RMG sector
Job opportunities in RMG sector to shrink for growing automation: Speakers
Speakers at a virtual dialogue on Tuesday said though there is huge potential to boost the country’s apparel export in future, the employment generation would be shrunk in the readymade garment (RMG) sector due to the growing use of automation in the fourth industrial revolution (4IR) era.
Since the RMG sector will go through a massive change in the next 7-8 years for the situation given by the Covid-19 pandemic and the Bangladesh’s graduation into a developing country. So, it is time to make prepare the sector, particularly its workers by upskilling and reskilling them, for the changed future, they said.
Citizen’s Platform for SDGs Bangladesh and Christian Aid Bangladesh jointly arranged the dialogue titled “Bangladesh’s RMG Sector and Workers: Anticipating the Future” in a virtual platform.
Dr Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID) said Bangladesh uses some 140 workers to make readymade garments of US$ 1 million, But China and Vietnam use only 48 workers and India and Cambodia use 75 workers.
“So, the use of automation and advanced technology would rise massively soon in Bangladesh. That means our apparel export will be increased by 30-40 billion in future, but the sector may not generate new employments,” he said.
Dr Razzaque, also Director of Policy Research Institute (PRI), said Bangladesh has a lot of opportunities to export RMG goods to the European Union, the United Kingdom and the United States in future.
Prof Rehman Sobhan, Chairman of the Centre for Policy Dialogue (CPD) said the workers fell into various uncertainties due to the fallout of the Covid-19 pandemic.
So, the state, garment entrepreneurs and worker leaders, researchers and civil society will have to lead collectively to ensure the rights of workers, he said putting emphasis on strengthening coordination among the labour unions.
Convenor of Citizen’s Platform Dr Debapriya Bhattacharya, who presided over the dialogue, said the RMG sector is going through changes centering 3Ps –product, production and productivity. The handling 3Ps would be a big matter for Bangladesh in future, he said.
Read: IMF keen to work closely for Bangladesh’s RMG sector’s development
“Now Bangladesh should pay its utmost attention to the workers in the changing situation,” he said adding that the real income and non-wage benefits of workers, education and health of the future workforce will be taken into consideration giving focus on the women worker.
Dr Debapriya said it is essential to create an emergency fund for the workers to bring them under a universal social protection coverage in any difficult time.
Prof Mustafizur Rahman, a distinguished fellow of CPD, said the RMG sector will go through a radical change in the next 7-8 years.
“The country’s apparel sector can’t survive in the global completion without going for automation and modernization,” he said.
Bangladesh needs to promote the light engineering sector to generate new employment in future, he said.
Former BGMEA president Dr Rubana Huq said the light engineering sector has a huge potential. “So, it is high time for us to make investment in the light engineering sector. We should design a mid-term plan, not long-term plan over how we can go to the light engineering sector,” she added.
Dr Rubana Huq put emphasis on the preparation for the potential changes in the RMG sector in the 4IR era.
Towfiqul Islam Khan, Senior Research Fellow of CPD, presented the report of a study conducted over 500 RMG workers’ households in four districts --Dhaka, Chattogram, Gazipur and Narayanganj—in June last focusing the workers’ dealing with the aftermath of Covid-19.
During the first wave, two-third of the workers did not receive the salaries on time and even woven and sweater factories struggled more in paying dues to workers, according to the study.
Besides, more than half of the RMG workers experienced reduction in overtime during the first wave compared to the pre-Covid period, said the study.
Bangabandhu's 'Sonar Bangla' now becoming a reality: BGMEA chief
The "Sonar Bangla" dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman is now becoming a reality, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said Sunday.
He said the killers were able to murder Bangabandhu but they could not kill his dreams and ideals.
Read:BGMEA calls for raising social awareness to prevent Dengue
Hassan said Bangladesh has emerged as a role model of development in the world under the prudent and visionary leadership of Prime Minister of Bangladesh Sheikh Hasina.
