The ready-made garments (RMG) industry leaders strongly demanded introduction of immediate cash incentive to allow the industry to survive and sustain in the global competition. They said that rising cost of production, driven by wage hike, energy cost hike, cost of compliance and declining international market price may hamper the industry’s sustainability and competitiveness.
Referring to the lowest price offering to Bangladeshi products, RMG leaders recommended for 5 percent cash incentive for the next 3 years for export of all ready-made garments to both traditional and non-traditional markets. Commerce Minister Tipu Munshi recently said that the RMG industry needs some incentives for a certain period of time in order to support the industry. The entrepreneurs of this sector are not getting right price from the buyers, he observed.
He said that the country's apparel manufacturing factories are now more compliant and the quality of products are also better. "The government will always be at the side of the industry (RMG) as it is the biggest contributor in our economy," the Minister assured. Sources said that the RMG sector shares USD460 million of total FDI to Bangladesh, the sector is the largest exporter of goods from Bangladesh after China, which constitutes 6.5 percent of the world market of USD446 billion.
BGMEA President Dr Rubana Huq said, “For sustainability we need support from the government. Moreover we are in crisis of building positive image and we should build this image in the international market with the support of all specially through the media.” She said that the importance of planning on strategies and also focus on how to reduce cost of doing business for RMG is urgently needed for survival and sustainability of the industry.
BKMEA leader Md Hatem while sharing his thoughts on reducing cost of manufacturing RMG strongly suggested using coal instead of gas. He told Bangladesh Post that the industry should gradually reduce dependence on gas and instead use local coal resources for cheaper option of energy.He said, "About 1200 factories have been shut down over the last four years due to failing in international compliance. Sustainability focuses on three "P"s like People, Planet & Profit but the buyers are emphasizing only on people and planet.”
