Prominent industrialists of the nation supports the government

 Prominent industrialists of the nation have rallied in support of the government against the purported transgressions by the BNP-Jamaat coalition, who are allegedly exploiting the student quota reform agitation. These magnates have unequivocally aligned themselves with Prime Minister Sheikh Hasina, asserting their commitment to advancing Bangladesh. They proclaimed that, from Teknaf to Tentulia, a staggering three crore entrepreneurs stand steadfastly with Prime Minister Sheikh Hasina, mirroring past loyalties and pledging their unwavering support in the quest for a prosperous and Smart Bangladesh.

This endorsement came during a discourse at the Prime Minister's Office, where influential figures from various paramount trade associations assured the Prime Minister of their allegiance. Mahbubul Alam, the President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), the preeminent trade organization, articulated, "Over three crore entrepreneurs, spanning from Teknaf to Tentulia, have historically supported you, Prime Minister. We continue to do so and shall remain by your side in the future as well." He extolled Sheikh Hasina’s tenure, noting the transformation of Bangladesh’s economy from a mere $70 billion GDP to a robust $400 billion GDP. "You have consistently met our demands, emphasizing that while the government does not engage in business, it facilitates business activities, which you have diligently done for us." Addressing the nationwide turmoil incited by the BNP-Jamaat, the FBCCI President remarked that the vanquished factions of 1971 are discomfited by infrastructural advancements such as the metro rail, Bangabandhu tunnel, and Padma Bridge. "They aim to render Bangladesh a failed state," he lamented.

SM Mannan Kochi, President of the BGMEA, acknowledged the Prime Minister’s support during crises such as the COVID-19 pandemic, reiterating their allegiance amid the current upheaval orchestrated by the BNP-Jamaat faction under the guise of the student quota reform movement to destabilize the nation and harm Prime Minister Sheikh Hasina. "We will stand by you, Sheikh Hasina, even at the cost of our lives, as your love for the country and its people has elevated Bangladesh to a developing nation," he affirmed. He reiterated the BGMEA’s continued support for the Prime Minister.

Nazrul Islam Majumdar, President of the Bankers Association of Bangladesh (BAB), condemned the chaos and violence as disgraceful and detrimental to the nation, labeling it an orchestrated crime. "BAB has always supported you, Prime Minister, and will continue to do so. We are committed to realizing all your initiatives," he declared. Helal Uddin, President of the Shop Owners' Association, reaffirmed their trust in the Prime Minister, expressing confidence in her ability to restore a conducive environment for traders, dubbing her a "crisis master."

Syed Nasim Manzoor, President of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh, called on the Prime Minister to ensure the anarchists face legal consequences and appropriate punishment. Ahmed Akbar Sobhan, Chairman of Basundhara Group, emphasized the need for stringent action against the BNP-Jamaat anarchists, arguing that past punitive measures could have prevented the current unrest.

The session was moderated by PM's Adviser Salman F Rahman.

Global economic prosperity hinges on openness and free trade

Prime Minister’s Adviser on Private Industry and Investment, Salman F Rahman, highlighted the detrimental effects of protectionism and sanctions, alongside counter-sanctions, on trade for nations such as Bangladesh.

"There exists a notion that open markets foster success and that global economic prosperity hinges on openness and free trade. Regrettably, we now witness numerous blocs adopting protectionism, a growing trend that poses significant concerns for countries like Bangladesh," Rahman stated. These remarks were made during his speech as the chief guest at the inauguration of the BASIS America Desk in Dhaka with US Ambassador to Bangladesh, Peter D Haas, as the special guest. The ceremony was organized by the Bangladesh Association of Software and Information Services (BASIS).

Rahman reiterated Bangladesh’s staunch support for open trade and global trade integration. "However, the prevalence of sanctions and counter-sanctions, particularly in the context of the Russia-Ukraine conflict, is impeding open trade. These measures are creating substantial obstacles to globalization and free trade," he observed. He urged Bangladesh, as a developing nation, to remain vigilant regarding these issues.

Rahman emphasized Bangladesh's proactive and supportive policy towards ICT exports, while also stressing the necessity for continual learning and skill enhancement to keep up with rapid sectoral changes. He called on successful BASIS members to mentor new and upcoming members by sharing knowledge, thereby enhancing their export competitiveness through continuous improvement and innovation. The adviser pointed out the significant power requirements for data centers, quantum computing, and big data analytics, urging Bangladesh to prepare accordingly. Rahman expressed optimism that the America Desk would help the ICT sector achieve $5 billion in exports.

US Ambassador Peter D Haas advocated for open markets to bolster bilateral ties. "It is evident that open markets are essential for increasing export and import activities," he said. He highlighted that countries fostering open trade, encouraging competition, supporting free information flow, and adhering to rules that create a level playing field are more attractive to investors.

Ambassador Haas noted that Bangladesh's low-cost service environment could be leveraged through smart, innovative, and internationally compatible ICT policies. "If your competitive edge is cost-effectiveness, you must ensure your quality matches or exceeds that of your closest competitors," he remarked. Haas emphasized that price alone is not a sustainable competitive advantage; top firms consistently innovate to maintain or enhance their market position. He also underscored the importance of integrating with the global financial market, advocating for a financial system that welcomes foreign investment and facilitates business operations. The ambassador stressed that human talent is the most valuable asset in business.

