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GLI calls for annual review of RMG workers’ wages in Bangladesh

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RMG Bangladesh
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Researchers from Cornell University’s Global Labor Institute (GLI) have urged the Bangladesh Government to implement an annual review and wage-setting process for garment workers, moving away from the current five-year cycle. The researchers highlighted that inflation rates have been eroding the purchasing power of workers earning the minimum wage, leading to significant income loss over the years.

Jason Judd, executive director of GLI, addressed journalists in Dhaka, stating that garment workers currently receive only a nine percent annual adjustment to their basic wages, primarily intended to offset inflation. However, he pointed out that actual inflation rates may exceed this adjustment, further disadvantageing workers.

The analysis criticised the longstanding minimum wage policy, which favours employers and does not adequately protect workers in the face of rising living costs. It also noted that the purchasing power of Bangladeshi workers is considerably lower compared to their counterparts in other apparel-producing countries.

In light of these findings, researchers called for a simplification of the minimum wage structure and an annual wage adjustment. They recommended that genuine trade union representatives, selected by labour federations, be appointed to the wage board to ensure fair representation in the wage-setting process.

The report referenced Cambodia’s successful overhaul of its wage-setting policy a decade ago, which resulted in regular wage growth alongside increased orders and production. The researchers suggested that Bangladesh adopt a similar approach by institutionalizing an annual review of minimum wages and planning the next review of the 2023-set minimum wage for 2025.

Additionally, the study advocated for explicit commitments from brands to support wage increases through higher prices, emphasizing the need to distinguish between genuine worker representatives and others in the wage-setting process. It also called for extending freedom of association and bargaining rights to workers in export processing zones to enhance democratic representation and strengthen wage enforcement efforts.

তালিকাভুক্ত বেশিরভাগ পোশাক কোম্পানি উচ্চ মুনাফা করেছে

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RMG Bangladesh
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পুঁজিবাজারে তালিকাভুক্ত বেশিরভাগ তৈরি পোশাক কোম্পানি চলতি অর্থবছরের অক্টোবর-ডিসেম্বর সময়ে উচ্চ মুনাফা করেছে। দেশের সামগ্রিক ব্যবসায়িক পরিবেশ ও চ্যালেঞ্জের মধ্যে বৈশ্বিক চাহিদা থাকায় কোম্পানিগুলো ভালো মুনাফা করতে পেরেছে বলে মনে করছেন খাত সংশ্লিষ্টরা।

তবে, যেসব কোম্পানি রপ্তানির পরিমাণ ও মূলধনের দিক দিয়ে তুলনামূলক বড়, তারা ভালো পারফরম্যান্স করলেও তবে ছোট কোম্পানিগুলোকে লড়াই অব্যাহত রাখতে হয়েছে।

তথ্য অনুযায়ী, এ খাতের তালিকাভুক্ত ৪০টি কোম্পানির মধ্যে ২৫টি উচ্চ মুনাফা করতে পারলেও ১৫টি প্রত্যাশা অনুযায়ী মুনাফা করতে পারেনি। তবে বহু বছর ধরে জেড ক্যাটাগরিতে থাকা ১৫টি কোম্পানি এখনো কোনো তথ্য প্রকাশ করেনি।

গত বছরের জুলাই-সেপ্টেম্বর প্রান্তিকে রাজনৈতিক অস্থিরতার পর ৪০টি কোম্পানির মোট মুনাফা ক্রমবর্ধমান প্রবণতার ধারাবাহিকতা দেখিয়েছে।

সন্ধানী অ্যাসেট ম্যানেজমেন্ট লিমিটেডের সংকলিত তথ্য অনুযায়ী, গত বছরের অক্টোবর থেকে ডিসেম্বর সময়ে তাদের মোট মুনাফা আগের বছরের চেয়ে ৫০ শতাংশ বেড়ে ১৯৭ কোটি টাকায় দাঁড়িয়েছে।

শাশা ডেনিমস লিমিটেডের ব্যবস্থাপনা পরিচালক শামস মাহমুদ বলেন, ২০২৩ সাল থেকে বেতন বৃদ্ধি ও জ্বালানির দাম প্রায় দ্বিগুণ হওয়ার পর থেকে তৈরি পোশাক খাত সমস্যার মুখোমুখি হচ্ছে।

