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On the day the military seized power in Myanmar three weeks ago, Phyu investigated her company’s emergency funds and gave her staff a month-long advance on their salaries.
Phyu, who runs a market research company, saw problems in the future, but is not sure how she will pay her three employees next month.
Ahead of payday on Friday, the first since the February 1 coup, a cloud hangs over Myanmar’s fragile economy.
Its kyat currency is depreciating, businesses are paralyzed and banks are in disarray, and despite all the support for street protests and strikes against the junta, the disruption is pushing the economy closer to collapse.
READ: Back to the ‘basket case’? Myanmar’s economy at risk after the coup
“I predicted things could get worse, so I paid them their salary in advance that day,” said Phyu, who declined to give her full name.
“Now I’m thinking about how to make the March salaries if things continue like this or get worse. In the worst case, I can still pay them in cash.”
Hundreds of thousands of people have demonstrated for weeks across Myanmar, in a wave of anger over the military’s overthrow of the elected government of Aung San Suu Kyi, its internet restrictions and the arrest of hundreds of activists.
READ: Opponents, supporters of Myanmar’s coup fight as more protests are planned
Calls by the anti-coup movement for people not to go to work have caused a major disruption, delaying crucial processes such as import and export permits, wage payments and bank transfers.
Myanmar is overwhelmingly dependent on imports for its fuel, but supplies are running low, industry sources say, and some oil import terminals are no longer working.
READ: Myanmar protests paralyze fuel imports and increase costs
Its fledgling apparel manufacturing sector, a key source of income for rural families, faces disruptions in raw material imports and apparel exports, including orders from major Western brands.
Some companies have already been forced to cut wages.
“I didn’t get any business this month so I can only pay them two-thirds of their salary,” said a 33-year-old owner of a beauty salon in Yangon, who asked not to be identified.
“If they can’t get cash at the ATMs, then I’ll pay them cash. By March, if things continue like this, I’ll have to cut their salary to 50 percent.”
Factory workers shout slogans as they demonstrate against the military coup in Yangon, Myanmar, on February 25, 2021. (Photo: REUTERS / Stringer)
INTERMITTENT SERVICES
Many companies have been closing to show support for the movement or to avoid being seen as endorsement of the board. Many have allowed employees to attend protests during working hours.
Banking services are irregular, with some branches closed, others reducing operations and limiting withdrawals.
LEE: Myanmar’s military coup creates banking problems
“This is the movement organized only by the staff,” said a striking employee of a private bank.
“We do not like the dictatorship. We cannot accept it.”
Jared Bissinger, an economist who has specialized in Myanmar, said the crisis would likely lead to payroll problems, reduced wages and overtime, and an increase in people borrowing money or selling assets.
A big concern, he said, was the textile sector and the potential impact on hundreds of factories.
“I am deeply concerned about the direction of the economy and the vulnerability of many people in Myanmar,” Bissinger said.
“This economic history and these economic challenges will become more important in the coming months.”
READ: What does the military government mean for foreign investment in Myanmar?
Win Thein, 56, who runs an electricity store, said the economy was already struggling and would remain so until the military returns to power in elections, as promised.
“This blow makes it worse. The economy has plummeted to zero. Nothing is turning out good,” he said.
Some in Myanmar no longer have jobs and are focusing only on protests.
“I’m just trying to survive,” said engineer Phyo Kyaw, 27, who said he quit his job.
“We want to repel the dictatorship as soon as possible and we are putting all our efforts into it.”
