EXECUTIVE SUMMARY 

a) Outsourcing in ASEAN has grown significantly, driven by globalization and digitalisation, enabling businesses to reduce costs and access specialised talent pools.

b) ASEAN has become a prominent outsourcing hub, specialising in areas such as customer support, IT, and manufacturing. This growth has been facilitated by regional comparative advantages, such as a skilled workforce and competitive labour costs.

c) However, outsourced workers often face structural disadvantages, including lower wages, precarious employment, limited access to benefits, and inadequate workplace protections.

d) While legal provisions for outsourced workers exist in some AMS, there are opportunities to improve their implementation. Workers may encounter challenges due to ambiguities in defining employment relationships, limited unionisation rights, and varying levels of enforcement for labour protections.

e) These disparities provide opportunities for policymakers to foster a balance between economic benefits and social equity.

RECOMMENDATIONS

This brief recommends that ASEAN consider developing polices to:
● Enhance legal protections for outsourced workers..
● Strengthen enforcement of labour regulations.
● Improve working conditions for outsourced workers.
● Promote career development and training opportunities.
● Develop worker-focused programs and joint initiatives.
● Strengthen regional cooperation.