Cartoon by Sacrava (on the web at http://politiktoons.blogspot.comand also at http://sacrava.blogspot.com)
Showing posts with label US financial crisis. Show all posts
Showing posts with label US financial crisis. Show all posts
Friday, March 20, 2009
Politiktoons No. 71: A Big Fat Cat, AIG
Cartoon by Sacrava (on the web at http://politiktoons.blogspot.comand also at http://sacrava.blogspot.com)
Tuesday, December 09, 2008
Desperation takes hold as textile industry losses begin to mount
Workers representative Se Thy camps outside Phnom Penh Garment City in protest. The factory closed 10 months ago and fired all 500 of its workers due to declining sales. (Photo by: Sam Rith)
A court notice announcing the liquidation of the Phnom Penh Garment City's assets. (Photo by: Sam RITH)Tuesday, 09 December 2008
Written by Sam Rith
The Phnom Penh Post
With the US clothing market under increasing pressure, garment workers are feeling the pinch as job losses and closures hit one of Cambodia’s most important industries
IT'S an early December morning, and more than 100 garment workers make their daily rush to Supreme Garments PTE, one of Cambodia's largest factories, near the Takhmao bridge on Road 102 in Kandal province.
But today, several of the workers exit the factory about 40 minutes later and return to their homes.
"Nowadays, [garment workers] enter the factory and then leave about half an hour later to go home," said Ong Chantou, 55, who has sold fruit in front of Supreme Garments for about five years.
Ana, 27, is one of several who will not be working that day and says, more often than not, the factory has to send employees home because there is nothing for them to do.
"The factory has had much less work for us to do since the middle of November," she said.
The impact of the US slowdown is being felt by thousands of garment workers in what was once Cambodia's fastest-growing sector.
Cambodia's garment exports to the US - the Kingdom's largest foreign textile market - totaled US$1.8 billion in the first nine months of 2008, slightly down from the same period last year, according to data from the US Department of Commerce.
Last year, the sector exported $2.9 billion worth of garment produced in 319 factories that employed more than 380,000 workers, according to figures from Cambodia's Ministry of Commerce.
But some 30 garment factories have closed their doors so far this year, leaving nearly 20,000 workers unemployed, said Van Sou Ieng, president of the Garment Manufacturers Association of Cambodia (GMAC).
The effects of these wide-spread layoffs could be devastating for many impoverished families in the countryside, for whom the monthly salaries of relatives working in factories are one of the few sources of income available to them.
The Cambodian garment slowdown is rooted in the US recession, which has seen sharp drops in clothing sales, industry officials say.
US retailer sales tumbled in November, the worst monthly decline in almost four decades, according to Bloomberg, and the Dow Jones US Retail Index is down about 28 percent on the year.
In a bid to slow the losses, GMAC has tried to diversify away from the US market to Japan and China.
Less work
A 50-year-old worker who preferred not to give her name said this year has seen the sharpest decline in business since she began working at Supreme Garments in 1995.
Chhin Tak Khey, the factory's administrative manager, said the Singaporean-owned company has received none of their usual orders from European countries, Singapore or Hong Kong.
The beleaguered manager said he has lost between $20,000 to $40,000 per month since August.
Supreme Garments, which began operations in 1993, used to employ 2,000 workers, Chhin Tak Khey said. Now, they have only 624.
"Since November of this year, we have had to take clothes from other factories for our workers in order to pay their salaries," he said.
This downward trend has labour officials worried.
"Next year, Cambodia's garment industry will face increasing difficulties because there are no purchase orders coming in, particularly from buyers in the United States," Van Sou Ieng said.
"They [factories] can't stay open if there are no orders coming in," he said.
He added that factories nationwide are currently operating at only about 70 percent capacity.
Chuon Momthol, president of the government-aligned Cambodian Union Federation, said about 35 factories in total - employing from 1,000 to 5,000 workers each - are expected to shut down by the end of 2008 if global markets continue their downward spirals.