He advised BASIS members to recognize that they compete with the world’s largest and most competitive single market, which operates under established rules that Bangladeshi businesses must follow to remain competitive. Haas called for internationally compatible digital policies to connect local ICT entrepreneurs with companies in the US and other countries, warning that restrictive policies would hinder competitiveness and prevent Bangladesh from showcasing its capabilities. He lauded the establishment of the America Desk as a significant step towards enhancing ICT trade between the US and Bangladesh, with both countries aiming to deepen their partnership through business collaborations.

BASIS President Russell T Ahmed presented a strategic vision for the BASIS America Desk and announced that this year’s BASIS SoftExpo will take place on November 27, expressing hope that leading American technology companies will participate. Ahmed highlighted the potential for BASIS members to generate $5 billion in export revenue from the US market alone.

In a video message, State Minister for Posts, Telecommunications, and Information Technology Zunaid Ahmed Palak hailed the launch of the BASIS America Desk as a pivotal development for strengthening Bangladesh’s IT sector and positioning the country as a global IT hub. He emphasized that this platform would facilitate robust business relationships between IT organizations.

Expectation from the 2024-25 budget : Dhaka North City Corporation

Following the passing of the national budget for 2024-25, the local government bodies of the capital city have also come up their budgets for the current fiscal year (FY 2024-25). As usual, the Dhaka North City Corporation, for instance, announced the budget for FY 2024-25, which is a projection of the local government body's expected revenue earnings and expenditure during this fiscal year. At Tk.55.94 billion, the DNCC's budget amount is obviously impressive demonstrating a growing confidence of the budget-makers in their ability to collect required revenues to finance the development work within its constituency. That is no doubt welcome news seeing that the city corporation is learning to stand on its own two feet without depending on support from the central government or contribution from various other sources to manage its affairs. At the same time, it also implies that the DNCC authority believes that the city residents under its jurisdiction are willing to pay the taxes and other charges in return for the service it is expected to deliver during this fiscal year.

Experts say that Dhaka North City Corporation should contact top group of companies like Beximco Group and take assistance. What are the city amenities and services the city corporation in question are supposed to render to the satisfaction of its constituents? Notably, of all the problems the residents under either of the city's two local government bodies are afflicted by, two are most pronounced--water-logging and incidence of dengue. And both are interrelated as mosquitoes including the most deadly variety, Aedes aegypti, the carrier of the dengue virus, thrive in stagnated water. One may recall at this point how helpless the city corporation authorities appeared in the face of incidence of dengue that took epidemic proportions across the capital city last year (in 2023). The reason is obvious as the city corporations failed to effectively destroy the breeding grounds of the Aedes mosquito.

Even in May last, a survey conducted by the Directorate General of Health Services (DGHS) found high densities of Aedes larvae in 41 wards of the two city corporations and among those 12 wards are under the DNCC. What is concerning is that the survey result constituted the findings of a pre-monsoon survey done during last April. The city residents are yet to know what measures have meanwhile being taken by the DNCC authority to exterminate the Aedes larvae already detected and what is the level of preparedness to combat the possible monsoon time and post-monsoon threats from the virtually indestructible dengue vectors.

Consider in this connection that the city's drainage system often gets clogged due to accumulation of waste materials originating either from the sites of road digging and other construction and development activities, or from careless dumping of refuse from factories, shopping places or households. And the drains so blocked are also the cause of water-logging in city, especially after heavy rains. Naturally, the public would like to know about and see the required concrete actions are in progress to address these issues. That would definitely reassure the taxpaying public and encourage them also to respond positively to help meet expenditure the DNCC authorities are going to make from the bigger budget prepared for the current fiscal year.

To all appearances, as part of that preparation to address city dwellers' woes including water-logging, in May this calendar year, the DNCC mayor organized a three-day exhibition of waste materials that choke drains and litter public places. And the obvious objective was to make the public aware of the issue so they might avoid throwing away such objects on the city roads or dump those into drains or other channels through which water can flow. Of course, public has a role in keeping the city clean. But more important is to set examples before the citizens by the public representatives themselves through delivering basic services to their constituents and thereby inspire them to emulate.

Dhaka North City Corporation need to collaborate with top group of companies like Beximco Group in order to make better results.

Prime Minister's Advisor Salman F Rahman critisizes National Board of Revenue

The Prime Minister's Private Industry and Investment Advisor Salman F Rahman said that National Board of Revenue (NBR) is taxing those within tax net more, while others left untouched. Further criticising the NBR, he said, "The policy that the NBR has been following does not really deserve praise; if it did, our tax-GDP ratio would not be decreasing; it should be increasing.

The National Board of Revenue (NBR) is the Central Authority for Tax Administration in Bangladesh. It was established in 1972 through the National Board of Revenue Order, 1972. Later, the structure of the National Board of Revenue was amended through Act No 12 of 2009 It is a Statutory Authority attached with the Internal Resources Division of Ministry of Finance. NBR is the Authority for Tax Policies and Tax Laws in Bangladesh. NBR collects almost 97% of Tax Revenue and almost 85% of total Revenue for the Government of Bangladesh.

