UMFCCI called government for national body to deal with virus impacts in Myanmar

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) says it will ask the government to set up a national-level committee that includes representatives from the private sector to address the economic and social impact of the coronavirus outbreak sweeping the world.

The World Health Organization officially declared the COVID-19 outbreak a pandemic on Wednesday, and since this is likely to impact Myanmar’s socio-economic landscape the government, businesses, labour unions, and any relevant bodies should cooperate to deal with the effects, the UMFCCI announced in a statement on Thursday.

A pandemic is defined as a disease epidemic that has spread across a large region; for instance multiple continents, or worldwide.

The trade body said it has been monitoring the situation since the outbreak emerged in early January and that the government and the central bank have been taking steps in line with rapidly changing situation.

The effects of the virus outbreak are already being felt in Myanmar, as tourist arrivals, a significant foreign exchange earner for the country have declined sharply. Elsewhere, agricultural exports to China have been hit by border closures and lower exports due to travel restrictions imposed as part of attempts to curb the spread of the virus. In the garment industry, a significant source of employment in Myanmar, factories have been hit a shortage of raw materials due to supply-chain disruptions caused by the Chinese government asking factories to temporarily shut down to prevent the virus from spreading among workers. There have already been reports of factory closures in Myanmar due to the disruptions.

According to the UMFCCI, all this will have an impact on the country’s economy although accurate numbers in terms of financial losses have not yet been worked out.

Besides tourism, agriculture, and garment manufacturing, small and medium-sized businesses in the country are likely to be affected the outbreak, all of which will drag on Myanmar’s GDP, said Daw Khaing Khaing Nwe, secretary general of the Myanmar Garment Manufacturers Association.

The spread of the coronavirus is likely to have a significant impact on the economic development of Asia, according to a statement released by the Asia Development Bank (ADB) on March 6.

According to analysis conducted by the ADB, the coronavirus outbreak could cause a loss of anywhere from US$77 billion to US$347 billion or up to 0.1 percent to 0.4 pc of global GDP.

The UMFCCI said it believes the country will be able to overcome the economic and social impacts of the virus outbreak with cooperation between the government and the private sector. – Translated

(The Myanmar Times: https://www.mmtimes.com/news/trade-group-calls-national-body-deal-virus-impacts.html )

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