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Integrity Statement: “This is to certify that this policy proposal is my original work
submitted as part of the requirements for ASEAN 271 First Semester of Academic Year
2017-18, under the supervision of Prof. Maragtas SV Amante, Affiliate Faculty, UP
Open University”
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Table of Contents
Summary Page 3
Conclusion Page 11
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Summary
ASEAN’s strong labor force will play a vital role in the achievement of the ASEAN
Economic Community. Thus, to fully strengthen the regional integration and global
process, ASEAN should invest in the skills development of its labor force. Hence, this
paper focuses on the workers from the bamboo small-scale industries, an unexplored
yet prospective industry in the ASEAN region. This paper explores and the status of the
workers in the small-scale bamboo industry in the. This paper presents the human
resource development gaps, existing laws related to bamboo industry and proposes
regional level recommendations that would enhance and develop the skills
competitiveness of every grassroots worker in the ASEAN bamboo industry.
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implemented to explore the real situation and capacities of the small-scale industries.
Hence this paper focuses on the potential of the workers from the small-scale bamboo
industry in the ASEAN region. This paper aims to provide recommendations or
proposed regional level policy that would upgrade the skills competitiveness of the
workers in this industry to fully prepare for the forthcoming blast of the ASEAN
Economic Community. Thus, with utmost consideration to the potentials of small-scale
industries in the ASEAN region, this paper will provide discussions on a chosen industry
in the ASEAN region, the bamboo industry, a widespread and common industry
particularly in local or grassroots level that has a bigger potential in the international and
regional market. Hence, beside on the usual conducting and launching of research and
development, it is better to consider as well the key role of its workers and how to
develop and nurture their talents.
Various problems are also associated with the status of small-scale industries in
the ASEAN region. Sulistyastuti, Permana & Rachman (2014), with reference to the
discussions of Levy, Berry and Nugent, emphasize that small-scale industry are less
favorable in the regional participation with lack of enough information, financial,
managerial capacity and technology. On the other hand, the human resources in the
small-scale industries work with low productivity and lack of technological capabilities.
More to this, small-scale industries are also facing problems of human resources
problem, low access to capital and limited market access (Sulistyastuti, Permana &
Rachman, 2014). Another issue on human resources development of most small-scale
industries includes no access to formal training and, as a result, lack of skills in
particular as regards basic economic skills and managerial expertise, lack of formal
schooling sometimes even resulting in illiteracy (Tambunan, 2006). Nevertheless, with
these given circumstances, the establishment of ASEAN Economic Community
definitely possess opportunities and threats to small-scale industries. Accordingly,
integration process would likely to also promote economic competition among the
ASEAN member states (Abadilla, 2015). Sulistyastuti, Permana & Rachman (2014),
discussed how the competition would challenge the efficiency of local products versus
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imported products with the integration of the ASEAN member states. But to address the
stipulated problems, the ASEAN through its government and other key stakeholders will
play a role on how to remain viable with the regional integration process. The state
government of each country will still the deciding factor on what path their national and
local industries should direct to fully sustain the economic integration in the region. On
the other hand, Sulistyastuti, Permana & Rachman (2014), suggested how the
government would contribute in the enhancement and strengthening of the small-scale
industries: (1) provide development support in the capacity development programs (2)
create a business environment for small-scale industry development (3) strictly
implements effective policies.
From a viewpoint of some ASEAN member states, various efforts were being
done by each country about the strengthening their local small-scale industries. Notably,
the Philippines is one of the ASEAN countries with the highest number of existing small-
scale industries but at the same time with the highest number of closures (Abadilla,
2015). Mainly, the closure is attributed to the lack of availability of financial support to
scale up or upgrade this sector. However, as the Philippine faces the challenges, the
Department of Trade and Industry seek to strengthen local businesses, become more
competitive and sustainable (Abadilla, 2015). In Singapore, the small-scale industry is
one of the priorities of the Singaporean government. Evidently, SME sectors utilize
business support programs by its government enterprise agency (Sato, n.d.). In
addition, the government uses technological approaches such as online portal to
promote awareness about the government plans and initiatives (“SMEs are at the
heart”, n.d.). The Singaporean government is also providing grants support to small-
scale industries to upgrade product development, productivity, branding, and marketing
(“SMEs are at the heart”, n.d.). Meanwhile, in Indonesia, the small-scale industries are
given ample attention since they help create employment and generate income through
imports (Tambunan, 2006). Nevertheless, ASEAN SME sector is still characterized by
heterogeneity and ASEAN countries should be keen to improve the productivity and
innovative capabilities of the SME sector to meet the increased competition in the global
market (Sato, n.d.)
