Morning Newsflash Sunday, September 29, 2019

Economy

뇍য뇍সার নিয়মকািুি সংস্কারর শীর্ষ তানিকায় 뇍াংিারেশ

ক োন ো কেনে ব্যব্সো-ব্োণিনযযর ণ য়ম ো ু ও তোর ব্োব্োয় তটু 嗁 সহয ব্ো 膿 তোর ওপর ণব্শ্বব্যো廬ন র ততণর সূচন এব্োর আনের কচনয় উণতর সম্ভোব্ ো ততণর হনয়নে ব্ো廬লোনেনের। ক ো ডু ণয়廬 ণব্যন স সূচ প্র োনের আনে ণব্শ্বব্যো廬 ব্যব্সো-ব্োণিনযযর ণ য়ম ো ু স廬স্কোনর েীর্ ষ ২০綿 কেনের কে তোণল ো প্র োে নরনে তোর মনযয ব্ো廬লোনেে রনয়নে। আেোমী মোনস ডু ণয়廬 ণব্যন স- ২০২০ ণরনপোটষ প্র োে রনব্ ণব্শ্বব্যো廬 । েত ব্েনরর অনটোব্নর প্র োণেত ডু ণয়廬 ণব্যন স-২০১৯ প্রণতনব্েন এ সূচন ব্ো廬লোনেনের অব্ো ণেল ১৯০綿 কেনের মনযয ১৭৬তম। ব্ো廬লোনেনের কস্কোর ণেল ৪১ েেণম ৯৭। এর আনের ব্েনরর কচনয় মোত্র এ যোপ এনেোয় ব্ো廬লোনেে। েণিি এণেয়োর কেে巁নলোর মনযয ব্ো廬লোনেে সব্নচনয় ণপণেনয় ণেল। েত ব্ের ভোরনতর ২৩ যোপ অগ্রেণত হয়। আফেোণ ো ১৬ যোপ উণত নর। ব্ো廬লোনেনে ক োন ো কিনত্র স廬স্কোর হয়ণ ব্নল ণব্শ্বব্যো廬ন র ওই প্রণতনব্েন উনেখ রো হনয়নে। েত োল ণব্শ্বব্যো廬 প্র োণেত স廬স্কোনরর এণেনয় থো ো তোণল োয় ২০綿 কেনের মনযয ব্ো廬লোনেে েোড়ো রনয়নে ভোরত, চী , আযোরব্োইযো , ব্োহরোই , যডষ ো , ক ণ য়ো, ণময়ো মোর, পোণ ো , োতোর, কসৌণে আরব্, 嗁নয়ত, নসোনভো, ণেণযব্ুণত, কটোনেো, উযনব্ণ ো , তোযোণ ো , োইনযণরয়ো, ণ রণেয ণরপোব্ণল ও ণযম্বোব্ুনয়। এ ণব্র্নয় এ স廬ণিপ্তসোনর ব্লো হনয়নে, ব্ো廬লোনেে উনেযোক্তোনের য য ব্যব্সো শুরু, ণব্দ্যযৎ স廬নেোে এব্廬 ঋিপ্রোণপ্তন সহয নরনে। তু ক োম্পোণ ণ ব্ন র খরচ নমনে। ণডণযটোল স ে ণফ ব্োণতল রো হনয়নে। ঢো োয় তু ণব্দ্যযৎ স廬নেোনের কিনত্র যোমো ত অনযষ রো হনয়নে। ক ন্দ্রীয় ব্যো廬ন র ঋি তথয ব্ুযনরো তোর তথয স廬রিনির আওতো ব্োণড়নয়নে এব্廬 কে ক োন ো অনের ঋনির উপোত্ত স廬রিি রনে।

https://samakal.com/economics/article/19092320/%E0%A6%A8%E0%A6%BF%E0%A7%9F%E0%A6 For more: %AE%E0%A6%95%E0%A6%BE%E0%A6%A8%E0%A7%81%E0%A6%A8- %E0%A6%B8%E0%A6%82%E0%A6%B8%E0%A7%8D%E0%A6%95%E0%A6%BE%E0%A6%B0%E0%A