তিনি বলেন, সে বছর সিদ্ধান্ত হয়েছিল তৈরি পোশাক শ্রমিকদের বার্ষিক মজুরি নয় শতাংশ বৃদ্ধি পাবে, আগে যা ছিল পাঁচ শতাংশ। একই সঙ্গে এন্ট্রি লেভেলের একজন পোশাক শ্রমিকের ন্যূনতম মজুরি আট হাজার টাকা থেকে বাড়িয়ে ১২ হাজার ৫০০ টাকা করা হয়।

তিনি আরও বলেন, তবে অনেক কোম্পানি, বিশেষ করে ছোট প্রতিষ্ঠানগুলো এই ব্যয় বৃদ্ধির ধাক্কা সামলাতে পারেনি। গত বছর রাজনৈতিক ও শিল্প অস্থিরতা এবং বন্যার কারণে উৎপাদন বাধাগ্রস্ত হওয়ায় তাদের অবস্থার আরও অবনতি হয়েছে।

তার ভাষ্য, ‘সর্বোপরি, কারখানাগুলোতে পর্যাপ্ত গ্যাস ও বিদ্যুৎ সরবরাহ করা হয়নি, তাই বেশিরভাগই ‘গভীর সমস্যায়’ পড়েছে। কেবল বড় কোম্পানিগুলো এই ধাক্কা সামলাতে পেরেছে, তারা রপ্তানি আদেশ ধরে রেখেছে এবং সঠিকভাবে পণ্য সরবরাহ করতে পেরেছে।’

রপ্তানি উন্নয়ন ব্যুরোর তথ্য অনুযায়ী, চলতি অর্থবছরে বাংলাদেশের তৈরি পোশাক রপ্তানি আগের বছরের চেয়ে ১৩ দশমিক ২৮ শতাংশ বেড়ে ১৯ দশমিক ৮৮ বিলিয়ন ডলারে দাঁড়িয়েছে।

এনভয় টেক্সটাইল লিমিটেডের মুনাফা বেড়েছে ১৬১ শতাংশ, স্কয়ার টেক্সটাইল লিমিটেডের ৫৮ শতাংশ এবং মালেক স্পিনিং মিলস লিমিটেডের মুনাফা বেড়েছে ২২ শতাংশ।

শামস মাহমুদ বলেন, বড় কোম্পানিগুলো তাদের আর্থিক সক্ষমতা ব্যবহার করে ধাক্কা কাটিয়ে উঠতে পেরেছে। কারণ বড় কোম্পানিগুলোর কাছে সাধারণত নগদ অর্থ থাকে এবং তারা প্রয়োজনে সহযোগী কোম্পানি থেকে অর্থ ধার নিতে পারে। তাদের ব্যাংক ঋণের ওপর নির্ভরশীলতা কম।

স্পিনাররা ধুঁকছেন

এ খাতের কোম্পানিগুলোর আর্থিক অবস্থা বিশ্লেষণ করে দেখা যায়, স্পিনিং মিলগুলো সবচেয়ে বেশি হিমশিম খাচ্ছে।

শামস মাহমুদ জানান, গ্যাস সরবরাহ সংকটে বিপাকে পড়েছে স্পিনিং মিলগুলো। তারা ভালো করতে না পারায় চাহিদা মেটাতে ভারত থেকে সুতা আমদানি করতে হয়েছে।

বাংলাদেশের টেক্সটাইল খাতে ২০২৪ সালে মুনাফা ওঠানামা করেছে। এটি মূলত বৈশ্বিক বাণিজ্যের চ্যালেঞ্জ, মূল্যস্ফীতির চাপ এবং চাহিদার পরিবর্তনের ধরনের কারণে হয়েছে। কিছু কোম্পানি স্থিতিশীলতা দেখাতে পারলেও বাকিরা মুনাফা ধরে রাখতে লড়াই করেছে।

Bangladesh’s garment sector reforms driven by global supply chain pressure: Debapriya

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RMG Bangladesh
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Reforms in South Asian countries like Bangladesh, particularly in its garment industry, have largely been driven by pressure from the global supply chain, according to macro-economist and public policy analyst Debapriya Bhattacharya.

