ASEAN INTEGRATION: THE NEXT DECADE AHEAD

Transcription

1 ASEAN INTEGRATION: THE NEXT DECADE AHEAD Presentation by Prof. Federico M. Macaranas, PhD 39 th Annual Conference of the Integrated Electrical Engineers of the Philippines SMX Convention, Mall of Asia, Pasay City 29 November 2014

2 Key Messages 1. The ASEAN Community widens the opportunities for Engineers. ASEAN recognizes the significance of engineers for regional economic dynamism. 2. The global war for talent is diffusing local engineers and could stifle innovation in the domestic front. There is a need to keep them abreast with these issues and invest energies turning these challenges to economic opportunities. 3. Education and leadership trainings remain vital for shaping a ready workforce for an ever competitive landscape. Reengineer education that is relevant and globally benchmarked.

3 WHERE ARE WE HEADING? ASEAN ECONOMIC COMMUNITY PRESENTS VIBRANT OPPORTUNITIES

4 ASEAN ECONOMIC COMMUNITY STRATEGIC SCHEDULE OF THE AEC BLUEPRINT ( ) Pillar 1 Single Market & Production Base Free flow of goods Free flow of services Free flow of investment Freer flow of capital Free flow of skilled labor Priority Integration Sectors Food, agriculture and forestry Pillar 2 Competitive Economic Region Competition policy Consumer protection Intellectual property rights Infrastructure development Taxation E-Commerce Pillar 3 Equitable Economic Development SME development Initiative for ASEAN Integration Pillar 4 Integration into the Global Economy Coherent approach towards external economic relations Enhanced participation in global supply networks HUMAN RESOURCE DEVELOPMENT RESEARCH AND DEVELOPMENT

5 Opportunities for ASEAN Engineers AEC could contribute 3.1 million more jobs in the Philippines. Demand for high-skilled employment could also increase by 60% (2014 ILO-ADB joint study). Mutual Recognition Arrangement (MRA) on Engineering Services represents the first MRA on professional services by ASEAN. It complements other ASEAN initiatives such as the ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronic Equipment. FTAs also provide vibrant opportunities for engineers Source: Ong Keng Yong, Branding of ASEAN Professional Engineering Services and Education for Global Mobility, Speech at the ASEAN Federation of Engineering Organizations, 30 November 2006

6 Source: Ong Keng Yong, Branding of ASEAN Professional Engineering Services and Education for Global Mobility, Speech at the ASEAN Federation of Engineering Organizations, 30 November 2006 Branding of ASEAN Engineers ASEAN Engineers must be branded by innovation, quality and cost-effectiveness. ASEAN encourages engineering universities and colleges to advance the quality of education. Training and skills of ASEAN engineers are critical. Standards must be constantly upgraded and harmonized.

7 WHERE ARE WE? STATE OF ENGINEERING IN THE PHILIPPINES

8 Source: Commission on Higher Education (CHED) Steady Supply of Fresh Engineers Graduates of Engineering and Technology programs had remained steady at about 49,000 a year. However, share of Engineering graduates to the total graduates have been decreasing. Philippine Engineering and Technology Graduates by Year 60,936 59,108 57,369 55,554 52,152 53,621 48,95149,617 48,46448,448 49, % 11.50% Engineering Graduates as Percent of total annual graduates of all academic programs 11.00% 10.50% 10.00% 9.50%

9 Do we have Surplus/Shortage in some fields? Metallurgical Engineer 0% Mechanical Engineer 1% Geodetic Engineer 2% Priority areas of PDP : 1. Mining 2. Agriculture 3. Logistics 4. Shipbuilding 5. Housing 6. Electronics 7. Infrastructure Results of 2013 Licensure Examination in Engineering Programs Sanitary Engineer 1% Mining Engineer 1% Aeronautical Engineer 1% Registered Electrical Engineer 13% Electronics Engineer 34% Agricultural Engineer 3% Chemical Engineer 3% Chief Marine Engineer Officer 0% Civil Engineer 42% Source of basic data: Priority industries of ASEAN: 1. Agro-based 2. Air travel 3. Automotives 4. E-ASEAN 5. Electronics 6. Energy 7. Services 8. Tourism Among others

10 Professional Engineers are slightly increasing... 6,000 5,000 Electrical Engineering Board Exam Results 51% 52% 50% 48% 60% 50% 4,000 2,545 40% 3,000 32% 3,024 2,020 2,355 2,442 30% Fail Pass Passing Rate 2,000 20% 1,000 1,410 2,144 2,315 2,287 2,764 10% - Year ( ) Source: Professional Regulation Commission. Retrieved from 0%

11 ...But Brain Drain might potentially ensue In 2010, there are 12,685 newly licensed Filipino Engineers. In the same year, more than 16,000 Filipino engineers left the country for overseas employment OFW Deployment by Occupation and Sex New hires, 2010 Occupation Total Project Manager (Construction) 102 Chemical Engineers 38 Civil Engineers 1,731 Electrical and Electronics Engineers 1,290 Industrial Engineers 384 Mechanical Engineers 1,072 Mining/Mineral Mining Engineers 4 Ship Engineers 7 Engineers ( N E C ) 1,937 Electrical & Electronics Engineering Technicians 3,486 Mechanical Engineering Technicians 3,175 Engineering Technicians (NEC) 2,858 Total Engineers 16,084 It should be noted that on the same year, the number (1,410) of newly licensed Electrical Engineers almost equal (91.5%) the number of Electrical and Electronics Engineer who have left for abroad.

