EDUCATION and labor sector reforms could complement population-driven growth in South and Southeast Asian, Moody’s Investor Service said in a report.
“Closing the gaps in both educational achievement and workforce participation would provide scope for further economic gains and boost incomes,” Moody’s Investor Service said.
An enhanced education sector will mitigate potential job losses for certain segments of the services industry such as business process outsourcing, especially in India and the Philippines, the report said.
Moody’s said the development of engineering and programming may provide higher value-added job opportunities given the increasing complexity of products on offer.
The report noted that the Philippine average for years spent in education is nine, according to the United Nations Development Programme’s national human development index.
This is the highest average number of years in education, more than Indonesia, Vietnam, and Pakistan, it added.
Moody’s said this was due to a greater percentage of females completing secondary school in the Philippines.
“Among the big six, the Philippines and Vietnam are relatively well placed, although — as their scores for education, and labor and income indicate — neither currently has positive exposure to these factors,” the report said. — Aaron Michael Sy
