Capacity Building ASEAN and the Global Market Place

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1 Capacity Building ASEAN and the Global Market Place Enhancing ASEAN Logistics Services Seminar Cebu, Philippines, 1-2 May 2014 Thomas SIM - Chairman, Working Group Education & Training AFFA (ASEAN Federation of Forwarders Associations) ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP) 01

sg ASEAN Federation of Forwarders Associations (AFFA) www.

2 Scoping My Presentation Singapore Logistics Association (SLA) ASEAN Federation of Forwarders Associations (AFFA) AFFA International Federation of Freight Forwarders Associations (FIATA) 02

3 Over view of ASEAN Roadmap AANZFTA Conference on Enhancing ASEAN Logistics Services Cebu, Philippines, 28th to 29th April 2014 ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP) 03

4 INTRODUCTION The 10-member ASEAN has signed an initiative aims to liberalize logistics services and enhance the regional bloc's production base in line with ASEAN's move to create a single market by 2015 (AEC 2015) includes a proposed road map to integrate freight, transport and other logistics services to move goods more cheaply and efficiently, people and documents includes enhancing competitiveness of ASEAN logistics service providers by expanding their capability and developing their human resources 04

5 Overview of Logistics in the ASEAN Member Countries ü Overview of Logistics in the ASEAN transport and logistics systems are consisted of (1) shippers, traders, and consignees; (2) public and private service providers; (3) regional and national rules, policies, and institutions; and (4) transport and communications infrastructure ü Level of integration of the ASEAN logistics system - price, - time and - reliability 05

6 ASEAN ROADMAP FOR INTEGRATION OF LOGISTICS SERVICES (#4 - HRD) 39 Develop and upgrade skills and capacity building through joint trainings and workshops 40 Encourage the development of national skills certification system for logistics service providers. 41 Encourage the development of an ASEAN common core curriculum for logistics management 42 Encourage the establishment of national /sub-regional centre of excellence (training centre) 06

7 ASEAN Logistics Strengths & Weaknesses ASEAN Logistics STRENGTHS 1. Logistics service providers supply their services under difficult conditions. 2. Many, but not all, ports are being upgraded and managed efficiently. There is a strong movement toward improving customs operations in ASEAN countries, which is critical for logistics development. WEAKNESSES 1. Customs -Electronic processing of inward general manifest 2. Ports and maritime shipping Fulltruck scanners for security? 3. Rail transport Limited rail management resources, especially for intermodal movements. 4. Road transport Lack of Transport International Routier (TIR) agreements or similar customs transit agreement that allow trucks to travel easily from one country to the next with transit goods 5. Inland waterway transport Equipment for handling containers at inland waterway ports? 6. Air transport Large pallet scanners for security? 7. Logistics services Standard service contracts, multimodal transport documents, and house bills of lading 07

Item 42 Expanding Capability of Building of

resource development Item 41 development of

logistics management Item 40 development of

8 Expanding Capability of ASEAN Logistics Service Providers & Human Resource Development establishment of national/subregional centre of excellence Item 42 Expanding Capability of Building of ASEAN logistics service providers and human resource development Item 41 development of an ASEAN common core curriculum for logistics management Item 40 development of national skills certification system for logistics service providers AFFA WGET 08

9 AFFA Survey & Study on HRD in AFFA Member Countries ü Commissioned by AFFA during its AGM 2008 ü Survey and Study Project undertaken by AFFA Member - Singapore Logistics Association (SLA) from 21 st June to 31 st August 2009 ü The questionnaire was developed based on the desk research by identifying the gaps of training needs in ASEAN member country and then questions were designed according to the measures listed in the Roadmap from item ü Aggregated numbers of logistics services providers and freight forwarding companies registered in the 11 AFFA Associations Members is estimated to be in excess of 10,000 firms 09

10 Research Objectives and Methodology Reality No ASEAN-standard logistics training policy being developed so far Ø a lack of understanding of what makes up logistics and how a logistics policy should be developed Objectives: 1. To Develop National Skills Certification System 2. To Develop an ASEAN Common Core Curriculum for Logistics Management 3. To Establish National/Sub-regional Centre of Excellence (training centre) 10

training and development in the national association 3. assessment of training needs for the logistics 4.

