ASEAN CONFEDERATION OF EMPLOYERS (ACE) ASETUC National Advocacy Workshop 8 th -9th June 2010, Federal Hotel, Kuala Lumpur by HJH. AZIZAH TALIB ECONOMIST.

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ASEAN CONFEDERATION OF ASEAN CONFEDERATION OF EMPLOYERS (ACE)EMPLOYERS (ACE)

ASETUC National Advocacy Workshop 8th -9th June 2010, Federal Hotel, Kuala Lumpur

bybyHJH. AZIZAH TALIBHJH. AZIZAH TALIB

ECONOMISTECONOMIST

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SCOPE OF PRESENTATIONSCOPE OF PRESENTATION ASEAN Confederation of Employers (ACE) Priorities for ASEAN in labour and employment

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ASEAN INTEGRATIONASEAN INTEGRATION

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- - ASEANASEAN integration is less formal than integration is less formal than European UnionEuropean Union

It is a community under construction It is a community under construction

- It represents newly industrialised countries - It represents newly industrialised countries bringing together – from 5 countries to 10 bringing together – from 5 countries to 10 countries in ASEAN regioncountries in ASEAN region

Reasons for formation Reasons for formation - European Union- European Union

- ASEAN- ASEAN

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EMPLOYERS’ ORGANISATIONEMPLOYERS’ ORGANISATION

On 25th Nov. 1978, five founding member employers organisations from Indonesia, Malaysia, Philippines, Singapore and Thailand firmly supporting the fundamental objectives of ASEAN in its pursuit of effective measure for regional economic co-operation declared their agreement to unite and establish the ASEAN Confederation of Employers(ACE).

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FOUNDING MEMBER EMPLOYERS’ FOUNDING MEMBER EMPLOYERS’ ORGANISATIONORGANISATION

Employers’ Association of Indonesia (APINDO) Employers Confederation of The Philippines (ECOP) Employers Confederation of Thailand (ECOT) Malaysian Employers Federation (MEF) Singapore National Employers Federation (SNEF)

16th Feb 2004, the Cambodian Federation of Employers & Business Associations (CAMFEBA) became member of ACE.

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ADMINISTRATIVE MATTERSADMINISTRATIVE MATTERS

The affairs of ACE are governed and administered by Board of Directors comprising a duly authorised representatives from each member.

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OBJECTIVES OF ASEAN OBJECTIVES OF ASEAN CONFEDRERATION OF EMPLOYERSCONFEDRERATION OF EMPLOYERS

1. To foster the solidarity and development of Employers’ Organisations in the region.

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2. To safeguard and promote the interests of ASEAN employers.

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3.To collate and disseminate information on legislative changes and general developments in the field of labour, social and economic matters, which are likely to affect the interest of employers.

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4. To foster closer relations and co-operation between and among the members, and to render mutual assistance in matters of common interest.

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5.To maintain closer relations and co-operation with regional and international organisations having similar aims and objectives.

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6. To promote harmonious industrial relations, help maintain peace, and encourage productivity.

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7. To co-ordinate the views of members and to represent their views at regional and international levels.

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ROLE OF ACEROLE OF ACE Sharing and exchanging information and experience on:

- economic issues

- labour market

- labour legislation

- education & training

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RECENT EVENTS RECENT EVENTS

Recent events organised by ASEAN Confederation of Employers: some eg. on sharing of information and improve and strengthen networking.

- At the 34th ACE meeting held in Bangkok on 3rd

April 2009 – the ACE members discussed about stimulus plan in their respective countries.

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On 21-22 Nov. 2007 – NICC/Asian Employers’ Organisation workshop on “Strengthening Management Capability of SMEs Focusing on Recruitment and Development of Human Resources in the Circumstance of Growing Needs for Competitiveness and Productivity”.

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( 20-21 July 2006 ) 7th Asia-Pacific High-level Employers’ Conference

Employers Organisations from the Asia Pacific region gathered to discuss each organisation roles, areas of work and strategies to tackle national concerns such as labour legislation, labour market reform, impact of privatisation on labour market, cost of doing business, small and medium sized enterprise development strategies, demographics, education and training.

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(26-28 April 2005)

Workshop on role and function of employer’s organisation.

(17-18 February 2005)

Meeting of Joint Study on “Implementation of Employment Relations Law and Regulations at the Workplace”.

