Guntur Sugiyarto

Senior Economist, Development Economics and Indicators Division

Economic Research and Regional Cooperation Department, ADB
27-31 January 2015, Shanghai, PRC
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies
of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the
governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no
responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB
official terms.
*) The views expressed here are those of the author and do not necessarily reflect the views or policies of the ADB.

Outline
1. Understanding the context
2. Migration aspirations
3. Characteristics of the migration
4. Nature of cooperation
5. Adopting the right approach

ASEAN Countries..
VIET NAM
LAO PDR

BRUNEI
DARUSSALAM

Very Diverse,

Dynamics and
Dependent on
each other(3Ds)
In economics and
other factors

ASEAN Region
The third most dynamic in the world (after PRC and

India).
Size of economy: 75% of the Japan and 32% of PRC.
Among the most open economy in the world: exports
60% of GDP or 7.5% of global exports.
Intra-ASEAN FDI: 30% of total and growing
Intensified in line with the ASEAN Economic Community
(AEC) by 2015 and beyond

ASEAN Role in Global Economy

GDP growth (y-axis) and level (bubble size) in billion PPP dollars
ASEAN Trading Partners 2010 (%)
2010

PRC,

PRC

Source: AEC Chartbook 2011

Key Development Challenges

The region has very diverse and dynamic socioeconomic base and development progress.
Experience significant changes in the
socioeconomic and demographic conditions.
Economic, demographic and other gaps making
people move across areas and countries.
Intra-Asean and International Migrations have
become very common (Internal migration too).
Challenge for governing the migrations that
require Policy Coordination.

Basic Key Indicators of Countries in the SEA Region

LAND
Total Surface
Area

POPULATION
Total

Average
Annual
Growth Rate

Density

Total Fertility
Rate

COUNTRIES
(million)

(%)

(persons per
km2 of total
surface area)

(births per
woman)

2013

2008-2013

2013

2012

('000 km2)

Brunei Darussalam

Age
Dependency
Ratio

Infant
Mortality
Rate

Maternal
Mortality
Ratio

(Number of
persons aged
<15 and 65 (deaths per
(per 100,000
to Number of 1,000 live
live births)
births)
persons aged
1564 years,
%)
2012

2012

2010

Per Capita
GNI, Atlas
Methiod

(US$)

2012

5.77

0.41

1.6

70

2.0

42

24

31,590

Cambodia

181.04

14.68

1.5

81

2.9

57

34

250

880

Indonesia

1,904.57

248.82

1.5

131

2.4

52

26

220

3,420

Lao PDR
Malaysia

236.80
330.80

6.66
29.95

2.2
1.7

28
91

3.1
2.0

65
47

54
7

470
29

1,270
9,820

Myanmar

676.59

61.65

1.1

91

2.0

44

41

200

Philippines

300.00

97.40

1.5

325

3.1

62

24

99

2,500

Singapore

0.72

5.40

2.2

7,540

1.3

36

47,210

513.12
330.96

64.62
89.71

0.4
1.1

126
271

1.4
1.8

39
42

11
18

48
59

5,210
1,550

Thailand
Viet Nam

Source: ADB Basic Statistics, 2013

The region is aspired to become

One Economic Union..
ASEAN Economic Community (ASEAN Vision 2020)

How ?
Transforming the region into a single

market and production base

characterized by, among other things, a
free flow of skilled labor
Implemented through the Mutual
Recognition Agreements (MRAs) based
on Qualification Frameworks at National
and Regional (ASEAN) levels.

Commitments among ASEAN Countries

ASEAN Declaration on the protection and promotion of the

rights of migrant workers (Cebu 2007)

To create a single market and production base that is stable,
prosperous, highly competitive and economically integrated
with an effective facilitation for trade and investment in which
there are free flow of goods, services and investment, as well
as freer movement of skilled labor (ASEAN, 2012).
The Mutual Recognition Agreements(MRAs) have been signed
for 8 occupations: Engineer, Nursing, Architect, Surveyor,
Accountant, Medical Practitioners, Dental Practitioners and
Tourism Professionals.
These agreements must be implemented but the progress so far
is too slow and uneven due to complexities of the issue,
regulations and institutional arrangements.

Intra-ASEAN Migration..
A common phenomenon
Strong historical links
Similarities among the neighboring countries
Involving low educated, the poor, and women
The number and coverage are increasing

Key Facts on Intra-Asean

Migration

Historical Links: among neighbouring countries

Increasing in scale and magnitude.
Destination changes: following the dynamics in the destination countries
and in the world.
4. Mostly semi and unskilled workers: casual jobs in construction,
manufacturing, service and domestic workers.
5. Low education: primary and secondary levels
6. Increasing temporary contract: on fixed and short term basis.
7. Irregularity: significant number of illegal migrants vulnerable to abuse
and exploitation (e.g. Thailand and Malaysia).
8. Feminization: increasing number of women.
9. Commercialization: recruiters also act as employer causing malpractice
and irregular migration (e.g. fly now, pay later, no formal/clear
contract).
10. More complex: involving diaspora and other private networks.
1.
2.
3.

Strong Call for Policy Coordination!!!

Notes:
Very Important to have Agreement, Policy
Coordination, and Institutionalization
Adopting

the right approach to the

implementation..

Win-win-win solution

Policy Concerns in each stage of migration cycle

Policy Cooperation on:
Recruitment
Deployment Stage
During the Migration
Returning Home
Integration
Main Issue:
-Migrants are prone to abuse and exploitation in each stage
of migration process (By recruiter, employer, officer, and
others in the host and home countries)

Consider the key facts

Consider other countries response

Example: Minimum Wage Policy for the Philippine
Domestic Worker
Clarity in the Coverage and Content
Consistency in the policy and regulation
Consider other country response

Key Areas for Policy

Coordination
Facilitating labor migration as a choice
Lowering migration overall costs (economic and non-economic

costs)

Lowering Remittance Fee (5 by 5 in 5)

Facilitating the productive use of remittances ..(but please dont

expect migrant to be entrepreneur too!).

Facilitate financial and real investments of remittances

(Diaspora Bond, Matching remittance investment etc).

Protect the welfare and the rights of migrants, especially women

by mainstreaming gender policies in the migration .

Adopt Migration for Development Framework.

Thank You!
Discussion

Contact:
gsugiyarto@adb.org
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org