Brace for job losses: Wanarajan

Energy tariffs play a crucial role in determining the cost structure and competitiveness of the textile, clothing, and footwear industry in Fiji.

Since the industry relied heavily on electricity for whole production processes such as cutting, sewing, and finishing, any change in energy tariffs can have widespread economic and operational effects.

The Textile, Clothing and Footwear (TCF) Council has outlined 12 areas that would be affected by the increase in energy tariff.

Cost of production

Council president Imbamalar Wanarajan said energy was a major input in textile and garment manufacturing,

Machines such as sewing machines, industrial irons, boilers, dryers, and lighting systems require continuous electricity.

An increase in energy tariffs directly raises production costs for firms, she said.

"Higher operational expenses make it harder for local manufacturers to sustain their operations," Ms Wanarajan said.

"Fiji, as a sports oriented country, has a growing sports garment manufacturing sector.

"This industry relies heavily on sublimation printing, a process that consumes significant amounts of electricity. As a result, manufacturers and operators will be severely affected by any increase in energy tariffs."

Pricing and competitiveness

When production costs increase due to higher energy tariffs, manufacturers may be forced to increase the prices of their products.

"This reduces competitiveness in both domestic and international markets," Ms Wanarajan said.

"Fiji's textile and garment producers compete with countries such as Bangladesh, Vietnam, and China, where energy costs are relatively lower.

"Higher prices can lead to reduced demand, loss of export orders, and decreased market share."

Investment and expansion decisions

High energy tariffs can discourage both local and foreign investors.

"Investors consider operational costs when deciding where to locate or expand production facilities," Ms Wanarajan said.

"Increased energy costs may cause firms to delay expansion plans, reduce production capacity, or relocate to countries with cheaper energy.

"This limits industry growth and reduces the inflow of foreign direct investment into Fiji."

Operational efficiency and technological up-grades

In response to higher energy tariffs, firms may seek to improve operational efficiency.

This can involve investing in energy-efficient machinery, renewable energy sources such as solar power, or better production management systems, Ms Wanarajan said.

"Although these measures require significant upfront investment, they can reduce long-term energy consumption and operating costs, improving sustainability and efficiency," she said.

Employment and labour impact

The textile, clothing and footwear industry is labour-intensive and provides employment for a large number of workers in Fiji.

"Rising energy costs may force firms to cut costs by reducing their workforce," Ms Wanarajan said.

"In extreme cases, factories may close down, leading to job losses and increased unemployment, which can negatively affect household incomes and social stability.

Overall industry growth and sustainability

The proposed energy tariff changes necessitate careful strategic planning to minimise the negative impact on Fiji's textile, clothing, and footwear industry.

"The sector is already under significant pressure from declining exports, rising costs, and structural challenges, and further in-creases in energy tariffs risk worsening an already fragile situation," Ms Wanarajan said.

Industry performance

Export earnings from the textile and garment sector declined steadily in recent years.

According to Reserve Bank of Fiji:

• Garment exports in 2023 were valued at F J$83.5 million;
• In 2024, garment, exports were valued at $66.4 million; and,
• From January to September 2025, total ex-ports fell to $50.8 million.

"This downward trend reflects reduced global competitiveness, rising production costs, and ongoing factory closures," Ms Wanarajan said.

"Employment in the sector has dropped sharply, from approximately 7000 workers to fewer than 4000, highlighting the social and economic consequences of industry contraction."

Skilled labour shortages

The industry continues to face serious challenges in retaining skilled machinists and technicians.

Migration and competition from other domestic sectors have reduced the available talent pool, increasing training costs and limiting productivity improvements.

Absenteeism

Absenteeism remains a persistent challenge within the industry, particularly on Mondays.

High absentee rates reduce operational efficiency, disrupt production schedules, and increase pressure on available workers, Ms Wanarajan said.

"This further affects productivity and cost competitiveness, especially in an environment of rising operational expenses," she said.

Access to raw materials

Fiji remains heavily dependent on imported raw materials, including fabrics, dyes, trims, and accessories.

Long procurement lead times, high freight charges, and supply chain disruptions in-crease production costs and reduce the ability of manufacturers to respond quickly to market demands.

Constraints

High freight costs and limited shipping schedules continue to affect delivery time-lines and export reliability.

These logistics challenges undermine Fiji's competitiveness in international markets, where buyers demand timely and consistent supply, Ms Wanarajan said.

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