BANGKOK, (ILO news)- Enhanced collaboration between governments, employers and workers will support formalization across Asia and the Pacific however greater emphasis needs to be placed on the impact of climate change on informal workers and enterprises in the region a workshop held in Bangkok heard recently. 

Innovative practices from across Asia and the Pacific to formalize the informal economy were discussed by representatives of governments, employers and workers at a Regional Knowledge Sharing Forum in Bangkok from 26-28 November 2024.  

Illustrative image (internet)

The forum’s outcomes will play a crucial role in shaping general discussion on formalization at the 2025 International Labour Conference (ILC).

With the region home to 1.3 billion informal workers—66 per cent of its workforce—the discussions took on added urgency as stakeholders explored strategies to promote decent work and reduce informal employment.

Speaking at the event opening, Chihoko Asada Miyakawa, ILO Regional Director for Asia and the Pacific, underscored the critical need for coordinated action. “Informality is too big and too complex of an issue for any of us to fight alone,” she remarked. 

Despite a 7 per cent decline in informal employment over two decades—the largest reduction globally—the absolute number of informal workers continues to grow due to population expansion.

Miyakawa highlighted the region’s unique contributions to tackling informality, many of which were presented at the forum. However, she emphasized that isolated efforts often fall short of achieving systemic change. 

“We are missing the opportunities that well-integrated and coordinated approaches to formalization can bring to accelerate progress,” she noted, advocating for frameworks that include meaningful engagement between governments, employers and workers.
Among the key takeaways were reducing barriers to formalization, creating incentives for workers and businesses, and ensuring inclusive systems responsive to diverse needs.

ILO specialist Andre Bongestabs reflected on the importance of taking a regional approach, “Asia is doing a lot on formalization, so bringing together the countries is an excellent opportunity to exchange what is working, what are the common challenges and really build on each other's efforts.”

A significant issue highlighted during the forum was the emerging focus on the intersection of climate change and informality. Informal workers and enterprises are disproportionately vulnerable to climate-related shocks, underscoring the need for targeted resilience-building measures. 

“This issue came up strongly during the meeting—it’s a new dimension we weren’t addressing before,” Bongestabs observed.
Discussions also emphasized the need for greater attention to emerging challenges, such as integrating digital and technological solutions and addressing sector-specific vulnerabilities.

Amongst the speakers, Dr Dzulzalani  Bin Eden, Director of the Malaysian Employers Federation highlighted the importance of creating realistic pathways to formality for those in the informal sector saying that,  “We must give them in an easy way, a more relaxed way, a more simple way to get them to formalize, because we can’t implement something that is very rigid.”

Meanwhile, Shah Manali, National Secretary of the Self-Employed Women’s Association of India stressed the need to put existing plans and policies relating to formalization into practice. “Implementation is very important because what we heard at this meeting is that in many countries there are laws, policies and rules. But implementation is the big issue.” 

The forum’s outcomes will play a crucial role in shaping the 2025 International Labour Conference (ILC) general discussion, marking the 10th anniversary of ILO Recommendation No. 204 on transitioning from the informal to the formal economy.
 
“This meeting is part of the preparations for the ILC. It ensures that the experiences and good practices from Asia-Pacific contribute to global discussions, while reflecting the region’s priorities and needs,” said Bongestabs. 

“If Asia doesn’t formalize, the world will still have the majority of workers in informal employment,” he warned.

The Asia-Pacific forum was held in Bangkok on 26-28 November 2024.