All the reforms that have taken place in the garment industry – in the post-quota phase, in addressing child labour and in ensuring workplace safety after the Rana Plaza tragedy – have been the result of supply chain pressure, he said.

Debapriya, a distinguished fellow of the Centre for Policy Dialogue (CPD), made the remarks speaking at the 8th Sanem Annual Economists’ Conference (SAEC) 2025 virtually today.

Debapriya emphasised that Bangladesh’s response to global market incentives has also shaped reforms in remittances.

However, he stressed that reforms should be balanced and tailored to sectoral needs, ensuring the development of supply-side capacity. He further said if liberalisation results in Bangladesh merely becoming an import-dependent country, then it has failed to achieve its purpose.

The economist stressed that sustainable reforms should lead to economic diversification, productivity growth, poverty alleviation, and reduced inequality.

“The paper stated that if the South Asian countries do not make the reforms or open up the economy, they will miss the new advantage that will come in the future. 

“I am not against reforms, however, if we look into other studies that have been done, under no circumstances countries like Bangladesh or other lower middle income countries will be able to take advantage of so-called new opportunities,” the economist added.

Mentioning that some countries are doing good in some cases, Debapriya said, “Even if we do many of the things that have been suggested, are we really ready to do that in a situation when there is such fluidity and flux in the system? The paper talked about economic fragmentation in the global scale, but totally ignored the global frame.

“Sub-regional cooperation could be a solution for low trade problems. This form has been practiced in Bangladesh and elsewhere in the recent past. This is also in line with political alignment. We have gone to Nepal, Bhutan, India and established some form of connectivity.”

The keynote session was presented by Dr Franziska Ohnsorge, chief economist for South Asia, World Bank, and delivered a presentation on “Implications of Geoeconomic Fragmentation for South Asia”.

While presenting, she said, “Geopolitical differences reduce bilateral trade and investment – but, for now, [there is] mixed evidence on the degree of fragmentation. Geopolitical vulnerability and connectedness is higher for emerging markets and developing economies (EMDEs), lower for trade than finance.”

Ohnsorge stated that geopolitical differences are reducing global trade and investment, with emerging markets and developing economies (EMDEs) being the most vulnerable. 

However, evidence on the degree of fragmentation remains mixed. EMDEs have responded to fragmentation through diversification and de-risking, she explained.

While South Asia has diverse export and foreign direct investment (FDI) sources, Ohnsorge noted that aggregate inflows remain too low for the region to benefit significantly from shifts in global supply chains.

As a discussant, Dr Shanta Devarajan, professor of International Development at Georgetown University, said the paper’s policy conclusions reinforced long standing calls for South Asian countries to be more open.

“We have got one more justification to the idea that South Asian countries should be more open. They should remove the barriers of the cross border transactions.

“The geopolitics within South Asia is a reason why the trade between them is so small. Especially the politics between two large countries of this region, India and pakistan. The trade could be even 10 times more if the tension could be reduced. The reasons for low trade volume are not economy but politics,” he said.

Dr Deepak Mishra, director and chief executive, Indian Council for Research on International Economic Relations (ICRIER), said most of the east asian countries have geopolitical issues with China, however this couldn’t be the obstacle to see trade growth with this country. In the same kind of situation, the trade among South Asian countries is opposite. 

Selim Raihan, professor of Economics at University of Dhaka and executive director of Sanem, moderated the keynote session.

High costs slowing down adoption of advanced textile machinery: Experts

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RMG Bangladesh
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Textile machinery companies are developing advanced technologies to improve efficiency, reduce resource consumption, and lower production costs, but company representatives say the high initial costs remain a significant barrier for many manufacturers.

While such developments are time-consuming and initially cost-intensive, their payback period is shorter compared to other technologies, the representatives told The Business Standard on the second day of the 19th Dhaka International Textile and Garment Machinery Exhibition (DTG-2025) at the International Convention City Bashundhara (ICCB) in the capital on Friday (21 February).

The 19th edition of the DTG Expo is currently underway, running from 20 to 23 February 2025.

The exhibition features textile machinery, fabrics, filaments, chemicals, dyeing technology, and accessories. Seminars on sustainable production and modern technology are also being organised.

