According to a report by The Myanmar Times on March 19, due to the impact of the new coronavirus epidemic, at least 20 of Myanmar’s 500 factories have closed, and more than 10,000 workers have lost their jobs. Most come from garment factories. Since January, 15 factories have permanently shut down, five have suspended operations, and others have reduced the number of workers due to disruptions in China’s raw material supply chain.
Not all laid-off workers are compensated. Factory owners such as Myanmar Royal Apollo failed to pay wages and ran away, leaving 786 workers without proper resettlement. Than Hin Lwin, secretary-general of the Myanmar Investment Commission (MIC), said such companies will be prohibited from continuing to operate in Myanmar. Under the current circumstances, employers can adopt flexible salary payment methods to cope with the situation.
At present, some raw materials have been transported to Myanmar through the China-Myanmar Muse border and chartered cargo flights, and some factories have resumed operations. But only 60% of the workforce has returned to work.
Myint Soe, chairman of the Myanmar Garment Association, said that raw materials produced before the Chinese Lunar New Year will gradually arrive in Myanmar before the end of May. Textile and clothing raw materials are given the highest priority during customs clearance. The government will also work with the Federation of Industry and Commerce (UMFCCI) to provide loans at preferential interest rates to factory owners to pay wages (the interest rate has not yet been determined), and will also consider introducing tax exemption policies.
Myanmar has established a supervisory committee to address and remedy the economic impact of the COVID-19 outbreak. The committee is paying particular attention to the Yangon region. Dan Xinlun said that at least half of the 1 million workers in the area are garment factory workers.
