Image credit: "46th ASEAN Summit family photo, Kuala Lumpur, Malaysia, 26 May 2025" Photo by Presidential Communications Office, Public Domain via Wikimedia Commons.

Southeast Asia possesses a strong and abundant human resource base. In contrast to much of the developed world, including countries such as China and Japan, which are facing the challenges of aging populations, nearly half of Southeast Asia’s population is under the age of 25, giving the region a significant demographic advantage. This will create a steadily growing, economically active group of 15- to 64-year-olds beyond the middle of this century. This abundant youthful potential, if trained with a vision of short-, medium-, and long-term work requirements, holds promise for the region’s accelerated development and offers a continuing supply of manpower to aging economic powerhouses. The ASEAN vision of 2025 pictures an ASEAN as a successful economic powerhouse. However, with a big vision comes a bigger challenge. Focusing on Labor economy and Human Resource Development, the ASEAN is yet to forge ahead. 

The ASEAN charter on labor economy and human resource

The ASEAN Charter particularly Article 1 under its laid purposes, supports the region’s labor economy and human resource development embodied in Paragraph, 10 and 11. These purposes are further strengthened in the Kuala Lumpur Declaration on ASEAN2025: Forging Ahead Together specifically in the ASEAN Economic Blue Print 2025, paragraph 6, point iii that states

“Foster robust productivity growth through innovation, technology and human resource development, and intensified regional research and development that is designed for commercial application to increase ASEAN’s competitive edge in moving the region up the global value chains(GVCs) into higher technology and knowledge-intensive manufacturing and services industries;”

and, in the ASEAN Socio- Cultural Community Blue Print 2025, under paragraph B.2, points vi and viii which state:

vi. Promote human capital development, economic self-reliance and sustainable livelihood, especially among the poor, through access to education, employment opportunities, entrepreneurship and microfinance;

viii. Build an enabling environment to provide the unemployed, poor and other marginalised groups equitable access to resources, opportunities, and safeguard measures to prevent them from falling under the negative influence of violent extremism and threats;

In my view, the most relevant key action is the promotion of human capital development. This is of course akin to the ASEAN purpose in paragraph 10. A nation’s human capital endowment, the knowledge and skills embodied in individuals that enable them to create economic value, can be a more important determinant of its long-term success than virtually any other resource. This resource must be invested in and leveraged efficiently in order for it to generate returns for the individuals involved as well as an economy as a whole. Therefore, the ASEAN needs to invest in human capital development by providing further avenues for this young population to develop, such as trainings, free education, exchange students programs and the like to prepare them to a demanding labor market in the coming years.

Strengths and Weaknesses of ASEAN2025:  Forging Ahead Together

The Kuala Lumpur Declaration on ASEAN 2025 poses both strengths and weaknesses. With the Blue Prints on ASEAN Economic, Socio- Cultural Community, and Political- Security, the ASEAN 2015 is comprehensive and presented specific goals. However, its strategic measures are not, at a certain amount, realistic and time-bound. Some of the measures are not also flexible since globalization, face-paced technological development, cultural diversity, religious orientation and local preferences are also needed to be considered.

The tools that are available for governments to manage change must be capable of responding to the new opportunities posed by globalization, yet at the same time address domestic challenges associated with demographic shifts in population, increased urbanization and the informalization of labor markets.

How Do We Move Forward?

According to the World Economic Forum, Human Capital Report (2016), globally, nearly 35% of our human capital potential remains undeveloped, due to lack of learning or employment opportunities or both. It finds that many of today’s education systems are disconnected from the skills needed to function in today’s labor markets. While current education systems seek to develop cognitive skills, non-cognitive skills that relate to an individual’s capacity to collaborate, innovate, self-direct and problem-solve are increasingly important. Current education systems are also front-loaded in a way that is not suited to current or future labor markets.

Hence, the ASEAN must develop regional programs for training the young population that is responsive to globalization and face-paced technology development; trainings will also address the issue on skills mismatch.  There is also a need for policies that are responsive to challenges of the labor economy and human resource development and are flexible enough to each member state.  For example, the EU has adopted a diverse range of treaty provisions and directives which provide important employment protections, safeguard health and safety, and promote equality in the workplace. The Treaty of the European Union (TEU), adopted in 2008, recognized the role of social and employment policy within the EU. Article 3(1) of the TEU confirms that the EU is a community of values and one of its core objectives is to promote the well-being of its people. Article 3(3), which provides for the establishment of the internal market, notably does not describe it as an end in itself, but rather as a means to achieving different ends including the creation of ‘… a social market economy, aiming at full employment and social progress…It shall combat social exclusion and discrimination, and shall promote social justice and protection…’.  This may also be applicable to the ASEAN in order to move forward.

In line with the general vision statements of ASEAN 2025, I propose several key directions that could further strengthen regional integration and development. First, there should be a more solid integration among ASEAN member states in addressing challenges in the labor economy, particularly by promoting equal opportunities in employability across the region. This would help ensure that individuals are not disadvantaged by national-level barriers and can participate more fully in the regional labor market.

Second, I suggest that ASEAN place stronger emphasis on providing free or more accessible education and skills training for its young population. Such an initiative would be crucial in preventing future skills mismatch and in ensuring that the workforce is responsive to the actual demands of the labor market. Investing early in education and training would contribute to long-term economic resilience and competitiveness.

Third, despite the region’s cultural diversity, ASEAN should continue to pursue deeper unification by fostering a more accepting, flexible, and inclusive regional identity. Strengthening mutual understanding among member states can help transform diversity into a source of strength rather than division.

Finally, I propose that ASEAN expand its integration beyond the region by enhancing collaborative efforts with other regional organizations and state unions. By doing so, ASEAN can broaden its horizons in labor economy and human resource development, while also strengthening its position and relevance in the international arena.