Migrant Worker Deployment: Indications of Emerging Market Trends in ASEAN

Hans Leo J. CacdacAdministrator

Philippine Overseas Employment Administrationprepared for the

40th APS Anniversary Lecture ForumAteneo Professional Schools, Rockwell Center, Makati City12 November 2014

labor mobility can both be a factor and driver of economic growth

toward ASEAN integration, there are

“communities” that cover inter-related spheres of integration

Image source: http://phangngacommunitycollege.blogspot.com

deployment statistics show that except for Malaysia and Singapore, documented workers bound for ASEAN Member States remain low during the past 5 years

of the 1,469,179 global landbased deployment in 2013, about 16.89% (or 248,174) are toward ASEAN member states

Singapore deployment (173,666 workers

in 2013) is 5 times larger than the second ASEAN labor market (Malaysia 34,088 in 2013)

In 2013 …

deployment to Singapore and Malaysia are mostly services workers (84% and 78% respectively)

on the share of professionals to total deployment, Malaysia and Thailand have significant number of engineers

Singapore is also a destination for engineers and nurses

For the past 5 years…

deployment to Brunei Darussalam with no more than 6,000 new hire workers are mostly production workers and sales workers

total deployment to Cambodia, Indonesia, Laos, Myanmar and Viet Nam with less than 400 workers per year are mostly production laborers

For the past 5 years…

the general trend

and in real numbers…

2010 2011 2012 2013Brunei Darussalam 7,907 15,406 14,907 17,000Cambodia 1,499 1,768 1,734 1,994Indonesia 4,084 4,793 5,166 5,489Lao PDR 734 992 1,073 1,255Malaysia 9,802 16,797 38,407 34,088Myanmar 194 334 288 867Singapore 70,251 146,613 172,690 173,666Thailand 5,133 6,445 9,204 8,659Viet Nam 4,056 4,349 4,962 5,156

Singapore, 45.0% are from Malaysia

in Malaysia, 42.6% are from Indonesia

in Thailand, 50.8% are from Myanmar

--ILO-ADB

Three “Major” ASEAN Destinations

in Singapore,1.46M are non-resident population

12% of the non-resident population in Singapore are E-pass holders (skilled workers)

source: Singapore MOMT

in Malaysia, Filipino migrant workers ranked 7th in terms of population share of foreign workforce

10% are in the services sector

source: ILO, N. Baruah , Trends and Outlook for Labour Migration in Asia

Migrant Workers Stock in Malaysia, 2011

source: ILO-UE. A. Matsuno. Nurse Migration: The Asian Perspective

Singapore and Malaysia’s health sector have high percentages of foreign nurses

Future Demand Across ASEAN

ILO-ADB study suggest that in 2025 under AEC, Cambodia, Indonesia, Lao PDR, Philippines and Viet Nam could face a mismatch in high skills jobs

Population ageing and decline in the growth of labour force in Singapore and Thailand can further highlight skills needs

source: ADB-ILO. ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity

source: ADB-ILO. ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity

Selected Priority Development Sectors, ASEAN

Market Outlook/Lookouts

across ASEAN, the priority occupations that are being opened up are those under MRAs:

2005 Engineering Services 2006 Nursing Services 2007 Architectural Services 2007 Surveying 2009 Accountancy Services 2009 Medical Practitioners 2009 Dental Practitioners 2012 Mutual Recognition Arrangement on

Tourism Professionals (ASEAN MRA-TP)

Market Outlook/Lookouts

The ASEAN MRA on Tourism Professionals covers 6 general labor groupings:

Front Office Housekeeping Food Production Food and Beverage Services (for Hotel

Services) Travel Agency Tour Operations (for Travel Services)

Market Outlook/Lookouts

Immigration rules for foreign workers are being complemented by more stringent requirements

e.g., Malaysia is implementing accreditation of Philippine-based health facilities that undertake health examinations for workers bound for Malaysia

Market Outlook/Lookouts Immigration rules for foreign workers are being complemented by more stringent requirements

Brunei is putting in place localization programs with the following components: foreign labor quotas, to be reduced

effective June 2014 freeze order for foreign workers:

supervisors, assistant supervisors, promoters, drivers, bakers (bread and cake makers), cashiers, butchers, in the wholesale and retail trade

further freeze on foreign workers in transportation, hospitality, support eservices and ICT sectors

Market Outlook/Lookouts

There are specific market opportunities continued employment of Filipino workers in

Brunei even in areas covered by labor localization program

Deployment of OFWs to Brunei, New Hires, 2009-2013(Source: POEA)

Market Outlook/Lookouts

Indonesia competes with the Philippines in terms of deployment of both skilled and semi-skilled workers

Cambodia, Lao PDR and Myanmar have advantage over the Philippines in terms of market access to geographically contiguous and culturally-similar Thai labor market

Market Outlook/Lookouts

Thailand TVET sector is actively seeking Filipino instructors to strengthen its technical and vocational education sector

Vietnam authorized the hiring of teachers and is looking for source of engineers, construction consultants, supervisors, technical experts and quality control specialist for their infrastructure developments

Rules of Labor Mobility

“Free flow” under AEC is not absolutely free managed and not automatic rules-based still governed by domestic (immigration

and labor) regulations recognition of qualifications is key

Imperatives for OFW Protection

develop a policy issuance that will require OFWs’ possession of appropriate license or certification prior to deployment to ASEAN countries

more on protection for vulnerable occupations : domestic workers, low and semi-skilled work

Ethical recruitment practices Standard contracts, bilateral arrangements Anti-human trafficking and anti-illegal

recruitment Instrument to implement the Cebu (ASEAN)

Declaration on Migrant Workers ILO Convention 189

Toward Outward Mobility of Workers

alignment of curricula with international benchmarks

continuous learning, training and retaining

increased efficiencies in private recruitment

Imperatives for Inward Mobility transition strategies to aid industry,

the education sector, and labor supply adjust to competition

industrial upgrading to strengthen and expand the base for decent employment

improving competitiveness through continuous on-the-job skills acquisition and development

References ASEAN, “ASEAN Integration in Services”

2009. ASEAN Framework Agreement on Services

accessed at www.asean.org DOLE Institute for Labor Studies,

“Implications of ASEAN Mobility-2015”

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