Low-wage workers are particularly vulnerable to any global economic downturn triggered by travel restrictions and quarantines as the coronavirus outbreak spreads from China around the world, roiling supply chains.
Cambodia said this week that 10 factories had already applied to suspend operations and would pay partial wages to about 3,000 workers. "Nobody knows what will happen ahead but the factory owners are really worried," said Mohammed Nasir, a director of the Bangladesh Garment Manufacturers and Exporters Association.Readymade garments are a mainstay of Bangladesh's economy, contributing almost 16 per cent of national output and about US$34 billion worth of exports in the last fiscal year ending in June 2019.
"We can still export, but we cannot say what is going to happen in the next one or two months," Aung Min, vice-chairman of the manufacturers' association, told Reuters.A prolonged crisis could eventually see retailers face a shortage of clothing, although fashion giant H&M Group said it currently doesn’t see the virus causing any larger delays in deliveries.