14-12-18 - PHOTO:- Steve Tickner Emerald shoe factory workers strike

Myanmar manufacturing sector hit by new lockdown measures

Manufacturing in Myanmar was hit hard in September by a range of new lockdown measures introduced to fight a surge in coronavirus cases, according to the latest Purchasing Manger Index (PMI) survey data from IHS Markit. The measures, which includes instructions for factories to shut down for two weeks and employees not listed under an essential services list to work from home, has reversed the beginnings of a recovery in manufacturing.

The Myanmar PMI index fell to 35.9 in September from 53.2 in August and 51.7 in July. The index varies between 0 and 100, with a reading above 50 indicating an overall increase in purchasing activity compared to the previous month. A score below 50 indicates an overall decrease. The impact has so far been less severe that the record deterioration in business conditions seen in April.

Still, four of the five components that make up the PMI- such as purchasing activity, output and new orders – had negative directional influences in September, with the exception being suppliers’ delivery times. Manufacturing production suffered a severe decline in September with factories temporarily closed in key regions like Yangon and Mandalay.

Domestic demand faltered amid the introduction of new restrictions, while international demand was tepid as well, with managers reporting lower demand from Asian markets including India, Thailand, Vietnam and Qatar. With many factories temporarily closed in September, the overall level of employment in the sector also fell sharply.

Source: Myanmar Times

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COVID-19 shuts down more than 100 garment factories

The Covid-19 pandemic has led to the closure of some 100 MCP (Cut Make Pack) factories in Myanmar, said a representative from the Myanmar Garment Manufacturers Association. It is said that the pandemic has resulted in difficulties in meeting orders and a decline in global sales, forcing these factories to either halt work temporarily or cease operations for good.

It is also said that there are over 700 member factories registered under the association, of which more than 50 shut down during the first wave of the pandemic and another 50 closed during the second wave. Some factories have to take a break due to order difficulties. Nevertheless, about 350 member factories are applying for export and import licenses.

One owner of a garment factory said that such closures are necessary as it makes more financial sense. There are factories that do not get orders at all and the factories that do not have enough money will have to close for a while. Business owners said that many of the suspended factories are owned by foreigners, many of whom are Chinese nationals.

Source: Myanmar Times

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Republic of the Union of Myanmar Announcement of National-Level Central Committee on Prevention, Control and Treatment of COVID-19

Republic of the Union of Myanmar
Announcement of National-Level Central Committee on Prevention,
Control and Treatment of COVID-19

15th Waxing of Nadaw, 1382 ME
(29 December 2020)

It is announced that public statements, orders, notifications, and directives (excluding eased restrictions) of the Union-level organizations and the Union ministries effective until 31 December 2020 for protection, control and prevention of Coronavirus Disease 2019 (COVID-19) will be extended to 31 January 2021 as it is required to continue containment of Coronavirus Disease 2019 (COVID-19).

This is the 14th time the committee extended the restrictions since they were first introduced in April. The restrictions are being extended even though the number of daily positive cases in the country has dropped below 1000 for the past seven days. The Ministry of Health and Sports reported 619 new cases on Wednesday night (December 29), bringing the total number of cases of 123,153 to date.

The commercial capital, Yangon, remains the region with the highest number of COVID-19 cases in the country but Mandalay is also seeing an increase in the number of positive patients. Weeks after the 2020 general elections on November 8, Mandalay Region saw a rise in the number of positive cases and is reporting more than 200 cases daily even though a stay-home order has been imposed in seven townships.

Despite that, domestic carriers have been allowed to resume their flight of December 16 if they meet the necessary conditions. The government is also preparing to allow international airlines to resume commercial flights. Meanwhile, stay-at-home measures in various townships across the states and regions have also been lifted. The health and sports minister told local media that administration of the COVID-19 vaccine in Myanmar could commence starting next April.

Source: The Global New Light of Myanmar, Myanmar Times