Oum Mean, a secretary of state for the Ministry of Labour and Vocational Training, said he could not give exact figures on factory closures.
He acknowledged that some had shut down, but said they were primarily small companies that closed in order to build larger factories.
But Supreme Garment's Chhin Tak Khey said his factory has lost more than $200,000 so far this year and could not remain open in the face of further losses.
In order to weather the crisis, the company will lay off all its staff for two months, beginning in January.
"We will temporarily lay off all our staff for two months in order to find new markets and generate purchase orders," he said.
"After that, if the situation remains the same, we will not be able to continue our business."
Layoffs in store
Nuon Veasna, an employee education coordinator for the International Labour Organisation in Cambodia, said the increasing effects of international market turmoil has made it more difficult for unions to protect workers rights.
"It has always been difficult to demand worker protections from employers, but it has become harder as purchase orders continue to fall," he said.
But Chea Mony, president of the Free Trade Union of Workers, says Cambodia's garment sector has remained largely unaffected by international markets.
"For me, I do not believe the global economic crisis has affected factories much because the industry has made a lot of progress recently," he said, saying instead that the decisions by individual investors to close shop in Cambodia were to blame for the layoffs.
"The closing of garment factories is the result of long-time investors who want to pull out of Cambodia ... in order to escape legal confrontations with their workers," he said.
"I remain sceptical as long as there is no confirmation from relevant ministries or [national auditors] that factories have closed because of the global crisis," he said.
Reasons for the growing decline in garment sales might vary, but the effects are not in dispute.
Sitting on a hammock beneath a plastic tarp, 29-year-old Se Thy has created a makeshift camp in front of Phnom Penh Garment City Ltd in Phnom Penh's Meanchey district.
He represents 500 workers seeking compensation for lost wages.
"I have been waiting here for 10 months since the factory closed," he said.
ADDITIONAL REPORTING BY GEORGE MCLEOD
IT'S an early December morning, and more than 100 garment workers make their daily rush to Supreme Garments PTE, one of Cambodia's largest factories, near the Takhmao bridge on Road 102 in Kandal province.
But today, several of the workers exit the factory about 40 minutes later and return to their homes.
"Nowadays, [garment workers] enter the factory and then leave about half an hour later to go home," said Ong Chantou, 55, who has sold fruit in front of Supreme Garments for about five years.
Ana, 27, is one of several who will not be working that day and says, more often than not, the factory has to send employees home because there is nothing for them to do.
"The factory has had much less work for us to do since the middle of November," she said.
The impact of the US slowdown is being felt by thousands of garment workers in what was once Cambodia's fastest-growing sector.
Cambodia's garment exports to the US - the Kingdom's largest foreign textile market - totaled US$1.8 billion in the first nine months of 2008, slightly down from the same period last year, according to data from the US Department of Commerce.
Last year, the sector exported $2.9 billion worth of garment produced in 319 factories that employed more than 380,000 workers, according to figures from Cambodia's Ministry of Commerce.
But some 30 garment factories have closed their doors so far this year, leaving nearly 20,000 workers unemployed, said Van Sou Ieng, president of the Garment Manufacturers Association of Cambodia (GMAC).
The effects of these wide-spread layoffs could be devastating for many impoverished families in the countryside, for whom the monthly salaries of relatives working in factories are one of the few sources of income available to them.
The Cambodian garment slowdown is rooted in the US recession, which has seen sharp drops in clothing sales, industry officials say.
US retailer sales tumbled in November, the worst monthly decline in almost four decades, according to Bloomberg, and the Dow Jones US Retail Index is down about 28 percent on the year.
"We will temporarily lay off all our staff for two months in order to find new markets and generate purchase orders."Clothing sales in the US are expected to fall further as consumers put off non-essential purchases.
In a bid to slow the losses, GMAC has tried to diversify away from the US market to Japan and China.
Less work
A 50-year-old worker who preferred not to give her name said this year has seen the sharpest decline in business since she began working at Supreme Garments in 1995.
