Panic buying has increased production in some sectors of the economy, as concerns rise over the global spread of coronavirus.

Fiji Commerce and Employers Federation (FCEF) chief executive officer Kameli Batiweti highlighted this while opening the Fiji National University 2020 National Conference on Information Technology at the Holiday Inn, Suva yesterday.

Mr Batiweti said there were mixed reactions from members given the hype on social media over the threat of coronavirus.

“Some members have ramped up production because the demand has increased, because of all the nonsense on social media that has caused consumers to buy more than what is required,” he said.
Cash flow

As a result, consumers would be hard hit with cash flow on the home front, while everyone await the outcome of coronavirus, Mr Batiweti said.

He said other federation members have had to spend more funds to bring in more stock since China had closed its borders in December last year.

“The danger here is that businesses will hold more stock than is necessary,” he said.

“If the offtake is slow because consumers’ priority is in other products – like consumption products, then items in the Information Technology space, as an example, will take a hit, in that the priority in spending by the consumers might be elsewhere.”

Mr Batiweti said companies that held more stock than necessary were affected by cash flow problems.

“And because demand was higher than supply, price of goods will obviously be affected.”
Federation members

Mr Batiweti said most federation members were reviewing and revising contingency plans daily and weekly, and adjusting their strategies accordingly.

“A couple of members have indicated that they are trying their best to remain positive and keep afloat for the sake of their employees and customers.”

Mr Batiweti said no member of the federation had reported closing business or reducing the numbers in their respective workforce.

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