11 Survey Methodology Sample Survey Analyses Sample AFFA which consists of 10 countries and 11 members In English. 4 sections: 1. overview of industry training and development. 2. training and development in the national association 3. assessment of training needs for the logistics 4. assessment of training and development for the local and regional logistics industry. Data were gathered through s and analyzed using SPSS

Findings Overall View of Current Industry Training and Development in the AFFA Members Availability of National Standard of Industry Training Programme 1 Only 3 out of 11 national associations (27%)

12 Findings Overall View of Current Industry Training and Development in the AFFA Members Availability of National Standard of Industry Training Programme 1 Only 3 out of 11 national associations (27%) have offered industry training programmes that meet the national standard. The remaining associations representing 73% currently did not offer any training programmes that are considered to be at their national standard level. 12

Findings Overall View of Current Industry Training and Development in the AFFA Members 2 Availability of Training Resources Only 46% indicated that there is sufficient availability of training

13 Findings Overall View of Current Industry Training and Development in the AFFA Members 2 Availability of Training Resources Only 46% indicated that there is sufficient availability of training resources for logistics industry. Of the 3 associations who have offered industry training programmes, 2 have indicated sufficient availability of training resources. However, 54% have indicated that there is lack of training resources.. 13

Findings Overall View of Current Industry Training and Development in the AFFA Members Formal/Professional Qualification as Entry Requirement 3 64% indicated that there was no formal or professional

14 Findings Overall View of Current Industry Training and Development in the AFFA Members Formal/Professional Qualification as Entry Requirement 3 64% indicated that there was no formal or professional qualification set as entry requirement to join the logistics industry. Only 9% revealed that, despite the lack of national standard of industry training programme, in Malaysia, there is a formal qualification as requirement to join the industry. 14

2% held neutral view about the current overall general skills in the

15 Satisfaction of Overall General Skills 46% felt dissatisfied, 36% were satisfied while 18.2% held neutral view about the current overall general skills in the logistics industry. How satisfied are you with the overall general skill level in your logistics industry? satisfied 36% dissatisfied 46% neutral 18% 15

16 Overall Skill Level of Professional and Practitioners 27% felt satisfied about the current overall skill level of professional and practitioners. The remaining 64% indicated neutral or dissatisfied. 36 % held the view of neutral. How satisfied are you with the current overall skill level of professional and practitioners in the logistics industry? very dissatisfied 9% satisified 27% neutral 36% dissatisfied 28% 16

17 Training and Development Committee 1 9 out of the 11 national associations indicated that they have a training and development committee. Do you have a Training & Development Committee in your Association? In particular, 6 of these 9 associations have claimed no availability of national standard training programme and 4 claimed to have no sufficient availability of training resources. 17

less than 5 members (67%). 22% has between 6-10 members.

18 Composition of the TDC Number of Members of Training and Development Committee 2 Average size of the training and development committee was less than 5 members (67%). 22% has between 6-10 members. Only 1 national association has more than 10 members in their training and development committee. 18

Functions of TDC 3 Main Functions of Training and Development Committee The identified main functions of training and development committee were (i) identify and review training and

19 Functions of TDC 3 Main Functions of Training and Development Committee The identified main functions of training and development committee were (i) identify and review training and development needs (38%), (ii) improve the quality and effectiveness of education and training programmes (33%) and (iii) provide guidelines and develop training programmes (29%). 19

20 Types of Training Programmes Short Professional Courses (55%) B Workshop and Seminars (73%) A Types of Training Programme C Validated courses by professional body at Certificate and Diploma level (28%) 20

21 Satisfaction Level on Current Training Curricula and Current Skills Level 21

22 Satisfaction level with current training curricula versus availability of national standard of industry training 22

23 Satisfaction Level with Current Skill Level Satisfied 56% Neutral 33% Satisfaction Level with Current Skills Level Dissatisfied 11% 23

24 Assessment of Training Needs for the Logistics Industry 24

25 Assessment of Training Needs for the Logistics Industry 25

26 Important Subjects (for Development of Training Programmes) 26

27 Assessment of Training and Development for the Local and Regional Logistics Industry 70% chose diploma level as the adequate level of qualification for national skill certification as compared to 30% for degree level 57% for validated certificate by int l association and to be delivered by national association. 43% supported certification from local reputed college, polytechnic or university 91% strongly agree to have a common core logistics training programme & national skills certification system All 11 national associations agreed that there was a gap existed 2. Support for National Skills Certification System 1. Gap between Expected and Actual Skills 4. Level of Qualification 3. Types of Certification System 27

