BMCCI pushes for salvaging RMG industry

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Speakers at a webinar on Saturday said the looming crisis in the RMG industry could have a multiplied chain a reaction to the complete economy, and salvaging this industry will be beneficial to other sectors as well.
 
Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) arranged the webinar highlighting the pre-COVID-19 and post-COVID-19 scenario of the RMG industry.
 
It discussed the features of the existing and post-pandemic circumstances of the RMG industry and its impacts on Bangladesh economy.

BMCCI President Raquib Mohammad Fakhrul said the Bangladesh economy remains highly reliant on the ready-made garments industry for creating jobs, foreign reserve, and women empowerment.
 
The industry contributes 11.2 percent to the gross domestic product of the country.
 
For instance, he said, a lot more than 4,600 RMG factories constitute the greatest industrial sector in the country and donate to 36 percent of fabricating occupations engaging 4.1 million workers.
 
Industrious, disciplined and low-cost women staff are the backbone of this industry, said the BMCCI President.
 
He said major global fashion brands took prompt responses to greatly help flatten the Coronavirus curve which has left significant impacts on worker employment, revenues and overall operations. Bangladesh’s over reliance on apparel export might prove to be its Achilles heel.
 
Large-scale order cancellation and deferment are creating a liquidity crisis over the sector, prompting the BGMEA President to appeal for support, both from international buyers and the government, said the BMCCI chief.
 
Faisal Samad, Senior Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) differentiated the pre-Covid-19 export growth vision and you see, the current realty.
 
Subsequently, he discussed the basic issues like strides toward workers safety and wellbeing, environmental sustainability and so on under these post-COVID realities.
 
The BGMEA leader said the effect on the RMG industry will never be limited to itself as it can have grave repercussions on other industrial, consumer and service sectors.
 
The worthiness addition in the RMG industry has increased slowly but surely and it now stands at 63.2 percent as backward-linkage industries developed.
 
He said the RMG industry is an integral contributor to other monetary sectors, such as for example, banking, insurance, property, packaging, hotels, recycling, consumer goods, utility services and logistics.
 
Faisal Sanad said a global Bank survey revealed that 98 percent of RMG factories are clients of commercial banks.
 
All machines and plants are insured with insurance firms and, additionally, 87 percent importers and 15 percent exporters obtain imports and exports insured with insurance companies.
 
He said it's estimated that port usage service fees earned from the RMG sector take into account a lot more than 40 percent of the income of the port authority.
 
The 4.1 million employees in the industry also have created a sizable demand for low-cost consumer goods, such as for example cosmetics, dresses, footwear, utensils and other products, said the BGMEA leader.
 
Mohammad Khalil Ibrahim, Minister counsellor, High commission of Malaysia in Bangladesh, said COVID-19 has changed the purchasing habits for the world within per month in today's pandemic situation.
 
The effects of coronavirus around the world remained uncontrolled and unstoppable, he said.
 
Due to that, Ibrahim said, the expeditious growth of internet use has been a vital possession for all your organisations, and it's been dramatically changing just how business is being conducted. In a competitive environment, companies need to put their give attention to the fast-growing trends in it for cost efficiency and self-survival.
 
He said the Malaysian government has recognized COVID-19 as an occupational disease to permit public assistance in case of infection or worse.
 
He said Malaysia and the Philippines see losses of over 4.5 percent which are also of higher magnitude than in China.
 
Likewise, he said, the RMG industry in Bangladesh now risks losing from orders for the complete Autumn/Winter buying season.
 
Nur Mohammad Amin Rasel, Senior Deputy Secretary, BGMEA presented his trade analytical paper at the webinar.
 
Former BMCCI President Syed Moazzam Hossain, Anwar Shahid, Vice-President, Mahbubul Alam and Hon. Secretary General, Mahbubul Alam Shah, Director, BMCCI took part in the discussion.
Source: http://unb.com.bd

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