agriculture, forestry and fishery are top occupations with the highest demand under the AEC scenario from 2010 to 2025 particularly in Cambodia and the Philippines and the second in Lao PDR, Vietnam, Thailand (ADB-ILO, 2014). 

I’m assuming that the “professionals” Dr. Flor’s question refers to are the approximately 13 percent intra-ASEAN migrants who are among the high-skilled.  The literature I was able to peruse generally say that the information communication technology (ICT) sector stand to gain most from the intra-ASEAN migration of high-skilled professionals. 

Unlike the other professions where the movements of professionals vary among countries, ASEAN has a more open regime for the temporary migrants in the IT sector (ANU Migration Research Team, 2005).  The movements, however, are still dependent on whether ASEAN countries are producing ICT professionals who can compete in the international market.  Higher income countries – Singapore, Thailand and Malaysia – are more relaxed in in-migration rules and provide generous compensation for foreign ICT workers.   Middle income countries – the Philippines, Vietnam, etc. – have a large pool of highly skilled ICT graduates and professionals with improved ICT infrastructure.  Curiously though, despite ICT requiring high-skilled professionals, the profession is not among the priorities identified under the MRAs.

The distribution of these gains in agriculture and ICT will vary across countries, sectors and sex.

Sectoral losses in the intra-ASEAN mobility of low-skilled and high-skilled workers 

Job gains based on the intra-ASEAN mobility are anticipated to benefit more men than women -- across all sectors. The sector that will be most vulnerable are domestic workers (who are not just necessarily low-skilled as many collegiate graduates are engaged in this profession), particularly women because of difficulties in transitioning from informal to formal employment (ILO, 2014) rendering them without basic, social or legal protection.  Males make up 73.2% of the labor force in 2013 compared to 50.2% of women in the same period, and this same trend is anticipated in 2025 (ADB-ILO, 2014).

References:

ASEAN – ANU Migration Research Team. (2005). Movement of workers in ASEAN: Health Care and IT. REPSF Project 04/007: Final Main Report   www.asean.org/archive/aadcp/repsf/docs/04-007-FinalMainReport.pdf

 Global Forum on Migration and Development. (2014). Mutual Recognition Agreements in the ASEAN region. http://www.gfmd.org/pfp/ppd/1690

 International Labour Organization and Asian Development Bank. (2014). ASEAN Community 2015: Managing integration for better jobs and shared prosperity. ILO and ADB. www.adb.org/sites/.../asean-community-2015-managing-integration.pdf

Tansinsin, L. (no date indicated).  ASEAN Mutual Recognition Arrangements. ASEAN Federation of Engineering Organization (AFEO).  http://pacu.org.ph/wp2/wp-content/uploads/2013/06/PACU_DrLydiaTansinsin-ASEAN-MUTUAL-RECOGNITION-ARRANGEMENTS.pdf

Sugiyarto, G. and Agunias, D. (2014). A “Freer” flow of Skilled Labor within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. International Organization for Migration and Migration and Policy Institute. http://www.migrationpolicy.org/research/freer-flow-skilled-labour-within-asean-aspirations-opportunities-and-challenges-2015

Hello Sir Flor!

 The increasing number of international students leaving their country to study in a neighboring country– is one of the most important trends today. The ASEAN, which is composed of ten countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam aims to  improve the man-power skills and quality in regional education schools. It also gives the students the preference for the greater proximity to home and affordability of regional study destinations.

From my online readings, according to the Southeast Asian Ministers of Education Organization (SEAMEO), in order to facilitate students’ mobility, the region’s diverse higher education systems need harmonized standards and mechanisms for permeable and transparent quality assurance and credit transfer among institutions. Encouraging and supporting students to study abroad is a major strategy to develop a well-trained international workforce, which can improve the quality and quantity of human resources.

Besides that, this mobility has transpired in order to form the ASEAN Economic Community (AEC), which definitely provides a foundation for additional international links between the students and ASEAN institutions.

Thus, who can benefit and who will not?

Definitely, the answer is, it’s a risk to poorer countries while it’s an advantage to rich countries. Like in the Philippines, the attempt to open up “neighbors’ labor markets would give skilled and highly competent Filipinos to access to higher-paying jobs. A lots of my friends and family members have decided to work abroad because they know they could be paying more, even facing the thought of compromising the long distance relationship with the families. We really can’t deny the fact that Filipino workers are all over the world. We commonly call it, Filipino diaspora—noting that about 10 million Filipinos are scattered globally. And the number continues to rise.

Unfortunately, an increase migration of professional would not help well to an emerging economy like Philippines or other countries as well.

Although that it is good that we are producing highly competent Filipino or ASEAN workers, I recommend that there should be a balance of the allocated manpower, employment opportunities and sufficient paying grades in every country. The government should ensure level-playing field in business and industries while keeping the minimum wage competitive. The government should create jobs in industry, agriculture, manufacturing etc. Less skilled workers should also be protected so that foreigners won’t steal jobs from the Filipinos.

My point here now is: Yes, it’s great to study abroad but we should come home because our country needs us. I believe in the importance of learning overseas and honing one’s skills. Studying overseas and learning as much as possible to make ourselves become the best so that when we come back to our country, we can make the greatest impact.

References:

ASEAN poised to usher in new era of student mobility, http://monitor.icef.com/2014/01/asean-poised-to-usher-in-new-era-of-regional-student-mobility/

Reaping the economic and social benefits of labour mobility, http://apirnet.ilo.org/resources/reaping-the-economic-and-social-benefits-of-labour-mobility-asean-2015

There are lots of issues being raised with regards the coming of ASEAN integration by the end of 2015. Some of these include the readiness of each country, its impact to local industries and who among the labor force will benefit or lose the most in this integration.

One of the many opportunities being offered by the ASEAN integration is the exchange of manpower resources between these countries. With this integration, Southeast Asian nurses, teachers, doctors, accountants, other professionals and workers can now freely work in any of the ASEAN-member countries they prefer considering that they have met the qualifications and standards required. This integration also prompts the business industry to seek for talented and highly skilled manpower resources to cater to the demand of the bigger, wider and more competitive global market.

This scenario tells us then that the best and brightest of professionals and skilled workers will be the ones to gain the most from this integration. Those who obtained licenses, certifications and better work experiences such as the blue collared and white collared jobs will be paid more and offered better standards of living due to the higher level of skills they possess specially among professionals. This is due to the demand of ASEAN integration for best practices in the priority areas of trade, business, including labor and employment relations because of the increasing regional economic integration (Amante, 2014).

While this integration provides better job opportunities, it also contributes to the rising inequality among workers since the greatest attraction of the regional integration will be the highly skilled and competitive human resources (Salazar, 2014). ASEAN integration also poses threats to each ASEAN member-countries pool of professionals since their local professions will also be opened to other Southeast Asians. Hence, there is a great risk among them to be displaced by other Southeast Asian professionals who are more competent and highly skilled especially those who obtained higher education from an American or European universities which provide their graduates advanced studies and equip them with high competent skills. It is also not easy to obtain work from other ASEAN member-countries. They need to obtain licensures and certifications, sufficient professional experience, education and trainings before they could work in the ASEAN member-country of their choice as required by Mutual Recognition Arrangements.

Moreover, the entry of new competition who may be bigger, more efficient and who possess superior technologies is considered as one of the major threat to this integration (Masigan 2014). Hence, job displacement among unskilled workers especially factory workers and farm workers could possibly occur with the coming of high technology machines. We have already seen how many farm workers lose their job due to the coming of farm machineries like rice transplanters and combine harvester-threshers brought about farm mechanization and agricultural technology. Aside from them, the food processing, private services and mining industries will also lose from this integration. It is said that job losses would be felt in these industries (Basu Das, 2014).

While this integration promises a huge economic gain and better job opportunities among each member-country , labor unions, economic and business experts foresee rising inequality between highly skilled and unskilled workers. Sukti Dasgupta, head of the regional economic and social analysis at International Labour Organization also pointed out that AEC will deliver benefits but risks leaving some behind. Higher skilled workers could see their incomes grow faster than lower-skilled ones (Iqbal, 2014).

Amidst all these claims, policy makers should find a way how displaced workers will be given other jobs that would fit to their skills. No one should be left behind in this integration; all should benefit from it. Otherwise, it will counter its promise of providing better job opportunities as well as its objective of providing economic development and inclusive growth (Iqbal, 2014).

.

References

Masigan, James Andrew. 2014. Implications of the ASEAN Economic Community (First of two parts). Manila Bulletin Online. Retrieved from http://www.mb.com.ph/implications-of-the-asean-economic-community-first-of-two-parts/

Salazar, Melito Jr. 2014. Developing Skills and Competencies for ASEAN Integration. University of the Philippines System Website. Retrieved from http://www.up.edu.ph/developing-skills-and-competencies-for-asean-integration/

Amante, Maragtas SV. 2014. Convergence in Work Systems, ASEAN Integration and Implications to Professional Practice. University of the Philippines System Website. Retrieved from http://www.up.edu.ph/convergence-in-work-systems-asean-integration-and-implications-to-professional-practice/

Darilay, S. 2014. Why should HR Managers worry about the ASEAN Economic Community (AEC)?. Towers Watson Online. Retrieved from https://www.towerswatson.com/en/Insights/Newsletters/Asia-Pacific/points-of-view/2014/Why-should-HR-Managers-worry-about-ASEAN-Economic-Community

Santos, Jet D. 2014. ASEAN integration: More jobs, wider inequality. Rappler.com. Retrieved from http://www.rappler.com/world/specials/southeast-asia/66835-aec-14m-jobs-widen-inequality

Valente, Catherins S. 2013. Asean integration in 2015 and its implications on labor. The Manila Times Online. Retrieved from

http://www.manilatimes.net/asean-integration-in-2015-and-its-implications-on-labor/47994/

The NEDA Publications Board. Demystifying ASEAN integration and the Philippine labor market. DEVPULSE, Vol. 13 No. 1 2nd Semester 2014. Retrieved from http://www.neda.gov.ph/wp-content/uploads/2014/04/NEDA-DevPulse-Vol.-17-No.-1-2nd-Semester.pdf

Das, Sanchita B. 2014. The ASEAN Economic Community’s labour policy needs work. East Asia Forum. Retrieved from http://www.eastasiaforum.org/2014/09/27/the-asean-economic-communitys-labour-policy-needs-work/

Good day, Dr. Flor!

The ASEAN Integration is already a fact. People under the ASEAN-member countries simply have to accept this reality whether they want to or not. So the question on who would stand to gain or lose depends on who is better prepared for the said integration.

The Philippines, although not new to labour mobility, has always been a labour sending country instead of a labour receiving one. For Director Dominique Tutay of DOLE’s Bureau of Local Employment, the entry of foreign professionals actually presents advantages for the Philippine labour market since foreigners bring new technologies and management systems that would raise professional standards, especially in the education and information technology (IT) sectors. On the other hand, there is a need to revise our education and training institutions curricula to ensure that our workers are up to the skills challenge and are at par with international standards.

It is also believed that the Philippines services sector would benefit from this integration because we have strong communication skills and we are a service-oriented economy. The services sector includes the tourism and business process outsourcing industries.

As of now, ASEAN has only focused the labour mobility on professional services under Mutual Recognition Arrangements (MRA) for the following sectors: engineering, nursing, architecture, surveying, medical, dental practice, accountancy, and tourism. MRAs are meant to give foreign professionals a local license or authorization to practice their profession locally. In support of the MRAs, ASEAN developed the ASEAN Qualifications Reference Framework (AQRF) which enables comparisons of qualification across Member States while providing a coherent benchmark for current national qualifications frameworks.

While this seems promising, said MRAs only covered high-skilled workers which only accounts for less than two percent of the total employment in ASEAN member states. It failed to include 87% of migrant workers which are low-skilled and are mostly undocumented. This means that high-skilled professionals stand among the biggest gainer in this integration as they have better chances of finding job opportunities.

According to Jayant Menon, the lead economist for trade and regional integration at the Asian Development Bank (ADB), while a majority of labor mobility in the ASEAN falls under the low-skilled segment, the AEC has left it in its agenda due to its “sensitivity.”  The trade of low-skilled workers is risky for both the sending and receiving countries.

Workers from sending countries are vulnerable to all forms of abuse. There are cases of legal workers (domestic helpers) being subject to all kinds of abuse in other countries. And the condition of unrecorded workers is likely to be a lot worse. Alternatively, unrecorded workers may pose as a security risk for receiving countries.

However, if labour flows in the low-skilled workers are not included in the AEC plans, then this would eventually lead to the widening gap between low-skilled and high-skilled professionals which, unfortunately, run counter to ASEAN vision of inclusive growth.

 REFERENCES:

http://news.abs-cbn.com/business/03/21/14/ph-services-sector-seen-gain-asean-integration

http://www.neda.gov.ph/wp-content/uploads/2014/04/NEDA-DevPulse-Vol.-17-No.-1-2nd-Semester.pdf

http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

http://www.migrationpolicy.org/research/freer-flow-skilled-labour-within-asean-aspirations-opportunities-and-challenges-2015

Good day.

This is a question that can be thoroughly answered on a later date after the intra-ASEAN mobility of professionals brought about by ASEAN economic integration will take place.

As envisioned by ASEAN leaders in 2007, there would be ushering in a region with a single market and production base characterized by free flow of goods, free flow of services, free flow of investment, freer flow of capital, and free flow of skilled labor, as one discussion paper about “ASEAN 2015: Implication of People Mobility and Services” had suggested. Accordingly, this is a scenario in the future.

Looking forward to the implementation of AEC agenda in the next 10 years, the ASEAN Integration Report, which will be published periodically, would form part of an enhanced monitoring framework to contribute to more informed policy and decision making process imbuing the next phase of ASEAN economic integration with equitable development and sustainable growth that benefits all ASEAN people, thus, ensuring their better future.

Since the adoption of the ASEAN Economic Community (AEC) Blueprint in 2007, the ASEAN Integration Report (AIR) 2015 provides a comprehensive assessment of progress and achievements, and evaluates the impact of ASEAN integration.

For discussion purposes, I like to highlight 1 assessment according to progress report.

It is reported that the overall structure of ASEAN economies has changed since the adoption of the AEC Blueprint in 2007 with the growing importance of the services sector. The share of the services sector in the economy steadily increased to reach 50.2% in 2014 while both the industry and the agriculture sectors’ shares declined and stood at 38% and 11% respectively. The growth in the region has been driven by an increasing share of foreign direct investment (FDI) inflows to the services sector, as well as solid performance in the trade sector, thus, contributing to the region’s output expansion.

Based on this data, ASEAN professionals belonging to the services sector have gained the most from the intra-ASEAN mobility of professionals brought about by ASEAN economic integration, while ASEAN professionals from the industry and agriculture sectors have lost the most as the figures declined.

The data may change over time but one of the goals like ensuring the best future for all ASEAN people remains intact.

References:

http://www.asean.org/news/asean-secretariat-news/item/asean-enhances-mobility-of-skilled-labour-through-qualifications-reference-framework

http://www.asean.org/images/2015/November/media-summary-ABIS/ASEAN%20Integration%20Report%202015.pdf

http://www.asean.org/images/2015/November/media-summary-ABIS/ASEAN%20Integration%20Report%202015.pdf

http://www.asean.org/news/asean-secretariat-news/item/asean-enhances-mobility-of-skilled-labour-through-qualifications-reference-framework

I believe that the impending ASEAN economic integration would affect numerous sectors as it would cover a number of subjects such as businesses, investments, trade and commerce. At the moment, without an official data comparing the project effect on various sectors, I feel that it is somehow impossible to actually identify which would gain or lose the most once the integration is in place.

Nevertheless, there are already several studies and reports that have been published with regard to the possible effects on the integration. I would like to focus on something that I feel would be most affected, either positively or negatively, depending on which perspective you would like to think: the labor sector.

One of the objectives of ASEAN integration is better labor mobility, defined as the “the ease with which laborers are able to move around within an economy and between different economies (Radcliffe, 2009).”

According to him, better labor mobility, particularly geographic mobility, could improve the lives of workers as it would enable them to look for better opportunities in other economies.

In the case of ASEAN, it would enable, for instance, doctors in one country to move to another country with higher salaries and benefits for those working in the medical profession. The same is true with the others, such as those working in the academe or even among low-skilled workers.

On the personal level, the integration may prove to benefit those who will have the opportunity to look for greener pastures. Radcliffe, however, warns that better labor mobility can also result in the increase in the supply of labor, which could in turn result to lower wages or even an increase in unemployment.

Think tank IBON foundation noted that “regional integration will worsen the already lopsided migration of workers from poorer countries to more developed countries to seek better wages and better lives.” It said that labor migration will become an issue as there may be a loss of skilled workers in countries that have lower wages.

This may also be true in the low-skilled workforce. For instance, the Philippines is ranked as among the countries with the lowest hourly compensation cost in the manufacturing sector in ASEAN in 2013. A freer labor market may result in many of Filipino workers to look for better paying jobs, which in turn would affect the economy of the country.

In an editorial, Thailand’s leading newspaper The Nation said that “unless it is decisively managed, regional integration could increase inequality and worsen existing labour-market deficits, such as vulnerable and informal employment, and working poverty.”

I believe the labor sector is one of those that will be hugely affected by the AEC. In integrating the economies of the ASEAN member states, countries should be careful in ensuring that this would not result in further inequality in the region.

