workshop on international migration and labour market in asia

532 Pages·2004·5.99 MB·English

WORKSHOP ON INTERNATIONAL MIGRATION
AND LABOUR MARKET IN ASIA

5, 6 February, 2004
Tokyo, Japan

Organised by
The Japan Institute for Labour Policy and Training (JILPT)

Supported by
Ministry of Health, Labour and Welfare, Japan (MHLW)
The Organisation for Economic Co-operation and Development (OECD)
The International Labour Office (ILO)
CONTENTS

Summary and Conclusions .............................................................................1

Program of the Workshop ................................................................................9

List of Participants ..........................................................................................11

Contributed Papers

**** Special Session ****
Keynote Reports

USA: by Prof. Philip Martin (Department of Agricultural and Resource Economics,
The University of California, Davis) .....................................................................................17

Europe: by Mr. Jean-Pierre Garson (Head of Non-Member Economies and
International Migration, DELSA, OECD) ...........................................................43

Asia: by Prof. Yasushi Iguchi
(Professor, Faculty of Economics, Kwansei Gakuin University) .......................................73

Australia: by Prof. Graeme John Hugo (Professor, Department of Geographical
and Environmental Studies, Faculty of Humanities and Social Sciences, Director,
Key Centre in Research and Teaching in the Social Science Application of
Geographic Information Systems, The University of Adelaide) ..................................................87

Reference Papers
Cooperation in managing labour migration in a globalizing world
by Mr. Manolo Abella (Chief, International Migration Branch, ILO) .....................105

Managing the Philippine overseas employment
by Ms. Rosalinda Dimapilis Baldoz (Administrator, Philippine
Overseas Employment Administration) ..........................................................................123
**** General Session ****
Country Reports
Australia
by Graeme HUGO ..............................................................139

Chinese Taipei
by Joseph LEE ....................................................................273

Hong Kong, China
by Stephen CHIU .................................................................281

Indonesia
by Tara Bakti SOEPROBO ...................................................317

Japan
by Yasushi IGUCHI ................................................................337

Malaysia
by Vijayakumari KANAPATHY ..............................................371

People's Republic of China
by Yongtang MA .........................................................................411

Philippines
by Stella P. GO ...........................................................................437

Republic of Korea
by Young-bum PARK ...................................................................471

Singapore
by Mui-Teng YAP .........................................................................491

Thailand
by Yongyuth CHALAMWONG .....................................................507

Vietnam
by Nguyen Xuan NGUYEN ..........................................................533
WORKSHOP ON INTERNATIONAL MIGRATION AND THE LABOUR
MARKET IN ASIA
Tokyo, 5-6 February 2004

SUMMARY AND CONCLUSIONS

The Workshop on International Migration and the Labour Market in Asia, organised by
The Japan Institute for Labour Policy and Training (JILPT), and supported by the
Japanese Ministry of Health, Labour and Welfare (MHLW), the Organisation for
Economic Co-operation and Development (OECD), and the International Labour
Organisation (ILO), has taken place annually since 1995. This year marked the tenth
workshop of the series. Specialists and policy-makers from eleven countries and
regions of Asia, as well as specialists from OECD and the ILO, met on 5-6 February
2004 in Tokyo, in order to examine the current situation regarding international
migration and related policies in Asian countries, and to facilitate the exchange of
knowledge and information between the region’s policy makers and experts.

This year, the workshop was divided into two parts: A Special Session on the theme of
Present and Future - Regional Patterns of International Migration, and a General
Session, based on national reports from the participating countries. In the General
Session, two themes were analysed: 1) trends in economics and labour markets,
related to foreign workers, illegal entries, social integration, overseas remittances and
employment and 2) trends in policies concerning the above issues and propositions
for future measures.

1. Special Session

The workshop began with a special session on the theme of “Regional Patterns of
International Migration - Present and Future”. Following keynote speeches on the
impact of regional integration on international migration and other related matters
presented by four specialists from the United States, Europe, Asia and Australia, a
panel discussion was held, with the participation of specialists from Asia, focusing on:
1) The economic impact of regional integration on international migration; 2) The
social impact of international migration; and 3) The future prospects of international
migration through regional partnership in Asia.

