Yangon Region had seen 12 factories closed until March 3 this year, and only two of them shut due to a lack of raw materials, according to the Factories and General Labour Laws Inspection Department. 

Those factories that closed due to shortages of raw materials and for other various reasons were garment, bag and plywood factories. 

“We can say that amongst 10 to 15 factories that closed down, only two were due to raw material shortages. They informed us.  The remaining factories shut for other reasons such as lack of order, losses, unskilled workers and rejected goods,” said Nyunt Win, director general of the department. 

The factory owners paid compensations to the workers in accord with the law. Over 5,200 people became jobless after the closure of the 12 factories. 

The Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry issued a statement on February 27 warning against possible lay-offs, operational suspension and closure as many factories face shortages of raw materials, most of which come from China, following the COVID-19 outbreak. 

Ten labour organizations had demanded to call a tripartite emergency meeting involving government, employers and employees.