With most manufacturers shutting shops, workers leaving for better opportunities abroad, government introducing a 3 per cent duty on raw materials and other factors, Fiji expects its textile and clothing (T&C) exports to drop by 25 per cent in 2024. 

As per Inbamalar Wanarajan, President, Textile Clothing and Footwear (TCF) Council, factors including a continuous increase in the cost of doing business, increase in minimum wages, contribution to Fiji National Provident Fund, replacement of migrant workers with newcomers and the imposition of 3 per cent duty on raw materials, are likely to lead to a 25 per cent drop in Fiji’s T&C exports in in 2024. 

Already, employment in the sector has declined from 7,000 workers to less than 4,000 workers. TCF Council members have also decreased from 50 to less than 30, she adds. 

To revive the industry, the government needs to discuss issues related to national minimum wage rate, duties policies, etc, Wanarajan says. 

She recommends the linking of national minimum wage rate increases to increase in productivity. The government should also introduce new policies in the area of duty relief and retention of skilled labors, she adds. 

Wanarajan also advises the government to import labor from other countries to meet deadlines and serve current customers appropriately. Government must initiate discussions with the US on possible return of trade agreement deals, she adds. 

Another of Wanarajan’s recommendations includes removal of 3 per cent duty on raw materials to protect the industry from deteriorating.