Economy

NBR makes small-value sample import easier

The National Board of Revenue has issued rules allowing duty-free import of non-commercial goods, including samples and other small consignments, worth up to Tk 2,000. If the total duty and tax amount of any imported non-commercial stands up to Tk 2,000, duty-free benefit will also be applicable for the product, according to the rules. Officials said that the move was taken to make import of small-value and product samples easier. Customs wing of the revenue board on September 19 issued the rules titled ‘Customs (De minimis) Rules-2019. De minimis means either a value of the imported goods on which customs authorities do not collect duties and taxes or a total amount of duties and taxes on imported products the customs authorities offer exemption. The NBR in July 2018 raised the exemption value to Tk 2,000 in the Customs Act-1969 from previous Tk 1,000 following request of stakeholders, including European Delegation in Bangladesh, but the new threshold did not become effective in absence of relevant rules. Investors, both from domestic and international arenas, have been demanding for long for formulation of the rules to facilitate import of samples. According to the rules, commercial goods, alcohol, tobacco, perfume, cosmetics and import restricted goods under the Import Policy Order of the country will not get the benefit. De minimis facility will also not be applicable for the products declared as ‘no commercial value’ or ‘without commercial value,’ or marked as ‘value for customs purpose only’, the rules stated.

For more: http://www.newagebd.net/article/85995/nbr-makes-small-value-sample-import-easier Morning Newsflash Sunday, September 29, 2019

Economy

EZs to run under EPZ labour law, not Bangladesh labour law

Workers and owners of industrial units under Bangladesh Economic Zones Authority would enjoy their rights according to the Bangladesh EPZ Labour Act, 2019, according to a statutory regularity order issued by the Prime Minister’s Office on Thursday. The SRO said that employment of workers, relations between workers and employers, determination of minimum rates of wages, payment of wages, compensation for injuries to workers during working hours, and health and safety issues in Export Processing Zones or Economic Zones would be determined as per the EPZ labour act. The order stipulated a provision for the EPZ labour act saying the act would be applicable for the owners and workers of industrial units of country’s all Economic Zones under Bangladesh Economic Zones Authority. Abolishing the EPZ Workers Welfare Association and Industrial Relation Act, the government has passed Bangladesh EPZ Labour Act, 2019 in February.

http://www.newagebd.net/article/85993/ezs-to-run-under-epz-labour-law-not-bangladesh-labour- For more: law Economy

48 selected for industry sector CIP status

Industries ministry has selected 48 business people as commercial important persons (industry) for their contribution to the country’s overall economy through setting up industries, creating employment and increasing national income in 2017. The ministry on Thursday issued a gazette notification containing the names of the nominated businesspeople who will enjoy the status for one year. According to the notification, every nominated CIP will get a CIP card and enjoy a number of facilities, including priority in seat reservation at government transports in air, road, rail and waterways, getting invitation at national events and letter of introduction from foreign ministry for getting visa to visit aboard. The CIPs will be able to use the cards as passes to use VIP lounge-2 at airports. The government finalised the names of 48 CIPs for the year 2017 under nine categories including the names of six industrialists as ex-officio.

For more: http://www.newagebd.net/article/85994/48-selected-for-industry-sector-cip-status

Capital Market

ICB seeks Tk 1,000cr from BB The Investment Corporation of Bangladesh has sought Tk 1,000 crore in financial support from Bangladesh Bank on an “emergency basis” to inject liquidity into the ailing capital market as part of its concerted efforts to bring back investor confidence. The largest financial investor in the capital market sent a letter to Governor Fazle Kabir on September 19 seeking his cooperation in the form of either credit or financial support. Between June 27 and September 26, the DSEX, the Dhaka Stock Exchange’s benchmark index, shed 461 points or 9.29 percent to reach 4,968, which is below the psychological mark of 5,000, while investors lost Tk 23,925 crore. The government has recently instructed the ICB to provide required support to the market amid the ongoing volatility which has dampened investor confidence, according to the letter signed by ICB Managing Director Md Abul Hossain. There is no scope for the ICB to mobilise funds through sale of shares as the ongoing situation of the capital market is highly fragile, it added.

