$500-M CLOTHING DEALS SHIFT TO PHL AS STRIFE WORSENS IN MYANMAR
AS awkward as it may sound, the Philippines stands to “gain” from the political turmoil haunting its Asean neighbor Myanmar for weeks now, as clothing orders worth $500 million may be transferred here to the benefit of local manufacturers.
Robert M. Young, president of the Foreign Buyers Association of the Philippines, said on Friday his group has now secured garment purchases worth $200 million from department store chains hudson’s Bay, TJ Maxx, Walmart and Zeeman. Further, he expects orders to reach as much as $500 million up until the end of second quarter.
Young explained the clothing orders were reallocated to the Philippines by their Western buyers, as Myanmar—where they were originally placed—can no longer commit to deliver the goods.
“It’s there already, it’s being sized up already,” Young said. “It will be on the floor I think in about two weeks time on production because we have to wait for the fabric, as we don’t [have] fabric in the Philippines.”
According to Young, most of the purchases obtained by his group comprise basic garments, such as infant playwear, men’s sporting outfit, women’s dress and intimate apparel.
he said the garments industry will boost its chances of recovery if it lands the cancelled orders from Myanmar. To deliver the $500-million reallocated purchases alone, manufacturers are seen to need as many as 20,000 workers in their factories in Metro Manila and Cebu.
“This will somehow snowball already because all the related industries will again be active, such as transportation, packaging, food, so on and so forth,” Young said.
Wage hike nixed
The industry leader, meanwhile asked the government to make the most of newly-opened opportunities by rejecting the labor sector’s call for a wage increase. he claimed the Philippines may lose its competitive advantage if the daily pay, especially in the nation’s capital, is raised.
Labor group Defend Jobs Philippines last week filed a petition to improve the minimum wage nationwide by P100, saying the basic rate in Metro Manila was last adjusted in 2018 and has been eroded in the face of economic recession.
Young also appealed authorities to grant textile imports a special lane at the ports to ensure the fabrics are brought the soonest to factories. he said manufacturers are required to comply with the deadlines set by their buyers, as some garments need to be shipped out for the season in which they are worn, such as jackets for winter and jerseys for sports leagues.
The garments industry is trying to bounce back from a more than 30 percent decline in exports last year to $641.96 million, from $927.59 million in 2019.
The reallocation of clothing orders from Myanmar may amplify its chances at recovery this year. In early February, Myanmar’s military overthrew the civilian government and detained elected leaders of the ruling National League for Democracy, including the most popular civilian leader, Aung San Suu Kyi.