STAR BUSINESS REPORT

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