Iran-Israel war may pose new challenge to RMG sector: BGMEA

The ongoing conflict between Iran and Israel may present a fresh challenge to Bangladesh's readymade garment (RMG) sector, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The tension could drive up the cost of doing business, warned Mahmud Hasan Khan Babu, the platform's newly elected president.

In his inaugural address at the BGMEA office in Dhaka yesterday, Babu said the conflict might trigger a surge in global oil prices, which would, in turn, increase operational expenses for the country's key export-oriented industry.

Babu's panel, Forum, secured victory in the BGMEA election for the 2025–2027 term, held on May 31.

He identified several other pressing challenges facing the garment industry, including reciprocal US tariffs, India's suspension of transshipment facilities for Bangladeshi goods, high inflation, rising wages, elevated bank interest rates, and soaring energy costs.

Babu pledged to work towards overcoming these obstacles. As part of his panel's electoral commitments, he vowed to advocate for the establishment of a dedicated ministry for the garment sector.

Furthermore, his board committed to supporting the recovery and development of small and medium enterprises (SMEs), addressing the impacts of Bangladesh's graduation from the Least Developed Country (LDC) category, and focusing on formulating clear exit policies.

He also announced plans to introduce a digital platform, allowing BGMEA members to apply for various services and lodge complaints regarding the association's operations.

His board further pledged to reduce the cost of BGMEA's services by 25 percent starting from July 1. Babu reaffirmed his commitment to restoring and enhancing the reputation of the country's garment industry.

The BGMEA election was held to fill 35 director posts -- 26 in the Dhaka region and nine in Chattogram.

The Forum panel, led by Mahmud Hasan Khan, secured 31 of the director positions, while the Sammilito Parishad panel won four. Of Forum's victories, 25 were in Dhaka and six in Chattogram. Sammilito Parishad secured one post in Dhaka and three in Chattogram.

Although the previous BGMEA election was held in March last year, then-president SM Mannan Kochi resigned in October following the fall of the Sheikh Hasina-led government in August.

In October, the government appointed Md Anwar Hossain as the BGMEA administrator to oversee the election process.

Anwar Hossain and a number of former BGMEA presidents also spoke at the ceremony.