Sources:

ACSC/AFP (2015). Reclaiming the ASEAN Community for the People – CSO Statement. http://aseanpeople.org/reclaiming-the-asean-community/

Asian Development Bank (2014). ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity. http://www.adb.org/publications/asean-community-2015-managing-integration-better-jobs-and-shared-prosperity

Ibon International (2015). ASEAN Community 2015: Integration for Whom? http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

International Labor Comparisons Program (2014). International Comparisons of Hourly Compensation Costs in Manufacturing, 2013. The Conference Board. https://www.conference-board.org/ilcprogram/index.cfm?id=28269

Martin and Abella (2014). Reaping the economic and social benefits of labour mobility: ASEAN 2015. International Labor Organization. http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_321003.pdf

Palatino (2015). Who Will Benefit from the ASEAN Economic Community? The Diplomat. http://thediplomat.com/2015/05/who-will-benefit-from-the-asean-economic-community/

Radcliffe (2009). The Economics of Labor Mobility. Investopedia. http://www.investopedia.com/articles/economics/09/labor-mobility.asp

The Nation (2014). AEC inequalities must not be overlooked. Editorial. http://www.nationmultimedia.com/opinion/AEC-inequalitiesmust-not-be-overlooked-30242070.html

From: Flordeliza R. Bassiag

UPOU Student - MSDC

DEVC 242

Who would gain the most (or lose the most) from the intra-ASEAN mobility of professionals brought about by ASEAN economic integration?

The intra-mobility of professionals will bring a very high competitive spirit among the ten countries at large. Usually, those countries with high GDP, they take the biggest part of the pie in this aspect. The poor and the underprivileged countries’ professionals could be competitive but based on educational qualifications or background, he or she might not be qualified since there are more qualified ones than those coming from let’s say Myanmar or Cambodia against those coming from Indonesia or Singapore or the Philippines. However, the big ones in Asia should also mentor or rather help its brothers and sisters as well for a more competitive spirit not only at the regional but at the global or universal level. In this context, we cannot just leave the poorer behind rather start to build or upgrade their skills and knowledge to become a highly competitive professionals that are at par with those rich countries, too, like Malaysia, Singapore, Brunei.

Both standards and needs or demands could be determinants on who would gain the most or lose the most. So far, it has been observed that the ASEAN nations are equally doing their bests in order to gain but not to lose. On the other hand, integration means helping one another or reaching out to each other to survive and ultimately, to develop and be able to uplift the lives of many who needs the most help, especially, that the 10 ASEAN nations are at the brink of disasters for one, food insecurity, unstable prices of food and commodities, degradation of its natural resources as well as indebtedness to other developed countries and official development assistance. Such could be achieved if one country to the other will learn of its successes and be able to adopt if feasible in other country or locality to ensure full sustenance of such achievements and replicating it to feasible places, too within the region.

Dr. Flor,

Intra-ASEAN mobility of professionals brought about by ASEAN economic integration benefits all but likely to produce positive and negative results. Upon mobilization, professionals will learn and adapt different ways, knowledge and ideas which can be put into use in their respective countries. This will only be useful if supported by the government through proper funding support. All knowledge, skills and ideas are very important for successful application and implementation to respective fields in their respective areas only upon acknowledgment of their leaders. Without support and funding, these professionals will tend to stay at countries where they can see livelihood benefits on their part.

Good day Sir Flor!

Intra-ASEAN mobility of professionals brought about by ASEAN economic integration will surely be beneficial to every ASEAN member countries at the same time have unexpected threats that must be mitigated. Mobilization will bring numerous opportunities in terms of increased business investment, rewarding employment opportunities and limitless ideas and learning which can be put into use in their respective countries. On the other hand, there are impending risk for both the sending and receiving countries. For sending countries, workers especially the low skilled ones are vulnerable to all forms of abuse. While for the receiving countries, especially cases of unrecorded workers may cause a security risk as well as cases on illegal recruitment.

Now the question on who is the potential winner and/or loser depends on who is prepared and who is not, who can adapt and who cannot?

Most of the ASEAN member states have always been a labor sending countries. Majority of our labor force are factory and construction workers, domestic helpers, etc. While ASEAN labor force is mostly semi-skilled and non-skilled workers, the program main focus is on the mobility of professionals, managers and technical specialists.  Thus the potential of having a highly mobile labor force will not be maximized; among member countries, Singapore will benefit the most. For other member countries, the need to revise their education and training institutions curricula is crucial to ensure that their labor force will meet the knowledge, skills and standards of the multinational companies and institutions.

On the lighter side, services sector is expected to benefit from this program, this include tourism and the business process outsourcing (BPO) industries. The Philippines has long been yielding this benefit compared to other ASEAN countries in terms of services and this is because of their strong English language skills. Rappler.com reported that Philippines have one of the most dominant call center industries in the world. According to a roadmap laid out by the IT and Business Process Association of the Philippines (IT-BPAP), annual revenues for the IT-Business Process Management industry could more than double from $9 billion in 2010 to $25 billion in 2016 — equivalent to 10 percent share of the global market. Analysts also expect the industry to exceed the $48 billion-revenue mark by 2020.

Based on the above situations and issues there are still a lot of work to be done to fully achieve intra-ASEAN program; While there are some potential “gainers” (member states with highly skilled professionals and the services sectors) “losers” (member states with non skilled labor force), I am optimistic that the positives will outweigh the negatives as long as every ASEAN member states will pursue and keep up with the integration.

Reference/s:

PH services Sector Seen to Gain from ASEAN Integration, by Jon Carlos Rodriguez

retrieved from: http://news.abs-cbn.com/business/03/21/14/ph-services-sector-seen-gain-asean-integration

The Philippines Needs an ICT revolution, Now by Krista Garcia, retrieved from: http://www.itu.int/osg/spu/visions/papers/developing

Trade Secrets: The Last Mile Toward 2015 and Beyond

retrieved from: http://www.ey.com/SG/en/Industries/Government---Public-Sector/EY-the-asean-economic-community-toward-intra-asean-labor-mobility

Hi Dr. Flor, 

LIke anything in this world, processes would have its pros and cons, just like Intra-ASEAN mobility of professionals. 

Who would lose the most for this new ASEAN mobility of professionals? It would be the poorer communities. Yes, there will be difficulties in shifting process and systems but there will be numerous of opportunities for the business in the different ASEAN countries, but the under privileged communities will have no limelight for this. There are terms and conditions from the MRA that limits it to the upper business sectors and intra-company employees only.

Hello Dr. Flor,

I think that the trend that would come out from the ASEAN intra-regional professional mobility is the following:  high-skilled workers from developing countries to developed countries.  This is because developed countries usually have more job opportunies and can offer a much higher remuneration.  High skilled workers are associated to high production inputs and, as a result, prosperity.  Thus, it is the developed countries who would gain from this type of mobility.

The flee of high-skilled workers to developed countries would mean a great loss for the developing countries.  The loss is in terms of the human capital.  The developing countries would lose competent workers and professionals,  competent managers, engineers, doctors, nurses, researchers and teachers: future leaders of the country who can help boost the economy and further its goals.  A big lose that can impact the growth of the country. 

Those who would gain the most are the skilled professionals, specifically those with professions included in the MRA like engineers and architects. There are already guidelines which could help them move freely and work in any ASEAN country. Professionals who speak fluently in English and has good communication skills, as well as professionals who are willing to travel and live in other ASEAN countries would also benefit more from ASEAN mobility.

Those who may lose the most are unskilled workers because ASEAN still need to implement MRAs for them. This may be a problem considering that most workers in ASEAN belong to this group.

Those who would gain the most are the skilled professionals, specifically those with professions included in the MRA like engineers and architects. There are already guidelines which could help them move freely and work in any ASEAN country. Professionals who speak fluently in English and has good communication skills, as well as professionals who are willing to travel and live in other ASEAN countries would also benefit more from ASEAN mobility.

Those who may lose the most are unskilled workers because ASEAN still need to implement MRAs for them. This may be a problem considering that most workers in ASEAN belong to this group.

As of March 2015, mutual recognition agreements (MRAs) between individual ASEAN countries have allowed educated and/or experienced professionals and highly skilled workers to take qualifying exams given by their respective desired host countries1. These MRAs are designed to offer better skilled services, and promote the exchange of new knowledge, competencies and technologies2 through the free flow of goods, services, investment and labor within a strong and competitive institutional framework3. Direct beneficiaries are medical doctors, dentists, nurses, engineers, accountants, architects, surveyors, and tourism professionals, who unfortunately comprise only 1.5 percent of the total workforce in the region4.

According to the United Nations, from 1.5 million intra-ASEAN migrants in 1990,  the number increased to 6.5 million in 2013, with 87 percent of them irregular and unskilled workers5. Left out of the ASEAN economic integration equation are these unskilled, low-skilled and semi-skilled individuals. This inequality needs to be immediately addressed in order for all 10 ASEAN member-states to realize their vision of evolving into a sustainable, borderless, globalized and all-inclusive economy in the next decade.  

_________

1 ASEAN UP.com (2016). Benefits of the ASEAN Economic Community – AEC. Retrieved February 3, 2016, from http://aseanup.com/benefits-asean-economic-community-aec/

2 Santos, J. D. (2014, August 26). ASEAN integration: More jobs wider inequality. Rappler.com. Retreived February 3, 2016, from  http://www.rappler.com/world/specials/southeast-asia/66835-aec-14m-jobs-widen-inequality

3 ADB Institute (2016). ASEAN 2030: Toward a Borderless economic Community. Retrieved February 3, 2016, from http://www.adb.org/publications/asean-2030-toward-borderless-economic-community.

4 ASEAN UP.com (2016). Benefits of the ASEAN Economic Community – AEC. Retrieved February 3, 2016, from http://aseanup.com/benefits-asean-economic-community-aec/

5 Katigbak, J. J (2015, August). Why the Delay in the Free(r) Flow of Skilled Labor in ASEAN? Foreign Service Institute, Vol. II, No. 22. Retrieved February 3, 2016, from http://www.fsi.gov.ph/why-the-delay-in-the-freer-flow-of-skilled-labor-in-asean-by-jovito-jose-p-katigbak-vol-ii-no-22-august-2015/

Economic integration will benefit most of the big companies that have established partnership with other members of the ASEAN Community. Some of these macro economic sectors will include airline industry such as Air Asia, banking sectors such as Metrobank and BDO in the Philippines that have gained costumer confidence such that their expnasion will continue to manifest in the emerging ASEAN intgeration, and many other corporate offices, real estate agencies which suffice to say will also connote professionalization of job skills that operate in aforementioned industries, in which case, the latter will also benefit from the integration process. On the other side of the spectrum will be the small-to-medium industries mostly of local origin that have not established competitive edge within their locality, much less in national and regional boundaries that will lose from the economic integration. Some small business enterprise will find themselves dislocated economically unless help is extended to them to alleviate their products and services that will meet ASEAN standards. As a consequence of diminishing role of small industries will be a mismatch of job skills with the needs of the macroeconomy. This does not mean, however, that those displaced workers have no skill at all but rather they do not meet the demands of the labor market. The disparity of skills of workers between big companies with those of small enterprise will widen the gap of economic performance.

It is a common belief that a country can only be rich once it has a productive economy. In any kind of business may it be small or large enterprises, high-skilled workers drive  faster growth and productivity  as well as  foster innovations. The success  of any business entities depends  on the  skilled workforce to create new and improve services and products. This is my personal  take  as to why AEC established MRA’s.  For me, it is more than to facilitate the freer movement and employment of qualified and certified professionals between ASEAN member countries. I’ve read IBON Foundation say on this issue,  and I agree on their claims that this integration deals more on the amount of profits  or interests that  corporate and traditional elites  would gain other  than  empowering people. True, semi or low-skilled workers are always in demand, but it is high-skilled workers and the work they do can enhance the speedy achievement of this ambitious goal of integration.

Inevitably to say, there will be winners and losers in this plan of integration. We cannot blame them.  After all, it’s business as usual! For now, the important thing to do is prepare our institutions particularly the education sector to be ready to face these challenges in labour workforce. Indeed, there are  lot of benefits for all of ASEAN citizens can had in upholding this integration. However, ASEAN  member states government policy needs to make sure that those left behind in this transformation stage will also  share  and benefits from these economic gains. Otherwise, the strong determination to transform  ASEAN  into a real economic community with a competitive single market and production  base will still remain elusive.

References:

http://thediplomat.com/2015/05/who-will-benefit-from-the-asean-economic-community/

http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

It is a 50/50 win/loss rate for both private and public sector as professional and skilled workers take advantage of ASEAN economic integration to look for higher-paying jobs.

For the private sector, the multinational companies (MNCs) in developed countries like Thailand and Singapore will benefit most because they tend to impose lower wages on the low-skilled migrants from CLV (Cambodia-Laos-Vietnam). However, the MNCs are set to lose when it comes to level of productivity. If the companies increase their employment of migrants from other neighboring countries, they can save wage cost but their labor productivity will decrease (Paitoonpong & Chalamwong, 2012).

For its part, the public sector will lose its skilled labor force if the professionals decide to go to other countries for high-paying jobs. This is evident in the case of Philippines.  In a report from Philippine Daily Inquirer (De Vera, 2014), available jobs in Indonesia, Malaysia and Thailand include teachers, accountants, doctors, and engineers, among others. To note, it is common in the Philippines that workers in the public sector tend to leave their work in favor of a higher-paying jobs abroad.  

This is further supported by the International Labor Organization Global Employment Report Trend published in January 2013, the Philippines has the highest unemployment rate compared to other ASEAN member states, thus it might further encourage the workers to take advantage of ASEAN economic integration (Santos, 2014).

Sources:

De Vera, B. (2014, May 15). PH risks losing more professionals to higher-paying    jobs in Asean by 2015. Philippine Daily Inquirer. Retrieved from http://globalnation.inquirer.net/104500/ph-risks-losing-more-professionals-to-higher-paying-jobs-in-asean-by-2015

Paitoonpong, S. & Chalamwong, Y. (2012). Managing International Labor Migration in ASEAN: A Case of Thailand. Retrieved from http://tdri.or.th/wp-content/uploads/2013/07/h117.pdf

Santos, T. (2014). PH tops Asean list of jobless, says ILO. Philippine Daily Inquirer. Retrieved from http://globalnation.inquirer.net/103319/ph-tops-asean-list-of-jobless-says-ilo

Good day!

The liberalization of services is one of the anticipated outcomes of the recently launched ASEAN Economic Community (AEC). As stipulated in the latter’s blueprints, it aims to “facilitate a seamless movement of skilled labor in within ASEAN.” To realize this goal, the ASEAN member-states (AMS) have entered rounds of negotiations and, thus creating the ASEAN Mutual Recognition Agreement (MRA). Currently, there have been eight (8) MRAs on various professions that have been entered upon by AMS, namely: Engineering Services, Architectural Services, Accountancy Services, Surveying Qualifications, Nursing Services, Medical Practitioners, Dental Practitioners and Tourism Professionals (ASEAN Secretariat, 2015).

Ideally, all eight (8) professions under the MRAs would be able to gain with the free movement of skilled labor because it would help professionals in expanding their career opportunities within the ASEAN. However, since all of the professions under these MRAs are still in the process of implementation and regulation in all AMS, this might yet not be fully realized as of moment.

According to Fukunaga (2015) and Aldaba (2013), there are still some aspects in the MRAs that must be properly addressed in all AMS in order to fully and effectively implement a borderless movement of skilled labor, to wit:

First, the current visa, immigration and labor rules of most AMS prevent, if not, limit the practice of profession to foreign workers. The Philippines, for example, only allows the practice of architecture and accountancy to its citizens, unless if there is also an agreement on reciprocity allowing foreign nationals to practice their profession (only limited to some aspects) in the Philippines and vice versa. To be consistent with the MRAs, the AMS must provide special visa and immigration arrangements and labor law revisions for foreign workers.

Second, the difference in curriculum, training and competencies on professions among the AMS is an issue that must be also addressed. Nursing in Thailand, for example, still requires foreign registered nurses in their home countries to take another national licensure exam in Thai language before they would be admitted in the country. The implementation and regulation committees in all of the AMS must set a standard on the professional qualifications in order to reconcile differences.

Third, the absence of the registration, regulation and implementation committee on some professions (accountancy, nursing and tourism practitioners) in some AMS delays the MRA implementation. The creation of these aforementioned committees must soon be realized in order to begin MRA implementation.

Lastly, the lack of information dissemination of the MRAs on the national and domestic levels; language barriers, and; non-translation to English of some domestic regulations of the MRAs in some AMS like Myanmar, Vietnam and Laos also impede the MRA realization. Providing materials, creating websites and making use of all forms of media, both in English and the country’s national language, will help in strengthening the MRAs awareness for ASEAN citizens. Collaborating with the private sector and educational institutions in translating domestic regulations to English may also speed up the translation process for Myanmar, Vietnam and Laos.

The liberalization of services may also have a negative effect for the various sectors of some developing AMS. As reiterated by Ibon Foundation (as cited in Palatino, 2015), the influx of foreign workers may lead to a “skewed labor mobility and job insecurity”, thus resulting to “uneven and inequitable economic growth”. Pragmatic solutions must be formulated in order to address this imminent issue.

Fukunaga (2015) reiterated that the MRAs should also extend to ‘unregulated professions’. According to the Philippine Overseas Employment Administration (POEA, 2010), in-demand skills among Overseas Filipino Workers (OFWs) that are not yet covered by the MRAs include Information Technology (I.T.) professionals, teachers, service workers (i.e. domestic helpers, caregivers, etc.) and trade workers (i.e. technician, mason, electrician, etc.). As soon as the current professions under the MRA are fully implemented, the ASEAN should also consider expanding the MRAs to the aforementioned skills since this has become an increasing trend over the succeeding years.

Moreover, the establishment of a Migrant Welfare Fund (MWF) will enhance the mobility of skilled labor. As defined by the International Labour Organization (ILO, 2015), a MWF is a “self-sustaining mechanism that enables the governments of countries of origin to provide additional welfare benefits and services to their migrant workers at the countries of destination, using a fund grown from the initial capital investments of foreign employers, recruitment agencies and/or migrant workers. In practice, such funds may supplement the social security benefits and compensation of migrant workers; provide access to mediation and conciliation services between foreign employers and migrant workers; compensate for illness, injuries, disability and death sustained by workers while abroad; assist in the successful reintegration of migrant workers; and provide emergency and repatriation services to migrants in distress and/or during crisis situations.” Currently, the Philippines’ Overseas Workers Welfare Administration (OWWA) under the Department of Labor and Employment (DOLE) oversees the MWF for OFWs. According to the ILO, with the sharing of good practices and the Philippine experience, it can help AMS like Cambodia, Laos and Myanmar to establish their own MWF. The institutionalization of the MWF to the AEC will definitely boost the quality of labor migration in the region.