12 Capacity for Innovation If this trend persists, the country s capacity for innovation could be stifled There is a correlation between availability of S&E and capacity for innovation in ASEAN and its dialogue partners. Scientists and Engineers for Innovation R² = Availability of Scientists and Engineers

13 Most of them are going to Middle East Countries OFW Electronics and Electrical Engineer Deployment, New Hires, 2010 Country Number Saudi Arabia 835 Qatar 179 United Arab Emirates 62 Libya 32 Indonesia 31 South Korea 22 Algeria 16 Kuwait 15 Madagascar 13 United States 11 Others 74 Total 1,290 1% 1% 2% 2% 2% 5% 14% 1% 1% 6% Destination Countries Saudi Arabia Qatar United Arab Emirates Libya Indonesia South Korea Algeria Kuwait Madagascar United States Others 65%

14 These top destination countries have high capacities to attract talent Capacity to attract talent Does your country attract talented people from abroad? [1=not at all; 7=attracts the best and brightest from around the world] Source: WEF Global Competitiveness Report

15 TWO MAJOR IMPLICATIONS FOR COMPETITIVENESS A. Promote Engineering Talents for the World: Focus on capacity building and quality assurance of engineering programs; ensuring that its engineers comply with the international standards. B. Keeping Engineering Talents: Employ them for its own development agendas and pursue different strategies beyond technically qualifying engineers.

16 Promoting Talents for the World Technically qualifying engineers means preparing engineers not only for overseas employment but also for domestic employment that is internationally benchmarked. International Agreements on Engineering Education Bologna Declaration Western Hemisphere Partnership Sydney Accord Dublin Accord Washington Accord

17 Washington Accord is poised to create the most significant impact However, only 7% of Filipino Engineers were employed in Washington Accord economies Filipino Engineers Deployed Overseas by Region, 2010 (New Hires) 2% 0.5% 2% 4% 7% ASEAN Washington Accord Countries Middle East (Saudi Arabia, UAE, etc.) Africa 84% Others (South America, South Asia, Russia, Pacific Islands, etc.) Other East Asian Economies (China, Mongolia, etc.)

18 Engineers cannot solely rely on Middle East Middle East is expected to experience a decline in employment growth. Middle East engineering companies are beginning to hire engineers from Washington Accord countries as well.

19 Improving Engineering Education Programs A 2006 Competitiveness Study on Education Services of the Philippines highlighted the significance of Continuous Quality Improvement (CQI) and Technology Forecasting 7 Quality of Math and Science Education How would you assess the quality of math and science education in schools [1=extremely poor; 7=excellent] Source: WEF Global Competitiveness Report

20 Keeping Engineering Talents at Home 7 Capacity to retain talent Does your country retain talented people? [1=the best and the brightest leave to pursue opportunities in other countries; 7=the best and brightest stay and pursue opportunities in the country] Source: WEF Global Competitiveness Report

21 Keeping Engineering Talents at Home War for Engineering Talent is being defined by competitive compensations Remuneration of Engineers (US$), Source: IMD World Competitiveness Yearbook 2014

22 Making Engineering Relevant to Development The country s emphasis on development entails consistent innovation and innovators Capacity for Innovation To what extent do companies have the capacity to innovate? [1=not at all; 7=to a great extent] Source: WEF Global Competitiveness Report

23 Making Engineering Relevant to Development Countries where Filipino engineers mostly go to for employment have the extensive and efficient infrastructure (transport, telephony, and energy). The brain circulation phenomenon poses opportunities for technology and knowledge transfer (i.e. TOKTEN) Quality of overall infrastructure How would you assess general infrastructure (e.g., transport, telephony, and energy) in your country? [1=extremely underdeveloped; 7=extensive and efficient] Source: WEF Global Competitiveness Report

24 Making Engineering Relevant to Development The Filipino engineering community must be reformed and reengineered in response to the competitiveness and energy efficiency issues confronting the domestic front Quality of electricity supply How would you assess the reliability of the electrical supply (lack of interruptions and lack of voltage fluctuations)? [1=not reliable at all; 7=extremely reliable] Source: WEF Global Competitiveness Report

25 Relevant Energy Security Issues ASEAN s Energy demand has risen two-and-a-half times since It is now equivalent to around 75% of the energy demand of India (IEA & ERIA). Domestic Power Supply Shortage in Luzon of Megawatts Short-term Solution: Interruptible Load Program Long-term Solution: Additional Generating Capacity Regional As countries turn into rapidly growing economies, there is projected higher demand for energy. ASEAN Cooperation in Energy: ASEAN Power Grid APSA (ASEAN Petroleum Security Agreement) TAGP (Trans ASEAN Gas Pipeline)

26 Energy Landscape in ASEAN Source: International Energy Agency & Economic Research Institute for ASEAN and East Asia

27 CONCLUSION ASEAN integration offers opportunities not only for new jobs but also for pressures to improve the engineering profession. The global war of talent is becoming worrisome. A vibrant Philippine economy should generate suitable jobs for Filipino talents to remain in the country. Education plays a vital role in shaping the best engineers of the country. This must be complemented by leadership training programs that will keep them abreast of the development issues.