Majumder Group is a well-established export-oriented ready-made garment (RMG) manufacturer in Bangladesh with a legacy of more than five decades. Founded in the mid-1960s by A.K.M. Fazlul Haque Majumder, the company began its journey in jute and timber trading before diversifying into the apparel sector in the early 1980s. Today, it operates as a third-generation family-run business with a strong reputation for quality manufacturing and long-term partnerships with global retailers. With a workforce of over 3,500 employees and modern production facilities, the group offers a one-stop apparel solution from design development to finished garments and exports to key markets such as the UK, the EU, and Australia, while maintaining high standards of compliance and sustainability.
Recently, Team Textile Focus had an insightful conversation with Syed Mohd. Sajjad, Managing Director of Majumder Group, regarding the key challenges currently facing Bangladesh’s ready-made garment (RMG) industry. During the discussion, he shared his perspectives on the sector’s major concerns, including economic and political stability, energy security, the upcoming LDC graduation, export diversification, and market dependency. He also emphasized the importance of skill development, long-term policy planning, and industry collaboration to ensure sustainable growth and strengthen Bangladesh’s competitiveness in the global apparel market. A brief discussion is presented below for our respected readers.
Before discussing the challenges facing the apparel sector, I would like to begin by wishing peace and stability for our country and the entire world. We are currently passing through a difficult time, and it is important that we all hope for calm, stability, and progress. At present, Bangladesh’s ready-made garment (RMG) sector is confronting several critical challenges. Broadly speaking, five major issues stand out: stability, the energy crisis, the upcoming LDC graduation, the need to diversify exports and earnings, and reducing over-dependence on the U.S. market.
Stability: The Foundation for Business Growth
The first and most important challenge is stability. After many years, Bangladesh recently held a national election and formed an elected government. Although there were discussions about election engineering, it is positive that opposition parties have largely accepted the outcome. However, recent developments, debates, and institutional uncertainties have created concerns within the business community. As entrepreneurs and industrialists, we do not want to see a return to street politics or prolonged instability. What the industry needs is a stable environment, a constructive parliament, and a culture of dialogue where problems are addressed through discussion and democratic processes.
Since 2024, political and economic instability has significantly affected business operations. Frequent demonstrations, blockades, and shutdowns have disrupted production and supply chains. In many cases, factories have been able to operate only about 15 days in a month, while still bearing the full operational costs of 30 days. For instance, in February, many factories operated for only half the month but still had to pay full salaries, bonuses, and other expenses. Such conditions are extremely challenging for manufacturers. A functioning economy requires continuous production and trade; without stability, the economic engine cannot operate effectively. This instability has also discouraged international buyers from visiting Bangladesh. Many buyers have canceled their trips, while visa complications have limited travel opportunities for industry representatives. As a result, trade activities have been affected. Production delays lead to late deliveries, and buyers sometimes impose penalties, demand discounts, or cancel orders. These developments are deeply concerning for the sector. What the industry urgently needs is stability so that businesses can operate smoothly and maintain buyer confidence.
Energy Crisis: A Growing Threat to Competitiveness
The second major challenge is the ongoing energy crisis. Bangladesh must adopt a long-term strategy to address the country’s growing energy demand. Despite having domestic resources such as coal and gas reserves, exploration and development remain limited. Instead, the country continues to rely heavily on imported LNG and imported electricity. This dependence creates two major problems. First, it increases production costs, making industries less competitive globally. Second, it exposes the economy to geopolitical shocks. Global conflicts and tensions can rapidly influence fuel prices and energy supply. Industry leaders are already concerned about possible increases in electricity tariffs and gas prices due to global developments. Factory owners are already struggling with rising operational costs, and further increases in energy expenses will intensify the pressure. Without a sustainable energy policy and long-term planning, it will be difficult for Bangladesh to build strong industrial and infrastructure development.
LDC Graduation: Opportunities and Risks Ahead
The third major challenge is Bangladesh’s upcoming graduation from the Least Developed Country (LDC) category. The country is scheduled to graduate in November after demonstrating strong progress in key development indicators. Bangladesh successfully passed all three evaluation criteria: Gross National Income (GNI), Human Assets Index, and Economic Vulnerability Index during the United Nations reviews.
However, LDC graduation will also bring several significant changes. Bangladesh may gradually lose preferential trade benefits such as the Generalized System of Preferences (GSP) in major markets like the European Union. This could lead to higher tariffs on exports, potentially affecting billions of dollars in trade. In addition, the country may lose certain intellectual property and patent flexibilities currently available to LDCs. Another concern is that concessional financing from institutions such as the World Bank and the Asian Development Bank may become less accessible, increasing the cost of infrastructure and development projects. From a personal perspective, it may be worth considering whether Bangladesh should apply for a temporary deferral to better prepare for this transition. While economists and policymakers will determine the best course of action, it is essential to ensure that the country is fully prepared to compete in the post-LDC era.
Export Diversification: Expanding the Economic Basket
The fourth major challenge is the need to diversify export earnings. Bangladesh currently relies heavily on two major sources of foreign exchange: the RMG sector and remittances from overseas workers. While both sectors have considerable growth potential, excessive dependence on them creates long-term risks. The RMG sector once aimed to increase exports from around $40–50 billion to $100 billion by shifting toward higher-value, higher-end products. However, this transition has been slower than expected. Similarly, remittance earnings could grow significantly if the country invests more in vocational training and skill development. Many migrant workers currently work in low-skilled jobs abroad, but with better training, they could move into higher-value professions such as healthcare, technical services, and skilled trades.
At the same time, Bangladesh must strengthen other export industries, such as pharmaceuticals, ceramics, agro-processing, leather, fisheries, and emerging technologies. A diversified export basket will make the economy more resilient and sustainable in the long term. Another important consideration is the risk of falling into the “middle-income trap.” Several Southeast Asian economies once benefited from cheap labor, but later stagnated as lower-cost labor became available elsewhere. South Korea successfully avoided this trap by investing in human skills and developing globally recognized brands such as Samsung, Hyundai, and LG. This example highlights the importance of aligning wage growth with productivity, skills, and innovation.
Reducing Dependence on the U.S. Market
The fifth major challenge is reducing excessive dependence on the U.S. market. The United States is one of the most important export destinations for Bangladesh’s garment industry. However, changing trade policies, tariffs, and geopolitical tensions have created a volatile environment. Continuous tariff adjustments and global conflicts make it difficult for exporters to plan long-term strategies. While the U.S. market remains extremely important and cannot be replaced overnight, Bangladesh must gradually explore and develop alternative markets. Expanding into new regions will help reduce risks and strengthen the resilience of the export sector.
The Way Forward: Skills, Automation, and Long-Term Policy
Addressing these challenges requires a comprehensive and forward-looking strategy. The most important priority is investing in human capital and skill development. Without skilled workers, it will be difficult to adopt automation, operate advanced technologies, or move up the global value chain. Equally important is the need for strong long-term policy planning. Policymakers, economists, industry leaders, and bureaucrats must work together to build consensus and develop a national strategy for sustainable growth. With the right vision and cooperation, Bangladesh can build a stronger and more competitive economy. Ultimately, achieving this goal requires two key elements: unity and genuine commitment. As individual entrepreneurs, our influence may extend to a few thousand workers and families within our factories. However, to create transformation at a national level, coordinated policies and visionary leadership are essential. Through long-term planning and collaboration, Bangladesh can move confidently toward a stronger and more sustainable future.