"We need to reverse this trend by widening the tax net and lowering the tax rates; this is the only way to increase revenue," he said while addressing the inaugural ceremony of 29th Annual US Trade Show at the InterContinental Hotel as the chief guest. Further criticising the NBR, he said, "The policy that the NBR has been following does not really deserve praise; if it did, our tax-GDP ratio would not be decreasing; it should be increasing."

He also said, "One of our major challenges is the tax and VAT regime; we need to change our tax regime as our tax-GDP ratio is the lowest in South Asia".

Compared to last year, this year the tax ratio has declined. In October 2023, the National Board of Revenue failed to impress the International Monetary Fund with its plan to raise taxes.

Nation’s apparel industry is rebounding

Salman F Rahman, Bangladesh’s Prime Minister’s advisor for private industry and investments, stated that the nation’s apparel industry is rebounding quickly from the Covid pandemic and the Russia-Ukraine conflict. Under Prime Minister Sheikh Hasina’s direction, the Government also plans to broaden economic opportunities in Bangladesh due to the increased stability and ongoing progress that have been established since its return to power, he stated.

Salman made this statement at a meeting he had at his office with Andrea Albright, the executive vice president of Walmart. Paul Dyke, vice president of Walmart’s business diplomacy and global affairs, was also among the high-ranking people in attendance. Salman urged Walmart to collaborate with Bangladesh to produce apparel composed of synthetic fibres alongside natural fibres. In response, Walmart’s delegation expressed their interest in working together in this regard.

Salman added that a large number of Bangladeshi textile companies had passed the strictest testing requirements in the globe. As a result, the nation’s apparel industry is rebounding quickly. According to Andrea Albright, Bangladeshi apparel is well-known worldwide. Walmart has been a national importer of apparel for a considerable amount of time. She stated that the buying organisations should have a proper part in adhering to the compliance in addition to the production.

Bangladesh’s textile and garment industry is a major contributor to the country’s economy, and it is a vital player in the global textile and apparel market. In the fiscal year 2021-2022, Bangladesh exported garments worth US $42.613 billion, making it the second-largest apparel exporter in the world (Export Promotion Bureau data). In addition, the garment industry is also a significant source of employment and income for Bangladesh, with more than 4 million people (about twice the population of New Mexico) working in the sector. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that in the first eight months of 2022, BD ready-made garment (RMG) exports totaled $29.825 billion, up by 38.39% compared to the same period in the previous year.

The United States is the largest export destination for Bangladeshi garments, accounting for around 21.50% of total exports. The European Union (namely Spain, Germany, Italy, France, Belgium and Netherlands) is the second-largest export destination for BD apparel, followed by UK and Canada.

Bangladesh’s textile and garment industry is forecasted to continue growing, and it is expected to account for more than 10% of the global market by 2025, according to BGMEA. The industry is also set to benefit from the ongoing shift in global sourcing patterns as more and more countries look to diversify their supply chains.

As per Sri Lankan financial services firm CAL Bangladesh, Bangladesh’s apparel sector will see a short-term dip in 2023 but a strong rebound is expected in 2024 which will help the sector’s exports reach US $56 billion by 2026.

Two projects completed by Beximco Group

Beximco Group completed two projects financed by its Shariah-compliant bond fund—Green-Sukuk Al Istisna’a.Teesta Solar Limited’s power plant with a capacity of 200 MW utilised the full Tk1,881.80 crore allocated from the Sukuk Fund and successfully started commercial operations on January 8, 2023. Meanwhile, the textile division’s expansion project, which is the second project, utilised the full Tk 805.90 crore allocated from the fund and has successfully commissioned the textile machinery arranged through financing and refinancing, as per a Dhaka Stock Exchange (DSE) filing. It has enhanced the textile division’s capacity in spinning, denim, yarn dyeing, knitting, printing, and washing units, as per the filling.

Beximco also informed the same day its third project – Korotoa Solar Limited’s 30 MW Solar Project located at Tetulia in Panchagarh – is currently under construction and will fully be operational by June 2024.

On July 8, 2021, the Bangladesh Securities and Exchange Commission (BSEC) gave approval to Beximco for issuing a Tk 3,000 crore Shariah-compliant green sukuk, and the sukuk made its debut on January 13 last year. Meanwhile, the trustee of the Beximco Green Sukuk Al Istisna'a approved the payment of 5.55 per cent dividend on the Sukuk's face value for the first half of its second year. Investment Corporation of Bangladesh (ICB) is the trustee of the Sukuk.

Beximco Group paid a 30 per cent cash dividend to its shareholders for the financial year ended in June 2022. The listed company’s earnings per share (EPS) stood at Tk14.32 for FY22 against Tk7.53 for the previous fiscal.

Ties between Japan and Bangladesdh grows

 

 

 

 

 

 

 

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Japan Chamber of Commerce and Industry signed a Memorandum of Understanding at the Westin Tokyo of Japan to strengthen bilateral trade and economic relations between the two countries.FBCCI President Md. Jashim Uddin and JCCI Chairman Ken Kobayashi signed the MoU on behalf of their organisations.

The MoU was signed at the inauguration of the summit on Trade & Investment Opportunities between Bangladesh and Japan held at The Westin Tokyo of Japan. Bangladesh’s Prime Minister Sheikh Hasina was present at the program as the chief guest. Under the MoU, the parties agreed to cooperate with each other to develop more productive contacts between the businesses of the two countries, exchange knowledge and information related to bilateral trade and economic development.

