DCCI Review October-November 2019 Chamber News October-November 2019

1 DCCI Review October-November 2019 Chamber News DCCI Review October-NovemberContents 2019

Editorial Note 01 BUSINESS KALEIDOSCOPE 04 Chamber News 06 Article 24 National Economy 32 SAARC News 37 Asia-Pacific News 40 Middle East News 43 International News 46 msev` wewPÎv 49 MEMBERS OF THE BOARD Trade Information 52 OF DIRECTORS Currency/Share 53

PRESIDENT Mr. Osama Taseer

SENIOR VICE PRESIDENT REVIEW ADVISORY BOARD Mr. Waqar Ahmad Choudhury Founder Chairman Late Nuruddin Ahmed VICE PRESIDENT Mr. Imran Ahmed Members Mr. Sayed Kamaluddin DIRECTORS Mr. A. S. M. Quasem Mr. Abul Kasem Khan Mr. M A Momen Engr. Akber Hakim Mr. Andaleeb Hasan Mr. Hossain Khaled Mr. Ashraf Ahmed Alhaj Deen Mohammed Mr. Enamul Haque Patwary Mr. Hossain A Sikder Kh. Rashedul Ahsan Published by : Dhaka Chamber of Commerce & Industry (DCCI) Mr. K.M.N. Manjurul Hoque 65-66 Motijheel Commercial Area Engr. Md. Al Amin Dhaka-1000, Phone : 9552562 (Hunting) Mr. Md. Rashedul Karim Munna Fax : 880-2-9560830 Mr. Mohammad Bashiruddin E-mail : [email protected] Website : http://www.dhakachamber.com Mr. Nuher L. Khan For online version: dhakachamber.com/publication/review Mr. Shams Mahmud DCCI Gulshan Centre Mr. S.M. Zillur Rahman Taj Casilina, Suite # 3C, Plot # SW(4)I 25 Gulshan Avenue, Gulshan-1 Dhaka- 1212, Tel: 88-02- 9852246

2 EditorialChamber Note News DCCI Review October-November 2019 Improving doing business Doing business in Bangladesh has always been mired Bangladesh has improved access to credit information by in problems as the cost of doing business has remained expanding the coverage of the credit information bureau. worryingly high, calling out the government on shoring But what comes encouraging is that Bangladesh is up issues to further favourable business and investment reported to have carried out reforms in 2018–2019 after environment. Bangladesh has moved upwards by eight three years of inactivity. It, however, ranks next to the last notches to be ranked in the 168th position in the global globally in enforcing contracts and in the 184th position index of doing business of 2020 from the 176th position in registering property. Transferring a property title in the year before. Bangladesh takes on an average 271 days, almost six But in the “Doing Business 2020: Comparing Business times longer than the global average of 47 days. Resolving Regulation in 190 Economies”, prepared by the World a commercial dispute through a local first-instance court Bank Group and launched by the Bangladesh Investment takes on an average 1,442 days, almost three times more Development Authority in Dhaka, Bangladesh has left than the 590 days average among OECD high-income only Afghanistan behind among eight countries in South economies. Asia. Afghanistan was ahead Bangladesh in the previous Low ranking in ease of doing business and policy year’s index to finish at the bottom among South Asian unpredictability are viewed by investors, mainly in economies. Past rankings show that Bangladesh started Europe, as major obstacles to foreign direct investment making an about-turn only in the 2019 index after having inflow. The government, therefore, needs to create the registered a gradual decline over the preceding decade. right conditions for business to flourish. Bangladesh Bangladesh came to be ranked in the 177th position in should also lessen economic barriers, increase 2018, 176th in 2017, 174th in 2016, 173rd in 2105, transparency to foreign businesses to attract foreign 130th in 2014, 129th in 2013, 122nd in 2012, 107th in direct investment while it should effect policy reforms 2011, 119th in 2010 and 110th in 2009. The latest index and strengthen public institutions to not only reach out says that Bangladesh, along with 41 other economies, has to groups left behind but also to engage with people from been able to implement reforms in 2018–2019, making other walks of life and encourage their entrepreneurial it easier to do business in three or more of the 10 topics spirit and abilities. included in the aggregate ease of doing business score. The Dhaka Chamber of Commerce and Industry believes Bangladesh has placed itself among the 20 top improvers that private investment — which now stands at 23.4 per with a score of 45.0, up by 3.03 percentage points on cent although foreign direct investment increased to $3.6 that of the past year. The progress in the ranking is said billion in 2108 from $2.58 billion the year before — also to have resulted from improvement in starting business, needs to be scaled up to 32–35 per cent to come out getting electricity and getting credit. of the stagnant situation caused by the poor ranking in In the first criterion, Bangladesh has made starting a indexes. business less expensive by reducing name clearance It is essential for Bangladesh to move up in the ranking and registration fees and abolishing the fee for certifying by making regulatory environment more conducive to digital certificates and this reform applies to both Dhaka the starting and operation of local firms not only in its and Chattogram. In the second criterion, Bangladesh has own interest but also to instil a sense of ease in foreign made getting electricity faster by investing in digitisation investors about doing business in Bangladesh. It needs to and human capital at the utility and it has also made work more in the areas it has started making improvement getting electricity less costly by reducing the amount and to work in other areas that it has failed to make its of the security deposit for a new connection, but this mark. has taken place only in Dhaka. In the third criterion,