"The RMG sector has played a major role in the achievements of Bangladesh. The apparel sector would continue its contribution to accelerating the economic growth of Bangladesh," said the BGMEA chief.
To strike a balance between lives and livelihoods, Prime Minister Sheikh Hasina took the prudent and bold decision of keeping the RMG industry open amid the Covid-19.
The decision has helped the sector address the challenges unfolded by the pandemic and move ahead amid the crisis, he added while addressing a discussion and a special prayer in observance of the 46th martyrdom anniversary of Bangabandhu Sheikh Mujibur Rahman.
Faruque Hassan chaired the programme held at the BGMEA office in Uttara, which was attended by the trade association's vice-presidents Shahidullah Azim and Miran Ali; directors Barrister Shehrin Salam Oishee, Md Mohiuddin Rubel, Abdullah Hil Rakib, Haroon Ar Rashid, Navidul Huq, Rajiv Chowdhury, Barrister Vidiya Amrit Khan, Md Imranur Rahman, Mijanur Rahman and former vice-president Mohammed Nasir.
A video on the life and works of was shown at the beginning of the program.
BGMEA Vice President Shahidullah Azim said that Fidel Castro remarked: "I have not seen the Himalayas. But I have seen Sheikh Mujib. In personality and in courage, this man is the Himalayas. I have thus had the experience of witnessing the Himalayas."
Read:BGMEA wants import consignments to be released from Ctg Port
"The people who didn’t want the country’s liberation and victory of the Bengalis had killed Sheikh Mujib along with most of his family members. Bangladesh has become a role model in the world under the visionary leadership of the Prime Minister. Bangladesh has attained the status of a middle-income country," he added.
BGMEA Director Barrister Shehrin Salam Oishee said Bangabandhu Sheikh Mujibur Rahman was the dreamer of the Bengali nation. "Inspired by his dream, Bangladesh is moving ahead along the path of economic emancipation under the great leadership of his daughter, the prime minister."
BGMEA Director Abdullah Hil Rakib said Bangabandhu brought freedom for them and also international recognition of Bangladesh by branding the country at the UN General Assembly in 1974.Director Haroon Ar Rashid said Bangladesh would not have been born if Bangabandhu were not born. "We want the trial of fugitive killers of Bangabandhu."
Director Navidul Huq said the next generations need to know the dreams of Bangabandhu and go by his ideals.
BGMEA Director Md. Imranur Rahman said Bangabandhu sacrificed his life for independence of Bangladesh. "Inspired by his ideals entrepreneurs in the garment industry have been striving to take the country forward."
BGMEA Director Mijanur Rahman said the country is moving forward with the ideals of Bangabandhu. "The garment export sector is following his directives and moving the country forward."
Read:BGMEA urges Ctg Customs House to ease procedures for faster release of imported goods
Former Vice President Mohammed Nasir said Bangabandhu, in his 55 years of life, spent 4692 days in prison for the cause of liberation of the country.
"His daughter, Prime Minister Sheikh Hasina, is doing what he left behind. Insha Allah, under the dynamic leadership of the Prime Minister, we will build Bangladesh as a developed country, “Sonar Bangla” as dreamt by Bangabandhu," he said.
Govt to provide financial support to ensure compliance in industries: Salman F Rahman
Prime Minister's Private Industry and Investment Affairs Adviser Salman F Rahman on Tuesday said like Accord and Alliance in the RMG sector, a body would be formed for the domestic industries to ensure that they strictly follow compliance standards while the government would extend long-term financing and loans for becoming compliant.
He also said that the factories of those industries which fail to be complaint would not be able to sell their products in the domestic market in future.
Salman said these at a webinar tilted ‘Reviving the Leather Sector in the Aftermath of COVID-19’ as the chief guest jointly organized by the Economic Reporters’ Forum (ERF), Research Policy Integration for Development (RAPID) and The Asia Foundation (TAF) held through Zoom platform.
Speakers at the webinar stressed the need for ensuring compliance in the local industries, especially in the leather sector, to become more competitive.
