At least 258 export-oriented ready-made garment (RMG) factories have closed across Bangladesh over the past year, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu.
Speaking at an emergency press conference at the BGMEA headquarters in Uttara on Tuesday, Babu said the closures came amid persistent labour unrest and rising production costs, while recent government decisions could further destabilize the sector.
He warned that the advisory council’s latest decision allowing trade unions with only 20 workers could severely disrupt production in the country’s largest export industry.
“Even minor agitation could spread quickly from one industrial zone to another, putting immense pressure on factory operations,” Babu said.
The BGMEA, along with other business associations like the BKMEA, expressed deep concern over the decision, noting that many entrepreneurs are still struggling to recover from last year’s unrest that began in August.
On the issue of Bangladesh’s upcoming graduation from Least Developed Country (LDC) status, Babu cautioned that the transition could hurt exports and investments if not backed by stable energy supply and a business-friendly environment. “If LDC graduation happens before ensuring these fundamentals, we risk losing our competitive edge,” he said.
Criticising the Bangladesh Labour (Amendment) Ordinance 2025, the BGMEA president said the new law could discourage foreign investment and create volatility in the industrial sector. “It will weaken the overall economy and hurt export performance,” he warned.
He also slammed the Chattogram Port Authority’s decision to raise port charges by 41%, calling it “irrational and disastrous” given the port’s limited capacity. “Without enhancing efficiency, a sudden 41% hike in fees will disrupt export operations,” he said.
Babu further argued that introducing two simultaneous schemes – a future fund for workers’ welfare and a universal pension plan would create administrative complications, increase factory expenses, and lead to mismanagement in fund operations.
Urging policymakers to consult industry leaders before making major policy changes, he said, “Pro-industry decisions can only come through discussion. Ignoring local entrepreneurs and prioritizing foreign advice will inevitably damage our export trade and the chief adviser must take responsibility for that.”
