19 October Dhaka: The apparel industry is currently stable after going through a challenging period.
This was announced at a press conference of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Dhaka yesterday.
The BGMEA Board has been able to deal with a disastrous situation with the cooperation of the government, owners, workers, Bangladesh Army and law and order forces.
For this, the BGMEA Board expresses its gratitude to all, including the Government and the Army.
BGMEA president Khandaker Rafiqul Islam said that buyers also have their confidence on the apparel industry of Bangladesh.
BGMEA President Khandaker Rafiqul Islam, Senior Vice President Abdullah Hill Rakib and other board members were present at the press conference.
BGMEA President said, “By the efforts of 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.”
39 factories which was affected by the recent labor unrest were unable to pay the salaries and allowances of their workers for the month of September. BGMEA has requested the Ministry of Finance to provide interest-free bank loan at easy terms and condition to 39 RMG factories which were affected by the recent unrest, so that they can pay September wages.
4 million workers in the garment industry have been brought under the TCB fair price product sale scheme. Asif Mahmud Sajib Bhuiyan, Adviser to the Ministry of Labor and Employment, inaugurated the government’s TCB product sale program for garment workers on 16 October 2024.
BGMEA has sought the Government’s support in the following areas to maintain the competitiveness of the industry and move the industry forward:
• Maintaining good law and order in the industry;
• Simplifying and expediting customs and port procedures;
• Stop unnecessary delays in loading and unloading from ships at Chittagong port;
•Non-disconnection of factory utilities for the next 3 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 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;
• Many factories’ ongoing export orders are at risk due to the labor unrest. In such a case, non-classification of loans against all types of loans and provision of rescheduling facility as per recently issued BRPD Circular Letter No-44 dated 14th October 2024 by Bangladesh Bank;
• To provide instructions to the concerned for allowing gas supply through cylinders from CNG stations on an urgent basis to continue the normal production activities of ready-made garments 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 RMG industry has been reduced in view of the country’s transition from LDCs. This has increased unintended risks and disruptions in the industry. There are many examples of many middle-income countries offering incentives in different forms to their industries after LDC transition. Therefore, considering the importance of the garment sector in the overall economy of Bangladesh, considering the issue of reinstating the incentives;
• Many entrepreneurs in the readymade garment sector are unable to sustain the business due to various adversities. Arranging a safe exit policy for these entrepreneurs;
• After all, the garment industry has taken a heavy toll in the last two months due to prolonged labor unrest. To prevent its recurrence, those who would play tricks on industry and economy; bringing them under strict laws and punishing them.
In light of BNBC-2006 for Garment Industries, Steel Structural buildings were required to provide Fire Resistance Rating, which is very costly. 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. In view of the proposal, it has been decided that there is no requirement to provide 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. For this, BGMEA expressed gratitude to the Ministry of Housing and Public Works at the press conference.
