Tuesday 17 September 2013

Electricity shortage delays Japanese investment in production sector

Power shortage and constant blackout have hampered Japanese investors' productivity, according to JETRO Executive Managing Director Mr. Masaki Takaha.

He added that the lack of productivity has had detrimental affect on employment and job creation. The point was raised at the Myanmar Global Investment Forum held in capital of Myanmar on September 10-11.

“Although Japanese businessmen are looking for business opportunities in Myanmar, electricity shortage stops the investment in production sector. Using generator increase the cost very much,” he said.

Although labour costs are cheap and workers are honest in Myanmar, the main difficulty hindered to construct factories here is electricity shortage, he revealed. In the forum, analysts discussed about the obstructions to make investment in production sector.

“I heard a rumour recently that the government won’t provide electricity to industrial zones on April next year. If the rumour is right, we have a question why the government decided like that. The voltage is also lower than normal when the electricity is on. Some parts of machineries and circuits have been destroyed because of low voltage,” Deputy Managing Director of Fasomo Clothing from Japan which has opened a textile factory in Myanmar for a long time said.

Myanmar production sector is also faced other problems such as availability of skilful workers, disciplines in working environment, employees making demonstration against employers and other problems in addition to electricity shortage.

Businessmen who attended the forum said they can pay the electricity charges between US$20 cents and 30 cents (approximately between 200 Ks and 300 Ks) per unit.

source: Eleven Myanmar

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