3 BangladeshChamber News Gazette DCCIDCCI Review Review October-November October-November 2019 2019 In Retrospect 2019

The year was not only an eventful one but also a year where we UAE, Poland, Belgium, Fiji, Sri Lanka and the Philippines. endeavored to capture the trials and tribulations of the business For extending cooperation for sustainable industrialization, community as a whole. We worked relentlessly to bring the different discourses were held partnering different pertinent issues of the members to the forefront and also to engage the development agencies in Bangladesh. I also represented policy makers to understand the need of every hour to keep DCCI in various national and international events on wide- the development pace uninterrupted under the private sector ranging contemporary socioeconomic, common regional and initiatives. The private sector which acts as the prime mover sub-regional pressing issues like entrepreneurship, industrial of the Bangladesh economy needs to be nurtured and well compliance, innovation, SME development, connectivity, supported with pragmatic policies. capital market reforms, Real Estate, Industry 4IR, SDG and Reflections of the ceremonial and eventful memories are sustainable business practices. to be cherished forever. DCCI is an enlightening episode of As a commitment to continuous pro-business regulatory my professional journey which was featured with diverse environment improvement, Policy advocacy has got extreme engagements and activities. Throughout my journey, my priority and been reflected through various initiatives like deep passion and dedication was to ensure the private sector betterment and inclusiveness through continuous effort of meeting with concerned Government Ministries and the trade and investment promotion and commitment was to make honorable Ministers including Ministry of Commerce, a significant improvement in Doing Business environment Planning, Industries and Principal Secretary to PMO, Executive overcoming visible challenges. Perhaps a brief sketch is not Chairman of the BIDA, the Governor of the Bangladesh Bank enough to touch on all the aspects. However, let me at least and the Adviser to the Prime Minister on Private investment and try to reflect some of the significant moments that signify my Industries. role and attachment to this esteemed organization. The result- Since entrepreneurship development has always been a oriented leadership can be briefly articulated and recorded and this reflective brief can only be a humble legacy to follow priority of DCCI considering its economic importance, I have through. exerted utmost effort joining and partnering various events organized by different government agencies, development Of my year-long wide-ranging engagements, I would like to partners, international agencies and Universities towards precisely ruminate some activities which marked 2019 - a Year entrepreneurship growth, nurturing innovation and private of inclusive Trade and Investment Promotion. In this expedition, sector development. I was privileged as my real-life business experiences expanded and blended encountering wide-ranging issues of micro, To further progress of holistic business and industrial growth small, medium and large industries in ever- changing business for private sector, DCCI, signed cooperation agreements/MoUs dynamics of national and international perspective. with National Productivity Organization under the Ministry of Industries, Korea Export & Import Association (KOEXIMA)), This year began with some time-befitting issues like critical Liaoning Federation of Industry and Commerce (LFIC) of China, experience and learning of Indian context in Doing Business World Business Angels Investment Forum (WBAF), Bangladesh environment development, addressing challenges of 4th Trade Portal (BTP) under the Ministry of Commerce on various Industrial revolution era for sustainable industrialization mutual economic interests. As a whole, these efforts are followed by frequent dialogue and discussion on bilateral trade and investment development with our different prospective trade expected to strengthen the role of DCCI impacting new values and development partners. In addition, my dedicated endeavor in private sector development and lead us into a new era. was to improve the Tax and Vat payment policies and ensure This said reflective manuscript of DCCI leadership’s journey the culture aligning with changing business context. Various portrays a glimpse of my entire gamut of engagement, however, sector oriented research backed policy reform and formulation my words of deep passion, unwavering commitment and initiatives to strengthen the economic lifeline of SME and other attachment to this esteemed organization and the nation priority export sectors like RMG, leather, pharmaceutical and agro-processing of the country for facilitating the export led may remain untold and implied in this Retrospect. Time shall economic acceleration and diversification. judge my successes and failures, but my obsessions were tireless and intentions were noble and upright to support the In order to improving investment environment and attracting uninterrupted and inclusive private sector trade and investment local and foreign investment in Bangladesh, DCCI joined the spree. I believe that it was an exceptionally and outstandingly entourage of our Honourable Prime Minister Sheikh Hasina of enriched and cherished learning phase of my professional life the Government of Bangladesh, to China and India. Organized as an entrepreneur which may not be comparable to any other International conference on local capital market infrastructure experience to date. I remain in the end extremely grateful to financing promoting local capital market. Engage with with all the esteemed members of the DCCI for their relentless and the BIDA and other International delegations from China and extraordinary support in my endeavours to lead our beloved other countries to promote FDIs. As a dedicative move of cross- border trade promotion, several meetings were held Chamber. with representatives of the several diplomatic core missions in Osama Taseer Bangladesh and overseas - Sweden, Denmark, China, Turkey, President, DCCI 4 Bangladesh Bank Circular DCCI Review October-November 2019

