A clothing manufacturing company, Nagsun Apparel (Fiji) Pte Ltd, has shut down its Ba factory due to rising operational costs and an increasingly competitive market, leading to the loss of jobs for its factory workers after five years in business. The company’s production and sales manager, Shabana Azmin, acknowledged the difficulty of the decision but emphasized that the factory could not sustain fair returns while adapting to a higher national minimum wage.
This move follows broader trends impacting Fiji’s manufacturing sector, which has experienced significant job losses, particularly in the textile and apparel industries. Recent statistics reveal that employment in this sector has decreased from 7,000 to approximately 4,000 since the COVID-19 pandemic hit. Factors contributing to the downturn include the allure of cheaper imported goods from countries like Bangladesh and China, where production costs are lower, leading local retailers to favor these options over locally made products.
Azmin stated the formidable challenges posed by competition forced Nagsun Apparel to reconsider its ability to remain viable in Fiji. The operational costs escalated not only due to wage increases but also due to the competitive pricing of imported garments, which have a significantly lower tax burden despite existing import duties in Fiji.
Moreover, this closure reflects a concerning trend within the wider manufacturing landscape in Fiji, which has seen notable factories like Performance Flotation Developments and Vonu Apparel also shutter their operations recently. The president of the Textile, Clothing, and Footwear Council has warned that without significant reforms and support, the sector may face further collapses.
Trade Minister Manoa Kamikamica is reportedly engaged in discussions regarding these challenges, with calls for innovative approaches and investments to reinvigorate the local manufacturing industry and restore competitiveness. The situation underscores an urgent need for action to ensure the sustainability of the sector and stave off further job losses as Fijian manufacturers navigate these turbulent times.
This reflects a critical moment for Fiji’s economy, with hope still lingering for strategic changes that can foster resilience and potential growth in the manufacturing sector, thereby creating new employment opportunities in the future.
Leave a comment