Apparel Industry Currently Stable: BGMEA

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today said that the country's apparel industry is currently stable after going through a challenging period.

"Buyers have their confidence in the apparel industry of Bangladesh," said BGMEA President Khandaker Rafiqul Islam while speaking at a press conference at its office here.

The BGMEA President said, "By the efforts of the BGMEA board and with the cooperation from the government, a task force has been formed by the army to protect the factories and the task force is conducting regular patrols to ensure the security of the garment hubs. BGMEA has also introduced community policing in collaboration with the Army."

He said the BGMEA Board has been able to deal with a tough situation with the cooperation of the government, owners, workers, Bangladesh Army, and law and order forces. In this connection, he on behalf of the BGMEA board expresses gratitude to all, including the Government and the Army.

BGMEA Senior Vice President Abdullah Hill Rakib and other board members were present at the press conference.

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Speaking on the occasion, other BGMEA leaders said that some 39 factories, which were affected by the recent labor unrest, were unable to pay the salaries and allowances of their workers for the month of September.

They said the BGMEA has also requested the Ministry of Finance to provide interest-free bank loans at easy terms and conditions to 39 RMG factories, which were affected by the recent unrest so that they can pay September wages.

Besides, the BGMEA said some four million workers in the garment industry have been brought under the TCB fair price product sale scheme.

Asif Mahmud Sajeeb Bhuiyan, Adviser to the Interim Government of the Ministry of Labor and Employment, inaugurated the government’s TCB product sale program for garment workers on October 16, 2024.

The BGMEA has sought the government's support in the following areas to maintain the competitiveness of the industry and thus move the industry forward:

These are- maintaining law and order in the industry; simplifying and expediting customs and port procedures; stopping unnecessary delays in loading and unloading from ships at Chattogram Port; Non-disconnection of factory utilities for the next three months during this critical time of the industry; ensuring that banking sector reforms do not create any negative impact on production and commercial activities; ensuring that if action is taken against any person, his or her businesses are not harmed; forming a task force comprising NBR and Bangladesh Bank to formulate business-friendly appropriate policy support for the industry; ensuring adequate power supply to industry and formulating a sustainable power and energy policy, including rational pricing of power.

Besides, the BGMEA said many factories' ongoing export orders are at risk due to the labor unrest. In such a case, the association demanded non-classification of loans against all types of loans and provision of rescheduling facility as per recently issued BRPD Circular Letter No-44 dated October 14, 2024, by Bangladesh Bank.

The other demands include providing instructions to the concerned authorities for allowing gas supply through cylinders from CNG stations on an urgent basis to continue the normal production activities of ready-made garment factories; taking appropriate measures to ensure that the disposal of "jhut" and other recyclable wastes is free from external influences.

The rate of cash incentives to the RMG industry has been reduced because of the country’s transition from LDCs. This has increased unintended risks and disruptions in the industry.

The BGMEA said there are many examples of middle-income countries offering incentives in different forms to their industries after the LDC transition.

Therefore, considering the importance of the garment sector in the overall economy of Bangladesh, it is important to consider the issue of reinstating the incentives.

The association also called for arranging a safe exit policy for the RMG entrepreneurs, who are unable to sustain their businesses due to various adversities.

Citing that the garment industry has taken a heavy toll over the last two months due to prolonged labor unrest, the BGMEA leaders also demanded to bring those, who would play tricks on industry and economy, to book.

The BGMEA proposed to exempt steel-constructed buildings, built between November 2013 to February 2021, from providing Fire Resistance Rating of Structural Element in light of NTPA, 2013 or BNBC-2020 instead of BNBC-2006.

Because of the proposal, it has been decided that there is no requirement to provide a Fire Resistance Rating of Structural Element for not more than one story and up to 8.0 meters height and unconditionally for not more than three stories or up to 11.0 meters height subject to the compliance of the supplementary regulations of the cod.

Source: BSS