Sources:

Fukunaga, Y. (2015). Assessing the Progress of ASEAN MRAs on Professional Services. Economic Research Institute for ASEAN and East Asia Discussion Paper Series, 21. Retrieved from: http://www.eria.org/ERIA-DP-2015-21.pdf

Aldaba, R. (2013). ASEAN Economic Community 2015: Labor Mobility and Mutual Recognition Arrangements on Professional Services. Philippine Institute for Development Studies Discussion Paper Series, 04. Retrieved from: http://dirp3.pids.gov.ph/ris/dps/pidsdps1304.pdf

Palatino, M. (2015). Who Will Benefit from the ASEAN Economic Community? The Diplomat. Retrieved from: http://thediplomat.com/2015/05/who-will-benefit-from-the-asean-economic-community/

Philippine Overseas Employment Administration. (2010). Analysis of In-Demand Skills and Hard-to-Fill Positions for Overseas Employment. Retrieved from: http://www.poea.gov.ph/docs/in-demandSkills.pdf

International Labour Organization (2015). Establishing Migrant Welfare Funds in Cambodia, Lao PDR and Myanmar. International Labour Organization Policy Brief Issue, 03. Retrieved from: http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/projectdocumentation/wcms_421193.pdf

ASEAN Secretariat. (2015). ASEAN Economic Community Blueprint 2025. Retrieved from: http://www.asean.org/storage/images/2015/November/aec-page/AEC-Blueprint-2025-FINAL.pdf

Intra-ASEAN mobility of professionals brought about by ASEAN economic integration is a JOURNEY, not a destination, says Dr.Jayant Menon a leading Economist from Econmoic research and Regional Cooperation Department,ADB.  Establishment of the ASEAN Economic Community is a Stepping Stone rather than a Milestone says Susanna Theresia Mocker, a Research Fellow at EU-Asia Centre. Therefore the literature seems to agree that AEC is indeed a “Work in Progress” However Economic Growth doesn't automatically mean that it would benefit everyone equally. Most likely AEC would only help the small group of people to earn more widening the income GAP between the rich and the poor. 

Multi-National Companies owned fully and partially by the policy makers and the politicians with "Vested Interests", the richest men and women of ASEAN possessing HUGE amount of Capital and owning most corporate sectors, the selfish, greedy and inhuman INVESTORS along with skilled professionals are likely to gain the most from AEC.

Small and medium enterprises which currently provide 90% of employment are at risk of shutting down. Low skilled workers and those from traditional and agricultural industries will suffer the most. The sector and groups with less or no “Competitiveness” less “Capital” and no “infrastructure” are of course at the most losers’ side. Unskilled or semi-skilled workers also will lose since they are not included in the blueprint for the free mobility. MRA is very limiting to the upper business sectors and intra-company employees. According to the United Nations report 2013, 6.5 million intra-ASEAN migrants, with 87 percent of them irregular and unskilled also will be in the losers’ side.

Reference:

Between The Lines: ASEAN economic integration

Channel News Asia at https://www.youtube.com/watch?v=vdL9vtHblpU

Susanna Theresia Mocker, Research Fellow EU-Asia Centre, Establishment of the ASEAN, Economic Community: A Stepping Stone rather than a Milestone

Good day, Dr. Flor!

The ambitious ASEAN Economic Community (AEC), a single market and production base from which the entire ASEAN could benefit, highlights the unhindered flow of capital, heightened international connectivity, and market integration among all member nations (its implementation is said to be already more than 85% complete). But despite this, its effect on labor mobility is still slightly conceptual at best.

One of its main selling points is an ASEAN standard (called the ASEAN Qualifications Reference Framework, or the AQRF) when it comes to labor qualifications so that professionals may be able to nab jobs across different member states with a higher success rate. The AQRF, in turn, is into the completion of Mutual Recognition Arrangements (MRAs) needed to universalize job qualifications, professional recognition, and equivalency certifications across various signatory countries. However, this would not be possible without the

proper cooperation of ASEAN nations; a legitimate concern considering that the AEC lacks the sufficient regulations to ensure compliance.

As for who would gain the most, first and foremost, it would be the professionals whose MRAs are already firmly set in stone, specifically nurses, architects, engineers, surveyors, medical and dental practitioners, tourism professionals, and

accountants. The problem with this, though, is the fact that countries, regardless if they are ASEAN member states or otherwise, have disparities/differences when it comes to 'education and testing requirements'. Given also is the constancy of cultural barriers and the fact that some countries require foreigners seeking local

licenses to demonstrate proficiency in the local language. Some even impose citizenship requirements.

In addition to this, recent data also state that these MRAs account for only 0.3% to 1.4% of employment in member nations, which is also supportive of the claim that this may unconsciously exacerbate the already high risk of brain drain in the Philippines (for example), with some citizens possibly deciding to fly to another member state for better opportunities, thus rendering his/her own deficient of local competencies. Also, the favoring of highly-skilled professionals over those who work in the manufacturing industry and/or local agriculture, for instance, may result in "jobless growth"; that is a country's economic growth is not accompanied by the increase in jobs.

SOURCES:

http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

https://migration.ucdavis.edu/mn/more.php?id=3868

http://www.ey.com/SG/en/Industries/Government---Public-Sector/EY-the-asean-economic-community-toward-intra-asean-labor-mobility

I have to say that I agree with the insights posted by my colleagues here. The brain drain effect and the rich will become more rich scenario are challenges not to be overlooked.   I would like to share my positive thoughts on the intra-ASEAN mobility of professionals. I think one of the sectors that will be given new opportunities will be the skilled Filipino (ASEAN) workers in the Middle East where Saudization, Emiratization, Omanization, Qatarization and other localizations happen.   Companies are required to meet a certain percentage of the region’s nationals set by their government. I feel that this initiative of the host countries is justifiable for the government to protect and prioritize the welfare of their own people and economy.

On the other hand, Filipino workers and other ASEANs in the Middle East are highly qualified and experienced but they generally receive lower salaries, have less chance for career growth and do not have job security. Due to contract based employment, they are usually the ones who get terminated first during economic setbacks. Currently, firms that deal with oil and gas services are gravely affected by overproduction of oil.  If the AEC goals will be realized, a new door will open not only for home based ASEANs but ASEANs overseas as well.  The word ASEANization can possibly pop up in the next five years.  

References:

http://www.rappler.com/move-ph/balikbayan/120498-retrenchment-middle-east-ofws-oil-price-drops

Hello, Dr. Sandy. Intra-regional mobility of professionals has opened more doors to not just job opportunities for skilled laborers but also in generating and extending knowledge and skills on various economic interests. This could mean utilization of full human potential. However, we can take into account some factors which may be menial to some ASEAN members but vital to the welfare of other people who cannot fully take part in ASEAN Economic Integration.

WHO WILL WIN?

THE ASEAN MEMBERS. The policymakers or the members of the ASEAN will see to it that the integration will pave the way for considerable economic and job gains in their underdeveloped regions and could expand the country's gross domestic product (GDP).

HIGH-SKILLED and MEDIUM-SKILLED WORKERS. On an article published by GMA News Online, a study found that ASEAN integration could lead to about 60 percent increased demand for high-skilled employment positions such as managers, professionals, technicians and associate professionals. The study said medium-skilled employment could also grow by around 25 percent with positions such as clerks, craft and related trade workers, plant and machine operators and assemblers, and service and sales workers.

LOW-SKILLED WORKERS. Demand for low-skilled workers, meanwhile, could likewise rise by more than 60 percent, the study said, stressing the importance of a sound primary education.

BUSINESS TYCOONS. Henry Sy, Lucio Tan, Yuchengco, George Ty and others individuals who own multi-million dollar businesses in the Philippines will have their own foreign share, thus expanding more privately-owned corporations which could also generate more efficient jobs for the people who are skilled and knowledgeable of business operations.

ICT WORKERS/INFORMATION-BASED ECONOMIES. The more a worker is technically knowledgeable of using various ICTs, the more he gets better job accommodations especially when he intends to work on information-based economies such as Singapore. This skill becomes highly in-demand since ICT is widely utilized in the intra-regional mobility of professionals.

WHO WILL LOSE?

UNEDUCATED INDIVIDUALS. Education serves as a centrifugal force in ASEAN economic integration. Many primary school aged individuals in developing countries are not in school. If education is not given a primary importance, then only those who can afford to have it will have their lives improved. Those who cannot graduate from senior high school is limited from participating in such integration. They could also become victims of illegal recruitment practices.

UPLAND AND LOWLAND FARMERS AND THE AGRICULTURAL SECTOR. As for the ASEAN Free Trade Agreement, farmers will be forced to sell their products below production cost.

DEVELOPING REGIONS. Since compensation from developed ASEAN member nations will be much higher than that of the developing ones, migration will increase. Medium and low skilled workers are more likely to migrate due to high demand of construction, agriculture and domestic workers.

PEOPLE WHO HAVE LESS CAPITAL AND TECHNICAL KNOW-HOW. Low-compensating businesses may be no longer prioritized. Techno-peasants when deprived of information resources cannot take part in the integration.

Quoting from Sonny Melencio of Partido Lakas ng Masa, “Before we enter into the competitive field of AEC, we have to take stock of our situation first. We have to solve our own problems first and look at solutions available to us in order that we become a stronger economic force.”

REFERENCES:

The impact of economic integration on labor migration in Asean. http://www.businessmirror.com.ph/the-impact-of-economic-integration-on-labor-migration-in-asean/

ASEAN integration to increase demand for workers – ILO-ADB study. http://www.gmanetwork.com/news/story/383110/money/economy/asean-integration-to-increase-demand-for-workers-ilo-adb-study

The ASEAN Integration and its Impact on Labor. http://www.masa.ph/index.php?option=com_content&view=article&id=286:the-asean-integration-and-its-impact-on-labor

Much of the literature regarding skilled labor mobility within ASEAN enumerates and describes the many complex challenges to its full implementation across all member states despite the initially promising establishment of eight Mutual Recognition Agreements (MRAs).

In December 2014, Sugiyarto and Agunias wrote that mobility of skilled labor is problematic and complicated, noting how challenging and fraught the more commonly occurring movement of unskilled labor has been already. They report that in Singapore, which hosts some of the best-paid skilled migrants in ASEAN, resentment from locals abound, as they see themselves on the losing end of the practice of importing highly skilled labor.

Sugiyarto and Agunias also point out that in addition to the groundwork that must be laid by governments and professional credentialing organizations to allow ASEAN professionals the freedom to work anywhere in the region, much of the recruitment process is actually in the hands of the private sector, and not with ASEAN implementors.

This does indicate that one sector which would gain from the intra-ASEAN mobility of professionals are corporations and businesses that might otherwise have difficulty filling highly technical positions from the local labor force, and who may find it prohibitive to hire skilled labor from further afield.

A case in point: Bruni, Luch and Kuoch’s 2013 ILO Cambodian study confirms a gap in communication skills among locals, especially for jobs that involve interaction with the international market such as in the finance and investment and tourism sectors. A second language, possibly Mandarin, because about 73 percent of the workers surveyed worked for companies operating out of Taiwan, was considered highly desirable for higher level positions as well as for accommodation and finance sector openings.

Across the board, the ILO study showed that Cambodia-based employers cited the need for professionals with skills in information technology, communications, foreign languages and leadership. The intra-regional mobility of professionals would certainly benefit the private sector as mentioned above, and perhaps the public works and other technical government agencies of member states like Cambodia, Laos and Myanmar that, due to various reasons, have yet to build up a critical mass of highly skilled professionals to drive their economic engines.

Despite the years of preparation it will take to fully realize skilled labor mobility in ASEAN, once its professionals are able to work anywhere in the region, those who already speak, read and write the languages of their target host country will be well ahead of the game. In their January 2015 working paper for the Swiss National Centre of Competence in Research, Jurje and Lavenex point out that even with the Nursing MRA in place, Filipino nurses wishing to work in Thailand, for example, must pass its nursing licensure examination, which is wholly in the Thai language.

This rather basic requirement for achieving true skilled labor mobility within the region presents a business opportunity for language acquisition service providers at least initially, as well as the rationale for offering ASEAN language courses and programs in all levels of formal education throughout the region, in addition to strengthening English language instruction. Training providers not only for language acquisition but also for cultural sensitivity and cross-cultural relations especially in the workplace would be positioned to profit from the ASEAN mandate to promote skilled labor mobility.

Among the professions with existing MRAs, Jurje and Lavenex state that only those for engineers and architects have been operationalized, and that the six other professions have yet to work out all the details of their respective reciprocity agreements across all member states. This means that specialists in professional accreditation and licensing processes; authors and publishers of review guides and practice examinations; and labor market researchers and analysts among others, stand to profit in the run-up to full ASEAN skilled labor mobility.

One group that might also see benefits would be younger professionals who, perhaps, have reached a career ceiling with their current employers and must wait for more senior coworkers to retire or be promoted in order for them to advance professionally. The option to work elsewhere in ASEAN would not only increase their future marketability and expand their personal horizons, it would also help create an entire generation of young ASEAN professionals with greater exposure to other member states’ people, culture, etc., helping build a more cohesive ASEAN identity and regional solidarity.

Concerns about Brain Drain, national security, and understandably protectionist attitudes among individual member states will challenge the fortitude of those working toward ASEAN skilled labor mobility. However, Victor Bernard of The Asia Foundation, while acknowledging these issues, wrote of the “reverse brain drain” phenomenon of highly skilled migrant workers returning to their home countries “bringing knowledge that can generate investment flows and develop new skills and technology.” In the final analysis, the originators of ASEAN skilled labor mobility must have believed that it will ultimately be a win-win for all member states.

References:

Bernard, V. (2015). AEC Skilled-Labor Migration: A Gap between Aspiration and Reality? Retrieved March 06, 2016, from http://asiafoundation.org/in-asia/2015/08/26/aec-skilled-labor-migration-a-gap-between-aspiration-and-reality/

Bruni, M., L. L., & S. K. (2013). Skills shortages and skills gaps in the Cambodian labour market: Evidence from employer skills needs survey (Working paper). Retrieved March 06, 2016 from: http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_231862.pdf

Jurje, F. and Sandra Lavenex. (2015). ASEAN Economic Community: What model for labour mobility? (Working Paper). Retrieved March 06, 2016 from: http://www.nccr-trade.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

Sugiyarto, G. & Dovelyn Rannveig Agunias. (2014). A ‘Freer’ Flow of Skilled Labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. Retrieved March 06, 2016 from: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwj926zZnIPLAhUURGMKHRqFBe8QFggjMAE&url=http%3A%2F%2Fwww.migrationpolicy.org%2Fsites%2Fdefault%2Ffiles%2Fpublications%2FMPI-IOM-Issue-No-11-Skilled-Labour-Movement.pdf&usg=AFQjCNF7lwE1laEVvehopIw0mhNYPauH6A&sig2=_g3e3rBkYhZphnGI1MAm8w

Overview of the ASEAN skilled labor market - ASEAN UP. (2015). Retrieved March 06, 2016, from http://aseanup.com/overview-of-the-asean-skilled-labor-market/

Video created by ASETUC – Asean Services Employees Trade Union Control shows the ASEAN Economic Integration and employment mobility. The presentation shows that the AEC will not benefit every region equally but rather benefit only few regions which have big domestic and multinational companies, simply because they are the only ones who have capital, knowledge and ability which are the key requirements to compete with larger economic regions, as a result medium to small enterprises will be at risk since instead of creating a region for the interconnection of each enterprise the plan may only create a bigger competitor for smaller enterprises thus widening the economic gap.

In terms of employment, subcontracting may rise up and the low-skilled workers especially those who are under agriculture may suffer. The video also tackles the rise to the bottom approach that may make the employee’s situation worse. These are the possible effect of AEC but it can be eradicated by allowing the ASEAN government to create decent jobs, additional social security plans and most importantly to invest in education. Trade unions can also help to improve working conditions by negotiating with the government. With the continuing effort of every trade union’s voices may influence the ASEAN government’s future plan and action for economic growth that benefits all workers.

The establishment of the ASEAN Economic Community seeks to drive competitiveness, increase exports, and boost living standards across the region. 

Wins: 

The IT Industry Sector

The first thing that comes to mind my with the question posted by Dr.Flor is part of the readings for Unit 1. Dr. Flor outlined the strengths of each country in terms of the IT Industry. As we are in the Information technology, it is good to note that each country knows its own respective niche wherein they can focus in.

The Philippines, for example, tops the soft back low-end continuum, while it can also develop soft back high end, soft front high and low-end. 

However, there are other industries apart from the ICT that the ASEAN is pushing for. Some of them include textile and apparel, medical devices, and electronic industry. These have been named as the Key Industries for investment in the region.

Apart from looking at it at an industry based point of view, we may also glance upon the AEC on who will benefit the most. 

Businessmen 

“The establishment of the AEC will contribute significantly to the region’s growth and create developmental opportunities for all,” said Minister for Foreign Affairs Vivian Balakrishnan.

The lowered prices of the tariffs and non-tariff barriers will ignite greater economic activity within the ASEAN and encourage investors and enterprising businessmen from the 10 member countries to become regionally integrated.  This will also affect local businesses, especially small and medium enterprises who are looking to expand their market to neighbouring countries. 

The Youth .

The AEC as  Balakrishnan puts it “will give our people, especially the young, many more opportunities to succeed.” As the economy grows, so too will be the increase for employment. because of the AEC, not only in our country but also neighbouring countries as well. New graduates hopefully will have the option to look for work within the ASEAN. 

Possible losses.  

Skilled workers and those who do not hold a college degree will be affected. If the AEC does not focus on creating different products made around the region in specialized plants then there will be a an upsurge of skilled workers with no means of income 

Farmers and fishermen. If the AEC will not commit to develop techniques and educate farmers and fishermen, then this sector will be on the losing end of the AEC.

