He noted that this conflict between Iran and Israel poses additional obstacles for various businesses and pointed out that escalating oil prices because of the conflict could have a consequential impact on Bangladesh’s RMG sector.
“The Ira and Israel war brought us new challenges. If oil prices go up, there will be a spillover effect and the RMG sector will not be immune from the danger,” The Business Standard quoted Babu as saying during his inaugural speech at the BGMEA office in Dhaka, Bangladesh.
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Babu’s comments were made public following the handover ceremony of the BGMEA board for the 2025-27 term, which took place at the Noorul Quader Auditorium within the BGMEA complex.
The BGMEA elections, which occurred on 31 May, resulted in a win for Babu’s Forum panel with securing 1,149 votes.
Furthermore, he expressed worries about potential threats to the sector’s competitive edge due to the ongoing war.
“We are going to take charge at a time when our RMG sector is going through critical challenges posed in the national and international circuit. We have to do lots of work to maintain competitiveness in the RMG sector,” Baba said.
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By GlobalDataHe identified several factors influencing the industry performance, including US tariffs, India’s cancellation of transhipment privileges, high interest rates from banks, inflationary pressures, inadequate infrastructure, labour wage hikes, and rising energy costs.
Efforts are underway to negotiate with stakeholders regarding US tariffs to ensure they remain manageable.
In April this year, the Bangladesh Textile Mills Association (BTMA) also approached the US embassy and National Cotton Council of America (NCC) requesting duty-free access for Bangladeshi garments manufactured using US cotton.
The country’s interim leader Muhammad Yunus also urged the US to postpone its 37% tariff on all US-bound goods for three months, in the same month.
“We are working on the US tariff so that the tariff remains tolerable. LDC graduation will pose a new challenge for the RMG sector. With the graduation, we will lose tax benefits, and to overcome the challenge, we will talk with the stakeholders,” Babu added.
Aligning with his electoral commitments, Babu proposed for the creation of a dedicated ministry for the RMG sector.
Additionally, he announced plans to launch a digital platform for BGMEA members to streamline service applications and facilitate complaint submissions concerning association activities.
The Forum panel has committed to reducing service costs by 25% starting 1 July, according to local news publication the Daily Star.