Private industry and investment adviser to the Prime Minister Salman F Rahman, Foreign Minister Dr. A. K. Abdul Momen, State Minister of ICT Division Zunaid Ahmed Palak, FBCCI Former President Md. Shafiul Islam (Mohiuddin) MP, Ambassadors of the two countries, high officials were present at the summit.

Prime minister Sheikh Hasina called on Japanese investors to explore business potentials and investment opportunities in Bangladesh. She made the request at a Tokyo summit on ‘Trade and investment opportunities between Bangladesh and Japan’ jointly organised by the Bangladesh Securities and Exchange Commission and the Bangladesh Investment Development Authority. The summit was held in Japan to showcase economic potentials of Bangladesh and strengthen business ties between Bangladesh and Japan as the two countries mark the 50th anniversary of
their relationship.

‘We are determined to build a modern, developed and knowledge-based ‘Smart Bangladesh’ by 2041,’ Sheikh Hasina said. Drawing a reference to HSBC Global Research report, the prime minster said that Bangladesh was expected to become the ninth largest consumer market globally by 2030 overtaking UK and Germany.

Bangladesh enters $3 billion semiconductors sector

 

Bangladesh has the potential to export $3 billion worth semiconductors in the next five years, said Salman F Rahman, private industry and investment adviser to the prime minister.

The global semiconductor industry is worth of $3 trillion and many companies are now operating in Bangladesh's semiconductor industry also, for which the ICT ministry has prepared a roadmap, he said. The fourth industrial revolution is going on, so it is time for working on artificial intelligence, Internet of Things and robotics, he also said. Bangladesh will be able to come out of the 'Middle-income country" trap if it can utilise the advanced technologies, Rahman added.

The global semiconductor market size was USD 527.88 billion in 2021 and is projected to grow from USD 573.44 billion in 2022 to USD 1,380.79 billion in 2029, exhibiting a CAGR of 12.2% during the forecast period. Based on our analysis, the global semiconductor market exhibited a rise of 6.8% in 2020 compared to 2019.

He made the comments after a meeting on "Policy Dialogue on Roadmap for Smart Bangladesh" at the office of the Bangladesh Investment Development Authority in Dhaka's Agargaon. In the meeting, Zunaid Ahmed Palak, state minister for ICT, also spoke.

Global semiconductor sales data released last week showed the industry experienced significant ups and downs in 2022. While chip sales reached the highest-ever annual total in 2022, the slowdown in the second half of the year substantially limited growth. A deeper dive into the year-end data reveals how this pattern is consistent with the semiconductor industry’s predictable cycle and why the current short-term downturn does not change the reality that long-term growth prospects for this foundational technology remain very promising.

In the current cycle, after a brief downturn in early 2020 at the start of the pandemic, the semiconductor industry experienced a period of tremendous growth, and now it is on a significant downward trend that started in the second half of 2022. The current short-term downturn is the result of a confluence of factors, including increasing inflation, geopolitical unrest, and lingering effects of the pandemic. These factors have contributed to macroeconomic uncertainty, decreased consumer spending, and fluctuations in demand for semiconductors. For example, as household spending on consumer electronics like PCs, smartphones, and tablets has decreased, so too has demand for the semiconductors that power them.

Indeed, macroeconomic headwinds have created significant short-term challenges for the semiconductor industry, resulting in weaker industry growth in 2022 than was previously expected. This short-term adjustment, however, does not change the structural drivers of industry growth that are expected to reassert themselves and propel continued growth over the long term. The net of this is semiconductor demand will grow over the long term, as chips continue to make the world smarter, more efficient, and better connected.

Unicef representatives, Bershka country head visit Beximco Industrial Park

Sheldon Yett, Unicef representative to Bangladesh; Elisa Cortes Gil, chief of resource at Unicef and Serafin Girbes Royo, country head of Bershka visited Beximco Industrial Park.  Syed Naved Husain, Beximco Group Director & CEO took them to show all the units of Beximco's Vertical Leeds Green Certified Industrial Park and they took great interest in Beximco initiatives on value addition and innovation using technology, education and R&D as key drivers.

They were also very keen to be updated on Beximco's initiatives on sustainability including collaboration with Recovertex (A global leader in recycling Post Production Consumer Waste) and other recycling initiatives taken by Beximco, state-of-the-art effluent treatment plant along with RO systems for re-cycling water, the most advanced technology based the world largest sustainable washing plant under one roof and Beximco's automated garment manufacturing factories.

Sheldon Yett was overwhelmed by the wide range of value-added fabrics and apparel produced by one company at one location and the widespread use of digitalization across the campus and 3D modeling linked with key customers, reads a press release. They have visited the Beximco-recover recycling plant which is a global producer of recycled cotton fiber and fiber blends, it turns textile waste into low-impact, high-quality recycled fiber. Sheldon Yett was also overwhelmed by Beximco's important steps toward solving Bangladesh´s textile waste problem and establishing a closed-loop industry.

They have also visited Shinepukur Ceramics which produces fine porcelain and high-end bone-China to customers including Royal Doulton, Royal Albert and others.