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Professor Philip Martin of the University of California, Davis, reported on the policies
for admission of immigrants in the United States, Canada, and Mexico, as well as on
recent developments in the framework of the North American Free Trade Area
(NAFTA). Professor Martin presented the recent initiative proposed by the United
States for the issue of work permits valid for three years (and renewable only once) to
illegal immigrants, on condition that the employer pays a stipulated fee. Two-thirds of
immigrants to the United States come under family reunification (are invited by the
families and relatives of immigrants), while half of the immigrants to Canada enter the
country with the purpose of finding work. The two countries have different systems for
admitting foreign national for employment, immigrants can enter the United States as
long as there is an unmet demand for labour, whilst immigrants are accepted into
Canada only when they reach a certain level in a point-based qualifying system (age,
family status, qualifications, experience, etc.). Also, many of the immigrants for the
United States have not finished secondary school education, and their lower
qualification is the cause of their lower income and the widening of the income
disparity between American citizens and immigrants. Professor Martin believes that it
is necessary to establish a system in the future for the United States to select
immigrants and not for immigrants to choose the United States. As for the outcomes of
NAFTA, he reported that it had been expected that the promotion of free trade would
have a favorable impact on decreasing the number of immigrants from Mexico, but no
such results have been obtained in this area.

Mr. Jean-Pierre Garson, Head, Division of Non-Member Economies and International
Migration, Directorate for Employment, Labour and Social Affairs, OECD, cited ten
characteristics of immigrants in Europe: 1) Immigrants are an important component of
the population; 2) Immigration to Europe is, in part, the result of a former colonial
history and other historical background factors; 3) Immigrants have played an
important role in economic growth; 4) In the context of the enlargement of the
European Union (EU), some EU member states are against the free settlement of the
citizens of the accession countries; 5) Migrant mobility has decreased in the European
labour markets; 6) Social aspects have become increasingly important, including social
protection of immigrants and enhancement of immigrants’ social status; 7) Links with
sending countries are being improved through bilateral agreements and provision for
readmission of illegal immigrants, as well as measures to increase co-operation for
development; 8) Harmonisation of the immigration policies of EU member states is
becoming a key concern; 9) Plans have already been drawn up to open doors to
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temporary workers; 10) Immigration policies alone cannot alleviate the consequences
of ageing and reduce labour shortages. Internal labour resources should be better used
to this end.

Professor Yasushi Iguchi, Faculty of Economics, Kwansei Gakuin University,
described the characteristics of Asian immigrants, citing four major aspects of the
system of international migration in East Asia: 1) Movement is mainly temporary;
2) Bilateral agreements are still underdeveloped in comparison with Europe; 3) Private
agencies and networks play an important role in the adjustment of supply and demand
of immigrants; 4) Many of the immigrants are low-skilled workers, while
highly-skilled workers are of great importance mainly as intra-company transferees.
Professor Iguchi also stated that Asian economic integration should be discussed not
only from the viewpoint of expansion of trade, but also from the comprehensive
viewpoint of prevention of financial crisis, development of intra-regional market and
avoidance of the crisis through technology transfer and innovation. Furthermore, he
pointed out that free movement of labour is difficult to achieve in Asia within the 21st
century, because intraregional income disparities are large and some countries have
excessive labour forces; and that there will be a need in the future for policies based on
long-term perspectives.

Professor Graeme John Hugo, University of Adelaide, Australia, reported on the
Asia-Pacific Economic Cooperation (APEC) Business Travel Card, noting that the
Cards have enabled information control at the time of departure, as well as establishing
a faster immigration control process for the exclusive use of cardholders; and that 15 of
the 21 economies have currently participated in the scheme (the remaining six
countries plan to participate within a year), with 7 700 cards issued so far (at an annual
rate of increase of 25%), which are mainly used by elite groups with higher mobility.
He further pointed out that an initiative to establish a co-operative system is required
for smoother intraregional migration, and that although control of immigrants is
common and fundamental among countries, there are still issues remaining to be
resolved. There are not many countries in Asia with a history of immigration, which is
one of the reasons for the lack of sufficient knowledge of immigrant control; and it is
desirable to introduce a step-by-step system for implementation of the scheme.