Bangladesh Bank Website:www.bb.org.bd Head Office Department of Off-site Supervision 4) Calculation of daily Excess Reserve (ER): Post Box No.-325 The Calculation of daily Excess Reserve (ER) for banks having no OBO will remain the Dhaka same as instructed in the DOS Circular No.-01, dated 19/01/2014. For banks having both DBO and OBO, the amount of daily excess reserve will be determined using the following formulas: DOS Circular Letter No.26 Date: 19/08/2019 Unencumbered Current A/C Balance with BB - Bi-weekly Req. cash for DBO = X ...... (i) Bi-weekly Req. cash reserve for OBO - Unencumbered FC used (equivalent to BDT) for the Managing Director/Chief Executive Officer maintenance of daily cash reserve from FC Clearing a/c with BB = Y ...... (ii) All Scheduled Banks in Bangladesh From (i) and (ii) above - Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) a) if X = 0 or X = -ve than ER = 0 b) Please refer to BRPD Circular No.-02 dated 25/02/2019 and BRPD Circular Letter No.-09 if X = +ve, Y = +ve, and X>Y than ER = X-Y dated 27/05/2019 on Policy for Offshore Banking Operation of the Banks in Bangladesh. c) if X = +ve, Y = +ve and X

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5 BUSINESS KALEIDOSCOPE

Entrepreneur…Intrapreneur…and ‘Ultrapreneur’ Revision of Offshore Banking Policy may affect export Offshore banking was allowed in 1985 and Bangladesh banks to conduct offshore business is easy, (d) license Bank declared its policy in this respect for forming fee for registration and operation is either nil or very low, offshore business unit (OBU). The primary objective of (e) protection against lawsuit judgments, (f) avoidance off-shore banking was to activate financing business of double taxation, (g) low operational cost and (h) and industrial activities at the newly created Export unlimited market opportunities are attractive. Offshore Processing Zones (EPZs). Now, OBU is a window of a Banking is a banking at the International level within the scheduled bank engaged to arrange foreign currency countries and to accept deposits and provide investment by borrowing, depositing and placing foreign currency in freely convertible foreign currencies. The transactions/ from the international foreign currency holders. Almost operations of OBU are free from set regulations of Central all local banks have permission to operate OBU though bank and other local regulators with no exception in around 35 Banks are now operating OBUs. Bangladesh. Offshore banking is increasingly getting popular among There was no statutory capital and reserve or liquidity local investors because of the low cost of funds. The interest requirement for an OBU. Any industrial units inside or rate is around 6% while the interest rate in Bangladesh outside the EPZ or industrial zone area can be permissible is double digit. The low cost of the fund is driving the clients for OBU. The system also allowed bill discounting growth of offshore banking. Foreign currency loans are services to the AD Branches in Bangladesh under the helping local producers, mostly garment manufacturers, Usance Payment at Sight (UPAS) system. with bill discounting immediately after shipment. The The OBU is a part of any bank whether incorporated in availability of foreign currency loans at lower interest Bangladesh or outside but it shall maintain its separate rates have helped some businesses to enjoy the relatively accounts relating to off shore banking business. The OBU low-cost credit facility in the existing Banking sector. operating in Bangladesh will have to obtain a license In most of the jurisdiction, OBU is preferred because from Bangladesh Bank subject to the relevant laws of (a) local capital requirement is either non-existent or Bangladesh. The OBU will be free to accept deposits extremely low for OBU, (b) taxes including withholding and borrow from abroad, make advances/ investments taxes on internal income and other forms of levies are abroad and also make permissible transactions with practically non-existent, (c) entry of foreign banks/ local different categories of overseas investors. However, local

