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.

Salman urges US entrepreneurs to invest in Bangladesh

Salman F Rahman, Prime Minister Sheikh Hasina’s adviser on private investment affairs, said the US entrepreneurs should take the opportunity of Bangladesh’s highly liberal investment regime.He said this during his meeting with US Deputy Assistant Secretary of State Kelly Keiderling at his office. Mr Rahman briefed her about the huge reform initiatives taken by the government during recent years, said a spokesperson of Bangladesh Investment Development Authority (BIDA).

In response to Ms Kelly’ query regarding the social compliance’s and safety issues in the factories, Mr Rahman said that the government has taken a string of measures to address those issues. Ms Kelly lauded the Bangladesh government’s management of the pandemic situation and said that the bilateral ties will enhance further in the coming days, the spokesperson added.

Both sides stressed the need for holding the next economic partnership dialogue at the earliest convenient time.

Transport operators' countrywide strike

 

The transport operators' countrywide strike  affected export and import of goods at a time when businesses have been attempting to make a recovery from the fallouts of the Covid-19 pandemic.Any disruption to business, including in transportation of goods, in the time of revival will only prolong the recovery.

 

Many exporters faced difficulties to carry goods from their factories to the Chattogram port and vice-versa. Moreover, all types of activities at the Chattogram port almost came to a halt as a faction of owners and workers of goods transporting vehicles enforced the countrywide 72-hour work abstention since yesterday morning over a 15-point demand.

 

Goods and container transport to and from the port as well as loading and unloading of goods and containers at the vessels berthed at the jetties remained suspended yesterday as no goods-carrying vehicles like trucks, covered vans and prime-movers operated. Activities at the 18 private inland container depots (ICDs) also were badly disrupted due to the work abstention of vehicle workers. Bangladesh Covered-Van, Truck, Prime Mover Goods Transportation Owners Association and Bangladesh Truck Drivers Workers Federation jointly enforced the countrywide work abstention. Some of the major demands are cancellation of the decision of hiking advance income tax imposed on the vehicle owners and removal of complications in issuing driving licences for heavy vehicles, they said.

 

Stoppage of harassment by police through stopping vehicles at any place in the name of checking documents and setting up of adequate terminals and restrooms for the goods-carrying vehicles on both sides of the highways are some of other demands.

 

But the berth operators said loading and unloading activities also came to a halt as prime-movers engaged in carrying the unloaded containers from the hook point to different yards did not operate. Saif Powertech handles container movement at seven jetties under Chittagong Container Terminal (CCT) and New Mooring Container terminal (NCT).

 

On an average day, 1,000 TEUs (twenty foot equivalent units) of import containers are usually unloaded from a vessel. Transport of import and export containers between the port and 18 private ICDs was also suspended.