The Bangladesh Government has been urged to offer additional 5 per cent incentive for the readymade garments sector in the upcoming budget for fiscal 2019-20 for next three years.

Apparel exporters already enjoy up to 12 per cent cash incentive. The suggestion came at a recent Dhaka Chamber of Commerce and Industry (DCCI) conclave on the sector’s sustainability.

Stakeholder also recommended re-skilling initiatives to improve workforce efficiency and investment in new technologies to upgrade functionally and raise production, according to a news agency report.

The sustainability and competitiveness of RMG industry may be affected due to rising production cost driven by a wage hike, energy cost hike, compliance cost and declining international market price, said DCCI president Osama Taseer.

He said 1,200 factories had closed down over the last four years due to failing compliance standards.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq said the sector needs government support to sustain.

Published On : 06-05-2019

Source : Fibre 2 Fashion