Simplifying rules and harmonising regulatory structures are two of the aims of AEC. However with pertinent corruption issues here in the country, there seems to be little hope of achieving these. If this two goals will be met, then hopefully the widening gap between poor and rich will turn slimmer.  

With the cultural and political differences between the ASEAN countries, there are certain squabbles that needs to be addressed. Some of which include the ownership of a Khmer Temple in the Cambodian- Thailand border and the traditional song and dance that is being claimed by both Indonesia and Malaysia. Yet, we must also reflects on the simple fact that we all see the same sky, and that the region can dig up our similarities and together cultivate them for unity and peace. 

References:

ASEAN Enters 2016 As A Community. 2015. http://business.inquirer.net/204563/asean-enters-2016-as-a-community

Birth of Asean Community ‘a significant milestone’—Singapore minister. 2015. http://globalnation.inquirer.net/134377/birth-of-asean-community-a-significant-milestone-singapore-minister#ixzz42ktUnst7 

Edilberto C. de Jesus. 2012. Constructing the Asean community. http://opinion.inquirer.net/32131/constructing-the-asean-community#ixzz42lZuaxwg 

 Matthew Zito, Benedict Lynn, and Emily Liu. 2014. Key Industries for Investment in ASEAN. http://www.aseanbriefing.com/news/2014/12/03/key-industries-investment-asean.html

Improving the labour mobility for professionals is one of the priorities of ASEAN Economic Community (AEC) in the coming years to quicken the change and growth in the ASEAN region.  This initiative has focused on Mutual Recognition Arrangements (MRAs) that establish the skills or experience that relevant professionals need in order to gain certification in another country and ultimately to work abroad.  Also, to enable qualifications to be compared across member states while providing a coherent benchmark for current national qualifications networks, ASEAN Qualifications Reference Framework (AQRF) was developed to support the MRAs.  In total, eight (8) occupations have been concluded by MRAs, namely engineers, nurses, architects, surveyors, medical and dental practitioners, accountants and tourism professionals (asean.org).

According to the study and report of International Labour Organization (ILO) and Asian Development Bank (ADB) in 2015, implementation of the MRAs remains difficult for some reasons – (1) countries vary significantly in the education and testing they require for granting professional recognition, and professional associations are often reluctant to alter their existing standards or to admit potential competitors from abroad; and particular professions may be licensed in some countries but not in others; (2) some countries require such positions as teachers, lawyers, civil servants or soldiers to be filled by citizens and explicitly exclude migrant workers from these; (3) differences in language, culture, and social acceptance can create practical barriers to labour mobility beyond any provisions that may be set down in law; and (4) MRA negotiations have generally been conducted bilaterally and most contain loopholes for implementation.   Hence, seven of the occupations, except the tourism professionals, currently covered MRAs account for only between 0.3% and 1.4% of total employment in member states, which represent a negligible fraction of the total jobs held in ASEAN. (adb.org)

For some developing ASEAN countries like Philippines, Myanmar and Indonesia, it will be of struggle to stand up with the free movement of some concluded professions because in reality, majority of the labour migration in ASEAN region is mainly dominated by low-skilled and medium-skilled workers in construction, manufacturing, fishing and domestic works. 

For some private sectors in ASEAN’s three (3) main migrant destinations – Singapore, Malaysia, and Thailand, they have experienced a significant amount of public debate about the consequences of rapid flows of non-local manpower in their country.  Ismail (2015) quoting Director Randolf Tan of the Centre for Applied Research at SIM University: “One of the things I would warn against is to look for rapid gains.  One of the lessons that Singapore has tremendous experience over the last 10 years is that the rapid flows of non-local manpower have to be strictly regulated.”

If all types of migration will be managed by the ASEAN Member States (AMS) more effectively with sufficient support, protection, and assistance for all migrant workers; some migrant groups in the Philippines like Overseas Contract Workers (OCWs) or Overseas Filipino Workers (OFWs) working in another region like the Middle East will reap the benefits of this intra-ASEAN professional mobilization.   Thousands of Filipino architects and nurses working in the Middle East, sacrificing being away from their families and at risk of having displaced job because of security issues.  The opportunity of working in the nearer region from the home country practicing their professions is a boost of moral for every OFWs; apart from continuously contributing to the growth of Philippine economy and the ASEAN community in general.

Though the reality of full integration of labour mobility is still long way to achieve, it is indeed still doable by extreme hard work of all concerned ASEAN’s stakeholders.  Hence, every industry, institutions, sectors, etc. of ASEAN Member States (AMS), for both source and destination countries, only gains the benefits of more sustainable and legitimate mode of managing labour mobility being part of ASEAN Economic Community (AEC) priorities.

References:

A Blue print for Growth. ASEAN Economic Community 2015: Progress and Key Achievments.  Retrieved from http://www.asean.org/storage/images/2015/November/aec-page/AEC-2015-Progress-and-Key-Achievements.pdf

ASEAN Community 2015. Managing integration for better jobs and shared prosperity http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

Ismail, S. (2015, April 12). ASEAN leaders push for greater regional labour mobility.  Retrieved from http://www.channelnewsasia.com/

With the development of the ASEAN Integration and the ASEAN Economic Community (AEC), the mobility of professionals in the region will be seen as a positive development that will further seal the region's continued growth.  My take is that this mobility will greatly benefit the following sectors:

In all of these, the anticipated mobility of these professionals/skilled workers is seen as a threat by the Philippines as it may result to a "brain drain" or "skills challenge" at the least.  But then again, we cannot do anything about it to stop it.  At most, all we can do is to develop these skilled workers to see to it that they meet regional standards to be able to compete and move around ASEAN.

Who would lose from this?  It would be countries that freely export labor in the realization that it lacks the opportunities it can provide to its nationals.

Sources:

Deloitte. (n.d.). A perspective of future healthcare landscape in ASEAN and Singapore. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/risk/sea-risk-future-healthcare-thought-leadership-noexp.pdf

National Economic and Development Authority. (2014). "Skills Challenge" seen with freeflow of ASEAN professionals. NEDA DevPulse, Vol. 17, No. 1. Retrieved from http://www.neda.gov.ph/2015/01/08/skills-challenge-seen-free-flow-asean-professionals/

http://www.neda.gov.ph/2015/01/08/skills-challenge-seen-free-flow-asean-professionals/

Happy Easter Doc Sandy and fellow learners! 

In a talk I attended last year about “Understanding the ASEAN Economic Community,” the first concern raised by a student was about job opportunities for undergrads like her who will soon join the workforce when the ASEAN Economic Community (AEC) is in full swing. After hearing the speaker talk about professionals being able to practice anywhere in the ASEAN member states, the concern for stiffer competition more than the opportunity to practice in other countries in the region was more apparent to some students in the audience.

The DTI Primer on the AEC (2014) states that one of the pillars of the AEC is embodied under human resources development, specifically single market and production base where free flow of skilled labor is envisioned.  The labor mobility initiative has focused on the Mutual Recognition Arrangement (MRA) that establishes skills that professionals need in order to gain certification and, ultimately work in another ASEAN country. Currently, the MRA has been completed for eight (8) occupations. But these occupations account for only between .3% and 1.4% of total employment in member states (Lockyer, 2015).

Available literature discuss several issues about the MRA and which countries stand to benefit the most. At the onset, clearly, the sector or group who stand to gain the most from labor mobility, are professionals who practice in the MRA-agreed areas: engineering, nursing, architecture, surveying, medical, dental, accountancy and tourism.  At the losing end are groups who are already marginalized especially those who have limited access to information and education for it is education that plays a crucial role in employment.

Information is the modern-day currency.  The Information Age that we are in is significantly affecting every aspect of the lives of individuals and societies worldwide (Flor, 2009).  This information age is described by Flor (2009) as one that wears two faces – information-rich and information-poor.  In efforts such as this intra-ASEAN labor mobility, what comes to mind is the widening gap between these two faces.  Inevitably, better opportunities will be afforded to those who have more in life leaving those who have less farther behind.  More jobs. Better opportunities. Wider inequality.  

In a 2014 report by the Asian Development Bank and the International Labor Organization where the impact of the AEC on the labor market was examined, the challenge to ensure inclusive growth and shared success emerged.  The report cites that around 14 million jobs could be generated by 2025 but the gains will not be uniform across countries, sectors or sex. Job gains for men could be greater than those for women (ILO & ADB, 2014).  It is also noted in the report that the AEC will accelerate the demand for skilled workers and hopes that the integration will also benefit the vulnerable sectors including women and young people.

These are exciting times ahead as ASEAN is moving forward into the realization of integration. However, this is going to be one long journey as the countries in the region are in varying stages of development. ASEAN can reap huge benefits from this integration in the future, but it has to work much harder in order to achieve that (Ismail, 2015).

Sources:

Department of Trade and Industry (2014). Understanding the ASEAN Economic Community A Primer.

Flor, A. (2009). Developing societies in the information age: A critical perspective. Diliman, QC: UPOU Oasis.

ILO & ADB (2014). ASEAN Community 2015: Managing integration for better jobs and shared prosperity. Retrieved from ILO website: http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf

Ismail, S (2015, August 22). ASEAN Leaders push for greater regional mobility. Retrieved from Channel News Asia website: http://www.channelnewsasia.com/news/singapore/asean-leaders-push-for/1779890.html

Lockyer, B (2015, January 29). Labour mobility under ASEAN 2015 integration seen as limited. Retrieved from CXC Global Website: http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/.

To contribute to this discussion Dr. Flor, I would like to share a number of points. In my opinion, who will benefit or who will lose in the new intra-ASEAN professional mobility will depend on four points. These points constitute the operations of a the integration, and characterize the different member countries.

The first point for consideration are the business policies, both domestic and foreign, that govern the businesses of a member country and how they relate with others countries'. This includes but not limited to the business ownership and taxation system. Businesses may move their business away from ours to a lower-taxed country, in an open and free ASEAN market. In a market governed by economy of scale, a country like ours may lose to countries like Indonesia or Vietnam. This may cause our local professionals, to move to other countries where their industries flourish and jobs are available. Then, I cannot qualify this as either a win or a lose for employees or professionals in general as they can or will simply follow where the job takes them. This is however, a lose for our country in the long run as it may result to brain drain if our current policies do not align with others'. Why should we worry about misaligning with others? This brings me to my next point.

My next point for consideration is business capability. Mong Palatino, in his article on The Diplomat cited Ibon Foundation saying that: “aggressive foreign corporate takeovers of the region’s resources.” It is already a fear that in an open market, what fight do we have against multinationals who have the financial machinery? Alignment of economic policies among nations is a double-edged sword; as it asserts that it will cause fair competition, but a fair competition is not a just competition, especially in a lopsided scale. Foreign investments may either takeover, or pull out from our country. Which may cause loss of business opportunities for our countrymen for the former, and brain drain for the latter. Like my previous point, this by itself is neither a win nor lose for professionals. But this may be a big lose for start up businesses that do not depend on ICT. ICT-related start-ups may be able to ride or even conquer this tide but for industries like agriculture and manufacturing that depend on large and fixed physical assets this may be quite problematic.

As Benjamin Diokno said: "An economy that is willing to invest time, money, effort, and adopt the “right” policies (consistent, predictable, and unbiased) is likely to reap the benefits of membership in such economic groupings. An economy that is willing to just join the conversation, but not work, would benefit the least." 

Labor policies among nations also differ greatly. Who wins or loses from professional mobility then greatly depends on which industry they are in, in what country, and whose business it is. The free market flow makes us assume that foreign business with their own labor practices can come in any country to practice. Assuming that they should adhere to a country's labor policy (if there will still be differences), makes a professional win if that country's policies are supportive of their well-being. But for example, in a country like ours with poor labor policies and high income taxation, foreign professionals may lose if they worked here. This can then again effect to brain drain as our local professionals look outside to countries with better labor policies.

Lastly, unique, or valued product offerings in an important consideration as well. The ASEAN integration demands for even better differentiated products as we expect waves of foreign products come into each others' countries. Benjamin Diokno said: "In the end, a country has to produce tradeable goods that are competitive with the rest of the world." A country with poorly valued products will eventually cease to be businesses. What this may do to our professionals is displace them as they look for better opportunities.

A brief wrap up

What will happen when the ASEAN Integration kicks off may be inferred by observing what has been happening now with the Philippines. Businesses flock to the metro because of more favorable labor and business policies. Because of this, people from the provinces either migrate to the metro or travel for hours just to work in the city because better working opportunities are there. Provinces are left to either very small business, warehouses, manufacturing plants, or big distribution business come and set up there, killing more smaller businesses. This phenomenon is a microcosm of the ASEAN business move to better conditions, taking workers along with them. Who wins in this situation? Professionals who are 1) educated enough to follow the companies 2) employed by companies that are ICT-capable or dependent. Who loses? People who have little to no capacity to follow these companies, which is basically more than half of the Philippine population.

“Solidarity, cooperation and complementarity among states should be pursued instead of economic competition,” - Ibon Foundation

Sources:

http://thediplomat.com/2015/05/who-will-benefit-from-the-asean-economic-community/

http://www.bworldonline.com/content.php?section=Opinion&title=how-to-reap-the-benefits-from-apec-asean-integration&id=118783

http://www.brandeis.edu/departments/economics/RePEc/brd/doc/Brandeis_WP13.pdf

ASEAN, through the establishment of the ASEAN Economic Community (AEC), intends to transform the region into a single common market and production base. This market, according to the ASEAN, is expected to result to the free flow or the intra-regional mobility not only of goods and investment but of workers, as well. However, this labor migration is said to be ‘limited’ as it only focused on those covered by the Mutual Recognition Arrangements (MRAs). The MRAs “establish the skills or experience that relevant professionals need in order to gain certification in another country and ultimately to work abroad,” (Lockyer, 2015). 

MRAs, at present, is a good news to the covered professionals specifically the engineers, nurses, architects, surveyors, medical and dental practitioners, accountants and tourism professionals. So far, only the said eight occupations were provided with MRAs. That is, only the said professionals can gain the most from the AEC. According to Lockyer (2015), “The occupations currently covered by MRAs account for only between 0.3% and 1.4% of total employment in member states.” Still, the differences in the education and trainings of the said professionals among the ten member-states may pose a challenge in the intra-region mobility of professionals. Those with the better and MRA-approved or widely accepted education and training can gain better. Also, since the ASEAN member-states have different culture and traditions, those with knowledge of the other countries’ culture and language can gain the most out of the intra-region mobility.

However, if I may also cite, Sugiyarto and Agunias (2014) said the aspired free of labor mostly include low-skilled workers, highly concentrated in a few countries as Thailand and Singapore, and that “irregular migration within the ASEAN region remains intractable.” 

Thus, for the intra-ASEAN mobility of labor force to be really advantageous to each and every professional of the ASEAN, each of the ten-member states shall come up with (largely) common policies to meet the provisions set by the MRAs, to make education and training somehow the same among the nations, and make migration processes easy, or easier.

References:

Lockyer, B. (29 January 2015). Labour mobility under ASEAN 2015 integration seen as limited. Retrieved from http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/.

Sugiyarto, G. & Agunias, D. R. (December 2014). ‘Freer’ Flow of Skilled Labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. 

A 2014 joint report of the International Labour Organization (ILO) and Asian Development Bank (ADB) entitled “ASEAN Community 2015: Managing integration for better jobs and shared prosperity” examined the impact of the ASEAN Economic Community (AEC) on labour markets. The report indicated that AEC could lead to 14 million additional jobs and increase overall growth by 7.1% by 2025. Regrettably, the gains will be unequally distributed in each member country due to varying “degree of economic and labour market dependence on international trade”.

The report also identified agriculture, trade and transportation, and constructions will generate the most number of job demands. Almost a million jobs on trade and transportation are estimated to be generated in the Philippines and about another two million across other sectors. Cambodia and Vietnam were the other top countries expected to benefit from the ASEAN integration.

These numbers are promising, however, an unfortunate consequence of such gain is the rise on inequality. The report warns that wage disparities will continue to widen as the higher skilled worker are expected to be more in demand and thus expected to grow their incomes compared to those with lower skill-sets.

Reference:

International Labour Organization and Asian Development Bank. (2014). ASEAN Community 2015: Managing integration for better jobs and shared prosperity. Retrieved from http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_300672.pdf 

Reference 1

http://www.migrationpolicy.org/sites/default/files/publications/MPI-IOM-Issue-No-11-Skilled-Labour-Movement.pdf

LOSE

Most intra-ASEAN migrants are unskilled workers (more than 87% are low-skilled), and irregular migration remains an intractable problem. These  flows are concentrated in just a few corridors. The top  five corridors—Myanmar to Thailand, Indonesia to Malaysia, Malaysia to Singapore, Lao People’s Democra c Republic to Thailand, and Cambodia to Thailand—represent 88 per cent of the total intra-ASEAN migrant stock.

Numerous countries also do not have educational systems capable of producing the workforces they need, and many more see their most highly skilled workers emigrate.

GAIN

The people with the skills and innovative ideas needed by domestic economies are increasingly free to pursue opportunities.

Skilled labour mobility also could help address skills shortages and gaps, as well as address unemployment for youth, particularly the well educated, further promoting growth in the economy and increasing inclusiveness.

The ASEAN Agreement on the Movement of Natural Persons (MNP) provides the legal framework to facilitate temporary cross-border movement of people engaged in the conduct of trade in goods, services, and investment. More speci cally, the MNP aims to establish streamlined and transparent procedures for business visitors, intra-corporate transferees, and contractual service suppliers to apply for immigra on formali es (ASEAN, 2012).

Reference 2

http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

LOSE

Most migrant workers are low- and medium-skilled, and the main drivers are economic and demographic disparities among Member States. Some countries of origin have expanding youth populations, which places pressure on the labour market to create jobs and can lead to outmigration of young women and men. In the destination countries the demand for migrants has increased due to population ageing, which can lead to labour shortages.

