Small and medium-sized garment enterprises in Bangladesh are struggling

According to a report by Bangladesh’s “Independent” on February 11, many small and medium-sized garment companies in Bangladesh have lost orders and suspended production or closed completely due to their inability to meet compliance requirements. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that due to rising operating costs, about 75 garment companies, mainly small and medium-sized enterprises, suspended production last year. In the past four years, 1,200 businesses have closed and more than 50,000 workers have lost their jobs. The minimum wage in Bangladesh’s garment industry was raised to Taka 8,300 per month in January this year, and to Taka 5,300 in December 2018. Small and medium-sized garment companies are unable to pay the increased wages.