At the 2nd Union Network International Asia and pacific Regional Organisation
(UNI-Apro) Regional Conference –
Special Session on ASEAN Integration
Kuala Lumpur, 28 August 2007
The beginnings of ASEAN Integration
1. The ASEAN commitment to regional economic integration started in 1992 when the then six ASEAN Members Countries entered into a framework agreement to establish the ASEAN Free Trade Area (AFTA).
2. AFTA has been virtually established in 2003, four years earlier than initially targeted, when about 99 percent of products in the Common Effective Preferential Tariff or CEPT Inclusion List of ASEAN-6 have been brought down to no more than 5 percent tariff range. In the case of CLMV countries, about 71 percent of such products have been brought down to the 0-5 percent tariff band.
3. Regional economic integration is our collected means towards increasing the region’s economic competitiveness. Its target is to reduce the cost of doing business in the region by removing barriers to the flow of goods, services and factors of production. As such, firms would be enabled to realise economies of scale, attract domestic and foreign investment, promote economic growth, and create jobs.
4. From AFTA, ASEAN has moved towards a more ambitious agenda – the establishment of the ASEAN Economic Community (AEC). Decided at the 9th ASEAN Summit held in Bali in 2003, the AEC will be as a single market and production base where there is free flow of goods, services, investment, freer flow of capital, and free movement of skilled labour within the ASEAN region.
5. Then in January this year, the ASEAN Leaders agreed to accelerate the timetable of achieving the AEC from 2020 to 2015.
6. Proponents of economic integration and the establishment of wider common economic space applaud this commitment, particularly among the multinational business community.
The social impact of economic integration
7. But there were also expressions of concern. Views have been articulated that economic integration is disadvantageous to small firms, triggers corporate restructuring that causes job lost, causes income insecurity, and thus worsens the poverty situation. These issues are legitimate and deserve our attention.
8. In its latest report on labour and social trends in ASEAN, the ILO outlines some equally challenging responses that we need to undertake including improving the competitiveness and productivity of enterprises, promoting skills development and decent work opportunities, addressing the challenge of working poor, issues related to the growing cross-border mobility of labour, as well as occupational safety and health at work.
9. Indeed, in an era of economic modernization and automation, economic growth does not always mean equal opportunity for everyone. For example, since 2000, total employment in ASEAN has increased by a healthy 11.8 per cent, from 235.2 million to 263 million, an increase of 27.8 million additional jobs. At the same time, over the same period, total unemployment in ASEAN rose by 6.3 million, or 51.3 per cent, to 18.6 million. This large increase pushed the region’s unemployment rate from 5 per cent in 2000 to 6.6 per cent in 2006.
10. ASEAN Governments are cognizant of this challenge. Indeed, the ASEAN Leaders, at the 2003 Summit, resolved that the “ASEAN work force shall be prepared for, and benefit from, economic integration by investing more resources for basic and higher education, training, science, and technology development, job creation, and social protection”.
11. They have also agreed that “the development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity.”
ASEAN cooperation in the labour sector
Let me focus on what ASEAN has been doing in the field of labour and employment.
12. The ASEAN Labour Ministers have a Work Programme that pays attention to addressing the impact of regional integration on employment.
13. Their activities include improving industrial relations, human resources development, skills recognition, and occupational safety and health.
14. For example, the ASEAN Programme on Industrial Relations brings together high-level representatives from employers, workers and governments to promote industrial harmony, higher productivity and social justice. The Programme has also established a network of experts that helps facilitate information sharing, workshops and seminars.
15. In the field of human resource development, ASEAN has organized various seminars to exchange lessons learned and good practices in the region. Capacity building activities aimed at addressing the challenges being faced by ASEAN newer members, namely Cambodia, Lao PDR, Myanmar, and Viet Nam have been organized.
16. ASEAN recognises that the establishment of an effective system of skills recognition to promote the mobility of skilled workers is an essential component of the ASEAN integration. ASEAN has entered into mutual recognition agreements in some specific professions and is negotiating on others. At the same time cooperation continues through the development of competencies standards and curricula, as well as policy reviews to explore ways of establishing skills certificates and credentials recognition system.
17. The ASEAN Occupational Safety and Health Network (ASEAN-OSHNET) facilitates the exchange of information, the sharing of training expertise, and the development and harmonization of the OSH standards and guidelines. The objective is to contribute to the promotion of decent work.
18. ASEAN recognizes the important contributions of migrant workers both to the sending and receiving countries. Thus, in January this year, the ASEAN Leaders signed the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers. Last 30 July 2007, ASEAN established an ASEAN committee to carry out the objectives of this Declaration.
The way forward
19. Despite ASEAN’s on-going effort as I have just mentioned, we realise that a great deal of work remains to be done to ensure that ASEAN workers benefit from a more integrated ASEAN. In this respect, let me make three points.
20. First, it is important for all ASEAN Governments to translate regional commitments into national policies. For instance, skills training networking has been included as one of the measures that ASEAN has agreed to pursue under its regional cooperation in labour sector. Skills networking can be established at the regional level, but it is the task of each Member Country to disseminate and apply knowledge gained from regional collaboration, such as in skills retraining as their respective economies transform. They also try not to opt out of some MRAs, although these are allowed in the agreements.
21. Second, economic restructuring and modernization sometimes bring challenges to employment and income security. The information and communications technology revolution has changed our work environment. Therefore, we need to put in place social policies that promote employment protection, social safety nets, and skills training and retraining. We need to strengthen our regional network of skills training institutions. We need to device incentives to encourage the private sector to undertake continuous re-training programs.
22. Third, we need to promote effective social dialogue between workers, employers, and government to ensure that economic integration and globalization benefit all. We should engage social partners in strategy formulation and implementation. This is an example of such dialogue that we should continue.
23. In closing, let me reaffirm that ASEAN is committed to promoting regional economic integration because it makes economic sense. The challenge is to give it also social sense. After all, it is the people who should be both the most important resource and beneficiary of economic growth and development. To do so, we need to keep up with the changing times, which continue to redefine issues and challenges. As I mentioned in another forum, the one thing that we have learnt in the forty years of ASEAN regional cooperation is that we cannot handle issues the same way as we have done in the past. Let us join hands in this task.
Thank you.
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