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PRIORITIES OF ASEAN INPRIORITIES OF ASEAN IN LABOUR AND EMPLOYMENT LABOUR AND EMPLOYMENT

Issues of Concern Globalisation, trade liberalisation and technological

advance changed economic environment fundamentally

ASEAN employers need to reposition to compete and take advantage of the new opportunities and challenges

With market condition changing constantly, competition for investment is intense

Under this fundamentally altered economic environment, ASEAN countries cannot rely on time-tested strategies to forge ahead of its competitors

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ASEAN PRIORITESASEAN PRIORITES Enhancing competitiveness through productivity

increase Skills development and certification Mutual recognition of skills among ASEAN in view of

2015 economic integration Reviewing of labour legislation to promote flexibility

in management Strenghtening tripartite partnership to tackle

challenges such aging workforce, foreign workers, increasing participation of women in labour market

Ensuring inclusive growth for all segments of workforce

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ENHANCING COMPETITIVENESS ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASETHROUGH PRODUCTIVITY INCREASE

International Economic Environment First half 2009 -global economy experienced sharpest

contraction since Second World War - more than 60% of world output in a synchronised recession

Asian economies with higher degree of trade openness affected by collapse in world trade - sudden plunge in demand from advanced economies - double-digit declines in exports and production

Economic recovery still remained fragile and uneven Unprecedented policy responses by governments -

large fiscal stimuli ranging between 1 – 12% GDP

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ENHANCING COMPETITIVENESS ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASETHROUGH PRODUCTIVITY INCREASE

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Source: International Monetary Fund, World Economic Outlook Database, October 2009 Central Bank of Malaysia Annual Report 2009

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ENHANCING COMPETITIVENESS ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASETHROUGH PRODUCTIVITY INCREASE

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ENHANCING COMPETITIVENESS ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASETHROUGH PRODUCTIVITY INCREASE

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ASEAN can no longer compete on low labor costs alone To make region competitive ASEAN:

must raise workers’ productivity cut costs across the production value chain thereby boosting demand, foreign direct

investment, and exports ASEAN’s productivity challenge must be tackled

through both national reforms and regional integration Raising productivity is key to sustaining country's

economic growth and standard of living and prosperity of its people

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SKILL DEVELOPMENT AND SKILL DEVELOPMENT AND CERTIFICATIONCERTIFICATION

Steady increase in labour mobility - both highly skilled and unskilled employees cross borders in search of job opportunities

Malaysia - shortage in unskilled employees has forced industries to be dependent on foreign workers, while highly skilled employees is the challenge of the brain drain

To compete effectively in the global market, employers require a readily available pool of highly competent workforce equipped with the right knowledge and skills

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MUTUAL RECOGNITION OF SKILLS AMONG MUTUAL RECOGNITION OF SKILLS AMONG ASEAN COUNTRIES IN VIEW OF 2015 ASEAN COUNTRIES IN VIEW OF 2015

ECONOMIC INTEGRATION ECONOMIC INTEGRATION

There should be a standardised skills certification system recognised within ASEAN countries

Skills certification will encourage employees to take up multi‐skilling and multi‐tasking - improve the productivity and the competitiveness of countries

Technical and vocational education generally not preferred stream for further education - need to be promoted through awareness programme and media campaigns

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REVIEWING OF LABOUR LEGISLATION TO REVIEWING OF LABOUR LEGISLATION TO PROMOTE FLEXIBILITY IN MANAGEMENTPROMOTE FLEXIBILITY IN MANAGEMENT

Outdated labour laws provide limited flexibility for employers to deal with the challenges effectively

Labour laws should promote flexibility in management to enable companies to introduce work arrangements that promote productivity and operational efficiency

Laws to promote : Flexibility in managing human resources Performance/productivity‐based wage system

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STRENGHTENING TRIPARTITE STRENGHTENING TRIPARTITE PARTNERSHIPPARTNERSHIP

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Tripartism should not be just lip service Stakeholders to be mutually trusted and respected for

tripartism to succeed

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ENSURING INCLUSIVE GROWTH FOR ENSURING INCLUSIVE GROWTH FOR ALL SEGMENTS OF WORKFORCEALL SEGMENTS OF WORKFORCE

Growth has to be inclusive – growth with equity The urban-rural divide has to be bridged and rural

areas integrated with the economic processes to ensure equitable and inclusive growth

Development of programmes supporting employment creation and vocational capability development projects which are tailored to local demands

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Large informal sector – development programmes need to take into account of informal sector

Specific Policies targeted for: PWD Old age Women

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THANK YOUTHANK YOU

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