Get Ready to Asean Economic Community 2015

Nowadays, the whole societies in Southeast Asia are busy talking about the ASEAN Economic Community (AEC). More than a decade ago, ASEAN leaders agreed to establish a single market in Southeast Asia in 2015. This is done in order to increase the competitiveness of ASEAN as well as China and India could compete to attract foreign investment. Foreign investment in this area is needed to boost employment and improve welfare.

The formation of a single market which is termed the AEC will allow the state to sell goods and services with ease to other countries throughout Southeast Asia. That is, the Southeast Asian market will be increasingly fierce competition.

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Asean Economic Community is not only open up the flow of goods or services, but also the labor market professionals, such as doctors, lawyers, accountants, and others. In the AEC requires the elimination of rules that have plagued the recruitment of foreign labor. Restrictions, especially in the labor sector professionals, are encouraged to be abolished. So, the MEA will open the opportunities for foreign workers to fill a variety of positions and professions in a Southeast Asian country that is closed or minimal foreign power.

Recent research from the World Labor Organization or ILO mentions opening the labor market to bring great benefits. Besides being able to create millions of new jobs, this scheme can also improve the welfare of 600 million people living in Southeast Asia.

In 2015, the ILO specifies that professional labor demand will increase by 41% or about 14 million. While the demand for middle-class workers will rise 22% or 38 million, while a low level of labor increased by 24% or 12 million. However, the report predicts that many companies will find less skilled employees or even any employment due to lack of training and professional education.

However, this is also a sign for the beginning of the era of tougher competition. Communities with low skills and do not have enough supplies to compete can actually decline. Meanwhile, the government does not have enough authority to limit this division of labor.