Considering the overall benefits, textile manufacturers are now seeking the latest technologies to remain competitive in the global market.

Jamel Ahmed, general manager of Leone International, the sole agent of ACME Machinery Industry, said the Taiwanese company’s latest dyeing machine significantly reduces water consumption in the textile industry.

“Previously, dyeing 1 kg of knitted fabric required around 200 litres of water, but new technology cuts this to 80-100 litres. ACME’s advanced machine reduces it further to just 20-25 litres,” he said.

First introduced at Fariha Knit in 2019, the technology has been adopted by DBL Group as well. Despite being 1.5 times costlier than conventional models, it offers a shorter payback period of 1.5 years due to cost savings, compared to over three years for other machines.

Global adoption, local challenges 

While some factory owners were quick to embrace the innovation, others hesitated due to high upfront costs. However, as stricter groundwater usage regulations take effect, the technology may become essential.

Jamel Ahmed noted that countries like Italy, Germany, and Spain, which already have such restrictions, are using this machine. Major activewear brands such as Nike and Adidas prefer it for its dyeing precision and ability to maintain fabric quality.

However, many Bangladeshi entrepreneurs, who typically start with low initial investments, find it difficult to afford.

CL Chang, managing director of Leone International and co-designer of the round-shaped dyeing machine, highlighted its efficiency, stating that it reduces water, steam, electricity, and chemical usage by 65%, along with CO₂ emissions.

Introduced for commercial production seven years ago after over 20 years of research, the Intelligent Conveyor Drive Dyeing Machine is designed for energy saving and environmental protection. 

“With rising energy costs, water shortages, and pollution, this machine offers a sustainable solution for all fabric types,” he said.

The technology holds over 200 patents worldwide, including in the EU, USA, UK, and several Asian countries, and has won the Distinguished Enterprise Innovation Award and Taiwan Excellence Award.

Meanwhile, Mazim Corporation, a machinery indenting company with 40 years of experience, has recently introduced its own technology under the brand name Sirox.

“Mazim Corporation’s new technology, Sirox, functions as a pre-dryer in stenter machines, compactors, and relax dryers, helping remove excess moisture while boosting efficiency and reducing energy consumption,” said CEO of the company Ziaul Hassan Christy.

“Our machine increases stenter production by at least 25% without requiring extra space for mounting,” he added.

Unveiled at the expo for the first time, Sirox has received a positive response as a locally branded alternative to imported machines. Manufactured in Ahmedabad at Samirika Fabrication, it was developed as a Bangladeshi brand rather than an Indian one, the company CEO Ziaul Hassan noted.

Automation in Bangladesh’s yarn factories

HiCrop Machinery’s Director of Foreign Marketing, Yuli Ping, said their new technology-driven machines require fewer workers and significantly reduce waste, as Bangladesh’s yarn factories shift to automation.

“Our focus is on providing technological solutions rather than direct sales,” he said, adding that buyers will reach out after the fair.

Md Nirab, a marketing officer at a Chinese company, highlighted their automated knitting machines, where one operator can now manage ten machines instead of one.

Several companies at the exhibition showcased advanced machines replacing traditional handlooms.

Opportunities in Bangladesh’s fibre market

Asia Pacific Rayon (APR), one of Asia’s largest viscose-rayon producers, is also participating. 

Its Vice President, Tapan Sannigrahi, said Bangladesh’s man-made fibre market is growing, with APR selling over five tonnes last year. He sees strong potential in the country’s fibre-based garment sector.

At this year’s expo, more than 1,100 leading brands from 33 countries are participating, showcasing their technologies across 1,600 stalls. Companies from China, Germany, India, Italy, Japan, South Korea, and Turkey are presenting their latest textile technology and equipment.

Cornell researchers call for annual review of Bangladesh RMG wages

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RMG Bangladesh
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Researchers from the Global Labor Institute (GLI) of Cornell University in New York, US, have called for an annual wage review and wage-setting process in Bangladesh’s new government, a practice currently in place in Cambodia.

“Garment workers paid the national minimum wage in Bangladesh are ‘under-water’ and losing income year-on-year,” reads a press release issued by the GLI on 20 February.

