As for the public sector, public institutions and associations have been streamlined and their organizational structures changed. Also, state-owned enterprises are being privatized or have undergone drastic management reform, depending on their business orientation.

To form a consensus on labor-related issues, on February 6, 1998, a Tripartite Committee was formed between representatives from labor, business, and the government. The committee established a framework for an equitable sharing of both economic and non-economic costs and attained public consensus for the restructuring efforts.

The committee reached an accord that contained a number of measures designed to enhance transparency in corporate governance. These measures will also increase unemployment benefits and labor market flexibility.

As a result of the efforts of the Tripartite Committee, the Labor Standards Act (LSA) was revised to allow for more management flexibility when dealing with labor issues. In addition, legislation allowing the establishment of temporory man power (temp) agencies was put into effect in July 1998.

This business has helped companies enhance the effectiveness of their administrative resources and realize increased cost-savings.

The government has increased labor market flexibility by strictly enforcing legal standards with regard to any illegal strikes or labor practices.