They also stressed the need for forming a task force to look at the recommendations from different stakeholders and work on the betterment of the leather sector as well as improving rawhide management in an integrated way.
They also advocated for modernizing and making more functional the Central Effluent Treatment Plant (CETP) in the Savar Leather Village through addressing its loopholes, improving solid waste management, addressing the environmental and labour rights issues in this sector and thus manufacturing quality products and providing the same facilities to all other sectors that the RMG sector is now enjoying.
Former Advisor to the Caretaker Government Syed Manzur Elahi joined the session as the guest of honor.
Commerce Secretary Tapan Kanti Ghosh, Chairman, BFLLFEA Mohiuddin Ahmed Mahin and Chairman, BTA Md Shaheen Ahamed joined it as the special guests.
Professor & Director, ILET, DU Dr. M Mizanur Rahman, Managing Director, DTIEWTPCL (TIED) Brig. Gen. M Zahid Hasan and The President, Tannery Workers’ Union Abul Kalam Azad attended the webinar as panel discussants.
Managing Director of Apex Footwear LtdSyed Nasim Manzur, Chairman of RAPID Dr. Mohammad Abdur Razzaque and its Executive Director Dr. Abu Eusuf jointly presented the keynote paper.
Country Representative, The Asia Foundation Kazi Faisal Bin Seraj delivered the welcome remarks.
ERF President Sharmeen Rinvy chaired the event while ERF General Secretary S M Rashidul Islam moderated the event.
Manufacturing sector’s productivity crucial for Bangladesh to offset Covid impacts: WB
To boost export growth and help the economy rebound from the COVID 19 pandemic impacts, improving the manufacturing sector’s productivity will be crucial for Bangladesh, says a new World Bank report launched today.
The report, ‘Gearing up for the Future of Manufacturing in Bangladesh’ suggests that by strengthening innovation and technology adoption in firms, the manufacturing sector can improve productivity.
For this, the report identified three pillars: capabilities of managers and workers, connectivity to international markets, and complementary markets and institutions.
Read:Helping poor in Bangladesh: WB approves $600 mn for 2 projects
Adopting new technologies and business practices will also help firms recover faster from the COVID-19 crisis.
“Bangladesh’s success in readymade garments (RMG) export has created about four million jobs and driven economic growth. But, in recent years, job creation in the RMG sector slowed due to automation and the trend will likely accelerate in the post pandemic world,” World Bank Country Director for Bangladesh and Bhutan Mercy Tembon said.
“This creates the urgent need for Bangladeshi manufacturers to shift gears from competing on low labor-intensive productivity to competing on higher productivity. For this to happen, firms will need to adopt better technologies across business functions and production processes.”
The report finds that in Bangladesh, most firms still use basic or near-basic technologies. For example, more than 40 percent of firms still use handwritten documents for business administration, while three-fourth of them practice manual quality inspections.
Managerial and technical capabilities are crucial for a turnaround. About half of the manufacturing firms are run by people without college degrees.
Read: 3 legal luminaries appointed from Bangladesh to WB's arbitration court
Compared to these firms, those with college-educated managers have a 10 percent higher level of technology. Hence, building human capital remains an important agenda, as well as enabling firms to. access advisory services in cost-effective ways.
International connectivity also contributes to the spread of technology. Firms doing business with multinational companies use more advanced technology than those working only in the local market.
Export diversification beyond the readymade garments (RMG) sector will be crucial. Reducing restrictions on international trade and Foreign Direct Investment, making the duty-free import of raw materials more accessible to firms outside the RMG sector and modernizing special economic zones will help diversify export-led growth.
Strong financial institutions and regulatory frameworks underpin the importance of complementary markets for technology adoption.
About half of the surveyed small and medium enterprises (SMEs) identified a lack of financing as the main barrier to adopting technology.