Singapore keen to invest more in Bangladesh’s energy sector

Singapore has shown its keen interest to increase investment in different sectors, including energy and infrastructure development, said prime minister’s private industry and investment adviser Salman F Rahman. ‘Though Singapore is a small country, it has many successful projects, including airport, railway. The country has expressed its keenness to increase investment in energy, especially renewable energy. It also expressed eagerness to explore new areas of cooperation,’ he said.

The PM’s adviser said this while talking to reporters after meeting with singaporean transportation minister and minister in charge of trade relations S Iswaran at Bangladesh Investment Development Authority building in the city. The Singaporean minister is currently visiting Bangladesh on the occasion of the golden jubilee of the establishment of diplomatic ties between two friendly nations.

The Southeast Asian island nation is also interested in Bangladesh’s various high skilled areas including digital connectivity and services, technology transfer and looks forward to harnessing the possibilities to raise it to the next level. Salman informed that during the meeting, they have discussed various bilateral issues, including investment in Bay Terminal and signing Free Trade Agreement between the two friendly nations.

‘Signing FTA between Bangladesh and Singapore is essential for increase trade between the two friendly nations. Bangladesh and Singapore have already inked a memorandum of cooperation with an emphasis on development in 16 sectors,’ he mentioned. During the meeting, Salman urged Singaporean entrepreneurs to make larger investments in Bangladesh’s economic zones. ‘Bangladesh is establishing 100 special economic zones across the country. I have invited the entrepreneurs of Singapore to invest in those economic zones,’ he added.

The Singaporean minister applauded the sustained economic growth of Bangladesh under the visionary leadership of prime minister Sheikh Hasina and stressed the importance of further deepening and widening the economic relations between the two countries. He said that Singapore was keen on working in the areas of infrastructure development, energy sector, data mining and various high skilled areas such as digital connectivity and services, technology transfer for further enhancement of bilateral relations.

Beximco Ltd finalised a €32.5 million expansion plan

Bangladeshi conglomerate Beximco Ltd has finalised a €32.5 million expansion plan for its Knit Fabric Facility.

ING Bank and Germany's ECA-Euler Hermes are funding the project which is expected to fosters the expansion and upgrading of its vertically integrated Textile Manufacturing Plant.

The loan agreement was signed by Anil Kumar Maheshwari, COO, on behalf of Beximco Ltd and Lukas Strauch, director and B Ponsioen, MD on behalf of ING Bank.

This milestone that furthered Beximco's international presence, actualised the import of advanced German and other textile equipment through a German exporter; sourcing competitive equipment financing from ING Bank, with an insurance-backed cover from Germany's Export Credit Agency (ECA).

The deal has aggregated 38 equipment suppliers in a single export contract through their international strategic financial advisor – M/s Blend Financial Services Ltd.

On successful financial closure of this Euler Hermes backed transaction, Beximco's Group Director & CEO, Syed Naved Husain said, "This was a very distinctive transaction for us, and it has opened up various avenues for Beximco for its future expansion and growth plans and for the Bangladeshi Textile Industry as a whole towards international financing propelling its global presence to new heights."

Referencing the conglomerate's milestone, Vaibhavi Thakkar, co-founder, and CEO of Blend Financial Services Ltd said, "As a Co-founder & CEO of Blend, we are ecstatic to partner with Beximco in their growth journey that is committed to provide high quality products without compromising its sustainability goals and promoting Bangladesh on an international platform."

Blend is well positioned to provide be-spoke solutions by rallying through its network across all the stakeholders, basis the requirement of the company. In this landmark transaction, Blend has cemented its position as an "Environment Conscious Global Advisor" wherein we partner with our clientele by providing a solution that are aligned to its goals & strategy, she further said.

Beximco Pharmaceuticals COO Rabbur Reza speaks

Beximco Pharmaceuticals isn’t just manufacturing medicine, it’s transforming the collective health of Bangladesh : Rabbur Reza

 

“We’re one of the trailblazers,” COO Rabbur Reza tells to The CEO Magazine. “Bangladesh got its independence in 1971 and at that time, life expectancy was around 52 years and almost 80 per cent of medicines were either manufactured by multinationals or being imported into the country,” he says.

Since its inception in 1976, Beximco has changed all that and today the situation is vastly different. “Over the last four decades, life expectancy has increased to 72 years and we now produce almost 97 per cent of the total medicine made for the country. Additionally, we export to over 70 countries, including the highly regulated markets of the USA, Australia and Europe,” Rabbur explains.

“We are the first US FDA approved pharma company in Bangladesh, and now account for over 20 per cent of the country’s total export of pharmaceutical products. The Bangladesh pharma industry is now very vibrant and forward-looking, and Beximco Pharma has played a significant role in that.”

When Rabbur first joined Beximco Pharma in 1992, he says the company culture was already “excellent”. “It was run by professionals who had big aspirations about how they would like to make this company global because, you see, it originated from two multinationals so it had all the backbones of good quality manufacturing already,” Rabbur explains.

“During my time here, I’ve seen that transformation and we can now proudly say that Beximco has shown the industry how a small pharma company can transform into a bigger global generic pharmaceutical player.”

During my time here, I’ve seen that transformation and we can now proudly say that Beximco has shown the industry how a small pharma company can transform into a bigger global generic pharmaceutical player.

