Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has warned that the country's apparel industry may face a crisis similar to that once seen in the jute sector.
He expressed his concern at a seminar titled "The Potential of Bangladesh's RMG Sector: The Way Forward", organised by BKMEA during the Global Sourcing Expo 2025 at the Bangladesh-China Friendship Exhibition Centre in Purbachal on Monday.
Referring to a recent text conversation with retired Brigadier General Dr M Sakhawat Hossain, Adviser for Labour, Employment and Shipping, Mr Hatem said he holds him in the highest regard. However, he said, through the changes in labour laws for this sector, it appears that the seeds of destruction have been sown-just as happened to the jute sector-which will become visible over time.
He added that although the industry accepted concessions in many areas, "we asked for safeguards in only three issues, yet even those have gone against the interests of the industry."
Calling the reforms "deceptive", he said, "We feel somewhat betrayed. We are ready to hand over the keys of our factories within a year to them; we hope they will be able to run the industry as well as they run the government."
Syeda Rizwana Hasan, Adviser to the Minister of Environment, Forest and Climate Change and Minister of Water Resources, has virtually joined the event as the chief guest. She said Bangladesh's apparel industry has established a strong international brand image that must be protected. "We believe we will be able to uphold that reputation," she said.
IFIC Bank Managing Director Syed Mansur Mustafa said the bank is now prioritising SME financing. Referring to media reports on the closure of 400 factories, he said the reasons behind the shutdowns should be properly investigated.
He noted that banks generally do not take collateral for RMG loans as the industry operates largely through back-to-back letters of credit. "Businesses that take loans must repay them. Otherwise, if some borrowers default, the entire sector is put at risk," he warned.
Event moderator Fazlee Shamim Ehsan, President of the Employers' Federation, said banking policies should be framed to support good borrowers.
FBCCI Administrator Md Abdur Rahim Khan said the narrowness of Bangladesh's export basket becomes evident during trade negotiations. However, he expressed the hope that after LDC graduation, the country will be able to navigate global markets, although exports to some destinations may face tariffs.
Akhter Hossain Apurbo, Director of the Bangladesh Employers' Federation, said many competing developing countries receive incentives to enhance export competitiveness. Bangladesh should also consider similar support, he argued.
EPB Vice-Chairman Hasan Arif said Bangladesh must push forward to overcome various challenges for a brighter future of its export industries.
Syed Sultan, Chairman of the Labour Reform Committee, said the apparel industry has grown over the past 40 years on a strong foundation that will not be weakened by labour law changes. newsmanjasi@gmail.com
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