Read:Govt, WB ink $250 mn deal to help Bangladesh create more jobs
To help firms to borrow for their technology needs easily, a stronger financial sector will be needed. Continuing with regulatory reforms to reduce the cost of doing business too remains vital.
“Creating more and better jobs is a development priority for Bangladesh. An export-led manufacturing sector can create sustainable and better-paying jobs by adopting better technologies,” said Siddharth Sharma, World Bank Senior Economist and a co-author of the report.
“As Bangladesh seeks to diversify its export base, move up the value chain, and create better-paying jobs, improving the productivity of firms remains central to preparing for the future of manufacturing.”
Bangladesh has potential to become $800bn economy by 2030: Experts
Bangladesh urgently needs to go for a fresh round of reforms to strengthen the private sector to tap its economic potentials and accelerate the export-led growth, said a report on Wednesday.
The report titled ‘Bangladesh Country Private Sector Diagnostic (CPSD), prepared by IFC and the World Bank, also said Bangladesh’s post–Covid recovery will force a reimagining of its developmental model, highlighting the importance of the private sector and making the reform agenda even more urgent.
Taking part in the virtual report-launching event, experts said Bangladesh has the potential of becoming an economy of $800 billion by 2030 from the current $300-billion one if proper steps are taken to diversify its export basket and ensure the ease of doing business through necessary reforms.
Launching the report, Prime Minister's Private Industry and Investment Affairs Adviser Salman F Rahman said the diversification of export is very important, though the country has been facing challenges in this regard. “Our dependence on the RMG has been highlighted for a long time that we need to diversify our exports …diversification should be our priority now.”
He said the RMG sector has got tremendous support from the government for its expansion, but similar support has not been given to other areas, and this is something the government is now seriously looking at. “What we really need to do is to identify the reasons for which the garment sector has been so successful and we can apply the same principles to the other sectors.”
Also read: Covid-19 affected 60 million-plus domestic workers in informal economy: ILO
Salman said protectionism for the domestic industry is necessary since the country is going to graduate to a middle-income one. “The pharmaceutical industry which has been identified as a real growth sector since it has got that protectionism.
“Bangladesh had a positive GDP growth rate last year despite the adverse impact of the Covid-19 pandemic and it was the only country in South Asia which did not experience a recession. We’ve prepared the Eighth Five Year Plan keeping all the challenges of the pandemic in mind,” he said.
The PM’s adviser said the CPSD recommendations are well aligned with the priorities of the government’s Eighth Five Year plan for setting a trajectory towards a prosperous Bangladesh by 2041.
As the country is aspiring to achieve double-digit growth, Salman said, the government has taken various steps, including developing the infrastructure, increasing foreign direct investment and creating an investment-friendly climate.
He said the economic zones and mega connectivity projects like Matarbari Port and Padma Bridge that are now under construction will be the gamechangers in the coming years.
He said the agro-processing industry is making good progress and it will be another gamechanger for Bangladesh.
Also read: Govt. goes for more consumption and investment to recover economy from pandemic loss
Mamun Rashid, Managing Partner, PricewaterhouseCoopers Bangladesh Private Limited, said the report has focused on the private sector capacity building as well as the government’s capacity building.
“When we’re talking about reforms and strengthening capacity building, I try to draw your attention towards the capacity building of our private sector, efficiency improvement of our private sector as well as improving the overall balance sheet of the private sector,” he said.
IFC’s Vice President (Asia and Pacific), Alfonso Garcia Mora said the need for reforms will become even more compelling for Bangladesh to overcome the fallouts of the Covid-19 pandemic. “Finding new sources of income and growth will be an urgent priority.”
He also said the private sector, which already accounts for more than 70 percent of all investment in Bangladesh, supported by a strong financial sector, will need to play an important role in spurring the recovery so the country can grow, export and create quality jobs.
IFC Country Manager Wendy Werner said it is clear the private sector has an important role to play to meet the rising demand for quality healthcare and improving the efficiency of delivering health services, as health financing in the country is low compared to others at a similar level of development.