Currently, Bangladesh reviews RMG workers’ wages every five years. The RMG sector is Bangladesh’s highest export-earning industry, accounting for over 80% of total exports.

Around four million workers are employed in this sector, with a minimum wage of Tk12,500 (approximately $105), set in the last year.

The university researchers said that the long-time minimum-wage policy – which reviews wages every five years – compounded with high inflation, favours employers over workers.

In addition, they said that the local ‘purchasing power’ of workers’ wages in Bangladesh is significantly lower than those of workers in competing apparel-producing countries.

“The experience of Cambodia’s apparel industry in remarkably similar circumstances is very clear. A decade ago, the country also faced protests, prompting the government to implement an annual wage review policy,” Jason Judd, executive director of Cornell ILR who is currently visiting Dhaka, told TBS in an interview yesterday.

A report, “Waiting Game: Minimum wage-setting in Bangladesh’s apparel industry”, published this month, by three researchers led by Jason Judd stated how delayed wage-setting impacts workers.

“There is a clear need and room — both political and economic — for an annual wage-setting process in Bangladesh. It’s long overdue. Imagine waiting five years for a raise while inflation rages at 10% — that’s the situation for workers under the current scheme,” the press release reads.

Experts also support an annual wage hike in line with inflation.

Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies and currently head of the Labour Reform Commission, told TBS, “We recently met with global retail brand representatives, and they also recommended a policy of annual wage review. They consider it a scientific approach.”

“We also think that wages should be reviewed annually, considering inflation,” he added.

5% annual increase

Currently, in the RMG sector, workers receive a 5% wage increase on their basic pay, as endorsed by the country’s existing labour act.

However, Bangladesh has been experiencing persistently high inflation over the last three years, which hovers around 10%.

The Cornell University report indicated that after implementing the annual wage review policy in Cambodia, apparel exports continued to grow. However, the report did not mention the responsibilities of buyers and brands.

In 2024, the Bangladesh government increased the minimum wage for RMG workers by 56%. However, RMG exporters alleged that despite rising production costs significantly due to wage hikes and other factors, buyers have not increased clothing prices accordingly.

Jason Judd acknowledged this reality but also stated, “Bangladesh’s RMG workers are among the lowest paid in the world.”

Factory owners disagree

RMG owners argue that conditions vary across countries, making it unreasonable to implement policies in Bangladesh identical to those in Cambodia.

Shams Mahmud, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS, “The researchers may not have enough understanding of Bangladesh’s RMG sector.”

“Under our existing labour law, garment workers’ wages increase by at least 5% [of the basic salary] every year. This rate is even higher in EPZ factories. Additionally, workers receive separate support from the factory,” he said.

So, not everything needs to follow the practices of other countries, Shams Mahmud added.

Apparel exports to EU rise by 4.8pc in 2024

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RMG Bangladesh
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Bangladesh’s apparel exports to the European Union in 2024 increased by 4.8 per cent to 18.27 billion euros from 17.44 billion euros in 2023 riding on the late year surge in shipment.

According to data from the Eurostat, the statistical office of the EU, Bangladesh’s knitwear segment saw a notable increase in 2024, rising from 10.66 billion euros in 2023 to 11.04 billion euros in 2024, with 3.6 per cent increase. 

The woven apparel sector also saw stronger growth of 6.7 per cent, increasing from 6.78 billion euros in 2023 to 7.24 billion euros in 2024.

Data showed that December 2024 marked a strong finish to the year for EU apparel imports from Bangladesh, with total imports rising by 36.2 per cent to 1.54 billion euros compared with those of 1.13 billion euros in December 2023.

The EU data also showed that Bangladesh’s apparel exports to the 27-nation economic bloc in past one decade increased by 58 per cent to 18.27 billion euros in 2024 from 11.54 billion euros in 2015.

According to the data, between 2015 and 2019, Bangladesh’s apparel exports to the EU grew steadily by 7 to 9 per cent annually, reaching 14.96 billion euros by 2019.

However, in 2020, the Covid pandemic caused a sharp decline of 17.6 per cent, with exports falling to 12.32 billion euros.