28 Main Constraints to Provide National Training Programme Social Government/ Political Economic 1. Difference in language 2. Lack of training resources such as professional and qualified trainers, training materials and standardization of industry practices and standards 1. Government policy and legislations lack of establishing industry practice and standards; financial supports in terms of funding for training of manpower 2. Physical infrastructure Transportation system and Logistical facilities 1. Lack of competitive advantage in freight forwarders and logistics service providers 2. Uncertainty of overall requirements of the logistics industry 28

29 Key Restraints to Develop Common Core Curriculum for ASEAN Countries Level of Economic Development Government 1. Different in economic policy for development financial funding and role of association and industry development 2. Different in infrastructure, technology and communication system 3. Standardization of industry practices - different documentation procedure Social Barrier 1. Diversity language and cultural differences 2. Social inequality 3. Lack of professional HR and HR capability development 1. Government restrictions and rules 29

Setting up Regional Training Centre for ASEAN 100% supported the setting up of Regional Centre for logistics associations to help expanding the capability for ASEAN Logistics Service Providers.

30 Setting up Regional Training Centre for ASEAN 100% supported the setting up of Regional Centre for logistics associations to help expanding the capability for ASEAN Logistics Service Providers. 55% chose one regional centre to cater training for the ASEAN countries. Singapore and Thailand were equally chosen as regional centre. 18% chose two regional centres, with Singapore and Thailand as preferred locations. Finally 9% chose 3 or 4 regional centres. 30

31 Conclusions - Overview of Current Industry Training and Development Only 27% of the ASEAN national associations have offered a national standard logistics training programmes. Both Singapore and Indonesia offered national standard training programmes. They were SLA, SAAA and INFA offered FIATA or IATA-FIATA diplomas relating to logistics, freight and supply chain management. The remaining associations offered workshop and seminar or short courses related to freight and logistics operations. 31

32 Conclusions - Overview of Current Industry Training & Development (Qualification as Entry Requirement) This finding was also echoed in the type of formal and professional qualification as entry requirement to the logistics industry. 64% of ASEAN had no formal or professional qualification set as entry level. For those national associations who offered national standard training programmes were accredited by FIATA or IATA. However, formal and professional logistics qualifications are also supported by public institutions such as government polytechnics and universities (40%). 32

33 33

34 In comparison with - ASEAN Member States Qualifications of Profession in the Logistics Services Compilation of ASEAN Qualifications Professionals Logistics ü Mari%me Cargo Handling services ü Storage & Warehousing services ü Freight Transport Agency services ü Other Auxiliary Services: Bill Auditors ü Other Auxiliary Services: Surveyors ü Other Auxiliary Services: Freight Brokers ü Courier services ü Packaging services ü Customs Clearance services communities/aseaneconomiccommunity/category/ logistics-services ü Interna%onal Rail freight transport services ü Interna%onal Mari%me Freight Transporta%on excluding Cabotage ü Interna%onal Road freight transport services ü Maintenance and Repair of vessels 34

35 Conclusions - Overview of Current Industry Training and Development (Training Resources) Less than half of the 11 national associations indicated that there was sufficient availability of training resources for their logistics industry. Overall satisfaction on general skill level in their logistics industry, 46% felt dissatisfied as compared to 36% and 18% held neutral view. Further insight into those national associations who offered national standard training programmes, 67% was satisfied with the overall skill level as compared to 25% who did not have any offer of national standard training programmes. 35

36 Conclusions - Overview of Current Industry Training and Development (Training Resources) Expectedly, for those countries that faced insufficient availability of training resources for their logistics industry, 83% was dissatisfied with their current overall skills. This result showed that there is a high level of dissatisfaction in the overall skill level for those countries that did not offer national standard training programme, and had insufficient training resources. In relation to the level of overall satisfaction on the skill level of professional and practitioners, 36% expressed satisfied as compared to 46% was dissatisfied. 36