“Bangladesh could also target high-end markets and introduce new technology in the readymade garment sector, and seize opportunities in footwear, leather electrical goods, and agribusiness exports,” she observed.
Also read: Budget document: Preparations under way to face the challenges of developing economy
World Bank’s Country Director Mercy Tembon said readymade garments have contributed significantly to Bangladesh’s economic growth. “For a more resilient, inclusive and sustainable growth, Bangladesh will need to diversify its export basket and develop a robust and sophisticated private sector, relevant in the post–Covid recovery phase when public resources will be needed most in the social sectors.”
The report says key priority areas for the reform agenda include creating a favourable trade and investment environment for domestic and foreign investors, modernising and expanding the financial sector and removing impediments for developing infrastructure.
“Transport and logistics, energy, financial services, light manufacturing, agribusiness, healthcare and pharmaceuticals sectors are among those with the strongest potential for private investment that could play a significant role in boosting economic growth,” the report observes.
BGMEA seeks central bank support for RMG sector to address pandemic challenges
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought support of Bangladesh Bank for the RMG industry in its struggle to overcome the impacts of the Covid-19 pandemic and retaining competitiveness in the global market.
BGMEA President Faruque Hassan said the RMG industry was going through a tough time due to an unprecedented crisis caused by the Covid pandemic.
A delegation of the BGMEA led by its President had a meeting with Bangladesh Bank Governor Fazle Kabir at the central bank on Sunday afternoon and discussed the issue, said apex body of the apparel industry on Monday.
The BGMEA delegation included Senior Vice President SM Mannan (Kochi), Vice President Md. Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Vice President Rakibul Alam Chowdhury and Directors.
He thanked the Bangladesh Bank for coming forward with policy support for the garment industry when it fell into deep trouble following the outbreak of the pandemic -- at a time when the sector needed it most.
READ: BGMEA wants continuation of 0.5 per cent source tax
The pandemic is not over yet and the RMG sector is still trying hard to overcome the massive impacts, he said.
Given the situation, the support of Bangladesh Bank in terms of simplification and relaxation of financial policies pertaining to the RMG industry would help the sector to address the challenges and turn around, said the BGMEA chief.
Earlier, Bangladesh Bank extended the loan limit of garment and textile factories from the export development fund (EDF) to $30 million from $25 million.
Faruque urged the Bangladesh Bank to extend the time limit for the enhanced EDF by six months.
He requested the BB to extend the payback period of the loans under the Covid response stimulus package from two years to five years as the sector is going through a rough patch.
He also urged the central bank to write off all debts, interest, and cost of fund charges for the 133 sick RMG factories, taking them into special consideration.
READ: It’s a very significant budget: BGMEA
Deputy Governors of Bangladesh Bank Ahmed Jamal and Kazi Sayedur Rahman were also present at the meeting.
BGMEA wants continuation of 0.5 per cent source tax
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Saturday demanded that the government continue the existing 0.5 per cent source tax for the next five years in the new budget.
“We demand the continuation of the existing rate of 0.5 per cent source tax as it is suitable for long-term business planning,” said BGMEA President Faruque Hassan.
Also read: It’s a very significant budget: BGMEA
The budget for 2021-22 fiscal did not include the proposals made to the authorities for the benefit of the RMG sector, he said at press conference at its headquarters in Uttara.
The BGMEA president welcomed the proposal to reduce import duty on some machine parts and chemicals used in the garment sector.
Also read: New budget unveiled with focus on protecting lives and livelihoods
ILO lauds progress in RMG sector
International Labour Organisation (ILO) Country Director in Bangladesh Tuomo Poutiainen has praised the development that the readymade garment (RMG) sector has made in the areas of workplace safety and social compliance.
A delegation of the ILO led by its Country Director held a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan at BGMEA office on Sunday.
They discussed the progress of the ongoing projects jointly implemented by ILO and BGMEA in the RMG sector.
