- Introduction of Myanmars transition (2011-2015) - Economic - - PowerPoint PPT Presentation

Managing human resources (HR) in Cambodia, Laos, Vietnam and Myanmar (CLMV): Background, characteristics, and trends

• Introduction of Myanmar’s transition

(2011-2015)

• Economic profile (2011-2015)
• HDI profile
• laws (labor, investment, education)
• Characteristics of labor
• Challenges of human resources
• HRM practices

Real GDP Growth 2011-2014 (%)

5 5.5 6 6.5 7 7.5 8 8.5 9

2011 2012 2013 2014

Myanmar Cambodia Lao Vietnam Source: Myanmar Economic Monitor, World Bank,2015 report

Sector contribution to real GDP growth

• 1

1 2 3 4 5 2011/12 2012/13 2013/14 2014/15 Agriculture Industry Services

Source: Myanmar Economic Monitor, World Bank,2015 report

Sector growth rate

• 2

2 4 6 8 10 12 14

2011/12 2012/13 2013/14 2014/15 Agriculture Industry Services

Source: Myanmar Economic Monitor, World Bank,2015 report

Expenditure allocation by sectors

Health, Education & Social Welfare is

• nly 9%

Making Public Finance work for children in Myanmar- MDRI-CESD and UNICEF 2014

Human Development Report,2015 prepared by UNDP

Myanmar Norway Tonga Bhutan Niger Demographic Profile Rank 148 Rank 1 Rank 100 Rank 132 Rank 188 Population, total (millions) 53.7 5.1 0.1 0.8 18.5 Dependency ration, old age (65 and older) (per 100 people ages 15-64) 7.7 25.2 10.2 7.3 5.5 Dependency ration, young age (0-14) (per 100 people ages 15-64) 34.4 28.6 64.3 39.9 106 Population, ages 65 and older ( millions) 2.8 0.8 0.5 Median age (years) 29.8 39.2 21.3 26.7 15 Population, under age 5 (millions) 4.4 0.3 0.1 3.8 Population, urban (%) 34.4 80.2 23.7 37.9 18.6 Sex ration at birth (male to female births) 1.03 1.06 1.05 1.04 1.05

* Norway: Rank 1:Very high HDI * Tonga: Rank 100: High HD *Myanmar: Rank 148: Low HDI *Niger : Rank 188, Low HDI

Health Myan mar Norway Tonga Bhut an Niger Rank 148 Rank 1 Rank 00 Rank 132 Rank 188 Life expectancy at Birth 65.9 81.6 72.8 69.5 61.4 Adult mortality rate, female (per 1000 people ) 183 47 245 212 241 Adult mortality rate, male (per 1000 people) 240 73 115 219 252 Deaths due to malaria (per 100,000 people) 11.3 131.1 Deaths due to tuberculosis (per 100,000 people0 48 0.1 2.5 14 16 HIV prevalence, adult(% ages 15-49) total 0.6 0.1 0.4 Infant mortality rate (per 1,000 live births) 39.8 2.3 10.4 209. 7 59.9 Infant lacking immunization, DTP(% of one year

• lds)

10 1 1 3 15 Infant lacking immunization measles(% of one year olds) 14 7 1 6 33 Public health expenditure( % of GDP) 1.8 9.6 4.7 6.5 Under five mortality rate (per 1000 live births) 50.5 2.8 12.1 36.2 104.2 Human Development Report,2015 prepared by UNDP