GAIN

Model simulations indicate that between 2010 and 2025, productivity in a number of economies could double under the AEC.

Between 1990 and 2013, intra-ASEAN migra- tion increased from 1.5 million to 6.5 million, with Malaysia, Singapore and ailand emerging as major migration hubs.

Migration of low- and medium-skilled workers is likely to continue and even increase. Policy makers could therefore make migration channels safer, and more manageable and transparent, by expanding the scope of MRAs to encompass low- and medium- skilled workers, such as those in the construction, garment, shing and plantation sectors.

These measures include enhancing industrial and sectoral poli- cies, supporting smaller enterprises, strengthening employment and skills policies and improving connectivity and infrastructure. At the same time, it is critical to build e ective social protection systems, including for workers in vulnerable employment as well as for women and men who are at risk of losing their jobs and incomes as some economic sectors decline.

Reference 3

http://dirp3.pids.gov.ph/webportal/CDN/PUBLICATIONS/pidsdps1439.pdf

LOSE

Serious concerns about the apparent loss of valuable knowledge and skills in the South, or what became known as ‘brain drain’, were brought to the fore. From the 1970s to the early 1990s, and even up to the present, migration was seen as causing underdevelopment for countries of origin. It came to be viewed as a detrimental process depleting sending countries, particularly developing ones, of their human resources (Papademetriou 1985).

Given these issues, the more advanced economies in the region will have more advantage in exploiting the opportunities of ASEAN integration during the initial years of the AEC. Prominent economist Joseph Stiglitz expressed the view that the ASEAN integration could even lead to more brain drain for the poorer countries in the region. In the World Economic Forum on “ASEAN Connectivity: Road Map to 2015” on June 1, 2012, Stiglitz said that increased skilled labour movements in the region could lead to a “hallowing out” in the poorer countries in favour of richer member-countries like Singapore (Chaitrong 2012).

The ASEAN integration can therefore be a double-edged sword for member-countries that may not be able to improve their competitiveness in the long run. The full implementation of the mutual recognition arrangements in key professional services will mean greater competition for skilled labour among the member-countries.

GAIN

These MRAs (mutual recognition arrngements) will enable the qualification of professional workers from one member-country to be recognized by another, thereby easing the movement of professional workers within the ASEAN. AEC 2015 also aims for greater cooperation in cross- border education among the member-countries, which suggests increased mobility of students and professionals.

the ASEAN region may benefit from AEC 2015 from increased remittance and investment flows, technology transfer, business and professional linkages, and return migration of expatriate professionals.

A description of these concepts is given by Castles and Miller (2009, pp. 65-66) in their book, Age of Migration:

“The brain circulation argument goes as follows. If highly skilled people cannot be employed at home, they are not damaging the economy by leaving. Qualified personnel emigrate not only because salaries are higher in the North, but also because working and living conditions in the South are poor and opportunities for professional development are lacking. Indeed, training people to work abroad may be seen as a rational strategy, because in the short run, it will increase remittance flows, and in the long run, it may lead to return of experienced personnel and transfer of technology.”

The more advanced countries in the region such as Singapore and Malaysia have an edge in attracting expatriate professionals. They can offer more attractive remuneration and compensation packages compared with the less developed countries.

Dear Dr. Flor, 

The intra-ASEAN mobility or the movement of business persons, skilled labour and talents is a key element in achieving greater economic integration in the ASEAN region. Tagged with intra-ASEAN mobility is the engagement of member countries to Mutual Recognition Arrangements or MRAs applicable to eight sectors: engineering, accountancy, architecture, surveying, nursing, dental and medical practitioners, and tourism. The MRAs “establish the skills or experience that relevant professionals need in order to gain certification in another country and ultimately to work abroad.” However, MRA is not a guarantee of full labor mobility of the enumerated professions. The implementation of the MRAs is also difficult according to the Asian Community 2015 Report written by the Asian Development Bank and the International Labour Organisation. The reasons presented are “the disparity in education and testing requirements for granting professional recognition alongside differences in languages and cultural and social acceptance”. National immigration and visa policies could also impede the changes in labor mobility.

Since intra-ASEAN mobility would involve drastic movement in the labor force, the role of human resources or HR team is pertinent. The small and medium-sized enterprises or SMEs and local and family-run enterprises may lose their talent to larger enterprises if HR functions are not yet fully developed. Right now, both enterprises have limited HR maturity. Their HR functions should focus on:

1.    Talent Attraction – attracting the right people to your business and being perceived as an employer of choice

2.    Talent Retention – motivating employees to stay longer in the organization and perform at their highest potential

3.    Talent Growth- Understanding , managing and developing the talents and skills of employees

Though mobility of professionals are encouraged under ASEAN economic integration, in reality “labour migration within ASEAN is mainly dominated by low- and medium-skilled workers in manufacturing, construction, fishing and domestic work.”

Based on a study conducted by the International Labor Organization or ILO and the Asian Development Bank or ADB, mobility of professionals could also generate job insecurity especially to low/semi-skilled workers, who are more abundant in developing countries. “Unskilled workers in higher-wage countries can experience marginalization as the need for skilled workers increases”.

However, several researches show that progress towards freer mobility of professionals has been “slow and uneven”. Some thinks that it’s ambitious because of three challenges:

1.    It is difficult to adapt domestic policies and regulations to meet the provisions of MRAs.

2.    Stronger political and public support is needed to drive the process forward despite the time consuming and technical difficulty of the task.

3.    Consideration of other deciding factors such as market demand and supply gap analysis, admissions and visa policies, origin countries’ emigration policies, ,and the recruitment process, which is primarily controlled by private sector.

References:

ADB(2014), ASEAN Community 2015: Managing Integration for better jobs and prosperity. Retrieved from http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration

Aguinas, Dovelyn and Sugiyarto, Guntur. (2014, December). A Freer Flow of Skilled Labor within ASEAN: Asipirations, Opportunities and Challenges in 2015 and Beyond ASEAN Economic Community: what model for labour mobility?

HQ Asia. (2016, January 13). Is your Talent AEC ready?. Retrieved from http://hqasia.org/insights/your-talent-aec-ready

Ibon International. (2015, April). ASEAN Community 2015: Integration for Whom? Retrieved by http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

Jurje, Flavia and Lavenex, Sandra. (2015, January). Labour mobility under ASEAN 2015 integration seen as limited. Retrieved from http://www.nccr-trade.org/fileadmin/user_upload/nccr trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

Hi, Dr. Flor!

In a critical perspective, we have to look into whose interest will be favored from this intra –ASEAN mobility of professionals. Asia has been known as the heart of Factory Asia, wherein transnational companies are relocating their businesses and services across ASEAN countries. In this integration, this   labor mobility initiative paved way for the ASEAN Economic Community (AEC) to the creation of the Mutual Recognition Arrangements (MRA) which establishes the skills needed by professional for them to be able to work abroad. Among the completed eight occupations for this mobility under the arrangement include engineers, nurses, architects, surveyors, medical and dental practitioners, accountants and tourism professionals.  

 With the poll of migrant workers in the Philippines, who will benefit the most are the developed countries in ASIA, while this can result to a possible brain drain in the Philippines. The lack of national industrialization thereof, and the rise of foreign investment in the country, will exacerbate the   import – dependent and export - dependent orientation of the country.

References:

 ASEAN Mutual Recognition Arrangmnets. Retrieved from http://investasean.asean.org/index.php/page/view/asean-free-trade-area-agreements/view/757/newsid/868/mutual-recognition-arrangements.html

Dear Dr. Sandy,

ASEAN Members States (AMS) aim to realize the free flow of skilled labor within ASEAN by 2015 as embodied in the Economic Blueprint, one of the three blueprints adopted for the ASEAN Economic Community (AEC). Thus far, a Mutual Recognition Arrangements (MRAs) Framework has been formalized among AMS for the mutual recognition of education and experiences obtained in 7 priority sectors - architectural services, surveying, medical practitioners, dental practitioners, engineering services, nursing and accounting services, and tourism professionals. All 10 ASEAN Member States are already participating members of these seven MRAs and different mechanisms are being established to administer their implementation. The 8th MRA on Tourism Professionals (MRA-TP) aims to facilitate the mobility of tourism professionals within ASEAN based on competence-based tourism qualifications. While MRAS have been reached in 7 professions in ASEAN, work remains on defining competency-based qualifications and benchmarks.

Such migration or laborers has largely characterized international migration patterns for decades. This has fueled serious concerns about the apparent loss of valuable knowledge and skills in developing countries known as "brain drain". However, the extent of migration between developing countries, has intensified

in recent years due to the economic progress in some regions. Then it suggests that the ASEAN economic integration can be viewed as an opportunity for brain gain for the ASEAN member-countries. The envisaged ASEAN economic community (AEC) may boost movements of skilled labor as a result of the growth of cross-border education, increased mobility of professional workers with the implementation of the mutual recognition arrangements (MRAs), and the possible return migration of expatriate professionals to the ASEAN region given a vibrant regional economy in the long run that can provide more competitive remuneration packages. In turn, these will facilitate knowledge exchanges and collaborations, technology transfers, economic and business linkages, investment flows, and increased remittances. However, the more advanced economies in the region will have an edge in exploiting these opportunities in the initial years of the AEC. The ASEAN integration can be a double-edged sword for member-countries that may not be able to improve their competitiveness in the long run.

Hello Dr. Flor!

The concept of globalization and striving in the information age, has led agricultural and industrial-based countries to move along with major changes in the field of employment which leads to the weakening of the human resource for agriculture and industry (Ogunsola, 2005).

Up until the 18th century, agriculture was the primary means of economic development and employment in the world. However, developing countries that depend on agriculture for a living are poorer than the people who are involved in other sectors of the economy. The unfortunate part is that they represent the majority among the total population (Cervantes-Godoy and Dewbre, 2010).

Migration of agricultural workers to non-agriculture jobs are increasing in rate, for knowledge has displaced labor and capital as the key component of production (Humbert, 2007). Toffler (1980) defined Information Age as an era that is mightily motivated by information technology and wherein knowledge is the capital for trade (Flor, 2015).

Information-based economies have become dominant in the world. In this sense, growth industries are information industries (Flor, A., 1991). However, it must be noted that the population within an information society are not totally information workers, for there are still agricultural and industrial workers needed for societal survival (Flor, 2015).

Reflecting in the concept of ASEAN integration as seen in the vision of AIM 2020 which is to achieve a digitally-enabled economy, information and communication technologies (ICT) is seen as the key for holistic ASEAN development (The ASEAN ICT MASTERPLAN 2020). In Southeast Asia, digital media and mobile revolution is currently at trend. However, it is also comprised of developing countries which are lowest in the world among ICT development such as Laos and Cambodia (Flor, B., 2015).

Flor, A. (2015) discussed that every country have an opportunity to benefit from the ASEAN integration if they are able to focus on their technological niches. In this sense, using their relative strengths and strategic advantages in the field of information and communication technology can serve as the key for reaping benefits in the integration.

Given this context, it can be deduced that those who are “information workers” – those people working in the field of information and communications technology and knowledge management; as well as countries with an established information economy would seem to gain most from the ASEAN integration. Though it was discussed by Flor, A. (2015) that every country has its strengths and weaknesses when it comes to technological advancements and niches, it could be noted that those who are already in the world ranking regarding technology capabilities already have an edge for further growth and development. As based from the Human Development Report, the higher the HDR rank, the higher the ICT indicator values; and the lower the poverty index, the higher the value of ICT indicators. In this sense, this serves as proof that those who are involved in the information economy and knowledge trade have higher chances of gaining benefits from the ASEAN integration.

References:

Flor, A. (1991). The Fifth Theory of The Press

Flor, A. (2015). Carving ICT Industry Niches Within The ASEAN in a Globalized Higher Educational and Knowledge Environment. In Flor, A.G. & Flor, B.G. (2015) ASEAN Convergence Monograph. Towards An ASEAN Identity: Discourses On Communication And Culture. (pp. 46-57).

Flor, B. (2015). The ASEAN Media Landscape. In Flor, A.G. & Flor, B.G. (2015) ASEAN Convergence Monograph. Towards An ASEAN Identity: Discourses On Communication And Culture. (pp. 34-45).

Humbert, M. (2007) Technology and Workforce:

Comparison between the Information Revolution and the Industrial Revolution. University of California, Berkeley

Ogunsola L. A. 2005. Information and Communication Technologies and the Effects of Globalization: Twenty-First Century "Digital Slavery" for Developing Countries--Myth or Reality? Hezekiah Oluwasanmi Library, Obafemi Awolowo University, Ile - Ife, Nigeria

The ASEAN ICT Masterplan 2020

Good day, Sir Sandy and Fellow Learners!

     The ASEAN Integration will be an exciting phase in the region’s history as it is projected to create 14 million jobs in six ASEAN economies by 2025, according to a report by the International Labor Organization (ILO) and the Asian Development Bank entitled "ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity." However, along with the massive increase in job opportunities, it is also expected that some sectors will decline or expand. The changes in the sectoral labor distribution in the region will also alter or dictate job market demands. The report claims that low-skill and medium-skill jobs will reap the highest demand but also states that in some economies, high-skill jobs will grow fastest in some economies (2014).

     With the implementation of the ASEAN Mutual Recognition Arrangements (MRAs), it expected that there will be free intra-mobility of professionals in the fields of engineering, architecture, accountancy, surveying, healthcare, and tourism within and among the Member-States. However, practitioners in these fields, except tourism, only represent 1.5% of the total regional labor force (Sugiyarto and Agunias, 2014). In addition, with the stringent requirements to avail of the visa and employment passes, many of these professionals might opt to go to other more progressive economies which may demand the similar requirement but will provide much more benefits and compensation.

     Meanwhile, the ILO-ADB report states that in many ASEAN Member States, trade, transport, construction, and private services sectors will see increase in job opportunities. On the other hand, the labor force in the agriculture sector will suffer a decline, but it will continue to have a bigger share of employment in some ASEAN countries.

     Moreover, in a report released by Rabobank, packaged food and meat industries will score substantial growth, brought about by rapid urbanization, which will boost the demand for packaged food. The bank estimates that annually, the packaged food industry will grow 5% while the meat industry is expected to grow 4% by 2020 (Yahya, 2015).

     In a separate analysis, Mendoza and Siriban (2015) of the Asian Institute of Management Policy Center identified several sectors that will see gains and losses in the AEC. These are banking, manufacturing, air transport, and utilities and infrastructure sectors. Key players in these industries have already started to break into and expand their operations in the region. Some of them have already established consortiums, created mergers, and acquired stocks from other firms in the region. On the other hand, increased competition within the region in the sugar industry will benefit consumers but will adversely affect the growth of the industry in some countries, just like the Philippines.

     Furthermore, Runckel (2012) sees growth in the tourism sector as more people will see ASEAN as the new major travel destination. The improvement of transportation and other infrastructure will surely boost the tourism sector in the region. He also sees health care or medical tourism as a strong sector in the AEC if it becomes internationalized. Hence, the region should strive for quality yet cheaper medical services to make realized this vision.

     Of course, the Information Technology sector will also greatly benefit from the AEC. As digital technology will play a vital role in education, business, and other key sectors, more telecommunications infrastructure will be needed. Mobile and Internet connectivity will expand as people-to-people exchanges or intra-mobility of people within the region will increase.

     While the AEC offers greater growth for some sectors and economies, some are also set to lose. Thus, ILO and ADB suggest making education and training systems in sync with private sector demand, investing in infrastructure and connectivity, and creating policies that will protect the labor force, particularly migrant workers (ILO-ADB, 2014; Santos, 2014). ILO Assistant Director-General and Regional Director for Asia and the Pacific said, “Policy makers must not miss this opportunity to ensure the benefits of the region’s impressive development are enjoyed by all.”

     Thank you.

References:

ILO & ADB. (2014). ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity. Retrieved April 21, 2016 from http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf.

Mendoza, Ronald & Charles Siriban. (06 April 2014). Winners and Lossers in ASEAN 2015. Rappler. Retrieved April 25, 2016 from http://www.rappler.com/thought-leaders/54766-winners-losers-asean-2015.

Runckel, Christopher, W. (2012). Asia Opportunities: Asean Economic Community (AEC) in 2015. Retrieved April 25, 2016 from http://www.business-in-asia.com/asia/asean_economic_community.html.

Santos, Jet. (26 August 2014). ASEAN Integration: More Jobs, Wider Inequality. Rappler. Retrieved from http://www.rappler.com/world/specials/southeast-asia/66835-aec-14m-jobs-widen-inequality.

Sugiyarto, Guntur & Dovelyn R. Agunias. (2014). A Freer Flow of Skilled Labor within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. Issue in Brief. International Organization for Migration and Migration Policy Institute. Retrieved April 25, 2016 from http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Working%20at%20Regional%20Level/Asia/EN/_2015-07-16___Freer__Flow_of_Skilled_Labour_within_ASEAN__IOM_Issue_Brief_11__2014_.pdf.

Yahya, Yasmine. (10 September 2015). Packaged Food, Meat Sectorsto Gain from AEC: Rabobang. Straits Times. Retrieved April 25 2016 from http://www.straitstimes.com/business/packaged-food-meat-sectors-to-gain-from-aec-rabobank.

In my point of view, this has a twofold answer, gainers in terms of economics and gainers in terms of learning.

Gainers in terms of economics; the ASEAN member state with advanced ICT and established infrastructure will benefit the most in intra-ASEAN mobility of professional. They will easily fill in ICT demands of developed and still developing member states since they already possessed the knowledge and skill. They will be the consultant and subject matter experts. But, knowledge and skill without the mode of transfer is limited, there is a stop gap in terms of infrastructure. You cannot push the boundaries of ICT without the growth of infrastructure, thus we also need to factor in an established infrastructure. This resonates to the policy of Malaysian Government Vision 2020; National Telecommunication Policy focuses on main two aspects which are infrastructure and human development.