Chhin Tak Khey, the factory's administrative manager, said the Singaporean-owned company has received none of their usual orders from European countries, Singapore or Hong Kong.
The beleaguered manager said he has lost between $20,000 to $40,000 per month since August.
Supreme Garments, which began operations in 1993, used to employ 2,000 workers, Chhin Tak Khey said. Now, they have only 624.
"Since November of this year, we have had to take clothes from other factories for our workers in order to pay their salaries," he said.
This downward trend has labour officials worried.
"Next year, Cambodia's garment industry will face increasing difficulties because there are no purchase orders coming in, particularly from buyers in the United States," Van Sou Ieng said.
"They [factories] can't stay open if there are no orders coming in," he said.
He added that factories nationwide are currently operating at only about 70 percent capacity.
Chuon Momthol, president of the government-aligned Cambodian Union Federation, said about 35 factories in total - employing from 1,000 to 5,000 workers each - are expected to shut down by the end of 2008 if global markets continue their downward spirals.
Oum Mean, a secretary of state for the Ministry of Labour and Vocational Training, said he could not give exact figures on factory closures.
He acknowledged that some had shut down, but said they were primarily small companies that closed in order to build larger factories.
But Supreme Garment's Chhin Tak Khey said his factory has lost more than $200,000 so far this year and could not remain open in the face of further losses.
In order to weather the crisis, the company will lay off all its staff for two months, beginning in January.
"We will temporarily lay off all our staff for two months in order to find new markets and generate purchase orders," he said.
"After that, if the situation remains the same, we will not be able to continue our business."
Layoffs in store
Nuon Veasna, an employee education coordinator for the International Labour Organisation in Cambodia, said the increasing effects of international market turmoil has made it more difficult for unions to protect workers rights.
"It has always been difficult to demand worker protections from employers, but it has become harder as purchase orders continue to fall," he said.
But Chea Mony, president of the Free Trade Union of Workers, says Cambodia's garment sector has remained largely unaffected by international markets.
"For me, I do not believe the global economic crisis has affected factories much because the industry has made a lot of progress recently," he said, saying instead that the decisions by individual investors to close shop in Cambodia were to blame for the layoffs.
"The closing of garment factories is the result of long-time investors who want to pull out of Cambodia ... in order to escape legal confrontations with their workers," he said.
"I remain sceptical as long as there is no confirmation from relevant ministries or [national auditors] that factories have closed because of the global crisis," he said.
Reasons for the growing decline in garment sales might vary, but the effects are not in dispute.
Sitting on a hammock beneath a plastic tarp, 29-year-old Se Thy has created a makeshift camp in front of Phnom Penh Garment City Ltd in Phnom Penh's Meanchey district.
He represents 500 workers seeking compensation for lost wages.
"I have been waiting here for 10 months since the factory closed," he said.
ADDITIONAL REPORTING BY GEORGE MCLEOD
Monday, October 27, 2008
Priceless Moments
Oct 24, 2008
Op-Ed by Jayakhmer
On the web at http://www.modernprogressivekhmer.blogspot.com
Op-Ed by Jayakhmer
On the web at http://www.modernprogressivekhmer.blogspot.com
The price of government bailed out of Wall Street - $700 billion; a record fund raising between Sen. Obama and Sen. McCain – over $684 million; the Dow Jones index drops for the first time in years- below 9000 points; the price tag for Gov. Palin war drops for the campaign - $150,000.00; and seeing democracy in action - priceless!!!
Recent economic and political developments in the U.S. provide ample priceless moments for democracy enthusiasts. As a Cambodian American who longs to see democracy flourishes in Cambodia, I am looking for learnable moments. Here are a few precious events that highlight the beauty of American democracy and its politics.