For more: https://www.thedailystar.net/business/banking/news/icb-seeks-tk-1000cr-bb-1806754 Morning Newsflash Sunday, September 29, 2019

Capital Market

EBL expands its footprint in China

Eastern Bank Ltd (EBL) will open its representative office in Guangzhou in the People’s Republic of China on Sunday (September 29) to tap the business opportunities and contribute to the growing China–Bangladeshi trade business. This is the first footprint of any Bangladeshi financial institution in China, reports a press release. Guangzhou office is EBL’s third overseas office after Hong Kong and Myanmar. EBL first went abroad to Hong Kong with its finance company- EBL Finance (HK) Limited in 2013. With a professional management and skilled team EBL Finance (HK) Limited has been a successful venture earning profits regularly. With an initial capital of Tk 14.78 million only it made accumulative profit of approximately Tk 425 million till January 31, 2018 and out of that approx Tk 235 million has been repatriated to Bangladesh. Today EBL Finance (HK) Limited is the largest Bangladeshi financial institution operating in Hong Kong in terms of asset and revenue generation.

For more: https://thefinancialexpress.com.bd/trade/ebl-expands-its-footprint-in-china-1569671429

Capital Market

Lodge stock complaints online

Investors will be able to file stock market-related complaints online on the Bangladesh Securities and Exchange Commission’s (BSEC) website from tomorrow, a move aimed at expediting its redress mechanism. To open on a separate window, the system -- Customer Complaint Address Module -- promises delivering remedies in three weeks. This is a massive shift considering the fact that it takes anywhere between three to four months, even more in some cases, to get solutions through the current practice of physically registering grievances via letters and applications. Investors will need a beneficiary owner’s account number, email address and mobile number to file objections and be able to attach any supporting document. The stock market regulator will send the complaints to the related office through emails setting specific timeframes for responses and solutions. Investors will be provided a complaint ID and be able to check the status of complaints anytime.

For more: https://www.thedailystar.net/business/news/lodge-stock-complaints-online-1806727

Engineering & Construction

Tyre manufacturing awaits a boom with Tk 3,000cr investment

Bangladesh is on the verge of becoming a saturated market in tyre manufacturing by next year with the inclusion of some local and foreign conglomerates in the business. Apex Husain Tyre and Gazi Tyre currently meet 5 percent demand for tyres of big buses and trucks in the country while imports meet the rest. Now Jamuna Group, Meghna Group and CEAT are all set to enter the market with huge investments and produce more tyres than what the country needs. Their entry will help Bangladesh save around Tk 3,000 crore a year that it spends for tyre imports and create employment for over 5,000 people, industry players said. GPH Ispat and a few other companies are also planning to go for tyre production. Jamuna Tyres and Rubber Industries Ltd, a concern of Jamuna Group, has invested over Tk 2,000 crore to produce tyres for big bus, truck, passenger car and motorcycle. Annually, Jamuna will produce 25 lakh units of tyres, almost enough to meet the country’s total demand.

https://www.thedailystar.net/business/export/news/tyre-manufacturing-awaits-boom-tk-3000cr- For more: investment-1806757 Morning Newsflash Sunday, September 29, 2019

PM to inaugurate commercial services of Bangabandhu-I on October 2

All local television channels would start their full-fledged transmission using the feed of country’s first communication satellite Bangabandhu-I on October 2. Bangladesh Communication Satellite Company Limited (BCSCL) Chairman Dr Shahjahan Mahmood informed that Prime Minister Sheikh Hasina is scheduled to open formally the commercial services of the satellite to all 34 TV channels on October 2, reports BSS. He said currently most of the local TV channels have been running successfully their transmission through the satellite. “We have already sold 40 per cent capacity of the satellite and expect to sell the remaining capacity in the coming days,” added Dr Mahmood. Replying to a query, the BCSCL Chairman said they are expecting to earn the entire amount spent for the launching of satellite from the domestic market within eight years. Earlier on May 19, BCSCL signed formal agreement with six local TVs -Somoy TV, Jamuna TV, Deepto TV, Bijoy TV, Bangla TV and MY TV for the use of satellite. In addition, four channels of the state-owned BTV has been running operation through the feed of the satellite. BCSCL officials said the draft of the agreement between TVs and BCSCL has been finalised. All the TVs for their transmission would require the capacities of five transponders of the satellite. Besides, the local D2H Akash of BEXIMCO has rented six transponders.

https://thefinancialexpress.com.bd/national/pm-to-inaugurate-commercial-services-of- For more: bangabandhu-i-on-october-2-1569679980

