UMFCCI seeks Myanmar government’s help to handle impact of virus outbreak affecting world trade

4 Mar 2020

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is requesting the government step in to help deal with the economic fallout caused by the COVID-19 virus outbreak affecting world trade.

A meeting to layout what the government can do to ease the situation was organised by the UMFCCI on February 27. The meeting was attended by 150 people representing businesses, trade bodies and international business organisations such as Euro Cham Myanmar, India-Myanmar Chamber of Commerce, Thai Chamber of Commerce, German Chamber of Commerce, China Enterprises Chamber of Commerce, Korea Chamber of Commerce in Myanmar, Chinese Textile and Garment Association in Myanmar, and Korea Garment Association Myanmar.

During the meeting, the Myanmar Tourism Federation highlighted the fact that most of the tourists visiting Myanmar are from China, and their numbers have declined significantly due to the virus outbreak. The has resulted in a large decline in business for tourism-related businesses.

The incomes of businesses such as hotels, restaurants, transportation-service providers, and resorts have declined due to a 53 percent reduction in traveller arrivals and 60 percent reduction in air travel since the outbreak was first reported in late December.

Meanwhile, garment factories in Myanmar rely on raw materials from China and now, they have face a lack of raw materials. Factories that produce electronic parts are also likely to face a lack of raw materials before the end of March or sooner. Many factories are are now opting to operate just eight hours a day and have chosen to close on weekends and public holidays, representatives of manufactures said during the meeting.

If the shortage of raw materials become prolonged, preparations have to be made for possible labour reductions, temporary halting of operations, or even factory shutdowns.

The meeting drew up a list of 10 initiatives that the government can put in place to help alleviate the situation:

1. The provision of unemployment benefits under the 2012 Social Security Law for workers at factories that have to be shut temporarily or reduce worker numbers.

2. To allow calculations based on minimum-wage rates if compensation is required for workers.

3. The approval to implement temporary leave without pay until the virus outbreak is under control.

4. Assistance for employers and workers from the social security fund.

5.Financial aid for business owners facing difficulties paying wages, or bank loans with low interest rates to help businesses continue operating.

6. The postponement of the  minimum wage review, scheduled for May, to September. 

7. The provision of timely information to avoid misunderstandings between employers and workers.

8. Assistance to help workers understand the situation and not stage protests.

9. Official announcements from the government seeking a temporary half to the payment of compensation for delays in the shipment of goods due to shortages of raw materials.

10. Assistance from the Customs Department for quicker clearance of raw materials arriving at the country’s ports.

UMFCCI says it will submit the requests to the relevant ministries and government authorities to seek aid as soon as possible. – Translated

 

(The Myanmar Times: https://www.mmtimes.com/news/business-chamber-seeks-govts-help-handle-impact-virus-outbreak.html )