Developing relevant skills and using them effectively is crucial for Southeast Asia’s ability to thrive in an increasingly interconnected and rapidly changing world.

This OECD Skills Strategy Southeast Asia identifies priority areas for action for Southeast Asia and provides tailored recommendations for improving its skills outcomes. The Skills Strategy has benefited from the insights of a wide range of government and stakeholder representatives through the OECD Policy Questionnaire, written input on performance within the three dimensions of the strategy and stakeholder consultations with a wide variety of actors in Southeast Asia. This process provided invaluable input that shaped the findings and recommendations in this report.

This chapter summarises the context, key insights and policy recommendations of the OECD Skills Strategy project in Southeast Asia. It applies the OECD Skills Strategy Framework to provide a high-level assessment of the performance of Southeast Asia’s skills system. The chapter provides an overview of: 1) responding to the skills implications of megatrends and COVID-19; 2) developing relevant skills over the life course; 3) using skills effectively in work and society; and 4) strengthening the governance of skills systems. The chapter summarises the related key findings and recommendations. Subsequent chapters provide more details on the opportunities for improvement, good practices and policy recommendations for Southeast Asia.

Megatrends in the form of globalisation, technological progress, demographic changes, migration and climate change, as well as unforeseen shocks, such as the COVID‑19 crisis, are affecting the skills people need to face uncertainty and navigate a complex world. People who are equipped with a broad set of skills that are relevant to the needs of work and life can turn challenges into opportunities and help shape the world for the better. This chapter examines the implications of globalisation, technological progress, demographic changes, migration, climate change and the COVID‑19 crisis for the skills systems of Southeast Asia.

The development of skills is central to individuals’ personal improvement and well-being, as well as to countries’ economic growth and social cohesion. Skills development takes place in schools, homes, communities and workplaces. It entails the interaction of learners with a wide variety of actors, including teachers, principals, peers, parents and employers, among others. This chapter examines the importance of developing relevant skills over the life course in Southeast Asia and how lifelong learning could support a competitive workforce, promote inclusive growth and support Southeast Asian countries’ national development objectives. It then explores three opportunities to improve the region’s education and training systems: 1) broadening access to skills development; 2) increasing excellence and equity in skills development; and 3) developing skills that matter.

The effective use of skills in workplaces and society is important for a country’s economic prosperity, social cohesion and people’s overall well‑being. The full and effective use of skills can help raise productivity and innovation for businesses and help increase wages and job satisfaction for employees. This chapter examines the importance of using people’s skills more effectively and how this could support Southeast Asian countries in achieving sustainable and inclusive growth and social well-being. It explores three opportunities for Southeast Asian countries to use the skills of their people more effectively: 1) promoting participation in the formal labour market; 2) making intensive use of skills in work and society; and 3) increasing demand for higher-level skills.

Strong governance arrangements are needed to ensure Southeast Asian countries can respond to existing challenges in their skills systems and adapt to labour market changes brought about by megatrends and COVID‑19. This chapter assesses the effectiveness of skills governance in Southeast Asia and explores four opportunities to improve skills policies: 1) promoting a whole-of-government approach; 2) promoting a whole-of-society approach; 3) building integrated information systems; and 4) aligning and co‑ordinating financial arrangements. The chapter looks at general trends within countries in Southeast Asia, which may have an impact on the above governance components and identifies and showcases good practices, which introduce what has worked to strengthen the relationships of the diverse actors in Southeast Asian skills systems.