The Stakeholders in Myanmar are trying hard to get sufficient supply of raw materials amid Covid – 19

Negative impacts of Covid-19 hit harder the businesses relying on imported raw materials, said U Thant Sin Lwin, director-general of the Directorate of Investment and Company Administration.
“There are more impacts on businesses, which are based on raw materials. Some can run the operation to a certain extent for they do not use raw materials. Some may close down their factories due to insufficient supply of raw materials,” said U Thant Sin Lwin.
Myanmar’s economies are relatively affected in the wake of the Covid-19 crisis, he added.
“The labour-intensive enterprises will be badly battered by the Covid-19. Some jobs with a small labour force may endure the situation. This is the Covid-19 impact in regard to labour force”, U Thant Sin Lwin added.
To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have been jointly importing raw materials through border trade channels and airlines.
About 50 trucks loaded with CMP raw materials are daily entering the country through Muse checkpoint. A cargo plane of raw materials from China’s Quanzhou city arrived in Myanmar on 17 March. These are part of the emergency supplies to 11 factories, said U Min Min, director-general of the Trade Department with the Commerce Ministry.
The working committee to remedy the economic impacts of the Covid-19 was formed with nine members on 13 March, and the Union Minister for Investment and Foreign Economic Relations acted as its chairperson. The committee is implementing the preparatory measures.
“We can consider the preparedness in investment in terms of tax relief, exemption, and business permits. Even the world’s economy is affected for the time being. If the government reconsider the taxation, it is a part of preparedness. If the business that does not need to rely on raw materials, yet on the agriculture and local labour force are allowed to invest in the country, it will benefit the investment sector,” said U Thant Sin Lwin.
The committee is working together with the relevant ministries to tackle the possible economic impacts for the short term and long term. Regarding the labour layoffs, the related official departments are creating new jobs and conducting vocational courses for long-term benefits.
Since an outbreak like Covid-19 might happen in the future it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories.
There are more than 400 garment factories in Yangon Region. About 20 factories are reported shutdown on the reason for lack of raw materials affected by Covid-19, the Myanmar Garment Manufacturers Association stated. (Translated by Ei Myat Mon)

(The Global New Light of Myanmar: https://www.globalnewlightofmyanmar.com/stakeholders-trying-hard-to-get-sufficient-supply-of-raw-materials-amid-covid-19/ )

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