66 BUSINESS KALEIDOSCOPE enterprises may also enjoy foreign currency loans from of Asset Liability Management (ALM) guidelines for their the offshore banking units subject to the approval of offshore banking operations. The banks have been asked Bangladesh Investment Development Authority. to renew the approval of OBUs in line with the new One of the services provided by offshore units is Usance policy applying to the Central bank within three months. Payment at Sight (UPAS). With the introduction of offshore Under the new policy, the banks are prohibited from some banking, OBU initiates UPAS arrangement which has activities including the placement of funds with Domestic become the main function of the OBUs in the country. Banking Unit (DBU) in offshore banking operations. At Practically, the major lending function is dealt by foreign the closure of business, the value of offshore banking banks due to availability of low cost fund and global assets in Bangladesh will not be less than 75 per cent network. Foreign banks are basically concentrating on of the liabilities of offshore banking. The policy imposes discounting business of import bills under the UPAS a limit on transferring foreign currency to offshore units credit arrangement. from onshore units. Offshore business enterprises(OBE) The idea was brought in to meet the unique need of would be allowed to use funds mobilized from domestic bulk volume importers where sellers demand immediate banking operation with a limit not exceeding 20 per payment against a deferred LC through discounted cent of its total regulatory capital for offshore units. The prepayment but the suppliers’ bank hardly accepts them. OBUs will not be allowed to collect any deposit from In order to propose an effective solution, the Letter of Bangladeshi nationals, except Bangladeshi expatriates. Credit (LC) is opened on deferred basis (180 days to Banks will not be allowed to channel remittance using 360 days depending on the nature of import). But, in the the OBUs. payment clause of the LC, a provision is incorporated indicating that, payment against the LC will be made at The currency transferred by banks to offshore banking sight basis by the LC opening bank from its own source or units will be used for investing mainly in buyers’ credit. through its offshore unit or its correspondents. Earlier there was no limit on transferring or mobilizing funds in the offshore banking units from onshore banking However, in recent time, OBUs started discounting services to the Authorized Dealers’ local export bill as units. well. Banks render UPAS credit facilities to its valued For the maintenance of Cash Reserve Ratio (CRR), total customers either by UPAS credit service through own demand and time liabilities of the bank shall include the offshore banking unit (OBU) or UPAS credit service liability of offshore banking operation. Statutory Liquidity through overseas Correspondent Bank. Reserve (SLR) shall also be maintained accordingly. For The Central Bank feels that the result of OBE service the maintenance of CRR and SLR that entails offshore created an imbalance in demand and supply situation banking, if required, banks may use funds from offshore in the domestic market and created additional pressure banking operation and convert into Taka. on the domestic foreign currency situation. The Central The strict regulation and limiting the sources of funds Bank has issued a new policy on 25th February 2019 to regulate offshore banking operation (OBO) of the banks in curtailed the finance to UPAS of exports by discounting Bangladesh properly for mitigating their risks considering documents. The alternative for exporters is a loan from concurrent global business dynamics. local Banks. The local bank loans are available against mortgage of properties and higher interest rates. Exporters The offshore banking operations with fully foreign-owned now have few alternatives to trade finance of credit enterprises can extend their scope of works in Economic from buyers and factoring like Zone and Hi-tech Parks. However, prior permission finance available from some from the Foreign Exchange Investment Department of overseas Non-Bank Financial Bangladesh Bank is required following their circulars for any medium and long-term financing facility. Institutes (NBFIs). Central Bank may consider the withdrawal All the local scheduled banks have been asked to comply of strict regulations on offshore with Cash Reserve Ratio (CRR) and Statutory Liquidity financing until improvement Ratio (SLR) rules for their OBOs. Under the new policy, of financial sector condition. three-fourth of total offshore operations’ assets have to be Considering export as the invested in Bangladesh. lifeline of our economy, the The banks will have to maintain capital requirements Offshore banking policy nerds under Basel-III framework along with the implementation to be timely. President’s Pick of the Month 7 Chamber News DCCI Review October-November 2019