The apparel exports to the EU then rebounded strongly, with a 16-per cent growth in 2021, reaching 14.29 billion euros, and a remarkable 53-per cent increase in 2022 and thus soaring to 21.91 billion euros.

In 2023, Bangladesh’s apparel exports to the EU dropped by 20.4 per cent to 17.44 billion euros due to global challenges, including war and high inflation, but by 2024, the sector showed resilience, with exports rising by 4.8 per cent to 18.27 billion euros.

Data showed that the overall apparel imports by the EU from different countries in 2024 slightly increased by 1.37 per cent to 85.48 billion euros from 84.33 billion euros in 2023.

Bangladesh remained the second-largest apparel exporter to the EU after China.

China retained its position as the EU’s largest apparel exporter in 2024, with exports rising by 2.3 per cent to 24.04 billion euros from 23.5 billion euros in 2023.

The EU’s apparel imports from Turkey in 2024 declined by 6.7 per cent to 9.31 billion euros from 9.29 billion euros in 2023.

The EU’s apparel imports from India increased by 1.9 per cent to 4.18 billion euros in 2024 compared with those of 4.1 billion euros in the preceding year.

Vietnam’s apparel exports to the EU in 2024 grew by 4 per cent to 3.98 billion euros from 3.82 billion euros in 2023.

Cambodia and Pakistan had stellar performance in exporting readymade garments to the EU in 2024.

The EU’s apparel imports from Cambodia in 2024 increased by 20.3 per cent to 3.9 billion euros compared with those of 3.24 billion euros in the previous year.

Pakistan’s apparel exports to the EU increased by 11.6 per cent to 3.51 billion euros in 2024 compared with those of 3.13 billion euros in 2023.

RMG workers block Dhaka-N’ganj link road over layoffs

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RMG Bangladesh
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Workers of Eurotex Knitwear blocked the Dhaka-Narayanganj Link Road in Fatullah today (19 February), protesting the abrupt layoff of 27 colleagues.

According to the workers, the layoff decision was made without any prior warning, and the authorities also filed cases against them. In protest, workers halted work, prompting an unprovoked attack by senior officials which left several workers injured.

Ajufer Begum, one of the affected workers, said, “They [factory authorities] are laying off workers without reason, and even the last month’s salary remains unpaid. When we stopped work, we were attacked, and I sustained serious injuries to my hand. We will continue our protest until our demands are met.”

The protest was supported by the District Garment and Sweater Workers Trade Union Centre and its President MA Shaheen condemned the actions of the factory owners.

He said, “The owners have filed cases against 27 workers, using the police to harass them and inciting local goons against the workers. Our demand is clear — withdraw the false cases and stop the police harassment.”

The protesting workers have called for an end to the layoffs and the withdrawal of the cases filed against them. They also demand an immediate halt to intimidation by local goons.

In response, Selim Badsha, the Inspector of the Industrial Police-4, confirmed that the workers had blocked the road as part of their protest against the layoffs and other demands. Efforts are underway to negotiate a solution to the issue.

Narayanganj’s Directorate of Factory and Establishment Inspection (Dife) official Rajib Chandra Ghosh said the RMG workers had caused disturbances at various times since 5 August, prompting the factory owners to take legal action. In recent talks, the owners confirmed that they would proceed with the legal process and lay off 95 workers under the Labour Law.

Earlier on 17 February, workers of the same factory blocked Chashara intersection in Narayanganj.

Although they had called off their protest after 2.5 hours getting assured of discussion, they again came to the streets today as no solution was found during the discussion.

Apparel exports to nontraditional market surge by 6.42pc

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RMG Bangladesh
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Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau.

The exports to the nontraditional market made up a significant 16.84 per cent of Bangladesh’s total RMG exports in the mentioned period.

According to the EPB data, Bangladesh exported apparel items worth $23.55 billion to their global export destinations in the July-January FY25. The earnings from woven was $10.86 billion, and knitwear was $12.68 billion.

In terms of apparel exports, countries like the US, Canada, the UK, and EU are considered traditional markets, while other countries are considered non-traditional markets.

Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico, and others are major non-traditional export destinations.

Of the $3.97 billion export earnings, $1.99 billion was from knitwear items, and $1.97 billion was from woven.