Education Myan mar Nor way Tonga Bhut an Nige r

Rank 148 Rank 1 Rank 100 Rank 132 Rank 188 Expected years of schooling (years) 8.6 17.5 14.7 12.6 5.4 Adult literacy rate(% ages 15 and older) 92.6 99.4 52.8 15.5 Gross enrolment ratio :pre primary(% of primary school age population) 9.1 98.9 35.4 13.8 6.3 Gross enrolment ratio, primary(% of primary school age population) 114.2 99.4 110.1 106.6 71.1 Gross Enrolment ration, secondary(% of secondary school age population) 50.2 111.1 90.9 77.7 15.9 Gross enrolment ratio, tertiary (% of tertiary school age population) 13.4 74.1 6.3 9.4 1.8 Mean years of schooling (years) 4.1 12.6 10.7 3 1.5 Population with at least some secondary education (% aged 25 and above) 19.2 97.1 87.9 34.4 5.2 Primary school dropout rate( % of primary school cohort) 25.2 1.5 9.6 21.1 30.7 Primary school teachers trained to each 99.9 91.5 97.1 Public expenditure on education(% of GDP) 0.8 6.6 5.5 4.4

Human Development Report,2015 prepared by UNDP

Laws related to labor market

• Minimum wage law , 2013
• Social Security law, 2012
• New labor organization law, 2012
• Employment and skilled development law,2 013
• Education law, 2014
• SMEs law, 2015
• FDIs law (law emphasizing labor intensive investment)
• Workers’ compensation act, 2005
• Education law , 2014.
• Trade dispute act, 2012
• (other laws are still as old version: factories act, 1951,
• Leaves and holiday, 1951, shopsand establishment

act, 1951)

The impacts of minimum wage

• New minimum wage (MW) replaced the 1949 MW Act.
• The rate of MW is 3,600 Ks ($US 2.70).
• An objection can be made within 60 days.
• Employers protested and did not agree on this policy.
• Negative impacts: laying off employees, reduction of
• vertime and other incentives
• Projection: positive impact on wages security and likely

to be moved from the informal sector to formal sector

• In medium and long term: investors would invest more
• n productivity and efficiency with effective labor

Labor market challenges

• Not able to implement labor policies yet due to a

lack of data for labor market (previous labour market survey was conducted 25 years ago, data from the 2015 survey is still being finalised)

• Skill shortages due to skilled labor migration to

Singapore and other countries

• Employee turnover rate is higher at entry level
• Poor English language skills limit ability to join the

skilled labor market

• Poor management of regional government to

make decision on foreign direct investment (FDI)

SWOT of labor market

Strengths

• Labor costs are low
• Large population of energetic young

potential laborers

• Abundant vacant and virgin land
• No insurance employment system

Weaknesses

• Law enforcement
• Skills shortage
• Language barrier s
• Mismatch of education and labor

market needs

• lack of labor market data
• Safety and social security scheme are

weak at present Opportunities

• Labor intensive industries

(Apparel manufacturing, food processing sector)

• Tourism sector
• Deep sea port and special economic

zone projects are being implemented for local job opportunities Threats

• Insufficient electricity distribution
• Poor infrastructure
• Ability to create new products

Labor market characteristics

• Labour force by educational level, employed

population by

• ccupation,

industry and employment status can not be projected due to the unreliability of the data

• Workers

are sincere, energetic and prefer leadership management styles, rather than intense and

• ppressive

disciplinarian management styles of managers

• Trust in leadership and soft management play a

vital role for managing the labor fource

Human resource management practices (a)

• Law enforcement on safety environment scheme

for risky work sites

• Providing a social security scheme
• Skill and technology transfer to local laborers
• Introduce incentive firms to send their workers

for domestic and overseas staff training with provision of grants, tax break or subsidies.

• Resolve the mismatch between education supply

and labor market demand

• Creation of links between jobs market and

schools and universities

Human resource management practices (b) continued

• Co-ordination and collaboration is needed to strengthen

the government, private sector, civil society and informal educational sector.

• Identify indicators of quality assurances for for Universities

and schools

• Laws should be established with detailed guidelines for

encouraging the private sector, joint ventures and foreign direct investment, particularly in the education sector

• Domestic universities should co-operate with international

universities and more scholarship opportunities for students and teachers are needed to support study abroad

• Capital and current budget expenditure needs to expand

for human resources development and looking for external funding sources