37 Conclusions - Overview of Current Industry Training and Development (TDC) 82% of the ASEAN s logistics national associations have setup a training and development committee. 67% has between 1-5 members and 22% has between 6-10 members with meeting held once per month (34%), once per quarter (33%) or bimonthly (22%). Roles of training and development committee were (i) to identify and review training and development needs (38%), (ii) to improve quality and effectiveness of education and training programme (33%) and (iii) to provide guidelines and development training programme (29%). 37

38 Conclusions - Overview of Current Industry Training and Development (Training Programme) Majority of the training programmes offered are workshop and seminar (73%), followed by short courses (55%) and certificate and diploma validated by professional body (28%). 67% of national associations were satisfied with their current training curricula as compared to 11% dissatisfied. Contradicting results were shown when cross tabulating between the satisfaction levels with availability of national standard training programme and between satisfaction levels with availability of training resource. Both groups showed their positive satisfaction level whether there was availability of national standard training programme or availability of training resource. 38

39 Conclusions - Overview of Current Industry Training and Development (Training Programme) When comparing the training programmes and courses to the current skill level of professional and practitioners, 56% of the national associations indicated that they were satisfied as compared to 11% of dissatisfaction. high percentage of neutral view. implied that the current skill level meets the requirements for their logistics operation, however, for those countries that provide sophisticated value added services and integrated logistics service might find their current training programmes and training resources are insufficient. 39

40 Conclusions - Overview of Current Industry Training and Development (Training Programme) Most common types of programmes are workshop and seminar type (22.6%) and short professional courses. vocational skills and job related. Anticipated that most logistical operations in the ASEAN member countries are freight related, 90% indicated freight management such as multimodal transport, air freight and sea freight as most important training/skills, followed by logistics and supply chain fundamentals (81.8%) and integrated services (81.8%). 40

41 Conclusions - Overview of Current Industry Training and Development (Training Programme) As for the subjects to be introduced in the training programmes, professionals and practitioners in the ASEAN member countries should be equipped with: ü fundamental logistics and supply chain management, ü understanding of the provision of supply chain solutions, ü customer service management, ü commercial and operational logistics and ü e-supply chain. 41

42 Conclusions - Overview of Current Industry Training & Development (Common Core & NSCS) All 11 national associations participated in this survey supported and agreed that there was a gap existed More than 90% strongly agreed that there should be Common Core Logistics Training Programme and National Skill Certification System for all ASEAN member countries. 57% supported to have Validated Certificate by International Association and to be delivered by their national association. 43% supported certification from local reputed College, Polytechnic or University 70% preferred Diploma level as compared to Degree level (30%). 42

43 Conclusions - Overview of Current Industry Training and Development (Constraints) Main constraints were social issues, differences in the economic development and government policies. The result supported setting up a Regional Centre for logistics associations to develop training curriculum to expand the capability for the ASEAN countries and its LSPs 55% suggested one Regional Center (Singapore or Thailand) and 18% proposed two Regional Centers to be located in Singapore and Thailand. 43

44 Conclusions Common Core Curriculum for ASEAN Common Core Curriculum for the ASEAN countries. Standardized basic knowledge and vocational skills at certificate and diploma levels validated by International association or local technical institutions. should embrace: freight management mainly air, sea, rail and multimodal. basic legal, business management, ASEAN intra-culture and business ethics, business communication, statistics, economics and marketing should also be incorporated at the diploma level. duration for certificate level should not be less than 6 months and diploma level should be more than 12 months. Each module should be taught with minimum of 24 hours per subject. 44

45 Survey Study Recommendation Advanced/ Higher Specialist Diploma: ü The course curriculum to include: Project Management, CRM-data mining, Global Procurement, International Marketing, Asian Business Strategies, Facilities Management, Environmental-friendly Transportation, Technology, Integration of Transportation Modes. ü designed and Validated by International Associations, as well as conducted by local technical institution. 45

such as English For those non English-speaking ASEAN member

46 Survey Study Recommendation The Common Core Curriculum should be developed and delivered using a common language such as English For those non English-speaking ASEAN member countries, the courses can be translated to their mother tongue 46

47 Survey Study Recommendation ü strong support of setting up Regional Centre ü due to the differences in political and economic systems, the pace of institutional cooperation for Asian economic integration may be slow and the multi-speed approach may be needed ü its structure ought to be flexible and open until a stronger political and economic convergence is achieved. 47