The system of checks and balances was truly at play when the U.S. tried to deal with the liquidity crisis. As the head of the executive branch, President George W. Bush could not demand or order but had to work extremely hard with Congress to approve the bailout. When the House of Representative failed to muster enough votes to pass the bill, the president was completely powerless. Otherwise, he is one of the most powerful men on the face of the free world. It took Congress twice to pass the bill.
Senator Ted Stevens, the longest serving senator from Alaska was indicted for a crime and now is standing a trial for corruption charges.
He is facing a seven-count indictment charges for making false statement by not disclosing gifts and services more than $250,000 from VECO Corp. that violated "the Federal Ethics in Government Act requires all senators to file financial disclosure statements detailing their transactions during the previous calendar year, including the disclosure of gifts above a specified value and all liabilities greater than $10,000."
After leveling charges and counter charges against each other in one of the most exciting and contentious elections, Sen. Barack Obama and Sen. McCain took time off from their busy schedules to attend Alfred E. Smith Memorial Foundation Dinner. They spent a wonderful evening ridiculed and poked fun of themselves and each other.
Sen. Obama noted the significant of the event, "I think it is a tribute to American democracy that with two weeks left and a hard fought election, the two of us could come together, and sit down at the same dinner table without preconditions.''
Sen. McCain called Sen. Obama "an impressive follow" and wished his opponent "well."
Here I am in America witnessing democracy in action. The mere fact that simple ideas such as checks and balances, no one is above the law, and civility in politics continues to reinforces American democracy and it politics makes it the most envious system in the world.
I certainly hope that we, Cambodians, learn a thing or two from these priceless moments.
Jayakhmer
Recent economic and political developments in the U.S. provide ample priceless moments for democracy enthusiasts. As a Cambodian American who longs to see democracy flourishes in Cambodia, I am looking for learnable moments. Here are a few precious events that highlight the beauty of American democracy and its politics.
The system of checks and balances was truly at play when the U.S. tried to deal with the liquidity crisis. As the head of the executive branch, President George W. Bush could not demand or order but had to work extremely hard with Congress to approve the bailout. When the House of Representative failed to muster enough votes to pass the bill, the president was completely powerless. Otherwise, he is one of the most powerful men on the face of the free world. It took Congress twice to pass the bill.
Senator Ted Stevens, the longest serving senator from Alaska was indicted for a crime and now is standing a trial for corruption charges.
He is facing a seven-count indictment charges for making false statement by not disclosing gifts and services more than $250,000 from VECO Corp. that violated "the Federal Ethics in Government Act requires all senators to file financial disclosure statements detailing their transactions during the previous calendar year, including the disclosure of gifts above a specified value and all liabilities greater than $10,000."
After leveling charges and counter charges against each other in one of the most exciting and contentious elections, Sen. Barack Obama and Sen. McCain took time off from their busy schedules to attend Alfred E. Smith Memorial Foundation Dinner. They spent a wonderful evening ridiculed and poked fun of themselves and each other.
Sen. Obama noted the significant of the event, "I think it is a tribute to American democracy that with two weeks left and a hard fought election, the two of us could come together, and sit down at the same dinner table without preconditions.''
Sen. McCain called Sen. Obama "an impressive follow" and wished his opponent "well."
Here I am in America witnessing democracy in action. The mere fact that simple ideas such as checks and balances, no one is above the law, and civility in politics continues to reinforces American democracy and it politics makes it the most envious system in the world.
I certainly hope that we, Cambodians, learn a thing or two from these priceless moments.
Jayakhmer
Sunday, October 26, 2008
Politiktoons No. 55 - US Financial Crisis
Cartoon by Sacrava (on the web at http://politiktoons.blogspot.comand also at http://sacrava.blogspot.com)
Thursday, October 02, 2008
Soaring Gold Prices Sting Local Jewelers
By Chun Sakada, VOA Khmer
Original report from Phnom Penh
01 October 2008
Original report from Phnom Penh
01 October 2008
Jewelers and gold shop owners in Phnom Penh say business has dropped in recent days, thanks to a rise in gold prices spurred by uncertainty in global financial markets.