Given the overview of the small-scale industry in the ASEAN region, the
establishment of ASEAN Economic Community is seen to bring both economic
opportunities and threats for small-scale industries. But, with the considerable
industries’ potentials, it could offer, ASEAN and its member states should maximize all
its efforts and established effective mechanisms and support to further explore and
discover. With the commitment and willingness of each ASEAN member states to help
the small-scale industries is an encouraging proposition that the bamboo industry will
definitely sustain the on-going ASEAN integration process even the global process.
Thus, this paper focuses on one of the prospective existing small scale-industry in the
region, the bamboo small-scale industry.
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Bambusa vulgaris or commonly known as “Bamboo” is a common type of grass
that can be commonly found in the Southeast Asia. Historically, bamboo is deeply
rooted in the culture of the people from Southeast Asia (Lancaster, 2012). However, for
a long period of time, the importance and potential of bamboo were being disregarded.
But with the rise of the “Bamboo Revolution,” this holds much promise for the economic
opportunities for Southeast Asian countries. The use of bamboo is evidently used for
various purposes such the bamboo leaves for medicine, twigs for brooms, the top for
scaffolding, mid and base parts for medium value products like blinds and woven mats,
the bottom section for laminated flooring, shoots for vegetable, waste parts for charcoal,
and various parts for handicrafts (Văn, 2016). Moreover, with the increasing demand for
bamboo in the global market, Jackie Heinricher1 in his statement, “Bamboo is a plant
that is good for the economy and the environment – and one with an enormous
untapped potential to dramatically transform regional economies everywhere from Asia
to Alabama” (Lancaster, 2012). Today, China is dominating the world bamboo industry
with an estimated $10 billion turnover in 2011 (Lancaster, 2012). Nonetheless, Thailand,
Malaysia, Myanmar, Indonesia, Vietnam and the Philippines are also gaining
prominence in this industry with an increasing number of bamboo-based furniture
exports (Lancaster, 2012).
1Jackie is the President and CEO of Booshoot, an innovative forestry and agricultural plant sciences
enabling commercial production of fast growing, sustainable and highly productive food and forestry crops
without GMO.
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country generated an estimated amount of $1 billion from bamboo, compared to $500
billion in other countries (Sone, 2014) It was also accounted that as of 2001, the country
produces bamboo furniture and home decorations but still lack enough skills to craft
more bamboo products (Sone, 2014). Thus, with the proper management of the
bamboo industry and developing the skills competitiveness will help improve the
bamboo crafts production in the country.
Meanwhile, only a few ASEAN member states had already passed a national law
or bill that seek to discover the potentials and help upgrade the bamboo industry and
how would this help people in the local or grassroots level. Notably, one of the existing
law or bill related to the bamboo industry in the among the ASEAN countries is the “Bill
of the Philippine Bamboo Industry Development Act of 20172. Through the initiatives of
the Committee on Trade, Commerce & Entrepreneurship joint with the Committees on
Ways & Means and Finance and co-authored by Senators, Aquino IV, Legarda, Villar,
and Zubiri. This bill was passed to institutionalize the development of bamboo industry
in the Philippines. Primarily, this bill aims and makes Philippine Bamboo Industry a
locally and globally competitive industry.
Evidently, the use of bamboo existed already in the Southeast Asia a long time
ago. However, due to lack of overall recognition to the potentials of bamboo industry, it
remains unexplored and undeveloped. A common perception about the human
resources development problems of bamboo industry, as reported by Lancaster (2012)
with reference to the statement of Xiaoli Wang3 that there is the shortage of
management expertise and processing know-how information on bamboo. In addition,
Lancaster (2012) also stipulated that there is a fewer data on the volume, production,
and sales of bamboo in most countries. Navales (2017) also supports this claim that
there is a lack of technical knowledge which hinders the bamboo industry. On the other
hand, with a large number of local workers to work in the bamboo industry, they will be
an added value for the enhancement and strengthening of the industry. For instance,
international organization Oxfam Hong Kong works to develop the potential of bamboo
in the Mekong countries of Vietnam, Laos, and Cambodia, where some 22 million
people live in dire poverty while 20 to 30 million others live just above the poverty line,
an estimated of 1 million people from it would help shared to increase the market share
of bamboo industry from the Mekong region (Văn, 2016). Another identified threatening
situation of the local bamboo workers is that they are highly dependent on few buyers if
they were not able to diversify their production (Renard & Lamballe, n.d.). But through
2 The Philippine Bamboo Industry Development Act of 2017 is also known as the “AN ACT
INSTITUTIONALIZING THE BAMBOO INDUSTRY DEVELOPMENT IN THE PHILIPPINES, CREATING
THE BAMBOO INDUSTRY RESEARCH AND DEVELOPMENT CENTER (BIRDC), APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”
3Xiaoli Wang is an administration officer at the State Forestry Administration in Beijing, China. She works
on policy recommendations for developing forestland and bamboo resource systems both in Africa and
Asia.