Honorable Adviser to the Prime Minister on Economic Affairs Dr. Mashiur Rahman (second from right) speaking at a seminar titled “Restructuring & Liquidation of Financial Institutions and Impact on Stakeholders” held on October 17. DCCI President Osama Taseer (second from left), Senior Vice President Waqar Ahmad Choudhury (right) and Vice President Imran Ahmed (left) are also seen.

8 Chamber News DCCI Review October-November 2019

9 Chamber News DCCI Review October-November 2019 Call for good governance in financial market DCCI holds seminar on restructuring, liquidation of financial institutions

he Dhaka Chamber of institutions, standard benchmark former managing director of the City Commerce and Industry of non-performing loans across Bank Limited, presented a keynote Torganized a seminar on the financial sector and restriction paper where he stressed the need for “Restructuring and Liquidation of on the deposit collection of high the consolidation of non-performing Financial Institutions and Impact non-performing loan volume have banks, more freedom for the on Stakeholders” at the DCCI on remained issues of concern, he said, Bangladesh Bank, the restructuring October 17, 2019. adding that some institutional and of weak financial institutions, an policy reforms are needed to address increase in the capital adequacy Dr. Mashiur Rahman, Adviser to the the state of fragile financial sector. ratio and no breach of the advance Prime Minister on Economic Affairs, An agency like “financial sector on deposit ration to resolve financial was chief guest. restructuring authority” is needed market crisis. He emphasized legal The DCCI President Osama Taseer for monitoring underperforming and structural weakness for the in his welcome address said that the institutions. recovery and collection of assets financial sector was growing rapidly Dr. Mashiur Rahman stressed the necessary for a successful liquidation. accompanied by a growing number need for keeping confidence in Barrister Mustafizur Rahman, of financial institutions, reforms financial institutions. He suggested Advocate, Supreme Court of for financial inclusion, product that the investors or depositors Bangladesh, Minhaz Mannan Emon, diversification and a growing volume should invest or deposit their money Director, Dhaka Stock Exchange, of assets. carefully. He recommended that the Dr. Md. Kabir Ahmed, General financial institutions should conduct Despite remarkable improvement in internal as well as external audits in Manager, Bangladesh Bank and Md. the financial sector, some banks and a transparent manner regularly. As for Abul Kalam, Director, Bangladesh financial institutions are facing crisis stock market, he said that the capital Securities and Exchange Commission, and passing through a difficult time, market does not have good shares also spoke. he said. “Institutional weakness, and this pushes investors to depend weak governance, lack of oversight The speakers emphasized corporate on poor-quantity shares for trading. in loan disbursement, a growing governance, a strong oversight by He requested large companies to number of large borrowers and a the Bangladesh Bank, Company float shares on the stock market and slow loan recovery process have Act implementation, restructuring suggested more investment in the raised serious concern about the process, the building of confidence manufacturing sector. He also urged efficiency and soundness of many and the use of alternative dispute policy reforms, modernization and financial institutions.” resolution to resolve pending policy simplification for a strong financial disputes. The impact of high amount of non- financial market. Senior Vice-President of DCCI Waqar performing loans on the financial Arif Khan, CEO and Managing Ahmad Choudhury proposed that a sector as well as entire economy Director of IDLC Finance Limited, through a slow credit recycling is in his keynote paper urged the pragmatic recovery policy should be causing a liquidity crisis and harming establishment of a bond market and worked out to aim primarily at equity the creditworthiness of the banking discouraging banks from long-term objectives, restoring deposit-holders’ industry, he said. “An increasing lending as banks take deposits on assets, liquidity, and solvency in deposit interest rate, which in turn yearly term and they should not go financial institutions and enhancing increases the lending rate, impacts for long-term financing. In order to credit discipline. the private sector credit flow, from cut down on non-performing loans, In the open discussion session, SMEs to large businesses,” he said. he said urged good governance, a former Senior Vice-President, DCCI strong oversight by the central bank, The Bangladesh Bank needs to MS Shekil Chowdhury, former and penalty for wrong-doers. strengthen its monitoring mechanism, Vice President M Abu Horairah, an early warning system to improve Sohail RK Hossain, Managing Partner former Directors AKD Khair Md. the financial health of weak financial of RSA Consulting Partners and Khan, Major (Retd.) Yead Ali Fakir,

