ASEAN CONFEDERATION OF
EMPLOYERS (ACE)
by
HJH. AZIZAH TALIB
ECONOMIST
8th
ASETUC National Advocacy Workshop
-9th June 2010, Federal Hotel, Kuala Lumpur
SCOPE OF PRESENTATION
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ASEAN Confederation of Employers (ACE)
Priorities for ASEAN in labour and employment
MALAYSIAN EMPLOYERS FEDERATION
ASEAN INTEGRATION
- ASEAN integration is less formal than
European Union
It is a community under construction
- It represents newly industrialised countries
bringing together – from 5 countries to 10
countries in ASEAN region
 Reasons for formation - European Union
- ASEAN
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MALAYSIAN EMPLOYERS FEDERATION
EMPLOYERS’ ORGANISATION
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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).
MALAYSIAN EMPLOYERS FEDERATION
FOUNDING MEMBER EMPLOYERS’
ORGANISATION
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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.
MALAYSIAN EMPLOYERS FEDERATION
ADMINISTRATIVE MATTERS
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The affairs of ACE are governed and
administered by Board of Directors comprising a
duly authorised representatives from each
member.
MALAYSIAN EMPLOYERS FEDERATION
OBJECTIVES OF ASEAN
CONFEDRERATION 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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MALAYSIAN EMPLOYERS FEDERATION
ROLE OF ACE
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Sharing and exchanging information and
experience on:
- economic issues
- labour market
- labour legislation
- education & training
MALAYSIAN EMPLOYERS FEDERATION
RECENT EVENTS
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Recent events organised by ASEAN Confederation of
Employers: some eg. on sharing of information and
improve and strengthen networking.
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At the 34th ACE meeting held in Bangkok on 3rd
April 2009 – the ACE members discussed about
stimulus plan in their respective countries.
MALAYSIAN EMPLOYERS FEDERATION
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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”.
MALAYSIAN EMPLOYERS FEDERATION
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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.
MALAYSIAN EMPLOYERS FEDERATION
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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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MALAYSIAN EMPLOYERS FEDERATION
PRIORITIES OF ASEAN IN
LABOUR AND EMPLOYMENT
Issues of Concern
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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
ASEAN PRIORITES
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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
ENHANCING COMPETITIVENESS
THROUGH PRODUCTIVITY INCREASE
International Economic Environment
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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
ENHANCING COMPETITIVENESS
THROUGH PRODUCTIVITY INCREASE
Gross domestic product, constant prices (Annual percent change)
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Axis Title
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6
4
2
0
-2
-4
Brunei
Darussala
m
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
6.28
Lao
People's
Democrati
c Republic
7.46
2007
0.62
10.21
6.3
11.93
7.08
7.77
4.93
8.46
2008
-1.51
6.7
6.06
7.22
4.6
4
3.84
1.15
2.59
6.17
2009
0.24
2010
0.56
-2.66
4
4.58
-1.7
4.26
0.99
-3.33
-3.46
4.61
4.26
4.75
5.42
4.5
5.03
3.21
4.1
3.71
5.32
Source: International Monetary Fund, World Economic Outlook Database, October 2009
Central Bank of Malaysia Annual Report 2009
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MALAYSIAN EMPLOYERS FEDERATION
ENHANCING COMPETITIVENESS
THROUGH PRODUCTIVITY INCREASE
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MALAYSIAN EMPLOYERS FEDERATION
ENHANCING COMPETITIVENESS
THROUGH PRODUCTIVITY INCREASE
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ASEAN can no longer compete on low labor costs alone
To make region competitive ASEAN:
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must raise workers’ productivity
 cut costs across the production value chain
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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
MALAYSIAN EMPLOYERS FEDERATION
SKILL DEVELOPMENT AND
CERTIFICATION
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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
MUTUAL RECOGNITION OF SKILLS AMONG
ASEAN COUNTRIES IN VIEW OF 2015
ECONOMIC INTEGRATION
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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
REVIEWING OF LABOUR LEGISLATION TO
PROMOTE FLEXIBILITY IN MANAGEMENT
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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 :
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Flexibility in managing human resources
Performance/productivity‐based wage system
MALAYSIAN EMPLOYERS FEDERATION
STRENGHTENING TRIPARTITE
PARTNERSHIP
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Tripartism should not be just lip service
Stakeholders to be mutually trusted and respected for
tripartism to succeed
MALAYSIAN EMPLOYERS FEDERATION
ENSURING INCLUSIVE GROWTH FOR
ALL SEGMENTS OF WORKFORCE
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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
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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
MALAYSIAN EMPLOYERS FEDERATION
THANK YOU
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MALAYSIAN EMPLOYERS FEDERATION