Cambodia, as many other countries, is struggling from coronavirus. Among all aspects, industries in the country are currently at stake.
Indifferent from industries around the globe, Cambodia is also low on raw materials. Accordingly, the Ministry of Labor predicted that there might be approximately 200 factories and enterprises running out of raw materials.
Following the possibilities, the impact of the COVID-19 might lead to a massive suspension, causing a jeopardizing delay in the industrial sectors. Just recently, ten factories have filed for a temporary suspension.
Of those, some garment industries totally worth of US$ 7 billion halt the production. Reportedly, among the reasons was due to insufficient supplies of raw materials from China, which amount for 60%.
However, the worst is yet to come according to the government. Cambodian government foresees that the worst impact might occur this month. In addition, it may prompt more than 160,000 workers to be out of work.
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Cambodia vs Coronavirus: Government is Working on It
Considering the highly possible low supplies and unemployment, the government is working on some schemes to address the issues. As the time is running low, Phnom Penh is racing against time to devise the best policies possible under all the restrictions.
Among the schemes, Cambodian government will implement a policy allowing suspended workers to receive 60% of the minimum wages. Also, the Ministry of Labor spokesperson Heng Sour promised to prepare those workers for new job opportunities.
“Per the scheme, employers are required to pay suspended workers 40 per cent of the minimum wage, with the remaining 20 per cent shouldered by the government. The ministry has also prepared training to help suspended workers access new employment opportunities,” Sour said.
As an attempt to address raw material shortage, the government is negotiating with China. Additionally, Sour hoped that Cambodia will be the first in line to receive raw material supplies amid the global coronavirus outbreak.
“We are working to end the shortage of raw materials as quickly as possible, including negotiating with China for priority over their supply of raw materials.”
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