10 Chamber News DCCI Review October-November 2019

Managing Director, IPDC, Mominul Tamiz Amin, Managing Director, DCCI Vice-President Imran Ahmed, Islam, Professor Dr. Mahamood EBL Securities, Md. Sayadur Directors Engr. Akber Hakim, Ashraf Osman Imam, Managing Director Rahman, Managing Director, NDB Ahmed, Enamul Haque Patwary, of the Pubali Bank Securities Ltd., Capital Limited, Kanti Kumar Saha, KMN Manjurul Hoque, Engr. Md. Al Mohammed Ahsan Ullah, Managing Director, DSE Brokers’ Association, Amin, Shams Mahmud and former Director, United Finance Kaiser Mohammad Ali, FCA also spoke. President RM Khan attended r DCCI delegates meet Assam’s chief minister

A 14-member delegation of the bilateral trade was about $11 billion, The delegation also met the Minister Dhaka Chamber of Commerce and but the trade balance was 9:1 in for Commerce and Industry of Industry met the Chief Minister of favour of India. He emphasized Assam, Chandra Mohan Patowary, cross-border trade and investments Assam, Sarbananda Sonowal, on and discussed in details trade through increased cooperation October 23, 2019 in Guwahati, opportunities between the two and connectivity between the two Assam, India. friendly nations and the seven sisters countries. The delegation led by Senior Vice- as a potential outlet for Bangladeshi DCCI Vice-President Imran Ahmed, President, DCCI Waqar Ahmad goods into the ASEAN market. Directors Hossain A Sikder, Choudhury was in Guwahati to Sarbananda Sonowal stressed the Engr. Akber Hakim, Mohammad attend the “India-Bangladesh need for continued discussions on all Bashiruddin, Engr. Md. Al Amin, Stakeholders’ Meet”. The two-day fronts like G2G, G2B and B2B. He Shams Mahmud, SM Zillur Rahman, event was organized by the Indian also emphasized a close relationship Commerce and Industry Ministry, the between chamber bodies of the two Alhaj Deen Mohammed, former Assam government and the Indian countries. He was especially excited Senior Vice-President Alhaj Abdus Chamber of Commerce. about opening up multimodal inter- Salam and former Director Alhaj connectivity between the north- Mohammad Sharfuddin also attended Waqar Ahmad Choudhury, at the east region of India and Bangladesh the meeting r meeting with the Chief Minister, said leading to a significant increase in that the size of India-Bangladesh bilateral trade.