48 Joint-Statement made at the 23 rd AFFA AGM (Jakarta, 23 rd Nov 2013) The AFFA 11-members representatives unanimously recognized the fact that public and private sectors stakeholders should accelerate the improvement of the three pillars of connectivity programs and the measures outlined in the ASEAN Roadmap for Logistics Services Integration namely: Ø Physical Connectivity, Ø Institutional Connectivity, and Ø People-to-People Connectivity, as well as Ø Safety & Security development and implementation issues 48

49 The ASEAN Federation of Forwarders Associations (AFFA) HRD Project Co-operation Agreement between AFFA - ASEAN Secretariat for Sustainable Human Resource Development in Logistic Services for ASEAN Member States ü recently granted approved-in-principle (AIP) ü supported by the Japan-ASEAN Integration Fund ( JAIF ) under the adopted Rules of Procedures of the Japan-ASEAN Integration Fund Committee. 49

50 AFFA Project - Sustainable HRD in Logistic Services for ASEAN Member-States (Common Core Curriculum) 1. Fundamental of Logis%cs and Supply Chain Management 2. Mul%modal Transport Law and Opera%ons 3. Cross Border Transport Opera%on 4. Transport Opera%ons Management 5. Transport Corridors & Supply Chain Security 6. Dangerous Goods Handling (All Transport modes) 7. Risks Management (including Interna%onal Conven%ons) 8. Trade Management (including UCP 600 & INCOTERMS 2010, etc.) 9. Warehouse Management & Distribu%on 10. Informa%on Technology in Freight Transport & Supply Chain Management 11. Project Transporta%on 12. Cargo Packaging and uni%za%on 13. Marke%ng for Logis%cs 14. Logis%cs Planning and Analysis 15. Supply Chain Collabora%on & Logis%cs Solu%ons *(Pedagogy & Andragogy Methodologies/Trainings to be included) 50

51 AFFA Project - Sustainable HRD in Logistic Services for ASEAN Member-States (Coverage/Duration) Planning phase for drafting core-curriculum Refinement of project syllabus in consultation with 15 experts & trg. manuals development *For 50 selected trainers (Pedagogy & Andragogy Methodology will be delivered as well) Implementation of 1 st TOT (basic level programme) Implementation of 2 nd TOT (intermediate level programme) Implementation of 3 rd TOT (advance level programme) Future Proposal: Setting-up of Sub-Regional Centre of Excellence Evaluation & Recommendation and Reports Submission 51

52 Benchmarking of Training Standards in Freight, Logistics & SCM with International Organizations ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP) 52

Associations The Architect of Transport Total Validated National

53 Benchmarking FIATA s Global Training Standards The Global Voice of Freight Logistics International Federation of Freight Forwarders Associations The Architect of Transport Total Validated National Training Programmes = 65 programmes from 55 countries (updated March 2014) 53

54 Benchmarking FIATA s Global Training Standards Number of FIATA Diplomas issued up till Mar 2014 (by Country) 54

55 Benchmarking FIATA s Global Training Standards AFFA Members who are FIATA s Association-Members ü Indonesia (ILFA) ü Singapore (SLA & SAAA) ü Malaysia (FMFF) ü Thailand (TIFFA) ü Cambodia (CAMFFA) ü Myanmar (MIFFA) ü Vietnam (VLA) ü Brunei (BRUFA) ü Philippines (FEDFAP) 55

56 Thomas SIM Thank you ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP) 56

57 ASEAN

58 AANZFTA Seminar Enhancing ASEAN Logistics Services Cebu, Philippines, 1-2 May 2014 Day 1 Interactive Session 2 CAPABILITY & CAPACITY BUILDING ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP)

59 Interactive Session No. 2 CAPABILITY AND CAPACITY BUILDING How do we build public and private sector capability and capacity in each ASEAN country for short, medium and long term gain? ASEAN working groups will explore the capability and capacity needs of member countries, according to their various levels of development, and report the findings back to the plenary session.

60 Capability and Capacity Plenary Feasible, reasonable and practical steps to build ASEAN capability and capacity (in the public and private sectors) to improve logistics and supply chain performance, now and in the future.

61 AANZFTA Seminar Enhancing ASEAN Logistics Services Cebu, Philippines, 1-2 May 2014 Seminar Day 1 CONCLUSIONS ASEAN- AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP)

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