40th APS Anniversary Lecture Forum

ASEAN Economic Integration and Inclusive Growth

ASEAN TRADE in Services

Framework

Jose Y. Cueto Jr., MD, FPCS, MHPEd

Professional Regulatory Board of Medicine
Representative to the ASEAN MRA AJCCM
1. The ASEAN Trade in Services Framework
2. Conceptual Framework for Mutual
Recognition Arrangement and Mutual
Recognition of Skills
3. Modes of Supply of Services
3. AFAS Package of Commitments
4. Challenges in Moving Forward
1. ASEAN Trade in Services Framework
 ASEAN ECONOMIC
COMMUNITY
Single Market and Competitive EquitableEconomic Integration into the
Production Base Economic Region Development Global Economy

1. Free Flow of Goods 1. Competition Policy 1. SME Development 1. Coherent approach

towards external
2. Free Flow of Services 2. Consumer Protection 2. Initiative for ASEAN economic relations
Integration
3. Free Flow of Investment 3. Intellectual Property 2. Enhanced participation
Rights in global supply networks
4. Free Flow of Capital
4. Infrastructure
5. Free Flow of Skilled Development
Labor
5. Taxation
6. Priority Integration
Sectors 6. E-Commerce

7. Food, Agriculture and

Forestry
 COUNTRY Services Agriculture Industry

Brunei 32.5% 0.8% 66.7%

Cambodia 40.0% 30.0% 30.0%
Indonesia 38.1% 14.7% 47.2%
Lao PDR 37.4% 27.8% 34.8%
Malaysia 48.0% 12.0% 40.0%
Myanmar 43.6% 38.2% 18.2%
Philippines 55.7% 12.8% 31.5%
Singapore 73.4% 0.0% 26.6%
Thailand 52.7% 13.3% 34.0%
Vietnam 37.7% 22.0% 40.0%
“Services Revolution”

driving

- GDP growth
- employment growth
- export growth
- productivity growth
- poverty reduction
 Promotion of export of services

 Facilitation
of inflow of foreign services and
foreign services providers

 Identification
of professions requiring skill
sets considered to be in short supply in the
domestic market
Technology Health and Allied Business, Education Engineering
Professions and Professions
Professions Economic Professions
1. Dentistry
1. Agriculture 2. Medical 1. Aeronautical
1. Accountancy
2. Architecture Technology 2. Agricultural
2. Criminology
3. Chemistry 3. Medicine 3. Chemical
3. Customs Brokers
4. Environmental 4. Midwifery 4. Civil
4. Guidance
Planning 5. Nursing 5. Electrical
Counseling
5. Fisheries 6. Nutrition and 6. Electronics
5. Librarian
6. Forestry Dietetics 7. Geodetic
6. Marine Deck
7. Geology 7. Optometry 8. Mechanical
Officers
8. Interior Design 8. Pharmacy 9. Metallurgical
7. Marine Engineer
9. Landscape 9. Physical and 10. Mining
Officers
Architecture Occupational 11. Naval
8. Professional
10. Master Therapy Architecture
Teachers
Plumbers 10. Radiologic Tech. and Marine
9. Psychology
11. Sugar 11. Respiratory Tx. 12. Sanitary
10. Real Estate
Technology 12. Veterinary Services
Medicine 11. Social Workers
 SINGLE MARKET AND
PRODUCTION BASE
ASEAN ECONOMIC COMMUNITY
2015 Free flow of
professional
services

Free
F ree
flow of
flow of
skilled
goods
labor

F ree
flow of
invest
ment F ree
flow of
capital
Source:
http://farm8.staticflickr.com/7272/7601994244_5d9ab99785_b.jp
 MRA NQF AQRF

RECOGNITION DEVELOPMENT HARMONIZATION

OF QUALIFICATIONS

MOBILITY OF PROFESSIONALS
(ASEAN ECONOMIC COMMUNITY 2015)
 MRS NQF AQRF

RECOGNITION DEVELOPMENT HARMONIZATION

OF SKILLS

MOBILITY OF SKILLED LABOR

(ASEAN ECONOMIC COMMUNITY 2015)
 ASEAN Qualifications
Reference Framework
(AQRF)

Mutual Recognition of Skills Mutual Recognition Arrangements

Technical/Vocational Skills Professional Qualifications

Priority Sectors 7 Professions

Occupations Tourism Sector
 ASEAN
INTEGRATION / AEC
ASEAN MRA / MRS
2015

National Qualifications Frameworks

(10 countries)

Device for Comparison Referencing Process

ASEAN Qualifications Reference Framework

 Translation device to enable existing
frameworks and training systems at national
level to be compared or related to each other
 The 8-level AQRF has been designed and
agreed upon by all AMS
 AMS have agreed to reference their NQFs to
the AQRF in 2018
 THE PHL QUALIFICATIONS FRAMEWORK
TECHNICAL
LEVEL BASIC EDUCATION AND HIGHER EDUCATION
EDUCATION SKILLS DEVELOPMENT

