40 th APS Anniversary Lecture Forum ASEAN Economic

40 th 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

Outline of Presentation 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 Production Base Competitive Economic Region 1. Free Flow of Goods 2. Free Flow of Services Equitable. Economic Development Integration into the Global Economy 1. Competition Policy 1. SME Development 2. Consumer Protection 2. Initiative for ASEAN Integration 1. Coherent approach towards external economic relations 3. Free Flow of Investment 3. Intellectual Property Rights 4. Free Flow of Capital 4. Infrastructure Development 5. Free Flow of Skilled Labor 6. Priority Integration Sectors 7. Food, Agriculture 5. Taxation 6. E-Commerce 2. Enhanced participation in global supply networks

Contribution of Services to GDP (2012) COUNTRY Services Agriculture Industry Brunei 32. 5% 0. 8% 66. 7% Cambodia 40. 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%

Why professional services matter “Services Revolution” driving - GDP growth employment growth export growth productivity growth poverty reduction

International Trade Strategy 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

REGULATED PROFESSIONS Technology Professions Agriculture Architecture Chemistry Environmenta l Planning 5. Fisheries 6. Forestry 7. Geology 8. Interior Design 9. Landscape Architecture 10. Master Plumbers 11. Sugar Technology 1. 2. 3. 4. Health and Allied 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Professions Dentistry Medical Technology Medicine Midwifery Nursing Nutrition and Dietetics Optometry Pharmacy Physical and Occupational Therapy Radiologic Tech. Respiratory Tx. Veterinary Medicine Engineering Professions Business, Education and Economic Professions Accountancy Criminology Customs Brokers Guidance Counseling 5. Librarian 6. Marine Deck Officers 7. Marine Engineer Officers 8. Professional Teachers 9. Psychology 10. Real Estate Services 11. Social 1. 2. 3. 4. Aeronautical Agricultural Chemical Civil Electrical Electronics Geodetic Mechanical Metallurgical Mining Naval Architecture and Marine 12. Sanitary 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

ASEAN ECONOMIC COMMUNITY SINGLE MARKET AND PRODUCTION BASE 2015 Free flow of professional services Free flow of goods Free flow of invest ment Source: http: //farm 8. staticflickr. com/7272/7601994244_5 d 9 ab 99785_b. j Free flow of skilled labor Free flow of capital

Conceptual Framework MRA RECOGNITION NQF DEVELOPMENT AQRF HARMONIZATION OF QUALIFICATIONS MOBILITY OF PROFESSIONALS (ASEAN ECONOMIC COMMUNITY 2015)

Conceptual Framework MRS RECOGNITION NQF DEVELOPMENT AQRF HARMONIZATION OF SKILLS MOBILITY OF SKILLED LABOR (ASEAN ECONOMIC COMMUNITY 2015)

Framework for MRA and MRS ASEAN Qualifications Reference Framework (AQRF) Mutual Recognition of Skills Technical/Vocational Skills Mutual Recognition Arrangements Professional Qualifications Priority Sectors Occupations 7 Professions Tourism Sector

Regional Situation ASEAN INTEGRATION / AEC 2015 ASEAN MRA / MRS National Qualifications Frameworks (10 countries) Device for Comparison Referencing Process ASEAN Qualifications Reference Framework

The AQRF 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 have agreed to reference their NQFs to the AQRF in 2018

THE PHL QUALIFICATIONS FRAMEWORK LEVEL BASIC EDUCATION TECHNICAL EDUCATION AND SKILLS DEVELOPMENT HIGHER EDUCATION L 8 DOCTORAL AND POST DOCTORAL L 7 POST BACCALAUREATE L 6 L 5 DIPLOMA L 4 NC IV L 3 NC III L 2 GRADE 12 NC II L 1 GRADE 10 NC I

MALAYSIA

INDONESIA FORMAL ACADEMIC EDU FORMAL VOCATIOAL/PROF EDU S 3 Subspesialist 9 S 2 Spesialist 8 Professional 7 S 1 6 D IV 5 D III 4 D II DI General High School Vocational Senior High School Elementary/Junior High School 3 2 1

ASEAN Qualifications Reference Framework (AQRF) Country (A) 1 2 3 AQRF Country (B) 1 1 2 2 3 3 4 4 4 Qualifications (A) 5 6 5 7 6 8 7 9 8 5 6 7 8 Qualifications (B)

Readiness of AMS (ILO Study) Readiness Countries Can be ready for recognition for many professions Malaysia Philippines Can be ready for recognition for some occupations Brunei Vietnam Singapore With support, can be ready for recognition for key migrant worker occupations Cambodia Lao PDR Myanmar Indonesia Thailand Carmela I. Torres ILO Regional Office, Bangkok

V. Services, unlike goods, have 4 modes of supply 1 2 3 4 • Cross-Border Supply • Consumption Abroad • Commercial Presence • Movement of Natural Persons

Modes of Supply MEMBER A MEMBER B Mode 1: Cross border supply Consumer A The service crosses the border Service Supplier Mode 2: Consumption abroad Consumer A Service supply Service Supplier Mode 3: Commercial presence Consumer A Service supply Commercial Presence Establishes a commercial presence in A Service Supplier

Mode 1: Cross Border Supply Cambodia Philippine Hospital Singapore Hospital

Modes of Supply MEMBER A MEMBER B Mode 4: Movement of natural persons Consumer A Self-employed goes to Member A Service supply Natural person Consumer A Service supply Commercial Presence Em plo yee sen t by Natural person firm fro m. B Juridical person

Mode 2: Consumption Abroad Singapore Philippines

Mode 3: Commercial Presence Thailand

Mode 4: Movement of natural persons

Implications for Practice Mode 1: Cross border supply Technology-based Diagnostic radiology Histopathology Medical transcription Medical research Education: distance learning mode

Implications for Practice 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

Implications for Practice Mode 3: Multinational companies invest in the Philippines May bring their own people with them

Implications for Practice 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

Defining the Form of Mobility Engineering Architecture Accountancy Dentistry Medicine Nursing Establishment Temporary of ASEAN Registries licensing 1. Limited Practice 2. Expert Visit 3. Research 4. Education/Training 5. Humanitarian Missions

Trade in Services Temporary Does movement of professionals not involve: 1. Permanent registration 2. Acquisition of citizenship 3. Permanent residence

3. ASEAN Framework Agreement on Services (AFAS, 1995) Liberalization Targets and Commitments

Trade in Services in ASEAN Free Flow of Trade in Services Important in realizing AEC Substantially no restriction to ASEAN services suppliers in providing services and establishing companies Subject to domestic regulations Dir. Brenda R. Mendoza, NEDA

Liberalization of Services 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

Liberalization of Services 9. Tourism and Travel related services 10. Recreational, Cultural and Sporting services 11. Transport services 12. Other services not included elsewhere

Liberalization of Services Total of 12 Broad Sectors Covering 128 services sub-sectors (WTO Services Sectoral Classification List: W 120)

Package of Commitments Initial package Second Package Third Package Fourth Package Fifth Package Sixth Package Seventh Package Eighth Package Ninth Package Tenth Package 1997 1998 2001 2004 2006 2007 2009 2010 2013* 2015*

Status Completing AFAS 9 and 10 packages Scheduled subsectors: AFAS 9: 104 AFAS 10: 128 Completion Target: AFAS 9: 2013 AFAS 10: 2015

4. CHALLENGES MOVING FORWARD

Way 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

Way Forward 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

Way Forward Getting all 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!