Increased output seen key to RMG market edge

Raising productivity and aggressive drive for both product and market diversification are keys to being competitive in the global RMG market in case of economic recession, observed noted economist Wahiduddin Mahmud.
"Bangladesh has the capability of being competitive even in the age of recession, but there is a chance of a bit adverse impact of the global recession if we do not take early measures," Wahiduddin told a seminar in Dhaka yesterday.
The seminar on 'New Dimension in World Apparel Sourcing: Opportunities and Challenges for Bangladesh' was organised by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on the sideline of the 4th Knitexpo-2008 at the Dhaka Sheraton Hotel.
Wahiduddin, also a former adviser to the caretaker government, underscored the need for increasing the size of industries, suggesting the establishment of parks for the industrial units currently scattered in prime locations of cities.
He identified higher food price, weak infrastructures, irregular supply of power and gas and bad workers- management relationship as some major challenges for the future growth of the local readymade garments (RMG) sector.
The seminar, moderated by BKMEA President Fazlul Hoq, was attended by Executive Director of Centre for Policy Dialogue (CPD) Mustafizur Rahman and Chairman of SQ Group Ghulam Faruk as special guests. M A Baset, the vice-president of the knitwear sector's trade body, presented the keynote paper at the seminar where a large number of manufacturers, foreign and local buyers and academicians was present.
Echoing Wahiduddin's view, Mustafizur Rahman said Bangladesh is also going to higher-end products gradually, which is a good sign for remaining competitive in the global market.
Among the major challenges, according to the CPD official, an end to the Generalised System of Preference (GSP) in EU countries in the next 5-7 years is also included.
He feared that the proposed New Partnership Development Act (NPDA) for allowing duty-free entry of Bangladeshi products to the US market might not get the US Congress nod because of the latest financial recession, also termed as economic Tsunami.
He asked the manufacturers for ensuring better wages and working atmosphere to workers to gain a better share in the global RMG market.
On the market diversification, Mustafiz said Japan is a US$9billion knitwear market where China's share is more than 70 percent. "We can easily grab the Japanese market as the country produces quality knitwear items," he remarked.
Ghulam Faruk urged the government for playing a pro-active role in maintaining the upward trend of the local RMG market.
"The Securities and Exchange Commission (SEC) should change some of its rules and regulations so that the apparel industries can easily float Initial Public Offerings (IPOs) on the stock market to raise capital for industrialisation," Faruk said.