DCCI Senior Vice President Waqar Ahmad Choudhury (eighth from left) seen handing over a memento to the Chief Minister of Assam, India Sri Sarbananda Sonowal (10th form right) on October 23. Minister for Commerce and Industry of Assam, Sri Chandra Mohan Patowary (ninth from left), DCCI Vice President Imran Ahmed (seventh from left), Directors Hossain A Sikder (fifth from right), Engr. Akber Hakim (fourth from left), Mohammad Bashiruddin (eighth from right), Engr. Md. Al Amin (fourth from right), Shams Mahmud (fifth from left), S M Zillur Rahman (sixth from right), Alhaj Deen Mohammed (third from right), former Senior Vice President Alhaj Abdus Salam (sixth from left) and former Director Alhaj Mohammad Sharfuddin (ninth from right) were also present. 11 Chamber News DCCI Review October-November 2019

DCCI President Osama Taseer (third from left) speaking at a seminar on “Ensuring Safe and Halal Food: present context and necessary measures” held on October 26. Ambassador of UAE in Bangladesh H. E. Saed Mohammed Al-Muheiri (third from right), Director General of Islamic Foundation Shamim Mohammad Afjal (second from right), Chairman of Bangladesh Food Safety Authority Syeda Sarwar Jahan (second from left), DCCI Senior Vice President Waqar Ahmad Choudhury (left) and Vice President Imran Ahmed (right) are also seen. Call for halal certification body to tap world food market The Dhaka Chamber of Commerce special guests. The DCCI President He also said that because of weak and Industry organized a seminar Osama Taseer presided over the infrastructure, inadequate eco- on “Ensuring Safe and Halal Food: seminar. system, poor certification and low- Present Context and Necessary value addition, “we are failing in The DCCI President Osama Taseer Measures” at the DCCI on October conformity assessment and losing in his welcome address said that 26, 2019. competitiveness on the international agriculture and food product were market.” The Ambassador of UAE to the second largest export sectors The Muslim population will increase Bangladesh, Saed Mohammed Al- in Bangladesh, which fetched $1.4 by 35 percent in the next 20 years Muhairi, was present as the guest billion in the 2018–19 financial year, after the apparel sector. across the world and the global of honour while Director General Islamic market is around $2.1 trillion, of the Islamic Foundation Shamim “To increased the export volume which accounts for 11.9 percent of Mohammad Afjal and Chairman of and expand the export basket, the world expenditure. Globally, the Bangladesh Food Safety Authority we need to ensure quality and Muslim nations spent $1.3 trillion in Syeda Sarwar Jahan were attended as standards of our food products.” 2017 on food and beverage. Brazil,

12 Australia, New Zealand and Thailand market will register a 6.1 percent has been neglected in developing lead the halal market supplies, he compound annual growth rate in countries such as Bangladesh, she said. terms of revenue, he said. Bangladesh said. The Food Safety Act 2013 has will soon enter not only the UAE been made and subsequently, the He urged supports for the private market but also the global market of Bangladesh Food Safety Authority has sector in research and capacity- halal products, he hoped. been established. “If we can ensure building, proper policies, safe and halal production of meat, we international certification process, The Director General of Islamic can have the opportunity to explore economic zones dedicated for halal Foundation Shamim Mohammad Afjal new windows of the international products and policy for incorporating urged one-stop service points under market in Muslim countries. It is, scopes and guidelines of halal the Bangladesh Standards and Testing therefore, high time for us to work business. Institutions for Halal certification and together for ensuring safe and halal testing. He emphasised the adoption THE Ambassador of UAE to food.” of science and technology to for the Bangladesh Saed Mohammed Al- development of halal certification Dr. A. K. ObidulHuq, Professor and Muhairi said that the popularity of process. Chairman, Department of Food halal foods and other consumer Technology and Nutritional Science, items have increased even among The Chairman of Bangladesh Food Mowlana Bhashani Science and non-Muslims around the world as Safety Authority Syeda Sarwar Jahan Technology University, in his keynote halal foods are hygienic and healthy. said that Bangladesh is the fifth largest paper, said that non-Halal food is a country in the global Muslim food The global consumption value of threat and risk to the Muslims and and beverage consumption market. halal food increased with an 8.14 harms national economy, trade percent average growth rate and over Demands for safe and halal food are and tourism. He recommended the the next five years, the halal food increasing day by day. Food safety institution of a halal accreditation