In the panel discussion that followed, the moderator was Mr. Tomoaki Katsuda,
Director, Foreign Workers’ Affairs Division, Employment Security Bureau (MHLW),
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The socio-economic impact of international migration through regional integration was
discussed, based on the keynote speeches and the current status and challenges of
existing regional integration, including EU and NAFTA.

The following topics of discussion were provided: 1) What is the economic impact of
regional integration, such as EU and NAFTA, on labour markets and international
migration? 2) What is the social impact of international migration on sending and
receiving countries? and 3) What are the future prospects of international migration
through regional partnership in Asia?

At the start of the discussion on the economic impact of regional integration, such as
EU and NAFTA, on labour markets and international migration, Professor Ronald
Skeldon, Fellow of the University of Sussex and Honorary Professor at the University
of Hong Kong China, consultant to OECD, one of the panellists, stated that migration
through regional integration has a favorable impact economically. Ms Rosalinda
Baldoz, Administrator of the Philippine Overseas Employment Administration, pointed
out that migration has certain benefits, including learning of skills, economic
contributions through overseas remittances and the lowering of the unemployment rate
in the sending country. Furthermore, Mr. Hiroaki Watanabe, Assistant Senior
Researcher, JILPT, stated that regional partnerships in Asia involve economic
disparities, income disparities, and differences in industrial and demographic
structures; and that Japanese direct investments overseas will decrease domestic
employment initially, but will have the merit of increasing employment in the long run.
Dr. Manolo Abella, Chief, International Migration Programme of the ILO, drew
attention to the problems of governance in migration, and cited the features of sound
policies for managing migration. He said that there is often a problem with leadership
since migration is a highly sensitive political issue. There is a need for vision, and for
gaining broad support for policy through social dialogue, for having coherent policies,
and for insuring transparency. He added that migration is increasingly global and
diversified, hence more difficult to manage. He concluded his remarks by saying that
there is little concrete evidence that development and migration are closely linked
except that as countries become richer their people are less and less likely to emigrate.

The next topic discussed during the Special Session was the social impact of
international migration on sending and receiving countries. Ms Baldoz stated that
labour migration is accompanied by the issue of social costs; that finding ways to send
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highly value-added human resources is a challenge that should be faced; and that
regulation of private agencies for recruitment and transfer of workers should also be
dealt with more strictly. Ms Baldoz also brought up the issue of how the family
members of international immigrants left behind in sending countries should be treated.
Mr. Watanabe indicated that immigrants to Japan can be divided into four
categories: 1) The highly-skilled; 2) Foreign nationals of Japanese ancestry;
3) Students and trainees; and 4) Illegal workers. Mr. Watanabe pointed out that persons
in the second category, foreign nationals of Japanese ancestry, are often workers
employed by subcontractors in the manufacturing processes in factories, which gives
them little opportunity to improve their skills and capabilities; that they are used not
because they are foreigners but because they are a flexible labour force hired as
just-in-time employees; and that the prolonged stay of foreign nationals of Japanese
ancestry creates various issues, including invitation of their family members to Japan,
adaptation to the Japanese society of the second generation, and the accompanying
issues of social security.

Regarding the future prospects of international migration through regional partnership
in Asia, Ms Baldoz stated that no change in the pattern of migration is expected in the
Philippines in the foreseeable future. She said that both the sending and receiving
countries need to take responsibility for the maximisation of the benefits of migration,
including establishing a dialogue to remove any obstacles preventing international
migration. Mr. Watanabe suggested that the issues concerning foreign workers should
be reviewed and prioritised after discussion of the long-term perspectives for Japan or
other Asian regions, since Japan is expecting its labour force to decrease by 6.1 million
people in 20 years time. Professor Skeldon pointed out that although regional
partnership in Asia focuses mainly on the economic aspects, these partnerships should
be formed with due consideration not only to economic but also to political
development. He also noted that since the range of regions included in APEC is very
wide, there seems to be no unified approach.