A good example of where skilled people are present but infrastructure is still developing is our country, the Philippines. We have the knowledge, the workforce, but infrastructure is not yet ready. The 2.4 million of country’s populations are Overseas Foreign Worker (OFW).  Since infrastructure is not fully established; there is less opportunity for the people, foreign investors invest more in countries with established infrastructure. These opportunities are found elsewhere in our ASEAN neighbors like Singapore and Malaysia. Filipino ICT professionals move to other country not just for financial but also for opportunity and job security. These migrant professionals become the contributor; the economic gear of prosperity of the society and host country.

Gainers in terms of learning, ASEAN member states which ICT is just developing will benefit the most.  There will be a shift of focus in ICT and infrastructure development. National government and social policy is gravitating towards ICT and infrastructure, as an example is Cambodia, the government has boosted the growth of ICT in education sector. Change will be fast phasing as government is driving to achieve digitalization. Citizens of Cambodia are quickly adapting to ICT, it is finding its way to grassroots livelihood. A dry sponge quickly absorbs water, while the wet sponge is naught, unless it empties itself to absorb new water. This analogy holds true with Cambodia, the populace quickly absorbs ICT, number of mobile usage has exponentially increased and digitization becomes part of their daily life.

Reference:

https://psa.gov.ph/tags/overseas-filipinos

https://www.youtube.com/watch?v=tYqF7n0cvBg

https://www.youtube.com/watch?v=3H-fujh2BfU

The efforts done to promote and strengthen ASEAN Integration led to the formation of ASEAN Economic Community (AEC), a single common market place for Southeast Asian countries. The AEC allows a free and easier flow of goods, services and investments, as well as of skilled labor. The AEC takes on the initiative for intra-regional labor mobility considering the ASEAN people as the important factor in measuring the success of the ASEAN integration. Through Mutual Recognitions Arrangements (MRAs), professionals and highly skilled workers can certify their credentials by taking a qualifying exam for them to be able to practice their respective professions in other countries.

This intra-regional mobility of professionals has its own set of advantages and disadvantages. For professionals who seek for career growth and better opportunities, this intra-regional labor mobility can help them to easily tap on their chances and move to their desired country. There will be a bigger arena for professionals to look at, same way that the employers have a larger pool of potential employees to consider. Employees who want to achieve growth can now easily do so without going far from the region. Employers on the other hand, with a minimal interference, can have higher chances on picking the best local talents for the job. This labor mobility stimulates growth not only for individuals but also for ASEAN nations. But while the intention for intra-regional mobility is to benefit ASEAN region as a whole, it may have a negative effect for developing countries, as their professionals and highly skilled workers may opt to work in developed neighboring countries. This may result to brain drain and may harm developing countries. With the rewarding goals on intra-regional labor mobility are the social concerns that should also be taken to consideration.

Intra-ASEAN mobility of professionals is very encouraging to hear, if the rights of the ASEAN people to enjoy the benefits of economic integration are indeed the priority.

The rights of ASEAN people are supposed to be upheld and people are to enjoy the benefits of economic integration as pursued by the ASEAN Economic Community. However, AEC is too much focussed on state security instead of paying attention to people security. Member states are compelled to deregulate and liberalize trade, services, and investments to attract greater foreign direct investment (FDI) to the region. This process may involve legislation of reforms to change charters 10 and remove protectionist measures, which impinge on the people’s sovereignty over their domestic policy space to direct the use of resources for their country’s development1.

Hence the intra-mobility of professionals, would greatly benefit the corporate power.

1 http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

There will always be the two sides of the coin, with the ASEAN Economic Integration the intra-mobility movement of people will also lead to the advantages and disadvantages to some.  “Policies to stimulate growth in ASEAN will bring numerous opportunities not just in terms of increased business investment but also rewarding employment opportunities for its people.” (Sugiyarto & Sugiyarto, 2014) Entrepreneurial mobility and Labor mobility. Businessmen and entrepreneurs will be provided a streamlined transparent procedure for business visitors, intra-corporate transfers will apply for immigration formalities. The skilled workers will also be recognized through the Mutual Recognition Arrangements (MRA) in some key occupations such as engineering, nursing, architecture, medicine dentistry, and tourism.  It has to be noted though that the economic integration does not guarantee full labor mobility even among high skilled workers.

Technically skilled Individuals. Members’ states of ASEAN are aspiring to become developed economies. These countries will continue to improve the education system that will produce knowledge and innovation capable citizens. Individuals who will have advance training on knowledge especially in information and communication technology or those belonging in the “information society” will benefit from the ASEAN integration. ASEAN member states have been gradually shifting away from agriculture based economies to become industrial nations. Some ASEAN member states have been gradually shifting away from agriculture based economy and have indications of becoming industrial countries. Member states will prioritize to move their economies to become more driven by knowledge-intensive activities citing that 50 percent cent of global GDP comes from knowledge economies (OECD, 1996) “Philippine official talked about the need to transition workers from their tradition of rice and sugar cultivation because these sectors will likely not be able to compete with rice and sugar from other countries where agricultural productivity is greater.” Technically skilled individuals will be highly sought after and working overseas and migrating to other countries will be an option because of higher wages. (Aring, Monika, 2015) Some of the sectors and jobs that has seen increase in numbers recently are in the field of Information technology (IT) and business process outsourcing as well as shipbuilding automotive, electrical and electronics and hospitality. ASEAN countries will shift from the current low- and middle-skilled labor to higher-skilled labor as ASEAN implements and fully embrace the integration. This will lead to improve the qualification of skilled individuals and will be able to respond to the emerging skills needed by industrialization.

Tourism and Hospitality. The tourism sector will flourish with the integration. With the MRA being streamlined for professionals working in the tourism industry across the region will have their skills upgrade and provide companies the flexibility to move their employees’ base on the market conditions. (Asian Development Bank. , 2016) Philippine Tourism Undersecretary Benito Bengzon Jr said “promoting all member-countries of ASEAN as one destination may seem “undoable” because of the region’s archipelagic nature. However, package tours will make that will cover three countries which includes air, land and sea transport could make the locations attractive and exciting and increase the value for tourist. (Z. Zaili, 2016)Budget air travel for companies such as Air Asia and Cebu pacific have reported increase in flight seta sales within the past two years. With the ASEAN integration industries in tourism will experience significant growth. (Jeremy Torr Air transport World, 2016) (Louella Desiderio, the Philippine Star, 2016)

While on the other hand some sectors of the societies seemed to be excluded. The current agreements between states will not likely benefit or face the challenges of the indigenous people because due to the lack of specific programs to include the Minority and Indigenous People. The ASEAN integration and the ASEAN charter promotes prosperity and is mainly market driven, this endangers indigenous communities. Ancestral lands and indigenous communities will be used an exploited for commercial and industrial use in the name of development. Indigenous people would want to be staying in their ancestral lands and due to industrialization and government policies indigenous people have been losing their homes sometimes for the profit of the state and government. This will further increase the gaps between the rich and the poor and will just further marginalized the minorities and indigenous people. “It completely ignores the right of Indigenous Peoples over their land and resources and gives no regard to the practices of self-sufficiency and sustainable resource management systems of indigenous communities.” (Forum Asia, AIPP, & IWGIA, n.d.)

Farming Sector. Agriculture in the Philippines may not be able to compete with other ASEAN neighbors. The Agriculture in the Philippines is in a sad state, where producing agricultural products such as rice, corn and sugarcane costs more and yields a minimum amount of profit. Not to mention the lack of irrigation facilities and technology An article in Business Mirrors reports that “More than 600,000 farmers and workers employed by the local sugar industry are facing the risk of losing their jobs, when cheaper sugar imports enter the local market with the advent of Asean economic integration next year.” (Estrella Torres, 2014) Could less developed countries be able to keep up and compete with the more efficient agriculture of other ASEAN countries?  This sad reality makes agriculture unattractive to the young generations and prefer to live in cities and work in information communication related skills as options of employment. With the ASEAN economic integration the younger generations may be more tempted to live in the urban areas across the region rather than till the soil. The future of agriculture will be uncertain if there will be no one left to sustain our source of food.

Human Resources of developing countries. There is a huge disparity of education in ASEAN. The integration will somehow ease movement of skilled labor, this may pose a problem to some member states especially those belonging to the developing stage because workers in the region will always chase and choose locations that will offer higher wages.  “Studies have showed that rather than protect countries from brain drain, the current policy setup is encouraging ASEANS’s best workers to leave the region entirely.”(Asian Development Bank, 2016) Having around 11 million Filipinos employed overseas, diaspora of the best talent and human resources is not a new thing for the Philippines. “The Philippines is losing its engineers, software developers, nurses and other professionals to overseas jobs since other ASEAN companies can easily attract them with higher salaries,”. (Mariano, BusinessWorld, 2016) This does not mean that we should be complacent with the economic integration more and more Filipinos will be lured and be attracted to work overseas by aggressive foreign recruiters.  Those who leave for abroad and have sufficient experience in their respective discipline and will no longer be able to pass and share their skills and knowledge. It is their skills that other countries are after at, while they are being taken for granted in the country. Experience workers and professionals that leave the country are a great loss to the economy.

There is still a lot of work to be done as ASEAN realizes full and deeper integration in the coming years, member states must adopt to the new challenges and opportunities as they emerge. The development of the people should be the priority of ASEAN so that it can continue growth and prosperity and bring inclusive and tangible benefits all the people of South East Asia and not just favoring the selected few.

Sources:

Alburo, F. A., & Abella, D. I. (n.d.). Skilled Labour Migration from Developing Countries: Study in the Philippines. Paper presented at International Migration Program, Geneva. Retrieved from http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---migrant/documents/publication/wcms_201780.pdf

Aring, Monika ASEAN Economic Community 2015 : enhancing competitiveness and employability through skill development / Monika Aring ; ILO Regional Office for Asia and the Pacific. – Bangkok : ILO, 2015 (ILO Asia-Pacific working paper series, ISSN: 2227-4405 (web pdf))

Asian Development Bank. (2016). Stopping ASEAN's brain drain - Bambang Susantono | Asian Development Bank. Retrieved from http://www.adb.org/news/op-ed/stopping-aseans-brain-drain-bambang-susantono

Forum Asia, AIPP, & IWGIA. (n.d.). ASEAN’s INDIGENOUS PEOPLES. Paper presented at Forum Asia. Retrieved from http://www.iwgia.org/iwgia_files_publications_files/0511_ASEAN_BRIEFING_PAPER_eb.pdf

Jeremy Torr. (2016). AirAsia returns to profit in 4Q 2015 | Finance & Data content from ATWOnline. Retrieved from http://atwonline.com/finance-data/airasia-returns-profit-4q-2015

Louella Desiderio. (2016). Cebu Pacific sees profit from long-haul business. The Philippine Star [Manila]. Retrieved from http://www.philstar.com/business/2016/03/16/1563241/cebu-pacific-sees-profit-long-haul-business

Mariano, K. D. (2016). BusinessWorld | Philippines found still competitive in wage terms vs China, some peers. Retrieved from http://www.bworldonline.com/content.php?section=TopStory&title=philippines-found-still-competitive-in-wage-terms-vs-china-some-peers&id=126584

OECD. (1996). THE KNOWLEDGE-BASED ECONOMY. Paper presented at ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, France. Retrieved from https://www.oecd.org/sti/sci-tech/1913021.pdf

Sugiyarto, G., & Sugiyarto, D. R. (2014). A 'Freer' Flow of Skilled Labour within ASEAN: Aspirations, Opportunity and Challenges in 2015 and Beyond. Paper presented at International Organization for Migration and the Pacific and Migration Policy Institute. Retrieved from http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Working%20at%20Regional%20Level/Asia/EN/_2015-07-16___Freer__Flow_of_Skilled_Labour_within_ASEAN__IOM_Issue_Brief_11__2014_.pdf

ZAFIRAH ZAILI. (2016.). One tourism destination will boost growth in ASEAN. Brunei Times [Brunei]. Retrieved from http://www.bt.com.bn/business-national/2016/01/21/one-tourism-destination-will-boost-growth-asean

Upon reading some relevant materials on ASEAN Integration and labor mobility, one can easily say that the ones who would win in the game are the skilled workers, and those who would not so much benefit from it are the unskilled workers. This proposition gleans from the developing agreements among ASEAN member states concerning the mobility of workforce.

Eliseo Zuniga, Jr., in the Labor Mobility within ASEAN Economic Community: Legal Framework for the Mobility of Workers (2015) points out that the Movement of Natural Persons (MNP) Agreement does not address unskilled workers, while the Mutual Recognition Agreements (MRAs) sets grounds of recognition of (limited) educational and/or professional qualifications across ASEAN.

However, going back to Prof. Flor’s question, it only begs that we focus on the professionals or the skilled workforce. Given the more favorable conditions to skilled workers in the ASEAN integration landscape, the sectors which will definitely gain the most are those that need skilled workers, particularly what are indicated in the MRAs—engineers, nurses, accountants, medical practitioners, dental practitioners, architects, and tourism professionals. Apparently, the sectors we are referring to are the health and medical, tourism, finance, and the public works and/or real estate sectors.

But this won’t automatically level the playing field across ASEAN member states. Only those in countries which provide the optimum security, convenience, and employee welfare and incentives will mostly gain the benefits of the mobility of professionals.

In Zuniga’s report, he also observed that ASEAN countries still differ in labor and immigration laws, educational and qualification standards, and conditions and requirements in hiring foreign workers.

We can see here that there are still micro yet major things on the periphery that need integration and alignment with the larger goal of the ASEAN community. Human resource and labor policy-making bodies, for instance, should fuel up their systems to cater the ever-changing needs of future migrant workers.

On the other side, those who will lose the most are (in congruent with the above-mentioned conditions), the sectors in the countries which could not cope with the demands of the workforce mobility scenario. These are sectors which may have poor human resource management, incentives programs, poor labor policies that respect migrant workers’ rights, etc. These sectors must compete with their counterparts in neighboring countries to attract potential professionals who can become their assets. This should be done simultaneously with enhancing the country’s human resource systems to keep their local professionals satisfied, thus avoiding the extreme workforce mobility impact—brain drain.

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References:

(1) Labor Mobility Within ASEAN Economic Community: Legal Framework for the Mobility of Workers - http://36mfjx1a0yt01ki78v3bb46n15gp.wpengine.netdna-cdn.com/wp-content/uploads/2015/03/AMCHAM-Breakfast-Meeting-Labor-Mobility-Within-ASEAN-Economic-Community-7-April-2015-166947-v1-HCMDMS.pdf

(2) Labor mobility under ASEAN Integration seen as limited - http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/

(3) ASEAN Economic Community: what model for labour mobility? - http://www.nccr-trade.org/fileadmin/user_upload/nccr-trade.ch/wp4/NCCR_working_Paper_ASEAN_Jurje_Lavenex__.pdf

(4) Why Should HR Managers worry about the ASEAN Economic Community? - https://www.towerswatson.com/en/Insights/Newsletters/Asia-Pacific/points-of-view/2014/Why-should-HR-Managers-worry-about-ASEAN-Economic-Community

http://36mfjx1a0yt01ki78v3bb46n15gp.wpengine.netdna-cdn.com/wp-content/uploads/2015/03/AMCHAM-Breakfast-Meeting-Labor-Mobility-Within-ASEAN-Economic-Community-7-April-2015-166947-v1-HCMDMS.pdf

With ASEAN Economic Integration's implementations, there will always be a disadvantage and advantages, gainers and losers.

This may bring better opportunities for professionals who are seeking for career growth because they will be able to work across the region through intra-regional mobility. It helps them to grab chances that they weren't able to do before. Working on a different region, meeting other skilled professionals and exchange of ideas and skills will be wider. However, it might be a great disadvantage to countries or regions that were not able to cope with the changes. Developing countries with less advantage in technology, economy and financial stability might lose skilled professionals and workers because these workers may prefer working to other richer nations who were able to cope with the integration. It gives the advantaged nations a larger number of skilled workers while developing countries may suffer to losing them because the more advanced region can provide what they can't. It can also affect their economies, too.

But with more research and strategies, this can be beneficial and both sides someday, it still takes a lot of work.

Good day, Prof. Flor!

I believe that Intra-mobility is a very good plan, especially if the countries that would be helping each other have good economies and are stable. In case intra-mobility projects would pursue in the next few years, I believe Philippines would be losing workers that could help for the development of industries in the Philippines. This is because other ASEAN countries, like Singapore to be specific, would sure offer jobs and good pay for Filipino workers. This also applies to other less-developed countries. I believe every country should first develop internally. 

I have researched for some articles and I have found an article written by Guntur Sugiyarto and Dovelyn Rannveig Agunias entitled "A freer flow of skilled Labour within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond". The article noted that intra-mobility flows in few countries like Myanmar to Thailand, Indonesia to Malaysia, Malaysia to Singapore, and Lao People's Democratic Republic to Thailand, and Cambodia to Thailand. 

Sources: http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Working%20at%20Regional%20Level/Asia/EN/_2015-07-16___Freer__Flow_of_Skilled_Labour_within_ASEAN__IOM_Issue_Brief_11__2014_.pdf

There are three major reasons challenging the mobility of professionals among the ASEAN member countries. First, is the complex qualifications involving assessment and recognition of academic credentials. Second, the restrictions of the labor market in reserving jobs only for specific nationals, and third, the limited interest of the professionals themselves to migrate and find jobs in another country due to cultural, language, and socio-economic differences. (Papademetriou, D., et. al., 2015)

With these challenges, ASEAN member countries would have to work hand in hand to address these concerns and succeed in achieving skills mobility in the region.

Evidently, there should be an increase in accessibility to the labor market in the region. Creation of online search engines like Jobstreet or Jobsdb that will promote professional mobility across countries will definitely be a big help.

Most professionals find jobs online and having the right exposure for openings and vacancies, especially for millennials who are always online and have frequent access to the internet will make the placement and recruitment process faster and cost-efficient for the companies.

There should be a wider recognition of academic achievements, licenses, and job experiences among countries. In this way, migrant workers will not have to feel that their previous job achievements were not recognized and will feel the need to undergo intensive training and education all over again in a country he/she will work at.

