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

2. 2 SCOPE OF PRESENTATION ASEAN Confederation of Employers (ACE) Priorities for ASEAN in labour and employment MALAYSIAN EMPLOYERS FEDERATION

3. 3 ASEAN INTEGRATION MALAYSIAN EMPLOYERS FEDERATION - ASEAN integration is less formal than European Union - ASEAN integration is less formal than European Union It is a community under construction It is a community under construction - It represents newly industrialised countries bringing together – from 5 countries to 10 countries in ASEAN region - It represents newly industrialised countries bringing together – from 5 countries to 10 countries in ASEAN region  Reasons for formation - European Union - ASEAN - ASEAN

4. 4 EMPLOYERS’ ORGANISATION On 25 th 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). MALAYSIAN EMPLOYERS FEDERATION

5. 5 FOUNDING MEMBER EMPLOYERS’ ORGANISATION 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) 16 th Feb 2004, the Cambodian Federation of Employers & Business Associations (CAMFEBA) became member of ACE. MALAYSIAN EMPLOYERS FEDERATION

6. 6 ADMINISTRATIVE MATTERS ADMINISTRATIVE MATTERS The affairs of ACE are governed and administered by Board of Directors comprising a duly authorised representatives from each member. MALAYSIAN EMPLOYERS FEDERATION

7. 7 OBJECTIVES OF ASEAN CONFEDRERATION OF EMPLOYERS 1. To foster the solidarity and development of Employers’ Organisations in the region. MALAYSIAN EMPLOYERS FEDERATION

8. 8 continue 2. To safeguard and promote the interests of ASEAN employers. MALAYSIAN EMPLOYERS FEDERATION

9. 9 Continue 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. MALAYSIAN EMPLOYERS FEDERATION

10. 10 Continue 4. To foster closer relations and co-operation between and among the members, and to render mutual assistance in matters of common interest. MALAYSIAN EMPLOYERS FEDERATION

11. 11 Continue 5.To maintain closer relations and co-operation with regional and international organisations having similar aims and objectives. MALAYSIAN EMPLOYERS FEDERATION

12. 12 Continue 6. To promote harmonious industrial relations, help maintain peace, and encourage productivity. MALAYSIAN EMPLOYERS FEDERATION

13. 13 Continue 7. To co-ordinate the views of members and to represent their views at regional and international levels. MALAYSIAN EMPLOYERS FEDERATION

14. 14 ROLE OF ACE Sharing and exchanging information and experience on: - economic issues - labour market - labour legislation - education & training MALAYSIAN EMPLOYERS FEDERATION

15. 15 RECENT EVENTS Recent events organised by ASEAN Confederation of Employers: some eg. on sharing of information and improve and strengthen networking. - At the 34 th ACE meeting held in Bangkok on 3 rd April 2009 – the ACE members discussed about stimulus plan in their respective countries. MALAYSIAN EMPLOYERS FEDERATION

16. 16 Continue   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”. MALAYSIAN EMPLOYERS FEDERATION

17. 17 Continue ( 20-21 July 2006 ) 7 th 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. MALAYSIAN EMPLOYERS FEDERATION

18. 18 Continue (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”. MALAYSIAN EMPLOYERS FEDERATION

19. 19 PRIORITIES OF ASEAN IN 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 MALAYSIAN EMPLOYERS FEDERATION

20. 20 ASEAN 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 MALAYSIAN EMPLOYERS FEDERATION

21. 21 ENHANCING COMPETITIVENESS THROUGH 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 MALAYSIAN EMPLOYERS FEDERATION

22. 22 ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASE MALAYSIAN EMPLOYERS FEDERATION Source: International Monetary Fund, World Economic Outlook Database, October 2009 Central Bank of Malaysia Annual Report 2009

23. 23 ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASE MALAYSIAN EMPLOYERS FEDERATION

24. 24 ENHANCING COMPETITIVENESS THROUGH PRODUCTIVITY INCREASE MALAYSIAN EMPLOYERS FEDERATION 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

25. 25 SKILL DEVELOPMENT AND CERTIFICATION   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 MALAYSIAN EMPLOYERS FEDERATION

26. 26 MUTUAL RECOGNITION OF SKILLS AMONG ASEAN COUNTRIES IN VIEW OF 2015 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 MALAYSIAN EMPLOYERS FEDERATION

27. 27 REVIEWING OF LABOUR LEGISLATION TO PROMOTE 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 MALAYSIAN EMPLOYERS FEDERATION

28. 28 STRENGHTENING TRIPARTITE PARTNERSHIP MALAYSIAN EMPLOYERS FEDERATION Tripartism should not be just lip service Stakeholders to be mutually trusted and respected for tripartism to succeed

29. 29 ENSURING INCLUSIVE GROWTH FOR ALL 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 MALAYSIAN EMPLOYERS FEDERATION

30. 30 Continue Large informal sector – development programmes need to take into account of informal sector Specific Policies targeted for: PWD Old age Women MALAYSIAN EMPLOYERS FEDERATION

31. 31 THANK YOU MALAYSIAN EMPLOYERS FEDERATION