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PHNOM PENH - Garment factory owners in Cambodia say cancelled orders mean they can no longer afford to pay 40 per cent of wages to workers, temporarily laid off because of coronavirus, as ordered by the government.

The Garment Manufacturers Association in Cambodia (GMAC) says brands and retailers are increasingly cancelling orders - including those already completed - and refusing to pay factories for them.

Prime Minister Hun Sen announced that furloughed garment workers would receive 60 per cent of their base wages, 40 per cent provided by factories and 20 per cent by the government, in February as factories ran short of raw materials from China due to the coronavirus.

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