Meeting compliance issues now a priority for new leadership

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Atiqul Islam

Monira Munni The new leadership of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) considers meeting compliance issues, ensuring smooth supply and improving infrastructure, especially power, as key challenges to further development of the country's apparel sector. The leaders also look at high lending rate and lack of proper diversification of markets as other major problems for sustained growth of the readymade garment (RMG) industry. "Smooth delivery of both exportable items and imported raw materials is one of the major operational constraints as it ensures the timely manufacturing of the products including those of dyeing, washing and finishing then and shipment of export consignments," Atiqul Islam, newly-elected president of the BGMEA told the FE in an interview. The Association's new executive body was elected last Thursday. The new BGMEA leaders will work together to help strengthen and consolidate the smooth supply-chain as any disruption to it will seriously hamper production in the globally highly-competitive RMG sector and raise the cost of doing business, he said The newly-elected directors of the apparel sector's apex body elected Atiqul Islam, Managing Director of Islam Dresses Limited as the President of the BGMEA for 2013-14 term at last Thursday's meeting at BGMEA Bhaban. Atiqul Islam-led Sammilito Parishad bagged 21 out of a total of 27 posts in the biennial election to the BGMEA. The election was held simultaneously in Dhaka and Chittagong on March 10 last. Mr Atiqul Islam iterated his strong commitment to accelerating the pace of growth of the country's apparel sector. "Our goal is to serve the industry by removing all the barriers, pursuing, and lobbying with, the government for its further development and designing policies to ensure a business-friendly environment," he said. Furthermore, he pledged to working hard in a concerted manner for steady expansion of the country's plus $20 billion industry. When asked about what their priorities would be about, he said the first priority is to meet compliance issues including occupational and health-related safety measures at each and every factory. Explaining, Mr Islam said: "We have already started talking with the banks so that the running factories can have access to funds at a single-digit lending rate so as to facilitate those units to become compliant ones at the earliest opportunity." If any factory fails to comply with the safety standards, it will be relocated to the Garment Palli, he said, explaining the BGMEA's short-, medium-and long-term programmes. "There will be a healthy competition among all if we can ensure compliance and the buyers will then not be in a position to raise questions about this," he added. There is no concrete database relating to the aggregate workforce in the garment sector but this is essential for a sound industry, he noted. "It is impossible to take any decision without having any solid database and we will implement it", he added. "We will also negotiate with the concerned authorities for allocating 25 per cent of aggregate power supplies for the garment industry on a priority basis, in case of new power connections," he said. The new leadership will also work for worker-owner friendly relations, workers' safety, enhancement of their efficiency and productivity, taking care of environmental issues and exploring new markets. "We will focus on South Africa, Peru, Chile, Brazil and Argentina to explore the export potential of our quality products in those markets to reduce dependence on traditional markets which are hit hard by economic meltdown," he said. "Through concerted actions, we will be able to overcome all the challenges including generalised system of preferences (GSP), buyers' frequent pressures regarding compliance issues, the image problem of the sector after the Tazreen blaze and the ongoing political turmoil," Mr Islam observed.