Also read: Bangladesh elected ILO Covid-19 Technical Committee chair
They also had discussion on the possible avenues of collaboration between ILO and BGMEA for further development of the industry, especially for workers’ well-being, said a BGMEA media release.
BGMEA President Faruque Hassan expressed his thanks to the ILO for providing its support to Bangladesh garment industry in ensuring workers’ rights and welfare.
BGMEA Vice President Miran Ali, Directors Barrister Shehrin Salam Oishee and Asif Ashraf were present.
Also read: Long working hours increase deaths from heart disease, stroke: WHO, ILO
Sreda, BGMEA sign deal for rooftop solar power promotion in RMG sector
Sustainable and Renewable Energy Development Authority (Sreda) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Thursday signed a Memorandum of Understating (MOU) under which the state-owned agency will help garment industries to install rooftop solar power in order to transform them into green industries.
Welcoming the agreement between the two private and public bodies, Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury said the initiative will create some foots and grounds for promotion of renewable energy in the garment sector.
Read: Rooftop solar power: ‘Net metering can ensure cheaper electricity for garment factories’
“This will open up the door for others to follow”, he told the agreement signing function joining it virtually.
Sreda secretary Niaz Rahman and BGMEA Secretary Abdur Razzak signed the MOU on behalf of their respective sides while Sreda chairman Mohammad Alauddin and BGMEA president Rubana Huq, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Principal Secretary to the Prime Minister Dr Ahmad Kaikaus addressed the function.
As per the agreement, the Sreda and BGMEA will create coordination in raising awareness about renewable energy in the garment sector, pursue for central bank’s green funding and also investment from banking sector.
Read: Rooftop solar: Power companies instructed to float net metering promotion plan
Nasrul Hamid said the country’s industrial sector consumes nearly 48 percent of their total power generation and garment industries lead the sector by consuming 30 percent of total industrial load.
If the garment industry pursues energy efficiency, it will reduce their 17.6 percent consumption, he added.
Sreda chairman Mohammad Alauddin said there is huge scope for renewable energy promotion in garment sector.
Read Green energy's share of power generation lagging far behind conventional sources
UNDP, BGMEA launch report measuring RMG's impact on SDGs
Although Bangladesh's Sustainable Development Goals (SDGs) Financing Strategy expects a 42% contribution from the private sector, no consolidated industry impact on SDGs has yet been reported.
While some individual factories produce sustainability reports, the appreciation of the magnitude of the impacts has so far remained outside of systematic studies and reporting, making it difficult to understand industry trends and align private sector efforts to government goals.
"In Bangladesh, the RMG sector not only contributes to economic development but also to SDG achievement. It provides employment; supports healthcare of the workforce; invests in up-skilling the workforce; adopts resource recycling; increasingly uses renewable energy," UNDP Resident Representative Sudipto Mukerjee said.
Also read: Explore new markets to sustain RMG industry: Commerce Minister
So, the United Nations Development Programme (UNDP), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Global Reporting Initiative have taken the first step towards a consolidated industry approach to private sector sustainability reporting.
In the past months, 47 BGMEA member factories conducted sustainability self-reporting – translating their impact into the language of National Priority Indicators (NPIs) and SDGs.
The efforts of the factories were consolidated in the report – "A Pathway to Manage Private Sector Impact on Bangladesh National Priority Indicators (NPIs) & Sustainable Development Goals (SDGs)" – unveiled on Sunday.
Also read: Partnership crucial to achieve SDGs, national goals: FM
Also, the factories got a certificate of appreciation at the event for their contribution to NPIs and SDGs through sustainability reporting.
"With this report, we wanted to measure the readymade garment (RMG) industry's impact on SDGs to communicate with key stakeholders, such as the government, buyers, trade partners, and communities so that we can take action to support the country together," BGMEA President Dr Rubana Huq said.
"We hope to inspire more RMG factories and other industries to undertake sustainability reporting in the future as it is a key step in the journey of translating the private sector contribution to SDG financing into concrete achievements and future actions."