Once a country has set clear grounds and policies for recognizing qualifications among its applicants, more skilled professionals will be encouraged to move around the region and explore possible growth opportunities outside of their host countries.

The Philippines for instance has been very open in its educational policies and has adopted the K-12 system in order to prepare its future workforce to intra-regional mobility.

Having said these factors, those who are willing to accept the change and embrace the need to recognize the regional labor market will be successful in attracting the ASEAN professional’s cream of the crop.

Source: 

Papademetriou, D., et. al. (2015). Who would gain the most (or lose the most) from the intra-ASEAN mobility of professionals brought about by ASEAN economic integration? Retrieved from http://www.migrationpolicy.org/research/achieving-skill-mobility-asean-economic-community-challenges-opportunities-and-policy

Intra-ASEAN mobility of professionals provides a wide range of opportunities.

Existing literature states that those who would gain the most in the labor migration is the professionals, particularly those in engineering, nursing, architectural and accounting services, medical and dental practitioners and tourism professionals, because there are existing policies in the management of migration flows under the ASEAN Economic Community.

The youth will likely gain advantage in the intra-ASEAN mobility as the educated youth, who wish to earn more and expand their potentials, will accept the challenge of working in a more progressive country than where they come from.

Low-skilled and unskilled workers, however, will be the most disadvantaged. Though they constitute the majority of labor migration in the ASEAN these days, the regional integration can increase demands for low-skilled workers but the jobs will only be temporary. Economic integration may lead to more efficient production in all countries and wages may converge, which will decrease the incentive of migrant workers.

References

(1) http://www.adb.org/sites/default/files/publication/42818/asean-community-2015-managing-integration.pdf

(2) http://dirp3.pids.gov.ph/ris/dps/pidsdps1304.pdf

(3) https://www.kpmg.com/PH/en/PHConnect/ArticlesandPublications/Investors-Guide/Documents/KPMG%20PH%202016%20AEC%20investment%20guide.pdf

I think the answer to this question is subjective. From an economic point of view, everyone can glean something positive from the intra-ASEAN mobility. The AEC integration, for example, involves the Mutual Recognition Arrangements (MRAs) initiative which establishes the experience that professionals need in order to work for another country.

At a personal, career level, this means that all individuals in the workforce have better job opportunities. Students are also more open to better programs that aim to provide them the skill set they need in order to be more competitive for the region, and businesses can enjoy the perks of an integrated free flow market. But then again, the question of who will benefit and who will lose will still depend on the execution of the integration.

For example, if somehow the Philippines fails to develop its market into an appealing and competitive one that can hold its own against its neighboring ASEAN countries, then we are facing the trouble of having all our professionals pursue opportunities abroad. Local businesses can also open themselves up to the foreign market and not focus on tapping our local one. In my opinion, whether who wins or loses will be dependent on how effectively applied the intra-ASEAN model is.

Lockyer, B. (2015). Labour Mobility Under Asean 2015 Integration Seen as Limited. Retrieved from: http://cxcglobal.asia/labour-mobility-asean-2015-integration-seen-limited/.

Good evening, Dr. Flor and DEVC242 classmates!

In one of my DEVC 242 blogs, I cited Patricia Evangelista’s speech entitled “Blonde and Blue Eyes which bagged the grand prize in the 2004 International Public Speaking Competition held in London. In there, she claimed that the Filipino diaspora “is not as ominous as so many claim”, and that “a borderless world presents a bigger opportunity, yet one that is not so much an abandonment but an extension of identity”. That was also the year when the number of overseas Filipino workers (OFWs) reached the one million mark (and has not gone down since then).

Based on the latest data from Philippine Statistics Authority (2015), one of the top five popular destinations of OFWs in Asia is an ASEAN member state – Singapore with 5.7%.

Asked who would gain and lose the most from the intra-ASEAN mobility of professionals brought about by the so-called ASEAN integration, IBON International (2015) offers a comprehensive answer: ASEAN integration will “worsen the already lopsided migration of workers from poorer countries to more developed countries to seek better wages and better lives”, or in the words of Patricia Evangelista, “greener pastures”. IBON further posits:

“Labor migration will become a huge issue as the freer flow of skilled professionals and students may lead to loss of skilled workers and professionals in the sending countries, where wages are typically lower. Integration can indeed provide job security to those who have the skills and mobility to exploit opportunities in global markets. But such skills and mobility arise from access to quality higher education and training – which are generally more available to people in developed countries than in developing countries” (p. 11).

Clearly, dominance relationship still dominate the world system, or at least, the ASEAN system, as much as it did in the industrial and agricultural ages.

It can be derived from the above scenario that those who would ultimately gain the most are the multinational companies and corporations which are commonly housed in first world countries (Singapore included). These economic power holders are the ones that would employ the migrant workers from developing countries like the Philippines. Naturally, the sending countries, afflicted with brain drain, form part of the losing end of the bargain.

Best regads, 

HAYDEE

REFERENCES:

“ASEAN Community 2015: Integration for Whom?” 2015. IBON International Policy Brief. Retrieved April 28, 2016 from http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

Evangelista, Patricia. 2004. Blonde and Blue Eyes. Retrieved March 24, 2016 from http://www.patriciaevangelista.com/blonde-and-blue-eyes/

“Total Number of OFWs Estimated at 2.4 Million” 2015. Philippine Statistics Authority. Retrieved April 29, 2016 from https://psa.gov.ph/content/total-number-ofws-estimated-24-million-results-2015-survey-overseas-filipinos

Creating a single, solid identity is a real feat for the ASEAN member states due to the differences in values, history, and many other factors among the countries. Theoretically though, the region has already created  an identity that represents all its members, bound by the concept of the “ASEAN Way”, particularly the concept of non-interference. Rather than a set of descriptive values or a set of  procedures, the ASEAN Way is defined as a code of conduct for inter-state behavior and a guide for the decision-making process of the organization. The region wanted to build its foundation on the non-use of force, peaceful settlements and respect for sovereignty and use them as a guiding principle for the body.

While ideal, the very concept of the ASEAN Way can prove to be pretty unstable. This was proven during the financial crisis in 1997 which reduced everyone to adopt an ‘everybody for themselves’ type of attitude. This occassion not only challenged the identity that the region chose to develop but also shook their confidence towards the countries they should be considering as alliances.

The work of Rother in his paper ‘Identifying regional cultures of cooperation: The ASEAN logic of anarchy’, cited Alexander Wendt’s social constructivism as a possible approach for the region. Despite the proposal of the ASEAN Way, states in the region pursue their own interests that are better in line with their state identities. Wendt argues that one way to work around this is to engage in cooperative acts, under the premise that interaction at the systemic level can change state identities and interests.

The construct of state identities is very important in the creation of one identity for a region because these concepts are also shaped by social structures. By interacting at a systemic level, the states can change their perception of their identity and help them internalize so that a new persona, one that is better suited for an overarching concept of ASEAN identity can be created. Therefore, when it comes to communication strategies, it is better to engage in cooperative acts that can make each state feel as active cooperators too.  

Rother, S. (n.d.). Identifying regional cultures of cooperation: The ASEAN logic of anarchy. Retrieved from: http://www.eisa-net.org/be-bruga/eisa/files/events/turin/Rother-stefan_rother_asean_logic_of_anarchy.pdf.

My view on the ASEAN integration has always been on the positive side. While there were downsides constantly viewed by the critics, my vision remained on the stronghold of the issue. I have always been an optimistic one when it comes to the ASEAN integration.

Over a decade ago, the number of Overseas Filipino Workers’ (OFWs) has reached the one millionth mark. As the year went on, the figures continue to increase, signifying the increasing trend in the mobility of professional within the ASEAN region. In one of the lectures I have attended, a speaker even joked about this saying that our country is among the top exporter of manpower (OFWs) these days. Of course, it was implied that he viewed the idea negatively.

The speaker was not alone in his view of the topic. The IBON International (2015) postulated that the ASEAN integration will “worsen the already lopsided migration of workers from poorer countries to more developed countries to seek better wages and better lives.” In a nutshell, the view revolves around intra-regional mobility, the brain drain in some countries [particularly developing ones], and the economic imbalance where the rich country gets richer and the poor ones gets poorer because of the brain drain."

But here’s my take.

The ASEAN integration is not only a shared territory; it is also a shared possibility and a shared opportunity. It was never about submitting an inferior culture towards dominance of a superior one. To me, it is all about showcasing one’s unique cultural values, having it recognized in a global perspective and earning an empowered stand as we inch our way to globalization.

Critics usually point that poorer countries only stand as senders of professionals while the developed countries usually benefit from the skills of these professionals since work and career opportunities are only available in their regions. This line with the 2015 data from the Philippine Statistics Authority (PSA) which showed that as the Philippines [a developing country] stand as among the top senders of professional workers abroad, Singapore [a developed country] ranks as one of the top five recipients of foreign professional workforce at 5.7 percent.

 “Labor migration will become a huge issue as the freer flow of skilled professionals and students may lead to loss of skilled workers and professionals in the sending countries, where wages are typically lower. Integration can indeed provide job security to those who have the skills and mobility to exploit opportunities in global markets. But such skills and mobility arise from access to quality higher education and training – which are generally more available to people in developed countries than in developing countries” (p. 11).

However, here is a more optimistic view of the topic.

While it is true that brain drain occurs among the sending countries, this only happens for a certain period of time. Fact is that the professionals still return to the country after a certain period to start their own career here. As many place it, the mobility is only for the “search of greener pasture.” Once the professional becomes economically stable, they return to finally establish their career in their place of origin. Not only that, they also return as a more empowered and more competent professional because of their experiences in the global perspective.

The ASEAN integration is a give and take process. It is premised on the concept that we need others to survive. We need their place, their expertise, their human resources and the opportunities they offer. They also need the same from us but on a differing degree. But one important aspect that we should look at is that the ASEAN integration is geared towards inclusive and unified development.

Of course, the developed countries would visibly be the first to prosper because they already have the infrastructure and facilities. But if we are to look at the degree of development that the integration would bring into our country, we would be surprised by the possibilities.

The ASEAN integration is a win-win situation. All members stand on a winning end. It’s just that the development it brings is felt at varying periods depending on the individual factors defining it within each member state.

While the situation looks negative at this point, we should focus our vision on the long-term impacts. Let us fix our vision on what we would become years after the integration. The intra-regional mobility, the brain drain and the slow-paced development are just temporary.

Every member state, with all its specific sectors and groups, wins under the integration. Nobody loses a ground. There is no such thing as losing under the integration, just a delayed success.

Although it appears that we are becoming the sending country today and that we are being drained of professional skills and we are losing our identity, these are but cursory effects. As a presidential candidate placed it during a town hall debate, “maaari mong alisin ang Pilipino sa Pilipinas, pero hindi mo kailanman maiaalis ang Pilipinas sa Pilipino [you can take away a Filipino from the Philippines but you can never take take away the Philippines from a Filipino].”

That sums the point. =)

References:

“ASEAN Community 2015: Integration for Whom?” 2015. IBON International Policy Brief. Retrieved April 28, 2016 from http://iboninternational.org/sites/ibon/files/resources/IBON%20Policy%20Brief%20on%20ASEAN%20integration.pdf

 Evangelista, Patricia. 2004. Blonde and Blue Eyes. Retrieved March 24, 2016 from http://www.patriciaevangelista.com/blonde-and-blue-eyes/  

Labour mobility in ASEAN. (2014, January 27). Retrieved from http://bt.com.bn/business-national/2014/01/27/labour-mobility-asean

Orbeta, A. C. (2013). Enhancing labor Mobility in ASEAN: Focus on Lower-skilled workers. Philippine Institute for Development Studies. Retrieved from http://dirp4.pids.gov.ph/ris/dps/pidsdps1317.pdf 

Sec-Gen Surin: ASEAN Identity, Cultural Integration As Important As Economics To Avoid Conflict. Retrieved from https://www.travel-impact-newswire.com/2012/09/asean-sec-gen-surin-identity-cultural-integration-as-important-as-economics-to-avoid-conflict/

“Total Number of OFWs Estimated at 2.4 Million” 2015. Philippine Statistics Authority. Retrieved April 29, 2016 from https://psa.gov.ph/content/total-number-ofws-estimated-24-million-results-2015-survey-overseas-filipinos  

ASEAN integration will greatly impact the sector of Small and Medium Enterprise (SMEs). This is due to the potential increase in demand for higher quality of products and stiffer regional competition. The diversity, however, will provide the sector the freedom and creativity to develop new products and services that can potentially boost economic growth within their local economies and the ASEAN economy as a whole. SMEs are considered the main drivers of the economic landscape for most of the ASEAN countries, as they account for more than 90 percent of business enterprises throughout the region, and employ between 50 to 99 percent of its respective country’s workforce. They play a big role in providing jobs for the local and regional workforce, which translates to more income for their own businesses and local economies. It is paramount to future-proof the SME sector by providing world class infrastructure and building an ICT culture to ensure the success of the industry, and more importantly, the economy.

The big question is, can the ASEAN Economic Community provide increased employment and higher income for the workers in the region and specifically in the Philippines? Based on a study, the Philippines projected growth is on low-skill employment; there will be fewer new jobs for women, possibly in sectors that are vulnerable and informal leading to greater inequalities; there will be increasing migration between ASEAN countries driven by demographic and wage disparities; medium and low skilled workers more likely to migrate due to high demand of construction, agriculture and domestic workers. Demand for high-skilled workers will increase in the region. By 2015 high skill jobs are projected to grow by 41 per cent, or 14 million, (medium skilled jobs will grow by 22 per cent or 38 million and low-skilled by 24 per cent or 12 million). However, the report predicts that skills' shortages and skills' mismatches are likely to worsen, due to inadequate availability and quality of education and training.

The ILO and ADB study said that the AEC could raise the GDP of the region as a whole to 7.1 per cent by 2025. The overall net job gain put at 14 million by 2025 following the implementation of the AEC will come from trade, transportation, and construction industries. Currently, 40 per cent of workers in the region are categorized as low-income workers, mostly employed in the agriculture sector. The projected jobs by 2015 are also low-income in nature. The industries who will be the losers and face difficulties in the integration are agriculture, chemicals, mining, electrical equipment, machinery industries, and financial services. The decrease on imported sugar tariff to 5% (from 18%) will result in an influx of imported sugar and consequently lower the mill site price of locally produced sugar. Standard & Poor believes that Philippine banks are also not yet ready. Although profitable and stable, they have a much smaller business scale compared with their regional counterparts. According to the Philippine Daily Inquirer’s editorial on August 27, 2014, one reason for the Philippine banks’ incapacity to compete with other regional banks is because of the 40% constitutional limitation on investment. Compare this with the 99% open investment in Indonesia, the lack of hard limit to foreign ownership in Malaysia and Singapore, and a flexibility clause that allows foreign ownership beyond 50% in Thailand.

One of the initiatives in the ASEAN ICT Masterplan 2020 is to create a conducive environment for businesses. A strong focus on ICT infrastructure development will definitely provide a significant impact on the ASEAN region. AIM 2020 also focuses on strengthening workforce talents through on-going reskilling programmes and the attraction of talents through increased opportunities so as to enable broad-based economic growth. The best immediate response is the defense and protection of our rights through struggle and mobilization. It means real, genuine campaigns. It means solidarity, not competition, with the working classes especially in the ASEAN region. Ultimately we have to fight for political power to establish a system that can withstand big corporate control and domination. The absolute name of the game is competitiveness. Companies operating in ASEAN must find the means of enlarging their economic position, alone or in partnership with other regional or international firms.

Sources:

How big is an SME’s impact on ASEAN integration?

http://www.gmanetwork.com/news/story/369105/cbb/how-big-is-an-sme-s-impact-on-asean-integration#sthash.379NKxfU.dpuf

Asia: ASEAN integration and its impact on labour

http://links.org.au/node/4046

ASEAN Economic Integration: Effect on sectors

http://www.philstar.com/cebu-business/2016/01/08/1540433/asean-economic-integration-

AEC offers major employment, wage and productivity benefits, if decisively managed

http://www.ilo.org/asia/whatwedo/events/WCMS_301202/lang--en/index.htm

http://www.gmanetwork.com/news/story/369105/cbb/how-big-is-an-sme-s-impact-on-asean-integration#sthash.379NKxfU.dpuf

http://links.org.au/node/4046

http://www.philstar.com/cebu-business/2016/01/08/1540433/asean-economic-integration-

http://www.ilo.org/asia/whatwedo/events/WCMS_301202/lang--en/index.htm

According to the online article entitled “Toward intra-ASEAN labor mobility,” having high mobility in the labor force provides new perspectives of experience and it gives higher chances of securing top-performing individuals from a large group of people other than a small number of choices.

Although, regional authorities might get the lower end of the deal because of the lack of a formal immigration framework within the ASEAN. “Complexity may also come in the form of uncertainty or inconsistencies between regional authorities within a country. For example, the documentation requirements for a visa may differ between government offices in different states as local departments are empowered to determine their own specific requirements within a general federal framework. Such scenarios create confusion and frustration for foreign applicants, as well as delays and possibly roadblocks for employers as they look to bring new employees onboard quickly and efficiently (Toward intra-ASEAN labor mobility, n.d.).”

Reference:

Toward intra-ASEAN labor mobility. (n.d.). Retrieved from http://www.ey.com/SG/en/Industries/Government---Public-Sector/EY-the-asean-economic-community-toward-intra-asean-labor-mobility

Hello Professor Flor and classmates,

The idea of intra-ASEAN mobility definitely sounds like a well-practiced orchestra. ASEAN professionals may be able to use his/her knowledge and skills across the region and most of all have a job that could be better in several aspects.

According to a report from the International Organization for Migration and Migration Policy Institute, the potential gains from more open region–wide skill mobility are tremendous, as exemplified by the very significant contribution of foreign workers in Singapore, as well as Malaysia and Thailand to some degree.