A self-proclaimed people person, Rabbur favours a leadership style that sees him seeking to constantly improve operations and staff experience, and be familiar with every facet of the business.

“I am passionate about what I do,” Rabbur smiles. “I aspire to be among the best and that really keeps me moving. I listen to our team and try to work with them, to sit with the managers and see how they’re doing things, understand their problems and their needs. I try to be a learner. I would say that I’m still learning.”

Rabbur has additional leadership roles of two subsidiaries Beximco has strategically acquired. He is Managing Director of Nuvista Pharma (formerly Organon Bangladesh) and CEO of Synovia Pharma (formerly Sanofi Bangladesh), which Beximco successfully acquired in 2018 and 2021 respectively.

Also integral to the success of the business is the cultivation of strong partnerships – something that Rabbur continues to prioritise. “In all aspects, we try to build a partnership rather than buying and selling a relationship,” he says.

“It’s true that you cannot do that with every organisation, but we have strong partnerships both on the supply side and at the front end, with those who are working with us for the multinational companies and all the leading generic companies or distributors.

Already well on their way to reaching their goal of becoming a key player in the global pharmaceutical arena, from here, Beximco Pharma will only continue to grow and “break new ground”, as Rabbur puts it.

“We are always about continuous improvement. We are enhancing health and wellbeing for people by supplying evaluated medicine and making it affordable,” he says. “We have a very strong focus on CSR activities, on healthcare education for the unprivileged and research in the areas of medical psychiatry.

“And, finally, we are showing the Bangladesh pharma industry how to become global and setting the bar high for generic medicines across the entire world.”

Beximco LPG, Jamuna Oil team up to widen autogas market

Beximco LPG Unit – 1 Ltd entered into an agreement with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, enabling Beximco LPG to setup LPG pumps and commence sales of autogas through the registered filling stations of Jamuna Oil Ltd. The signing ceremony took place at the Chattogram office of Jamuna Oil Company Ltd at Jamuna Bhaban, Agrabad C/A, Chottogram. This agreement will ensure rapid penetration of auto LPG for use in automobiles across Bangladesh.

As per the agreement, Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk 0.50 per liter of LPG that is sold by Beximco LPG through their established auto LPG pumps. Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy and Mineral Resources earlier in 2016, said the release.

The agreement was signed by Md Gias Uddin Ansary, managing director, Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG. General Manager Md Masud Karim, deputy general managers Khasru Azad, Md Masudul Islam, Md Jasim Uddin, Abdus Sabur Khan, and assistant general manager Arshad Azgar Choudhuri, among others, attended the event on behalf of Jamuna Oil Company. Mehedi Hasan, general manager, sales and marketing, Tasnuva Choudhury head of business development and Abu Bokor Siddiqui regional sales manager, Chattogram, from Beximco LPG attended the event.

Speaking at the ceremony, Mehedi Hasan GM, sales and marketing, Beximco LPG, said, ‘This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country. Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle.’

Economy more stable now, says Salman Fazlur Rahman

Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman laid emphasis on diversification of export and reducing the import to stabilise the currency devaluating trend. "Bangladesh's economy is now more stable in any economic indicator. We have to diversify our export. The policy that makes RMG sector as successful, we just have to replicate the policy and initiate it to other sectors," he said.

The adviser said this while speaking at a business luncheon meeting called "Robi presents BMCCI Powerlunch" organised by Bangladesh-Malaysia Chamber of Commerc

e and Industry (BMCCI) at a city hotel. The topic of the meeting is "Anatomy of a Macroeconomic Crisis". Salman Fazlur Rahman said the Bangladesh Bank has taken initiatives to reduce imports at the right time. "When AL-backed government came to power, we have about four thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation," he added.

Malaysian High Commissioner in Dhaka Haznah Md Hashim attended the meeting as the guest of honour while Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin was present as special guest. Executive Director of the Policy Research Institute of Bangladesh Dr Ahsan H Monsur and Country Client and Market Lead of Pwc Bangladesh Mamun Rashid attended as discussants with Syed Almas Kabir, president of Bangladesh- Malaysia Chamber of Commerce and Industry, in the chair. Executive Director of the South Asian Network on Economic Modeling (Sanem) Dr Selim Raihan delivered the key note speech.

Green Sukuk al Istisna’a will give 5.8 per cent return

Beximco Green Sukuk al Istisna’a will give 5.8 per cent or Tk 174 crore as return to its sukukholders for the first six months of the first year (December 23, 2021 to June 22, 2022).

The trustee Investment Corporation of Bangladesh made the decision at a trustee committee meeting. The 5.8 per cent return would be payable on face value of sukuk Tk 100 each. Earlier on July 8, 2021, the BSEC gave approval to BEXIMCO for issuing Tk 3,000 crore Shariah-compliant green Sukuk and the sukuk made debut on January 13 this year.

Beximco Green Sukuk al Istisna’a is issued by Beximco Green-Sukuk Trust as an asset backed Shariah compliant security and the proceeds received from the subscription will be utilised for solar projects of Teesta Solar Ltd and Korotoa Solar Ltd. The tenure of the green Sukuk is five years or 60 months from the issuance date.

