‘I have bargaining power to gain policy support for RMG sector’

The readymade garment sector is seeking policy support as the country which is set to graduate from the LDC status in 2026 will face many challenges after graduation. I believe that I have enough capacity to lobby the government to gain policy support. If elected as BGMEA president, one of my priorities will be product and market diversification as well as maintaining the sustainable export growth, SM Mannan Kochi, Sammilito Parishad panel leader and presidential candidate for the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) polls slated for March 9, said in an interview with The Business Post’s Arifur Rahaman Tuhin

After Tipu Munshi, you are the first presidential candidate who is contesting the BGMEA polls. Why did you decide to be a panel leader while you are already holding a political post?

Well. Although I am a politician, I have been directly involved with BGMEA for nearly two decades. Besides, a good number of former BGMEA presidents involved in politics had served as ministers, members of parliament and city mayors. Politics and business are interrelated as businesses need policy support and the government needs economic development and employment. Earlier, I helped BGMEA, even when my rival panel was in power.

Thanks to the strong leadership of Prime Minister Sheikh Hasina, Bangladesh will graduate from the LDC status in 2026, and to take preparations to overcome the post-LDC challenges, policy support is top priority there. My panel keeps faith in me to address the upcoming challenges and has nominated me as a panel leader.

You have already been on the existing BGMEA board as a senior vice president for the last three years. What is your observation about the RMG sector’s ongoing situation?

When we took charge on April 12, 2021, the Covid-19 pandemic not only hit the world but also our exports. When we were trying to overcome the challenge, Russia-Ukraine war started which severely impacted the global economy. We started to lose orders, and witnessed negative export earnings growth. The crisis is still continuing. Thanks to our apparel diplomacy, we have been receiving a good number of orders from non-traditional markets. That is why the ongoing situation is better than before. But we have enough opportunity to increase our exports to non-traditional markets where we are doing well. Our existing board has been working on the market, and I will continue my efforts if my members elect me. I believe that non-traditional markets would be like western markets if we work properly.

However, RMG makers are still going through a tough time, and amid the situation, we implemented a new wage structure in December last year. On the other hand, the central bank reduced the cash incentive rate and increased bank interest while LDC graduation is at hand. Besides, exporters have alleged that customs and NBR officials are harassing them, creating barriers to smooth business.

I believe that next 3-4 years are most important for us as well as Bangladesh and we need a combined work between the government and businesses. The government must continue cash incentives, reduce source tax to 0.5 per cent, fix special interest rates for export-oriented sectors and ensure uninterrupted gas and energy supply.

Harassment of businesspeople by customs and NBR officials is a long-standing issue, and almost all previous BGMEA presidents raised voice against them. On the other hand, customs and NBR officials claimed that this was a false allegation. What is your observation on the issue and what policy you will adopt to solve this?

First, NBR and customs officials never challenged our allegation. They always recommended submitting proof, and we did. Action has been taken, but it is not enough. Businesses help create employments and drive the country’s economic wheel. We are always ready to pay the government. We do not deny that there are some misuses of bond licence. But what many customs officials are doing? They seize a consignment for inspection and take up to three-four weeks to give clearance. To avoid the hassle, businesses are forced to pay speed money. In this case, it is not beneficial either for the government or the businesses. I will work on this area. Besides, I will work with the government to ease consignment release from the port. There are many issues with HS Code and I will try to resolve this.

Your rival panel have claimed that BGMEA members are facing a bureaucratic tangle. What’s your remark on the allegation?

This is a totally false allegation. They are also on the board and never talk about this. I think this is a part of propaganda. We live in Digital Bangladesh, and if anything happens there, somebody raises voice over the issue. Many journalists regularly visit BGMEA for their professional purposes. Has anyone made any report on this allegation? Rather, members can come to us anytime to get service.

Most of the office bearers and directors spend their valuable time at BGMEA to serve members. When we hear that any member is in trouble, we try our best to stand by him. Sammilito Parishad is member-friendly and that is why BGMEA president was elected mostly from our panel. I want to make BGMEA a partnership based and launch a hotline.

Why do you believe that members will elect you as president?

A group of experienced and fresh blood is on our panel. Members know us very well. They also know who is capable of serving their purposes. We have worked a lot for the last three years, and members have rewarded this.