The moderator, Mr. Tomaoki Katsuda, summarised the first half of the special session,
specifically pointing out the lack of governance regarding immigrants. He said that at
present, it is unlikely that regional partnership in Asia will be comparable to that in
Europe, because of the existing income disparities; and that in Asia, re-location of
industries precedes migration.

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At the start of the second half of the special session, keynote speakers commented on
the panel discussion. Professor Iguchi suggested the need for the improvement of the
acceptance mechanism for foreigners in general, including foreign nationals of
Japanese ancestry, while Professor Hugo suggested that methods of dealing with the
control of immigrants will be increasingly important in the future, as migration will
accelerate, along with the expansion of networks and advances in communication
technologies.

Trends in immigration in the enlarged EU and issues of sending countries such as the
Philippines and others were discussed and opinions were expressed to the effect that
mass immigration will not occur with the enlargement of the EU; relatively smaller
income disparities among EU member countries and the political nature of EU
integration make it difficult to use EU integration as a precedent for a possible Asian
integration, which will most likely be market-oriented; and development strategies,
including those for creating domestic employment, are essential for sending countries
such as the Philippines.

Other topics, including measures against human trafficking, as well as the employment
of foreign students in receiving countries, were discussed, and the other participants
were invited to join in the debate.

2. General Session 1

Topics specific to the countries were discussed in the General Session, based on the
country reports prepared beforehand by each participating country. The General
Session consisted of two parts: Session 1 focused on trends in economies and labour
markets, related to foreign workers, illegal entries and workers, social integration,
overseas remittances, and employment. In Session 2, trends in policies concerning the
above issues and prospects of future measures were addressed.

Professor Naoyuki Kameyama, Faculty of Management, Atomi University, chaired the
first half of Session 1 and opened by welcoming reports from countries on their
economies and labour market trends, and recent large-scale movements of immigrants.
An increase in the number of foreign workers escaping from companies for which they
worked, as well as the widening disparity in the income of foreign workers and that of
local workers were reported for Chinese Tapei.
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Professor Ryuichi Yamakawa, Institute of Social Sciences, University of Tsukuba,
chaired the latter half of Session 1, which he opened with a summary of the current
situation in countries from three viewpoints: 1) The situation in receiving countries;
2) The situation of illegal workers; and 3) The economic situation in sending countries.
In receiving countries, a polarisation can be seen in labour markets. They are receiving
a decreasing number of low-skilled labourers working in demanding, difficult, and
dangerous workplaces, and an increasing number of highly skilled workers.
Furthermore, there is an increase in the number of cases in which foreigners who have
lived in the country apply for immigrant status, a decrease in the number of illegal
workers in general, and overseas remittances play an important role in the economy of
sending countries. During the course of the discussion among participating countries,
delegates from Singapore, Malaysia and Hong Kong China reported on the use and
status of income and expenditure of the foreign worker levy scheme, and lively
arguments for and against the system followed.

3. General Session 2

The first half of General Session 2 started with the Chair, Professor Shouichi Ito,
Faculty of Economics, Kwansei Gakuin University, requesting information on recent
trends in labour migration policies of respective countries. The report from Indonesia
concerned the plan to send around 1 million workers overseas in 2004, while the report
from Taipei China’s provided details of the regulations for employment agencies and
bilateral agreements, from the viewpoint of the protection of workers. It was also
announced that Korea is to introduce a system in August 2004 that will permit
acceptance of foreign workers into medium and small companies in those cases where
their offer of employment to Korean nationals is not met within one month of its
announcement in public employment security offices.

Ms Martine Durand, Deputy Director, Directorate for Employment, Labour and Social
Affairs, OECD, chaired the latter half of General Session 2, in which the discussion
was focused on policies: measures adopted for the creation of employment; actions
being taken for the human resources development for workers; and methods to deal
with structural problems of the labour market. It was reported that the Vietnamese are
finding it difficult to compete against the huge market of China in their efforts toward
inviting direct investment from other countries. There was also a report on measures
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