DOCTORAL AND
L8 POST DOCTORAL

L7 POST BACCALAUREATE

L6 BACCALAUREATE
BACCALAUREATE

L5 DIPLOMA

L4 NC IV
NC IV

L3 NC III

L2 GRADE 12 NC II

L1 GRADE 10 NC I
FORMAL ACADEMIC EDU FORMAL VOCATIOAL/PROF EDU

S3 Subspesialist 9

S2 Spesialist 8

Professional 7

S1 6
D IV
D III 5

D II 4

DI 3
General High Vocational Senior
School High School
2
Elementary/Junior High School 1
 Country Country
(A) AQRF (B)

1 1 1

2
2 2
3
3 3
4
4 4
5
Qualifications Qualifications
(A) 5 5 (B)
6

6
7 6

8 7 7

9 8
8
 Readiness Countries
Can be ready for recognition for Malaysia
many professions Philippines

Can be ready for recognition for Brunei Indonesia

some occupations Vietnam Thailand
Singapore
With support, can be ready for Cambodia
recognition for key migrant worker Lao PDR
occupations Myanmar

Carmela I. Torres
ILO Regional Office, Bangkok
V. Services, unlike goods, have 4 modes of supply

• Cross-Border Supply
1

• Consumption Abroad
2

• Commercial Presence
3

• Movement of Natural Persons

4
 MEMBER A MEMBER B
Mode 1: Cross border supply
The service crosses the border
Consumer Service
A Supplier

Mode 2: Consumption abroad

Consumer Consumer Service Service
A A supply Supplier

Mode 3: Commercial presence

Consumer Service Commercial Establishes a commercial presence in A Service
A Presence Supplier
supply
 Mode 1: Cross Border Supply

Cambodia

Philippine
Hospital

Singapore
Hospital
 Modes of Supply
MEMBER A MEMBER B

Mode 4: Movement of natural

persons

Consumer Service Self-employed goes to Member A

A supply

Natural Natural
person person

Consumer Service Commercial

A Presence
supply
Juridical
person
 Mode 2: Consumption Abroad

Singapore

Philippines
Thailand
 Mode 1: Cross border supply
 Technology-based
Diagnostic radiology
Histopathology
Medical transcription
Medical research
 Education: distance learning mode
 Mode 2: Consumption abroad
 Services offered/Value-added
Diagnostics
Surgical procedures
Minimally invasive procedures
 Medical education
Thai students
 Residency training/Subspecialty
Indonesia, Nepal, India, Pakistan
 Mode 3: Multinational companies invest in
the Philippines

 May bring their own people with them

 Mode 4: Movement of natural persons
 Full/Free mobility: countries with similar
education, accreditation, certification
systems, and professional practice
US and Canada
Australia and New Zealand

 10 ASEAN countries: wide variation

Limited Practice
Temporary registration
Engineering Dentistry
Architecture Medicine
Accountancy Nursing

 Establishment
of  Temporary licensing
ASEAN Registries 1. Limited Practice
2. Expert Visit
3. Research
4. Education/Training
5. Humanitarian
Missions
 Temporary movement of professionals

 Doesnot involve:
1. Permanent registration
2. Acquisition of citizenship
3. Permanent residence
3. ASEAN Framework Agreement on Services
(AFAS, 1995)
Liberalization Targets and Commitments
Free Flow of Trade in Services
 Important in realizing AEC

 Substantiallyno restriction to ASEAN

services suppliers in providing services and
establishing companies

 Subject to domestic regulations

Dir. Brenda R. Mendoza, NEDA

1. Business services
2. Communication services
3. Construction and related Engineering
services
4. Distribution services
5. Educational services
6. Environmental services
7. Financial services
8. Health related and Social services
9. Tourism and Travel related services
10. Recreational, Cultural and Sporting
services
11. Transport services
12. Other services not included elsewhere
 Total of 12 Broad Sectors

 Covering
128 services sub-sectors
(WTO Services Sectoral Classification List:
W120)
Initial package 1997
Second Package 1998
Third Package 2001
Fourth Package 2004
Fifth Package 2006
Sixth Package 2007
Seventh Package 2009
Eighth Package 2010
Ninth Package 2013*
Tenth Package 2015*
 Completing AFAS 9 and 10 packages

 Scheduledsubsectors:
AFAS 9: 104
AFAS 10: 128

 CompletionTarget:
AFAS 9: 2013
AFAS 10: 2015
4. CHALLENGES MOVING FORWARD
 Implementation of Competitiveness
Roadmaps for all regulated professions
 Strengthening QA and Regulatory
mechanisms
 Strengthen Continuing Professional
Development
 Career progression pathways
 Strategy: Complementation, not competition
 Providing safety nets/mechanisms
 Implementing the Philippine Qualifications
Framework
Shift to OBE and learning outcomes
Qualifications Register
Quality Assurance Mechanisms
International Alignment
Pathways and Equivalencies
 Gettingall stakeholders to act together
towards a single direction
Government regulatory bodies/Agencies
Academe
Industry/Business
Professional Organizations
Professionals/Students
 THANK YOU
FOR YOUR KIND ATTENTION!