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the improvement of the competitiveness and introducing innovative ideas among the
local bamboo workers, this would limit their dependency on few buyers and they may
pursue their own businesses.
The following key stakeholders are the following: the ASEAN Labor Ministers is
the overall regional supervisor who would direct and monitor the status of programs,
plans, and activities related to the bamboo industry in the ASEAN region. The ASEAN
Regional Body for Bamboo Industry is the technical monitoring and coordinating body
who would directly supervise the ten ASEAN countries relating to the concerns of the
bamboo industry of per country. The Regional Body will consolidate report from the
ASEAN member states and provide a technical report to the ASEAN Labor Ministers
about the success and challenges of the workers from small-scale bamboo industry.
The ASEAN Member Countries represented by the National Government is the
implementing and monitoring body at the national level. The National Government is
responsible to create comprehensive laws relative to the bamboo industry, provide the
budget for building training centers across their local regions, capital resources to be
utilized by the local bamboo workers. The National Government is also responsible to
provide a report to the ASEAN Regional Body for Bamboo Industry. Meanwhile, the
Local Government Unit is responsible to work for hand on hand with the National
Government to monitor and supervise all the programs and activities at the local level.
The LGU is also responsible to create incentive mechanisms for local bamboo workers
that will encourage them to commit learning innovative ways of making various bamboo
products. On the other hand, Non-Government Organizations and Private Corporations
and Businesses will help provide the proper market for the bamboo products and at the
same time, they will provide financial support and technical training among the local
bamboo workers. These institutions are accountable to the National Government and
Local Government Unit. Lastly, the Community-Based Organization will be the partner
local group of the government.
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On the other note, the management workflow is designed for ASEAN countries to
inclusively work, adapt and implement their own strategies and plans on how to improve
and develop the skills competitiveness of their local workers. Yet when it comes to the
regional level, it is necessary that each ASEAN countries should share its learning
experiences and challenges which may be used as learning guide by other ASEAN
Country. Meanwhile, other necessary factors to achieve the goal of a competitive
workforce in the bamboo industry anchored on Budget Allocation, Comprehensive Laws
and Policies, Training Facilities, Expert and Well-Trained Trainers, and Advanced
Technologies.
ASEAN ASEAN
Country Country
National National
LGU LGU
Gov’t Gov’t
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Financial Implications
In this aspect, the financial support would be mainly the responsibility of the
National Government to allocate national funds for the development of bamboo industry
and prioritize the development and enhancement of its local worker's skills. There
should be an in-depth study of the latest trends and innovative bamboo products that
would determine the necessary funds to be allocated to the said industry. On the other
hand, NGOs and Private Businesses may also contribute funds to the National
Government. Hence, looking from a financial perspective, this regional level policy
proposal encompasses not only a larger scope of stakeholders but a larger scope of
activities and requires a big allocation of funds to be able to implement the objective of a
regional level human resource development policy.
To fully sustain and maximize the growing demand of bamboo industry in the
ASEAN region, the following recommendations may be taken up as proposed
recommendations that would contribute the enhancement and development of the skills
competitiveness of the local bamboo workers. Mainly, the role of the national
government
ASEAN through its Labour Ministers should establish an agreement that obliges
the ASEAN member states to commit prioritizing the development and
enhancement of skills competitiveness of local workers in the ASEAN bamboo
industry.
ASEAN should establish an ASEAN Regional Body for Bamboo Industry that will
mainly focus on the monitoring and coordinating the needs of the local workers
across ASEAN countries.
The National Government should pass and strengthen a bill or law that would
protect the local bamboo workers and enhance their competitiveness and
opportunities for wide-range of markets.
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The National Government should tap or partner with private corporations and
business and propose them to submit a plan or proposals which include plans
and activities relative to the development and enhancement of skills
competitiveness of local bamboo workers.
The National Government set-up local community training schools that would
focus on giving training to the local bamboo workers.
Conclusion
Truly, ASEAN labor force will play a vital role to the successful achievement of
the ASEAN Economic Community. However, ASEAN member states should also fully
maximize this opportunity through investing to the enhancement and development of
the competitiveness of the ASEAN workers. Nevertheless, labor force from the small-
scale industries is also seen to be a great contributory aspect to the economic growth of
the region hence it is necessary that ASEAN explores and discovers the bigger
potentials of the small-scale workers. With this paper’s discussion on the potentials of
small-scale bamboo workers across ASEAN region, it is definitely worth investing on the
development and enhancement of the skills and capabilities of the bamboo workers, an
unexplored but prospective industry in the
Southeast Asian countries are diversely covered with bamboo plants mainly
within the rural region.
References
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