Among the nontraditional market, Japan was the top destination for Bangladeshi RMG products, as the exporters shipped apparel items worth $721.50 million to Japan in July-January of FY25.

This was followed by Australia, India, and South Korea, where Bangladesh exported RMG items worth $512.88 million, $427.62 million, and $271.48 million, respectively.

In the mentioned period, the export earnings from non-traditional Turkiye, Mexico, the United Arab Emirates, and China markets stood at $263.08 million, $208.03 million, $144.32 million, and $130.91 million, respectively, in July-January of FY25.

However, exports have decreased in several markets, including Russia, South Korea, China, the United Arab Emirates, Malaysia, Saudi Arabia, and New Zealand.

According to industry insiders, there is huge potential in nontraditional markets for the country’s apparel exporters. In this regard, detailed research on the trends, tastes, and clothing styles of local consumers is a must to increase exports manifold there.

In July-January of FY25, the European Union remained the largest destination for Bangladeshi apparel exporters where the country shipped apparel items worth $11.81 billion, which was 50.15 per cent of the total RMG exports.

Bangladesh shipped apparel worth $4.47 billion to the USA, the largest single destination for the country’s apparel, in the mentioned period. The US market covered 18.99 per cent of the total apparel exports.

Moreover, the EPB data added that in July-January of FY25, Bangladeshi manufacturers exported RMG products worth $2.55 billion to the UK, 10.83 per cent of the total export earnings from the RMG sector.

Bangladesh received $751 million from Canada in the period as mentioned above, which was 3.19 per cent of the total earnings from apparel exports.

Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that exports to the nontraditional market have witnessed a boost since 2009; however, for several years, they stood around 16-18 per cent.

‘We need to figure out the demands, trends and upcoming events at the nontraditional markets and focus on our production as per this. Like, Saudi Arabia will host FIFA World Cup 2034 and is spending much on domestic sports. We need to focus on Saudi to grab the market,’ he added.

He also urged the embassies in the respected countries to be proactive and urged the manufacturers to attend events and penetrate them.

Former BGMEA director Mohiuddin Rubel urged qualitative changes and diversifying product lines.

‘Development of infrastructure that meets product demand requires enhanced R&D,’ he added, saying that they must come out of the traditional way to grab non-traditional markets.

In FY24, Bangladesh earned $6.09 billion from the nontraditional markets.

Nearly 99% of RMG workers uninterested in Universal Pension Scheme: Survey

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RMG Bangladesh
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Nearly 99% of readymade garment (RMG) workers are uninterested in the Universal Pension Scheme (UPS), according to a recent survey.

The study has found that only 1.3% of workers have so far enrolled in the scheme, which was introduced in August 2023.

Financial constraints were the primary reason for non-participation, cited by 90.6% of workers, while 6.7% expressed concerns over the scheme’s long-term sustainability. Additionally, 2.7% of workers were unaware of the UPS.

The survey was conducted by Md Monirul Islam, deputy director of the Bangladesh Institute of Labour Studies (BILS).

With support from the Netherlands-based organization Mondiaal FNV, the Bangladesh Institute of Labour Studies (BILS) is implementing a project titled “Ensuring Decent Work in the Ready-Made Garment (RMG) Sector through Social Dialogue.”

As part of this initiative, BILS conducted a study between September and December 2024, titled “Universal Pension Scheme: Exploration of Potential Scopes for RMG Workers’ Social Protection in Bangladesh.”

The study findings were presented today (17 February) at a roundtable discussion held at Sromo Bhaban in the capital, organized by BILS.

It is worth noting that the government has introduced four types of Universal Pension Schemes, among which the Progoti scheme allows for the inclusion of RMG workers. Under this scheme, contributions are equally shared, with 50% paid by workers and 50% by employers.

The study primarily focused on the RMG sector with several key objectives. It aimed to evaluate the government-declared Universal Pension Scheme (UPS) in Bangladesh. Additionally, it analyzed the potential benefits, structure, process, and mechanisms of the UPS to ensure social protection for RMG workers while identifying existing gaps. 

The study also reviewed national and international policies and initiatives, highlighting best practices regarding employer contributions to social protection for RMG workers. Lastly, it proposed a model Universal Pension Scheme tailored for RMG workers in Bangladesh and provided effective recommendations for sustainable measures, according to BILS.

