Strengthening resilience through labour and industrial policy in Southeast Asia

Southeast Asia is experiencing rapid economic transformation alongside global shifts in trade, technology, and climate. Manufacturing is central to how the region adapts and continues to grow. It plays an essential role in supporting livelihoods, enabling safer workplaces, and building resilience to future risks.

Cambridge Industrial Innovation Policy is launching a series of new policy briefs that draw on the Lloyd’s Register Foundation World Risk Poll and related data sources to address these challenges. Each brief links public perceptions of risk with policy responses, providing insights into how policymakers in Southeast Asia can strengthen resilience and inclusive growth.

Industrial policy in focus: manufacturing as a driver of resilience

By Dr Mateus Labrunie, Niels Kunz, Haitian Xia, Haoyu Zhong, Dr Carlos López-Gómez and Dr Marco Kamiya

Published today, the policy brief Resilience through industrial policy in Southeast Asia highlights the critical role of manufacturing in socio-economic resilience. Strong industrial capabilities support the local production of essential goods, help countries respond quickly to emergencies, and provide stable jobs that contribute to financial security.

Evidence shows that higher levels of industrial performance are associated with stronger socio-economic resilience overall. Workers in manufacturing also benefit from safer workplaces and better financial protection than other sectors: nearly 65% of manufacturing workers reported that they could cover their household’s basic needs for over three months without income, a higher rate than any other sector. At the same time, manufacturing itself faces pressures from supply chain disruptions, technological change, and environmental challenges, requiring government action in strengthening and supporting the sector in its ongoing transformation.

Key findings:

• Manufacturing supports resilience through essential goods, crisis response, and recovery.
• Higher industrial performance correlates with higher resilience.
• Workers report safer conditions, better financial security, and lower discrimination than in many other sectors.
• Governments need to support the manufacturing sector as it faces increased risks from supply chain disruptions, climate events, and new technologies.

Watch the explainer video on industrial resilience:

Labour policy in focus: occupational safety and health

By Dr Jennifer Castañeda-Navarrete, Jiaqi Li, Hanlin Zhang and Zoi Roupakia

The policy brief Advancing workplace safety in Southeast Asia examines recent trends in occupational safety and health (OSH) across Southeast Asia. Data from the World Risk Poll shows that nearly one in five workers worldwide experienced serious work-related harm between 2021 and 2023.

Challenges exist around low reporting of workplace harm and limited participation in OSH training. Only 48 per cent of workers in Southeast Asia who experienced harm reported it, and just 21 per cent took part in OSH training – both below the global average. Gender gaps are also evident, with women less likely to report harm or access training.

The brief highlights the positive impact of early ratification of International Labour Organization (ILO) Conventions, which is linked to improved OSH outcomes. Recommendations include supporting further ratification of Conventions No. 155 and 187, strengthening national policies and tripartite bodies, improving data collection, integrating gender-responsive approaches, and engaging with global initiatives that link digital and green transitions to safe and decent work.

Key findings:

• Nearly 18% of workers globally reported serious work-related harm, with Southeast Asia close to the global average.
• Only 48% of harmed workers in the region reported it; just 21% received OSH training.
• Women are less likely than men to report harm or take part in training.
• Early ratification of ILO Conventions is linked to stronger OSH outcomes.

Watch the explainer video on labour policy:

Towards safer and more resilient economies

Together, these briefs underline the importance of strengthening both industrial capabilities and labour systems as foundations of resilience. By linking public perceptions of risk with policy responses, they show how Southeast Asia can build safer, more inclusive, and more sustainable economies.

Download: Resilience through industrial policy in Southeast Asia

Download: Advancing workplace safety in Southeast Asia

About the project

These new policy briefs form part of the project Policymaking for a more resilient world: leveraging the World Risk Poll for more effective digital, labour, and industrial policies, funded by Lloyd’s Register Foundation. Led by Cambridge Industrial Innovation Policy (IfM Engage), the project explores how public perceptions of risk can inform policymaking, with a particular focus on Southeast Asia.

Four policy briefs have been published, covering AI, digital trade, labour policy and industrial policy. Each brief is accompanied by accessible materials such as explainer videos and infographics, and the findings are being shared with policymakers and regional stakeholders through in-person and online workshops. The project runs from September 2024 to December 2025 as part of Lloyd’s Register Foundation’s ‘World Risk Poll into action’ programme.

Read more: Insights on AI and digital trade