FTA may boost Bangladesh’s growth in Singapore garment

Singapore and Bangladesh are set to sign a free trade agreement (FTA), which is expected to boost Bangladesh’s penetration in Singapore’s garment market. Bangladesh is one of the world’s leading garment exporters, yet Singapore’s imports from the country have nearly halved in the first seven months of the current year. The agreement comes at a crucial time for Bangladesh, which has been grappling with declining orders from several markets amid global economic slowdown and higher production costs. Singapore imported apparel worth $45.982 million from Bangladesh during January–July 2025, a sharp 46.12 per cent decline compared to $85.350 million in the same period last year, according to sourcing intelligence tool TexPro. This steep drop reflects subdued demand, possible diversion of sourcing to competing countries like Vietnam and Indonesia, and a broader contraction in Singapore’s apparel imports. Bangladesh has not only lost market share but also slipped in its ranking among Singapore’s largest garment suppliers. Its share dropped to 4.04 per cent in the first seven months of 2025 from 6.79 per cent a year earlier, and its ranking fell from fourth to sixth position. Such a fall could pressure Bangladesh’s export earnings and highlights the urgency for preferential trade access through the FTA. Singapore’s total apparel imports stood at $1,137.537 million during January–July 2025, down 9.54 per cent from $1,157.556 million in the corresponding period last year. This contraction signals soft retail demand in Singapore, potentially influenced by cautious consumer spending and slower economic growth in the city-state. Historically, Singapore’s imports from Bangladesh have been volatile. In 2022, imports were valued at $160.218 million, representing 6.86 per cent of total apparel imports, making Bangladesh the fifth-largest supplier after China, Italy, Indonesia, and Vietnam. Imports dropped disproportionately in 2023 to $105.156 million, and Bangladesh’s ranking slipped to sixth position. Singapore’s overall apparel imports also fell slightly to $2,292.241 million in 2023 from $2,335.816 million in 2022, as per TexPro. In 2024, Bangladesh’s exports to Singapore recovered, reaching $145.808 million, with a market share of 6.54 per cent and a ranking of fourth among suppliers. Singapore’s total apparel imports for that year amounted to $2,230.806 million. Bangladesh’s share of Singapore’s apparel market has fluctuated between 4 per cent and 7 per cent over the last four years.