Others

Ministry seeks initial amount of Tk 5.0bn

The jute ministry has requested the finance ministry to create an initial low-cost fund of Tk 5.0 billion out of the proposed Jute Sector Development Fund (JSDF) of Tk 100 billion. It also recommended increasing the cash incentive for jute yarn from existing 7.0 per cent to 12 per cent while for jute finished products (hessian, sacking, CBC) from 12 per cent to 17 per cent and for diversified jute goods from 20 per cent to 25 per cent. The Ministry of Textiles and Jute made the requests separately in two letters on September 17, signed by minister Golam Dastagir Gazi. The jute ministry sent the letters to the finance ministry following a meeting with Prime Minister Sheikh Hasina regarding development of the jute sector. The meeting directed creating primarily a fund of Tk 5.0 billion with 2.0 per cent interest rate. It also suggested increasing the JSDF gradually to Tk 100 billion. According to a letter, many jute mills were closed due to becoming loan defaulter because of financial their crises. There are a total of 285 jute mills in the country. Of those, 42 private jute mills, 12 spinning mills and one state-run jute mills were closed despite different steps taken by the government, it said. Bangladesh earns about Tk 4.45 billion annually from export of jute goods. But the earnings from the sector declined by about 21 per cent in the fiscal year 2018-19 compared to that of the previous fiscal, it also said.

http://today.thefinancialexpress.com.bd/trade-market/ministry-seeks-initial-amount-of-tk-50bn- For more: 1569684508 Morning Newsflash Sunday, September 29, 2019

Others

Housing Problem: China firm to shell out Tk 300cr to build 100 hostels in Dhaka

A Chinese company plans to invest Tk 300 crore to establish 100 hostels for singles who are struggling to find a safe and convenient place to live in Dhaka. Neways International Company Ltd has already set up six hostels in the capital: one each in Uttara, Badda, Baridhara, Shahbagh, and two in Mirpur. Five of them are for males and one for females. “The rest will be set up within three years,” Zhang Zhimin, chief operating officer of the company, told The Daily Star in an interview in his Nikunja office on Tuesday. There is a compact chamber for every inhabitant, he said. “Each of them has roughly the length and width of a single bed, with sufficient space for a hotel guest to crawl in and sit on the bed.” The rent is Tk 233 to Tk 266 a day, Zhimin said. The hostel offers multi-functional beds, a luxurious lobby, 24-hour security, reading room, personal locker, three times meals and an air-conditioned environment. Guests will be provided with washing machine and dryer, Wi-Fi, housekeeping services, hair dryer, smart TV, gym and a playing zone. The place is also equipped with generator and finger print door, he said. https://www.thedailystar.net/business/news/housing-problem-china-firm-build-100-hostels-dhaka- For more: 1806751

International Business Trump considers delisting China firms from US markets

President Donald Trump’s administration is considering delisting Chinese companies from US stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of US-China trade tensions. The move would be part of a broader effort to limit US investment in Chinese companies, two of the sources said. One said it was motivated by the Trump administration’s growing security concerns about the companies’ activities. Major US stock indexes slipped on the news, which came days before China celebrates the 70th anniversary of the birth of the People’s Republic on October 1, when the world’s no 2 economy will shut down for a week of festivities. Shares of Hangzhou, Zhejiang-based Alibaba ended down 5.15 per cent. JD.com fell 5.95 per cent and Baidu Inc declined 3.67 per cent. The iShares China Large-Cap ETF shed 1.15 per cent. Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88 per cent and shares of Nasdaq Inc declined 1.70 per cent. It was not immediately clear how any delisting would work.

For more: http://www.newagebd.net/article/86001/trump-considers-delisting-china-firms-from-us-markets

International Business

Brexit uncertainty ‘could lead to interest rate cut’

The Bank of England may need to cut interest rates should Brexit uncertainty persist, one of its policymakers has said. Even if the UK avoids a no-deal Brexit, rates may still need to be cut, Michael Saunders said. Interest rates have been on hold at 0.75 per cent since August 2018, when they were raised from 0.5 per cent. Last week, the Bank said Brexit uncertainty meant the UK economy was performing below its potential. The pound dropped against the dollar after his comments were reported, trading down about 0.4 per cent at $1.2277, before paring losses. Mr Saunders, who is a member of the Bank of England’s Monetary Policy Committee (MPC), said that even without a no-deal Brexit, high levels of uncertainty surrounding the UK’s departure from the EU would persist and act as a kind of “slow puncture” for the economy.

For more: http://m.theindependentbd.com/post/217258 Morning Newsflash

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