Myanmar and Japan: Towards Vibrant Economic Relations through HR. Khine Khine Nwe Joint Secretary General of UMFCCI September 28, 2016 Tokyo, Japan

Transcription

1 Myanmar and Japan: Towards Vibrant Economic Relations through HR Khine Khine Nwe Joint Secretary General of UMFCCI September 28, 2016 Tokyo, Japan

2 Quick facts about Myanmar Population Million (2014 Census) Population growth rate 1.05% Administrative capital and its population Nay Pyi Taw (1.16 million), 2014 Census Major cities and their population Yangon (5.2 million) Mandalay (1.2 million) Urban, rural ratio 28: 72 Gender ratio M:F) 48:52 Life expectancy 65.6 years Working age Population (15-64) 32.9 mil (63%) Literacy (Union) 89.5% 2

3 Source: 2014 Population Census 3

4 Good Population Structure Working age group (15-64 years) : 64.94% million Children Age group (up to 14 years) : 29.2% million Old Age (over 65 years) : 5.86% 3.01 million (Source: Ministry of Labor, Immigration and Population, Labor Force Survey, 2016)

5 Key Indicators Labour Force Survey findings Domain Total Male Female Working age population (15 years and above) 33,934,662 15,553,856 18,380,805 Labor force 21,959,797 12,474,495 9,485,302 - Employment 21,791,335 12,391,395 9,399,940 - Unemployment 168,462 83,100 85,362 Labour force participation rate (%) Unemployment rate (%) Aggregate measure of labour underutilization (%) Population outside labour force Average weekly working hours Average daily wage (in,000 Kyats) Average monthly wage (in,000 Kyats)

6 Key Indicators School-to-Work Transition Survey findings Item Total Male Female Youth population (15-29 years) 12,017,870 5,624,303 6,393,567 Labor force 7,851,225 4,259,483 3,591,741 - Employment 7,738,779 4,204,769 3,534,011 - Unemployment 112,446 54,715 57,731 Labor force participation rate (%) Unemployment rate (%) Aggregate measure of labour underutilization (%) Youth transited to stability and satisfaction job 5,981,031 3,201,635 2,779,397 Youth in transition 2,417, ,012 1,790,551 Youth not yet started transition 3,619,275 1,795,656 1,823,619 Youth transited to stability and satisfaction job (%) In transition (%) Not yet started transition (%)

7 Importance of HRD in Myanmar SME Sector constitutes the majority of businesses in Myanmar. 1 For Myanmar economic growth to become viable, Myanmar needs to scale up SME sector and skill development and capacity building in the sector is of vital. In addition to basic education, vocational trainings, capacity building are needed. Match between the human resource requirements of the industrial sectors and the skill-training programs are also highly important. To effectively provide skills development trainings for SME sectors not just in major cities, but also in other regions as well. 1 OECD (2014), Multi-dimensional Review of Myanmar: Volume 2. In-depth Analysis & Recommendations, OECD Development Pathways, OECD Publishing

8 Education Attainment of Working Age Population (%) Domain Not Below Primary Middle TVET HS Undergrad Bachelor Total literate Primary Certificate Diploma & above All MMR Urban Rural Male Female Source : MOLIP, 2016

9 Training outside the formal education system Age Group (Year) Domain All (15+) Percentage of working age persons having training once in life time All-Myanmar Male Female Urban Rural

10 Skill gaps & constraints to address According to OECD, UMFCCI & UNESCAP (2014) Myanmar Business Survey, lack of skilled workers and skilled technicians or professionals are serious obstacles for firms; All Sectors Key Sectors Manufacturing Construction Hotels & restaurants Lack of skilled workers is a severe or very severe obstacle (% of firms) 41* 43* 34* 42* Have experienced shortage of skilled workers (% of firms) Have experienced technical or skills problems (% of firms) *% of firms in survey citing lack of skilled workers as top ranked of all obstacles

11 Activities for Human Resource Development Myanmar-Japan Center for HRD, initiated by the UMFCCI and HIDA, opened on 9 th August Aims to develop human capital in industrial and commercial fields through business and managerial skills trainings. With Ministry of Commerce as the supervising agency The UMFCCI as the implementing agency, with the UMFCCI contributing the venue and facilities for the program. Trainings are currently conducted in Yangon as well as in Mandalay to effectively address skill development needs in different regions. Keidanren also provided scholarships to graduates from MJC s Business courses in Yangon and Mandalay TVET Unit in UMFCCI - started in 2014 MPC -Myanmar Japan Productivity Center in UMFCCI started in 2016

12 MJC Business Courses and Seminars (from 2013 FY ~ 2015 FY) Number of Courses and Seminars Number of Participants Persons FY 2014 FY 2015 FY 2013 FY 2014 FY 2015 FY 12

13 MJC National Instructor Courses (Number of Courses) 8 (Plan) 9 (Actual) (HR for Practical Business at Dawei) (Leadership/Communication Skills & Business Manner at MJC )

14 MJC Local- Original Course ( Number of Courses) 4 (Actual) Business Manner Course at MJC 2 3 (Plan) FY 2014 FY 2015 FY Practical Japanese Tour Guide Course

15 Number of MJC Regional Seminar 2015 FY 18 Actual 9 Seminars 12 (planed) Myeik Bago Mandalay Magway 6 Region 6 6 Region Region 6 Region Mawlamyine Hpa - An Nay Pyi Daw Taunggyi 0 Yangon

16 Study Trip to Japan (15 Graduates)

17 Study Trip to Japan (15 Graduates)

18 Business Matching & Networking in Vietnam 18

19 CEO Business Matching (Japan) MJC Graduated Participant s Companies have attended Business Matching Program supported by SME, Japan Japanese Companies (Tokyo) Japanese Companies (Fukuoka) 19

20 Contribution to MJC participants business Company's revenue increase Business Expansion (or Diversification) Increase the Number of Employees No 25.30% Yes 74.70% No 48.00% Yes 52.00% No 52.00% Yes 48.00% 20

21 So what to do? Change the mindset of Myanmar businesses Build strong relationships between business schools and industry partners Close cooperation between education providers and companies And last but not the least ---- to advance Personnel exchange between Myanmar and other countries (especially Japan) and conduct Training Transfer Model

22 Conclusion EU GSP US Sanctions ease AEC 2015 Promising Business Opportunities Increase in Foreign Investment Lack of Skilled Human Resource If there is a magic moment to fix and fit all these, Myanmar will become the most wonderful place to live, to work and to invest.

23 Thank you