Addressing the round table discussion Razequzzman Ratan said the main issue is financial capacity, as workers are currently struggling and have no time to think about the future.

“If it can be successfully implemented, it will create an annual fund of Tk4,048 crore,” he added.

Advocate AKM Nasim said, “The management process must be transparent; otherwise, workers will not benefit—only the fund managers will.”

“A major concern is how much workers are willing to contribute to this fund, as in some cases, it may require about one-fifth of their wages,” he added.

“Initially, the scheme could be started with contributions from the government and employers to build workers’ confidence.”

Abul Kalam Azad, Joint Secretary of the Bangladesh Trade Union Centre (UTC), said, “When employers themselves are becoming bank defaulters, how can workers have confidence in them? There is a fundamental issue of trust.”

Saidur Rahman, deputy secretary of the Labour Ministry, said there is a lack of job security in Bangladesh. “That’s why UPS could help address this issue.”

“We should provide support to make it popular among workers,” he added.

Sakiun Nahar Begum, additional secretary of the Department of Labour, said that over 70% of workers are unwilling to participate in this project due to a lack of trust.

“I don’t think there is any evidence to suggest that this is the outcome of a government study,” she said. 

She further added, “We need to identify some gaps that can be addressed in the future.”

Referring to an EU fund for RMG workers’ social protection after the Covid pandemic she said due to a lack of proper documentation the fund remains unused, despite several attempts.

For UPS such formal documentation will be required, she added.

Govt considers charging industries for water use

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RMG Bangladesh
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The government is considering charging industrial unit owners for water usage and will categorise industries based on water consumption while offering incentives for recycling initiatives, said Environment Adviser Syeda Rizwana Hasan yesterday.

The government, in collaboration with German partners, is working on a Chemical Waste Management Rule, which is expected to be finalised soon to endorse chemical handling and management regulations to ensure environmental and workplace safety.

The adviser urged the business community and international partners to collaborate with their Bangladeshi counterparts to transition from fossil fuel-dependent energy production to renewable and sustainable sources.

She emphasised that energy supply shortages in the past two years have severely impacted industries, making sustainable energy solutions a necessity for both the country and the industry.

“Having green factories or the highest number of environmentally certified factories does not automatically mean the sector is operating sustainably,” she said, adding that the garment industry is not only energy-intensive but also heavily reliant on water and chemical management, making responsible production practices crucial.

“The term ‘cheap labour’ should be removed from our vocabulary when discussing sustainability,” the adviser also said.

“It must be a shared responsibility between producers and consumers,” she asserted, emphasising ethical sourcing and fair business practices.

She made these remarks at the inaugural ceremony of the Sustainable Apparel Forum (SAF) 2025, jointly organised by Bangladesh Apparel Forum (BAE) and the Netherlands Embassy at Radisson Hotel in Dhaka.

Michael Miller, the EU ambassador to Bangladesh, said that EU consumers have benefited from good value and high-quality products imported from Bangladesh.

“Partnerships between the EU and Bangladesh must evolve as we move forward,” Miller said.

“We look to Bangladesh to increase its ambition when it comes to renewables. The EU is determined to work with Bangladesh to ensure it is equipped with the capacity to provide opportunities for sustainable development,” Miller added.

Andre Carstens, head of mission of the Netherlands in Bangladesh, said, “The Netherlands values its partnership with Bangladesh and recognises Bangladesh’s leading role in the global RMG industry. We are committed to working together with Bangladesh to navigate its challenges.”

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (BIDA), said, “We, as a country, would like to be the leader in sustainable apparel by 2040.”

Mostafiz Uddin, founder and chief executive officer of the BAE, said, “If you look into the efforts, we are creating collaboration and connection, increasing opportunity and investment, and further integrating the business. I think our initiatives will continue, and we will be doing impactful initiatives toward a sustainable future.”

In addition, the Netherlands Circular Textile Trade mission to Bangladesh is scheduled from February 10-13, according to a statement.

With the participation of 18 Dutch companies leading in circularity and renewable energy, attendees found unparalleled opportunities for networking and matchmaking at the SAF.

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