“Skilled labour mobility also could help address skills shortages and gaps, as well as address unemployment for youth, particularly the well-educated, further promoting growth in the economy and increasing inclusiveness.”

But the challenge now is to implement Mutual Recognition Arrangements (MRAs) for major professional services based on national and ASEAN Qualification Frameworks, as well as the facilitation of temporary visa issuance.

In a report written by Chia Siow Yue from the Singapore Institute of International Affairs, it was highlighted that some of the common concerns, amongst ASEAN economies, with regards free movement of workforce is the national pressures to maintain a high percentage of jobs for locals, prioritising local businesses, national security, especially when these jobs are sensitive or are critical national jobs.

For example, if foreign investments from the West continue to be penetrating in less developed countries such as Myanmar and Cambodia, high demand for more skilled workers (probably those who are English proficient as well) would be imminent. The most likely scenario is hiring foreign workers from Malaysia, Vietnam and the Philippines. The positive side of it – the quality of service and work becomes higher. But, on the other hand, there may be competition between locals and foreign workers, and limited job availability for the locals and thus increases unemployment in that particular country.

Yue also pointed out another hurdle that ASEAN economies are facing with regards free movement of labour in the region is to do with the “suppliers and the receivers”. In other words, countries such as Singapore, Malaysia and Thailand are the region’s main “receivers” of skilled labour.

Chia wrote: “The more advanced countries with higher wages and better employment opportunities tend to attract migrants from less developed neighbours.”

References:

Labour Mobility in ASEAN. The Brunei Times.http://bt.com.bn/business-national/2014/01/27/labour-mobility-asean

Sugiyarto, G. Progressing on and Benefiting from Skills Mobility within ASEAN. Asian Development Bank. http://www.picpa.com.ph/sites/default/files/07_AFA%20Asean%20Mobility%20on%20Skilled%20Workers_0.pdf

Sugiyarto G. & Aguinas D. A ‘Freer’ Flow of Skilled Labour Within ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond. International Organization for Migration and Migration Policy Institute. file:///C:/Users/user/Downloads/MPI-IOM-Issue-No-11-Skilled-Labour-Movement.pdf

The labor market of Southeast Asia is evolving towards more mobility for skilled professionals in the ASEAN region. Although some barriers remain in the ASEAN job market integration, certain professions can already benefit from special arrangements in certain countries. 

In fact,   there are some professionals who are already benefiting from skilled labor agreements between individual ASEAN countries to work abroad. Yet to do so, they have to take exams in the desired host countries to have their skills and experience recognized so that they can practice their profession. (Channel News Asia, 2013).

Despite the barriers keeping ASEAN nationals from practicing their professions in a different country in the region, there is still substantial migration.  From a global standpoint, labor migration is already a reality for ASEAN countries, some of which are net senders of labor and the others net receivers of labor.  The biggest net exporter of labor among the ASEAN members is the Philippines. This is not surprising given the worldwide presence of OFWs. It is followed by Vietnam, Indonesia, Myanmar, Lao PDR and Cambodia.  On the other hand, the net importers of labor in the region are: Brunei, Thailand, Malaysia, and the largest net importer, Singapore. The net exporters of labor in the ASEAN are also the countries with the largest workforce and the youngest median age. 

In real terms, there will be greater movement for skilled labor within the ASEAN, with more opportunities for professionals to practice in different countries using just one, unified set of credentials. This will be made possible through the implementation of mutual recognition arrangements (MRAs) in professional services.

MRAs enable the qualifications of professionals from one country to be mutually recognized by other signatory countries. They promote mutual agreement on standards, licensing, and certification of professional workers among the ASEAN member-states (AMS). Currently, MRAs are in place for eight professional categories:   1. Engineering services, 2. Nursing services,   3. Architecture services, 4.Land surveying, 5. Medical practice, 6.Dental practice, 7. Accountancy, and 8. Tourism. (PIDS, 2015)

The gains from freer flow of professional workers are immense. These should encourage AMS to take the necessary steps to remove the impediments that delay the implementation of the MRAs.

However, these eight professions only account for 1.5% of the total ASEAN workforce. These MRAs also do not enable eligible professionals to move perfectly freely around ASEAN, as many countries have instituted a priority for their own citizens.

There are challenges of labor mobility in ASEAN. Depending on the countries, certain regulations limit the hiring of foreign skilled labor. In Malaysia for example, employers will be required to prove that local citizens are not available in order to hire a foreign worker. In Singapore, they will need to advertise the job vacancy for at least 14 days on a government portal.

Bringing down the barriers to labor market integration in ASEAN will not only benefit businesses in terms of a better  and larger talent pool,  but participating countries and the workers themselves stand to benefit as well.  For host  economies, labor migration helps boost growth and address labor shortages.  The growth of countries sending workers abroad will also be spurred by financial remittances and possible knowledge transfers.  The workers, on the other hand, will also gain higher wages and opportunities to acquire skills and experience.

Labor and migration policies vary widely across ASEAN countries, but they have one thing in common: their restrictiveness. 

A policy  brief by the Asia-Pacific Research and Training  Network on Trade enumerated some of the restrictions imposed by ASEAN countries on the employment of foreigners.  In Indonesia, foreigners must: hold only the positions that cannot be filled by locals; have at least five year’s relevant work experience; be willing to eventually turn over the position to a local; and be able to communicate in Indonesian.  In Cambodia, Thailand, Myanmar and Lao PDR, before an employer can hire a foreigner, there must be assurance that knowledge will be transferred to locals and that the position will eventually  be taken  over by a local.  In the Philippines, the constitution does not allow foreigners to practice some professions like accountancy, medicine and engineering. (Huelser and Heal, 2014). 

So, who would gain the most (or lose the most) from the intra-ASEAN mobility of professionals brought about by ASEAN economic integration?   

The industries in the ASEAN countries are in the position to work their way up the value chains, not only for goods but also for services.  As they upgrade in various value chains, the jobs that will be in demand are those requiring sophisticated knowledge and skills.  It is these fields that young Filipinos should be encouraged to enter and excel in.  As predicted by Dr. Bernardo Villegas, a Professor from the University of Asia and the Pacific, the sunrise industries will be agribusiness, telecommunications, transportation,  tourism, health care, infrastructures of all types, education, logistics, and the creative industries.  Highly skilled engineers and scientists and other youngsters who are comfortable with mathematics and data analysis will also be needed in the so-called knowledge industries – IT and software, biotechnology and material sciences (the three areas that will define the technological breakthroughs in 21st century).

Ultimately, the winners from this effort are the workers themselves who could earn higher wages and acquire more learnings through the experiences of working abroad.  In which case the ASEAN would have achieved its main target of becoming a people-oriented oriented community where there is enhanced well-being among the citizens.  

Smoothing the path for freer flow of professional workers in the ASEAN requires the collaboration of AMS in general, and of receiving and sending countries in particular. Harmonizing labor regulations in the region is crucial, as well as proper implementation of quality assurance frameworks and accreditation mechanisms.

The ASEAN has created the ASEAN Qualifications Reference Framework as guide in the comparison of qualifications across AMS. It serves as the yardstick for individual countries in developing their own frameworks for educational levels, standard setting, and learning outcomes, which should be transparent and comparable within and across national borders. The Philippine Qualifications Framework is the country's national and internationally benchmarked structure for all qualifications awarded in the Philippines.

According to the Philippines Institute for Developmental Studies (PIDS), the MRAs will be a boon for the more advanced countries but a bane for the less advanced like the Philippines unless they address their weak spots aggressively and consistently. Improving the quality of education at all levels is necessary for the Philippines to make its graduates and workers competitive with their counterparts in the ASEAN. The government sees the K to 12 educational reform as an important step to harmonize the country's educational system with that of the AMS and other countries.

The MRAs for professional workers is a step in the right direction to enhance the exchange of skills and expertise within the ASEAN in support of the AEC’s goals. In due time, however, the arrangements need to be expanded to cover unskilled and low-skilled labor. This can pave the way for the proper management of unskilled labor movements that requires serious attention. If ASEAN leaders really want the AEC to result in inclusive growth, no one should be left behind. Everyone—skilled or unskilled, high or low skilled—should benefit from the ASEAN integration.

Sources:

Channel News Asia. (2015, October ).  Overview of the ASEAN skills labor market Business Videos. Southeast ASIa Business Resources Accounting

Philippine Institute for Development Studies (PIDS). (2015, December 2). Mutual recognition arrangements: Smoothing the path for “freer” flow of Professional Workers in the ASEAN,

Sarah Huelser and Adam Heal. (June 2014).  “Moving Freely? Labour Mobility in ASEAN,” Policy Brief No. 40., Asia-Pacific Research and  Training Network on Trade.

KPMG . (2015). Moving Across Borders: The Philippines and the ASEAN Economic Community

The high-skilled workers will gain the most in the intra-ASEAN mobility as their skills and capabilities could be further honed and recognized in the region. With the signing and implementation of the ASEAN Mutual Recognition Arrangements (MRAs) of the eight professions (medical doctors, dentists, nurses, architects, engineers, accountants, surveyors, and tourism professionals), they can work in other ASEAN countries more easily. They could also earn higher salaries and build a career reputation in an international environment.

The ASEAN Economic Community Blueprint 2025 still includes the movement of skilled labor in ASEAN mentioning that these arrangements aim to facilitate the temporary cross-border movement of natural persons and business visitors engaged in the conduct of investment and trade in goods and services. However, from the total ASEAN workforce, the professions with MRAs only account for 1.5%. The lower-skilled professionals are not included, an indication that they are at the losing end of the setup. In addition, the Asian Development Bank report entitled Achieving Skill Mobility in the ASEAN Economic Community: Challenges, Opportunities, and Policy Implications (Papademetriou, D. et.al., 2015) asserted that the MRAs do not give ASEAN member states access to each other's labor markets. That even if they enable registered or certified professionals to be recognized and practice their profession within the region, it does not allow for unrestricted free flow of foreign professionals. The report summarized the challenges of ASEAN Skill Mobility in three points:

I believe that the education sector will benefit as well. Educational institutions will raise the education quality and set higher standards to abide and adapt accordingly with the MRAs' recognition requirements. Educational system improvement across all member states could be a positive result. Further, the flux of professionals between the ten-member countries will provide new ideas, skills, best practices, and technology among others which could be utilized upon being shared. After all, ASEAN is an information society. Dr. Benjamina Gonzalez-Flor (2015) mentioned that there are information poor and information rich societies, and that information becomes a commercial good and gains economic value in an information society.

As ASEAN countries move deeper into the integration, a free flowing skilled labor in the region could be a possibility. ASEAN should invest more on the human capital–educate, develop skills, and train. More jobs will be generated soon enough and more talents will be needed. But then, first things first, ASEAN members must embrace their differences and face the ASEAN challenges together.

References:

ASEAN (n.d.). AEC Blueprint 2025. Retrieved from http://www.asean.org/storage/2016/03/AECBP_2025r_FINAL.pdf.

Flor, B.G. (2015). The ASEAN Media Landscape. ASEAN Convergence Monograph 1, 33-45.

Overview of the ASEAN skilled labor market. (2016, April 1). Retrieved from http://aseanup.com/overview-of-the-asean-skilled-labor-market/.

Papademetriou, D., Sugiyarto, G., Mendoza, D.R. & Salant, B. (2015) Achieving Skill Mobility in the ASEAN Economic Community: Challenges, Opportunities, and Policy Implications. Retrieved from Asian Development Bank Website: https://www.adb.org/sites/default/files/publication/178816/skill-mobility-asean.pdf

The ASEAN integration is perceived by many as a boon and to some a bane. This amalgamation of the ASEAN member countries has brought both opportunities and challenges for low- and high-skilled professionals alike. Opportunities and challenges have skyrocketed at the onset of the ASEAN Economic Community (AEC) in 2015. Scores of these challenges are directly related to the “rising inequality and the persistence of poor quality jobs” in the region.  This happened despite the desire of the ASEAN proponents to create effective inclusive framework to expedite   intra-regional mobility of professionals among member countries. To date, professional mobility has remained slow-paced as there are still “dismantling of barriers” that needs to be subjugated (Papademetriou, Sugiyato, Mendoza, & Salant, 2015).

 Labor migration among professionals between ASEAN members is nonetheless seen as exigent and complicated. Although provisions in the ASEAN Blueprint take into account its commitment and actions on labor mobility, they are still very limited in scope (Huelser & Heal, 2014; IOM, 2008). For instance, work visa requirements among member countries significantly vary. If ever visa is granted, the many constraints in job-hunting hinder non-national skilled professionals to actively use their ability to gain employment in many sectors. It is then perceivable from the vantage point of intra-ASEAN mobility of professionals, that only those who are covered under the Mutual Recognition Arrangements (MRAs) can benefit the most.  This is regardless of the fact that the implementation of its provisions is still “work in progress” (Jurje & Lavenex, 2014; ASEAN 2009).  MRAs is geared toward mutual recognition of authorization, licensing, or certification of professional service suppliers. Enhancing its provisions will give more advantages to the member countries.  However, at present, only few sectors, like engineering and architecture, are given eligibility to work as “Registered Foreign Professional” in another ASEAN country. Eligibility is only granted   under the condition that applicants passed the licensure examination in their home country. For some other professions like Nursing and Dentistry, applicants, in order to practice, should take and pass the language proficiency test of the host country. Language is seen as one of the barriers to professional mobility. Moreover, other skilled workers, like IT workers and Chefs, require further qualification from the host country (Huelser & Heal, 2014).

Although ASEAN member countries have committed to support cross-border migration of skilled professionals through MRAs, still many professionals, no matter how expert they are in their field, are at the mercy of the host country’s recognition of their earned credentials. Currently, competition has become a playoff of the strong and the mighty. Although there have been talks about visa exemption agreements and adjustments, getting a visa is still a challenge to skilled professionals. In fact, it has become tougher than ever and more arduous with the   emergence of impediments associated with visa policies, eligibility to work in certain sectors, and other necessary qualifications and requirements (Huelser & Heal, 2014; Sugiyarto & Aguinas, 2014). If this problem persists and standardize job requirements and occupational qualifications among members are not clearly laid out and implemented the soonest possible time, mobility among skilled professional will remain uncertain and laggard. MRAs will forever be a “work in progress”.

Notwithstanding their irregular status and other job-related challenges, low-skilled workers are still considered as the auspicious beneficiaries of ASEAN integration. Most fortunate among the labor sectors are the students and researchers. Because of the enhanced cooperation between and among universities, students and researchers have been given greater mobility (Huelser & Heal, 2014; ASEAN 2008).  I deem that those at the losing end are the highly-skilled professionals.

References cited

Association of South East Asian Nations (ASEAN). (2008). ASEAN Economic 

           Community Blueprint. 

ASEAN Secretariat (2009), ASEAN Integration in Services. Available at:

            http://www.asean.org/archive/Publication-Integration-in-Services.pdf

Huelser, S.  & Heal,A. (June 2014). Moving Freely? Labour Mobility in ASEAN. UN 

            ESCAPE POLICY BRIEF No. 40.

International Organization for Migration (IOM), 2008. Situation Report on 

            International Migration in East and South-East Asia, Regional Thematic                        Working Group on International Migration including Human Trafficking.

Jurje, Flavia & Lavenex, Sandra. (2014). ASEAN Economic Community: What 

           model for labour mobility? A paper presented at the Academic Conference                "Towards ASEAN Economic Community (AEC) 2015: Progress & Prospects"               14-15October 2014, UPH Executive Education Center, Jakarta. 

Papademetriou, D.,  Sugiyato, G., Mendoza, DR. & Salant, B.  (2015). Achieving 

           Mobility in the ASEAN Economic Community: Challenges, Opportunities, and 

            Policy Implications. Philippines: ADB

Sugiyarto, G. & Aguinas, DR. (2014). A ‘Freer’ Flow of Skilled Labour Within 

           ASEAN: Aspirations, Opportunities and Challenges in 2015 and Beyond.  A                Joint Series of IOM Regional Office for Asia and Pacific and the Migration                    Policy Institute. Issue No. 11.

Dr. Flor,

As in any war or competition, those who are well equipped and well prepared are almost always the victors. Therefore, education and training is key.

Dr. Flor, you said it best in Developing Societies in the Information Age: A Critical Perspective, "those who will gain access to more resources will understandably hold more political and economic power" (Flor, 2009, p.18). Of course, knowledge is that highly valued commodity in this information age. Governments must take over the reins of their center peripheries you speak of and open their doors to those who are on their peripheries that these deprived multitudes may gain a foothold on the steps of that seldom scaled ancient tower of knowledge.

So initially, the pressure lies more on the governments of ASEAN Member States to provide ample and necessary support to enrich their citizens's knowledge and skills. Crucial to this is the strengthening of government and educational institutions. In the Philippines, despite opposition from some educators and parents, the adoption of the K to 12 Program is a necessary change geared towards this goal.

But knowledge in itself is not enough. Just as a car with the finest engine and properly inflated tires, without the steering wheel, one can never have a smooth ride. And so it is with knowledge and skill without values. You have named a few--equality, harmony, complementarity, integration, participation and inclusion, development from within, convergence--we can add more. Values are what keeps a person on track.

And here lies the paradox.

How can someone "wage war" and compete with anyone with these values? The answer is within us. The ASEAN is a conglomeration of ethnicities, creeds and ideals. We fight to keep our prejudices at bay and respect everyone we meet. We fight to keep this ASEAN machine running smoothly. We fight not among ourselves rather within our selves.

But still the question must be answered, who gains most from this integration? It is the ASEAN student. And I do not mean only those who are enrolled in the program. It us who believe that learning other cultures will create the often prayed for paradise. And it is our duty to impart this paradise to everyone.

*********

References:

Flor, A. (2009). Developing Societies in the Information Age: A Critical Perspective.    

        Diliman, Quezon City: UP Open University.

International Labour Organization and Asian Development Bank (2015). ASEAN 

         community 2015: Managing integration for better jobs and shared prosperity.

         Bangkok, Thailand: ILO and ADB