Myanmar's garment exports this year is set to decrease

Garment exports from Myanmar this year is set to decrease this year, garment industry entrepreneurs said.

Insufficient electricity, the ongoing tussle over minimum wage, and scarce skilled labourers caused decreased production and exports, they said.

U Than Myint, minister for Yangon Region Planning and Economics, told Myanmar Business Today, “The minimum wage of K3,600 is fair. But on the side of employers, industries which have many orders and run with many labourers can pay this wage. But the industries which have fewer orders but run with many labourers cannot afford to pay this amount.”

The industries which cannot afford to pay the minimum wage of K3,600 pressured the government, saying that the factories will be closed within 100 days.

If the rate cannot be paid, there will be conflict between employers and workers and the production will also decrease, garment employers said.

The garment industries provide the highest employment opportunities for both skilled and unskilled labour, adding approximately 5,000 jobs per month, according to the Myanmar Garment Industries Employers Association.

If the employers close the factories, compensation for the workers shall be paid up to 13 months of salaries based on experience, according to an announcement of the Ministry of Labour.

There are over 300 garment factories in Myanmar. Taiwan, China, Japan, South Korea, are the biggest foreign investors, but 28 countries have invested in the garment industry.

According to the statistics of Myanmar Garment Industries Employers Association, Myanmar earned $1.7 billion in 2014, $1.2 billion in 2013 and over $900 million in 2012 from the garment exports.

Source: http://www.mmbiztoday.com/articles/garment-industry-set-nosedive

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