The single, integrated economic community of ASEAN countries that is
intended to be come into being in 2015 will pose a great challenge both for the
Balinese and other residents of the island, Bali Governor Made Mangku Pastika
stated on Sunday.
Speaking in front of hundreds of
students from Udayana University’s School of Medicine, Pastika warned the
future physicians about the challenges that the liberalization of the ASEAN
labor market would throw in their direction.
“If you cannot face and overcome
those challenges then surely you will be defeated, and marginalized.”
ASEAN is attempting to achieve
comprehensive regional economic integration through its economic community
scheme, the ASEAN Economic Community (AEC) 2015. As envisioned by the AEC 2015
blueprint, the community will be supported by four pillars: A single market and
production base, a highly competitive economic region, a region with equitable
economic development and a region fully integrated into the global economy.
The establishment of the
community is the continuation of earlier efforts made through the ASEAN Free
Trade Area (AFTA) started in 1992. Through the free trade pact, 99.11 percent
of tariffs in ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore
and Thailand) have already been lifted since 2010, while 98.86 percent of
tariffs in ASEAN-4 (Cambodia, Laos, Myanmar and Vietnam) have been reduced to
between 0 and 5 percent.
The economic community will
include the free flow of goods (trade integration), the free flow of capital
(investment integration), service sector liberalization, and the free flow of
people.
“Once the single economic
community has commenced, many doctors from ASEAN countries could flood Bali,
including doctors from Singapore or those Malaysian students that studied in
Udayana University. It is a probable scenario. Therefore, all of you should be
preparing everything from now. Improving your capability and quality,” Pastika
reminded them.
As an international tourist
destination, he added, Bali would become a big market for foreign products and
workers.
“We should be able to take
advantage of this trade liberalization, rather than falling victim to it.”
“Within the next two years, we
will face tighter competition. We only have two years to prepare ourselves,”
Pastika said.
Udayana University was urged to
work hard to prepare its students to face the implementation of AEC 2015.
“All of you should be a champion,
and not a loser, therefore this university must equip you with top-quality
knowledge, skills and capacity.”
Pastika pointed out that AEC 2015
would not only affect medical professionals, but also those who work in other
fields.
“The implementation of AEC 2015
will see workers and skilled professionals from various fields relocate to Bali
for better job opportunities. The government cannot and will not stop this flow
since the establishment of the economic community has been agreed upon by all
ASEAN member states.”
Pastika envisioned that a large
number of Filipino workers would take jobs as taxi drivers and would be
recognized among tourists as the island’s best drivers due to their English
proficiency and excellent personal grooming.
“So, we must prepare seriously,
let’s improve our skills.”
Udayana University’s deputy
rector, I Gede Putu Wirawan, said that the university had prepared students to
face the hard competition once AEC came into force.
”We are working hard to improve
our student’s skills and capabilities. Seminars and many other forums held by
the university are part of our attempts to improve their quality,” he said.
Another attempt was improving
student’s skills in speaking foreign languages, particularly English. Udayana
University, he said, required students to score 400 in the TOEFL examination to
graduate.
“Our alumni are ready to compete
with workers from other ASEAN countries,” he stressed.
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