ASEAN Energy Cooperation and ASEAN transport facilitation agreements. Sub-regional arrangements such as Greater Mekong Subregion (GMS), Mekong River Commission (MRC), Brunei Darussalam-Indonesia-MalaysiaPhilippines-East ASEAN Growth Area (BIMP-EAGA), and Indonesia-MalaysiaThailand Growth Triangle (IMT-GT) also play significant role in enhancing regional connectivity. Synergies between ASEAN and these sub-regional arrangements should be encouraged for further enhancement of regional connectivity and global flows. F. the skills challenge 11. ASEAN Member States need to rapidly develop their human capital and workforce skills. Today, 11 percent of ASEAN’s population have no education, and roughly 60 percent have only primary education or lower. In Indonesia and Myanmar alone, there is a projected undersupply of 9 million skilled and 13 million semi-skilled workers by 2030.22 Recent academic research suggests that, based on current trends, more than half of all high-skill employment in Cambodia, Indonesia, Lao PDR, the Philippines, Thailand, and Viet Nam could be filled by workers with insufficient qualifications by 2025.23 In addition, skills gaps are a major driver of inequality and poverty in the region. Approximately 92 million ASEAN workers (roughly 30 percent of the region’s workforce) live on less than $2 per day.24 G. DEPLOYING DISRUPTIVE technologIES 12. Disruptive technologies (particularly mobile Internet, big data, cloud technology, the Internet of Things, the automation of knowledge work and the SocialMobile-Analytics-Cloud (SMAC))” could potentially unleash some $220 billion to $625 billion in annual economic impact in ASEAN by 2030, which may be derived from increased efficiency, new products and services, etc.25 There are several areas relating to disruptive technologies where ASEAN Member States could be at the forefront of change, as opposed to simply utilising existing technologies; these include education, e-commerce, payments solutions, and cloud-based technologies. 13. To capture this opportunity, however, issues related to the connectivity agenda will be central: for example, policy makers will need to prioritise building the 22 For further details, see McKinsey Global Institute’s reports: on Indonesia, The archipelago economy: Unleashing Indonesia’s potential, September 2012; and Myanmar, Myanmar’s moment: Unique opportunities, major challenges, June 2013. 23 ASEAN Community 2015: Managing integration for better jobs and shared prosperity, Asian Development Bank and the International Labour Organisation, August 2014. 24 Ibid. 25 Southeast Asia at the crossroads: Three paths to prosperity, McKinsey Global Institute, November 2014. 32 MASTER PLAN ON ASEAN CONNECTIVITY 2025

Select target paragraph3