Local gold prices were trading at $1,070 per damlung, or $810.70 per ounce, on Wednesday, up from $1,040 per damlung last month, part of an upward swing fueled by the US financial crisis and uncertainty in other markets.
Many Cambodians own gold, a throwback to the times of turbulent currencies, when under the successive regimes since the 1950s, monies were all different—or, in the case of the Khmer Rouge, abolished altogether.
But Phnom Penh sellers said the higher prices of gold are curtailing the Cambodian habit. The period following Cambodia's July elections has been economically slow overall, and, hit by inflation and the high price of fuel, less people have money to spend.
"We've met difficulties getting income from the gold business, because the price of gold has risen to a high price in recent days," Ly Hour, who owns Ly Hour Jewelry and Exchange Co., Ltd., said. "The people have no money to buy it."
Chan Sophal, president of the Cambodian Economic Association, said the high price of gold in Phnom Penh was due to the US economic crisis and the weakened US dollar.
"The high price of gold for Cambodia is a good thing, because the majority of the people like to save gold," he said. "It decreases the income of gold sellers, but it is not a necessary thing for investment or business in Cambodia."
Oa Sophy, owner of Orsovann Jewelry Shop, said gold has been steadily rising in price, but his profits have been hit hard all year.
"I have been unsatisfied with the income of my gold business this year," he said. "Compared to 2006 and 2007, I've lost some 50 percent of my income from gold, because in 2005, 2006 and 2007, we sold one kilogram of gold a month. But right now, we only sell out only 300 grams of gold a month."
Jewelry shop owner Long Ly said a dip in gold sales was no need for concern.
"The high price of gold has not completely affected my gold business," he said. "If my income drops down, I must take care of my business to make it rise up."
Local gold prices were trading at $1,070 per damlung, or $810.70 per ounce, on Wednesday, up from $1,040 per damlung last month, part of an upward swing fueled by the US financial crisis and uncertainty in other markets.
Many Cambodians own gold, a throwback to the times of turbulent currencies, when under the successive regimes since the 1950s, monies were all different—or, in the case of the Khmer Rouge, abolished altogether.
But Phnom Penh sellers said the higher prices of gold are curtailing the Cambodian habit. The period following Cambodia's July elections has been economically slow overall, and, hit by inflation and the high price of fuel, less people have money to spend.
"We've met difficulties getting income from the gold business, because the price of gold has risen to a high price in recent days," Ly Hour, who owns Ly Hour Jewelry and Exchange Co., Ltd., said. "The people have no money to buy it."
Chan Sophal, president of the Cambodian Economic Association, said the high price of gold in Phnom Penh was due to the US economic crisis and the weakened US dollar.
"The high price of gold for Cambodia is a good thing, because the majority of the people like to save gold," he said. "It decreases the income of gold sellers, but it is not a necessary thing for investment or business in Cambodia."
Oa Sophy, owner of Orsovann Jewelry Shop, said gold has been steadily rising in price, but his profits have been hit hard all year.
"I have been unsatisfied with the income of my gold business this year," he said. "Compared to 2006 and 2007, I've lost some 50 percent of my income from gold, because in 2005, 2006 and 2007, we sold one kilogram of gold a month. But right now, we only sell out only 300 grams of gold a month."
Jewelry shop owner Long Ly said a dip in gold sales was no need for concern.
"The high price of gold has not completely affected my gold business," he said. "If my income drops down, I must take care of my business to make it rise up."
Wednesday, September 24, 2008
Politiktoons No. 45: A Wild Bull of Wall Street
Cartoon by Sacrava (on the web at http://politiktoons.blogspot.comand also at http://sacrava.blogspot.com)
Monday, September 22, 2008
Politiktoons No. 44: Financial Weapons on Mass Destruction
Cartoon by Sacrava (on the web at http://politiktoons.blogspot.comand also at http://sacrava.blogspot.com)
Subscribe to:
Posts (Atom)
