Virus outbreak hits supply chains for Japan firms in Philippine, Southeast Asia, India

Kyodo News

Posted at Apr 01 2020 09:26 PM

Manila Port Area. Jonathan Cellona, ABS-CBN News

TOKYO - Two-thirds of Japanese firms doing business in India and Southeast Asia have been hobbled by supply chain disruptions amid the ongoing coronavirus pandemic, according to a survey by Japanese news agency NNA.

Among 347 Japanese manufacturers in the region surveyed, 65.6 percent said procurement and logistics have been dragged down by the coronavirus outbreak, according to the poll conducted from Thursday to Sunday.

Of those affected, more than 80 percent pointed out problems related to sourcing parts and materials, with 95.8 percent in the Philippines, 87.9 percent in Indonesia and 87.0 percent in Malaysia reporting that they are suffering as they rely relatively more on imports than local procurement.

Even in Thailand, where Japanese manufacturers boast a local procurement rate of more than 60 percent, according to data of the Japan External Trade Organization, 74.5 percent face difficulty in securing parts and materials as planned, according to the survey.

More than 140 Japanese manufacturers in India and Southeast Asia said their sourcing from China has been affected, and those in Vietnam, Thailand and Indonesia are more likely to struggle with procurements from the world's second-largest economy.

In Southeast Asia and India, a total of over 10,000 people have been infected by noon on Tuesday with COVID-19, the disease caused by the new coronavirus. Governments of those countries hope to curb the spread of the virus through measures, including declaring a state of emergency, a nationwide lockdown, an entry ban on foreigners and other travel restrictions to their countries. (NNA/Kyodo)