TCF Council urges new export incentives in National Budget

The Textile, Clothing and Footwear (TCF) Council of Fiji is urging Government to replace the Export Income Deduction with European Union (EU)-compliant incentives in tomorrow's 2026-2027 National Budget.

TCF Council president Inbamalar Wanarajan said removing the deduction without a suitable replacement could threaten jobs and discourage investment in the industry, which employs fewer than 4000 workers, 80 to 90 per cent of them women.

Investment incentives sought

The council is seeking investment incentives for modern machinery and automation, duty concessions on raw materials, freight and training support, and employment-based tax credits.

“The TCF industry has the potential to create more jobs, generate additional export earnings and contribute further to economic growth,” Ms Wanarajan said.

“With the right policy support and a stable business environment, the sector can continue to attract investment.”

The council said export earnings had fallen from $94.8 million in 2019 to $66.4m in 2024. However, a recovery to $76.1m in 2025 offered some optimism.

Rising fuel, labour, freight and raw material costs continue to place pressure on the industry’s 26 manufacturing facilities nationwide.

Ms Wanarajan said delays in receiving raw materials remained a challenge, with some shipments taking up to two months to arrive.

Labour shortages, absenteeism and the migration of workers overseas were also major concerns, increasing training costs for manufacturers.

Despite these challenges, Ms Wanarajan said the outlook remained cautiously optimistic, supported by stable demand from Australia and New Zealand and growing global interest in ethically and sustainably produced garments.

She said this was an area where Fiji could differentiate itself from competitors.