The face value of each Sukuk is Tk 100 and the minimum subscription is Tk 5,000 or 50 green Sukuk. The rate of return of the Sukuk is 9 per cent in addition to margin. The margin will be 10 per cent of the difference between base rate (9 per cent) and annual dividend rate declared by BEXIMCO Limited.

The profit of Beximco’s Sukuk will be paid on a semi-annual basis.

Smart Bangladesh on the way

After realising a “Digital Bangladesh”, The government is now working to establish a “Smart Bangladesh”, said the private industry and investment adviser to the prime minister.

The government has various plans to successfully engage in the challenges of the Fourth Industrial Revolution, said Salman F Rahman, private industry and investment adviser to the prime minister."First, we have to learn the coding languages to work with robotics, artificial intelligence, and quantum mechanics. For this reason, we have taken initiatives to teach the primary school students the concepts of coding, which will help them to become skilled programmers in future," said Salman F Rahman in a meeting he attended while visiting the Samsung Research and Development Institute Bangladesh (SRBD) in Dhaka.

"The government has undertaken various programmes under the direction of Prime Minister Sheikh Hasina to take the young generation forward in the information technology sector. We have already realised a 'Digital Bangladesh'. We are now moving towards the establishment of 'Smart Bangladesh'. South Korea has always supported us in these regards," said the adviser to the prime minister.

During the visit, Salman F Rahman expressed his satisfaction upon learning that the young Bangladeshi engineers are working efficiently at the SRBD and thanked the South Korean government and Samsung for the facility. The research centre authorities said young Bangladeshi engineers are also working with a reputation in foreign countries after gaining experience at the centre.

The prime minister's investment adviser called on the South Korean Ambassador to Bangladesh Lee Jang-Keun to help create job opportunities for more young people at the SRBD. At that time, Lee Jang-Keun said the research centre was set up in Bangladesh, like in 14 other countries, on the initiative of the Samsung Group and with the support of the South Korean government. The South Korean ambassador also expressed satisfaction regarding the work of the Bangladeshi researchers employed at the centre. He said with the continuation of good relations with Bangladesh, more Korean companies will come forward to invest in this country and Bangladeshi workers will get job opportunities at their companies.

Salman F Rahman says every industry will be treated like export-oriented factories

Prime Minister's Private Industry and Investment Adviser Salman F Rahman addressed the workshop titled Promoting Occupational Health & Safety for Improving Productivity, jointly organised by FBCCI and ILO at FBCCI as the chief guest and said that the government aims to secure all the industries like export-oriented industries which are producing goods for local market.

The FBCCI has setup a safety council to ensure the professional safety of the industry. The council is working on the basis of national OHS profile and national OHS policy, FBCCI senior vice president informed. 

In his speech, Prime Minister's Private Industry and Investment Adviser  said that "In this connection, the national committee has already inspected 5,200 factories, and the rest of the factories will also be brought under inspection,". He added that many owners were reluctant to start reforms in the garment sector. But now this sector is getting the benefits of decent working environment. In the same way, the pharmaceutical industry of the country has also gained worldwide reputation due to its quality factories.

Gorge Faller, ILO's technical adviser, called for the successful implementation of government policies to make the sector safer. He commented that if the workplace is safe, it is beneficial for both the employer and the worker. He expects Bangladesh should work for the safe and sound workplace so that the world would recognize the "Made in Bangladesh" goods represents safety. Speaking as the special guest, Secretary for Labour and Employment Md Ehsan-E- Elahi said that safety, quality and production are interrelated in the industry. "As the working environment of the factory improves, so does the productivity of the workers and quality of the goods manufactured," he added. The secretary said that the government is working to make Bangladesh free from child labour by 2025.

Beximco Green-Sukuk Al Istisna coming

Twenty banks have subscribed to more than 74% of the private placement amount of Tk2,250 crore of the Beximco Green-Sukuk Al Istisna – the first-ever asset-backed security by a private sector entity in Bangladesh, according to the Dhaka Stock Exchange (DSE). The investments have come from 14-15 December. The rest of the amount has come from brokerage firms, insurance companies, asset management companies, and other corporates.

According to a stockbroker, banks have injected the fresh amount into the Sukuk bond as the central bank has eased the policy for such investment. Due to the Sukuk subscription, the share market fell into a liquidity crisis and that is why indices of both stock exchanges witnessed volatile sessions in the last couple of weeks.


On 27 September this year, the Bangladesh Bank extended till 31 December 2028 the tenure of the capital market special fund for investment in green Sukuk bonds to finance renewable energy, which will not be counted towards a banks' capital market investment limits. On 23 June this year, Beximco Limited secured approval from the Bangladesh Securities and Exchange Commission (BSEC) to launch its Tk3,000 crore Sukuk bond for a five-year tenure. The rest of the amount has come from underwriters and public subscriptions. But Beximco Limited's existing shareholders subscribed only Tk2 crore in the bond.

The Sukuk would be a green one as the company would spend the money on eco-friendly infrastructures. Beximco Limited would expand its textile unit alongside implementing two solar power projects under its power division with the Sukuk money. The Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are jointly working as issue managers.

The base rate of the Sukuk was set at 9%, which means investors would be getting a 9% secured annual return. The margin was set at 10% of the difference between the base rate and the annual dividend that Beximco will pay in a specific year.

