The President of the Fiji Chamber of Commerce and Industry, Doctor Nur Bano Ali says the next 3 to 4 months may see some smaller business suffering quite seriously due to supplies getting affected from China and reduced consumer spending.
Dr. Ali says businesses are bracing themselves for a slow down and it is moving with the possibility of restrictions in supplies coming from China due to the effects of COVID-19.
She says the world is dependent on China for a large amount of its supplies and as a number of factories in China have shut down, it will reduce their ability to supply to all its customers which will have an impact on a global economic slowdown.
Dr. Ali says as consumer spending is low, businesses are coping up by re-strategizing their operational models to reduce costs and by preserving its financial resources.
She says some of the strategies that are being implemented by businesses are cutting back on costs and even some staff.
Dr. Ali says like all other businesses they are taking proactive measures for a slow business year and are reducing costs and finding new sources of supplies.
She says the immediate impact of COVID19 on the businesses is panic and the slow down in the Australian economy is also having an impact on the Fijian attitude and thinking that business will slow down.
She says some of the proactive measures businesses are implementing to brace themselves from shocks are acknowledging the huge dependency on China, considering alternative sources for markets and suppliers and preparing itself for price hikes as the supplies will reduce in the medium to long term.
Dr. Ali says businesses are also preparing for self-sufficiency in its food supplies by reducing dependency on imports.
She says alternate supply sources means changes in the pricing mechanisms which will drive a change in business model and re-assessment of business capacity to handle the higher pricing of products.
Dr. Ali says businesses will now be in a wait and see mode and will see some definite trends over the next 3 to 4 months.
She says they are hoping that a control on the virus is found soon so that business can continue without a major impact.
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