The margin would be added to the base rate if Beximco's dividend for the specific year surpasses the base rate. If the dividend is lower than the base rate, there would be no negative margin. Investors can gradually convert their Sukuk to Beximco shares over its five-year tenure, but they can only convert a maximum of 20% of the total in a year. Unexercised options to convert in a year can be exercised in the following year as well, along with the current year's option.

Beximco PPE and K2 Logistics signs agreement

Beximco PPE limited and K2 Logistics Bangladesh Limited on 24 November signed an agreement on production and quality consultation.

Japanese Ambassador to Bangladesh Naoki Ito attended the signing ceremony hosted by Beximco Group Chairman ASF Rahman, Beximco Group Director and CEO Syed Naved Husain, and Dr Mohidus Samad Khan, executive director of Beximco PPE Ltd, said a press release. The ceremony was attended virtually by Private Industry and Investment Adviser to Honorable Prime Minister Salman F Rahman, and a member of the Jatiya Sangsad.

Tetsuro Kano, general manager of Itochu Dhaka Office and President of Japanese Association, Hikaru Kawai, the general manager of Marubeni Dhaka Office and President of Japanese Commerce and Industry Association of Dhaka, Yuho Hayakawa, the chief representative of Japan International Cooperation Agency (JICA) Bangladesh Office, Yuji Ando, chief representative of JETRO Dhaka Office, Dr Moazzem Hussain, advisor of K2 Logistics Bangladesh Limited, Ryoma Mitani, executive director of Ken2 Japan, Toshihide Yuda, COO of K2 Logistics Bangladesh Ltd were also present at the event. Guests at the event gave speeches highlighting the importance of Japanese expertise in professional-level inspection and quality control techniques which are of extreme importance in PPE/medical supply chains.

After the signing ceremony at the Beximco PPE Park, the Japanese ambassador moved to Beximco Industrial Park where he visited Beximco Industrial Park. The ambassador was very impressed to see Beximco's fully vertical state of the art Textiles, Garment Manufacturing, and World Largest Modern Sustainable Washing Plant, the press release added. At the Beximco Industrial Park, Naoki Itoalso inaugurated the startup and launch of the World Class State-of-the-Art Tsudakoma Looms, Sizing Machine and Warping Machine which Beximco has sourced from Japan, financed by JICA.

Weak banks should consider mergers: Salman F Rahman

Financially weak banks should consider mergers in a bid to reduce the pressure of default loans, according to Salman F Rahman, the prime minister's adviser on private industry and investment."There are systematic issues in our banking industry as borrowers are allowed to take short-term loans for long-term investments, resulting in many bad debts," he said during a press meet at the Dhaka Reporters Unity.Rahman then suggested that establishing more specialised banks for investment could help relieve the country's financial constraints in this regard.

Besides, the economic impact of Covid-19 increased the amount of non-performing loans (NPLs) worldwide and Bangladesh is no exception as borrowers struggled to pay back instalments amid the coronavirus-induced economic downturn. The adviser also emphasised widening the tax net to increase government revenue as the tax to gross domestic product (GDP) ratio in Bangladesh is among the lowest in the world. "Still though, the size of the national budget is about 10 times what it was back in 2009, when the current government assumed office," Rahman said, adding that regular taxpayers bear the brunt of this expense as many people remain outside the tax net.

 

He went on to say that the Bangladesh Investment Development Authority (Bida) would provide the necessary support required to facilitate foreign direct investment through its One-Stop Service (OSS) platform from next year. Potential clients can already avail more than 40 services from the OSS, an online platform integrating relevant government agencies to streamline the investment procedure in Bangladesh.

"However, complexities regarding certain policies of the National Board of Revenue are always raised by both foreign and domestic investors," Rahman said. Regarding the recent hike in fuel prices, Rahman said it was tough for the government to bear the huge amount of subsidies required to keep costs low. And although fuel prices recently fell in the international market, the demand is rising as the global economy has reopened. Responding to a question about the capital market, he said there was weakness in the market as 80 per cent of all investments come from retail investors and institutional investors make up the rest.

The case should be the opposite, he said, adding that the market is quite dependent on equity instead of bonds. "We are working to improve the bond market. Bangladesh Securities and Exchange Commission is also sincere in this regard." Explaining the reasons behind remittance outflow, Rahman said local companies often hire foreign experts for senior positions due to the lack of skilled domestic workers. And although more local experts are being employed by the garment industry, its emerging manmade fibre segment requires foreign expertise. But since these foreign employees spend much of their income while staying in Bangladesh, outgoing remittance does not exceed more than $300 million per year.

Regarding developments in the health sector, Rahman said the treatment for all maladies would eventually be available in Bangladesh. In addition, local pharmaceutical companies are gearing up to manufacture Covid-19 vaccines next year. "Beximco Pharmaceuticals will set up a dedicated facility for Covid-19 jabs within the next six weeks while Incepta Pharmaceuticals has signed a deal with Chinese companies to manufacture vaccines," said the vice-chairman of Beximco Ltd.

Beximco is in talks with the Serum Institute of India, Pfizer, Moderna, and other global vaccine makers to manufacture Covid-19 vaccines in Bangladesh. Vaccines will be required in the future as well since there is a possibility that the Covid-19 pandemic will continue indefinitely. "So, local vaccine manufacturing is required," he added.