13 Chamber News DCCI Review October-November 2019

agency, testing laboratories and halal halal market with products like agro- halal food processing. They also urged food processing zones in Bangladesh. processed food, beverage, cosmetics credit facilities and tax incentives to and pharmaceutical items, he said. the private sector to promote them to Dr. Samia Abdellatif, Conformity come with investments in this sector. Director, RACS, Dubai, UAE, also Deputy Executive Director, ACI Food presented a paper. She said that Limitedm Anup Kumar Saha, CEO, Enamul Haque Patwary said, “Food for halal certification, adequate Bengal Meatm A. F. M. Asif, Post- is for life, not in exchange of life. infrastructure and enforcement are Harvest Technology and Management We should be stern against food needed. Bangladesh has potential to Specialist, Department of Agricultural adulteration and contamination to have testing laboratories and a halal Extension, Dr. Md. Saleh Ahmed, safeguard our future generation.” accreditation agency. She invited Former Secretary, Agriculture DCCI Convenor Neyamat Ullah Bangladesh to be an active member Ministry, and Coordinating Director, Majumder, Former Directors AKD of the International Halal Association DCCI Enamul Haque Patwary spoke Khair M. Khan, former Senior Vice- Forum. on the occasion. The speakers said President MS Shekil Chowdhury, DCCI Senior Vice-President Waqar that Bangladesh needed to learn and Senior Scientific Officer BCSIR Ahmad Choudhury, in his concluding adopt technology. The global halal Deepa Islam, DCCI Member MS remarks, said that it is high time to market is dominated by non-Muslims Siddiqui and Shahjat Ali Khan tap the opportunities offered by the but the United Arab Emirates can from the Bangladesh Frozen Food global halal industry as there is a assist Bangladesh technically and Association also spoke. trillion-dollar ready market for halal financially, the speakers hoped. They DCCI Vice-President Imran Ahmed products. Bangladesh has a big also urged the government to allocate was present r opportunity to exploit the global 10 economic zones out of 100 for Businesses urged to extend e-BIN registration time limit The Dhaka Chamber of Commerce BIN would also have to declare that automation in taxation system and Industry, one of the largest trade having such numbers and have a will ensure transparency but VAT bodies in the country, organized an 13-digit e-BIN registration. should be calculated according to e-BIN registration workshop to create the ratio of product’s value addition. Osama Taseer, in his welcome awareness among the businessmen in address, said that to create awareness He urged the introduction of a the DCCI Auditorium on November among the business people, the DCCI provision of VAT return submission 26, 2019. organized the workshop. He also said on a quarterly or half-yearly basis Syed Mushfequr Rahman, Project Director, VAT Online Project of National Board of Revenue, urged the business community to register their business entities under 13-digit new electronic business identification number (e-BIN). He also said that the last date for e-BIN registration is November 30, 2019.

He said that the businessmen engaged in export and import business must have e-BINs to open letters of credit. He assured the businessmen that there is no chance for harassment by Project Director, VAT Online Project of National Board of Revenue (NBR) Syed Mushfequr Rahman (second from right), DCCI President Osama Taseer (second from left), Senior Vice having an e-BIN registration. Those President Waqar Ahmad Choudhury (left) and Vice President Imran Ahmed (right) are seen who have the earlier 9- or 11-digit at a workshop titled E-BIN Registration held on November 26 14 Chamber News DCCI Review October-November 2019 especially for the SMEs. If the revenue extension to the of e-BIN registration be simplified and reformed, where structure is business-friendly, it will deadline. He said that the National necessary. encourage return submission as well Board of Revenue in association with DCCI Senior Vice President Waqar as increase tax-GDP ratio, Osama the DCCI needs to organize more Ahmad Choudhury made the Taseer said. He said that online VAT training for the businessmen to make concluding remarks. return submission procedures would them aware of this new e-BIN system. boost a business-friendly taxation DCCI Vice-President Imran Ahmed, President of Dhaka Dokan Malik system. Directors Hossain A Sikder, Kh. Samity Towfiq Ehsan said that Rashedul Ahsan and Enamul Haque Former Senior Vice-President, DCCI, businessmen were willing to pay Patwary were also present Alhaj Abdus Salam requested an VAT but the taxation system should r Policy support and incentives sought for API industries

The Dhaka Chamber of Commerce public and private sectors. We need Director, DGDA, Md. Ruhul and Industry organized a seminar to focus on achieving self-sufficiency Amin said that the Prime Minister on “Prospects and Challenges of in quality API production to support had announced that API and Active Pharmaceutical Ingredients and sustain the pharmaceutical Pharmaceuticals were the product Industry in Bangladesh” at the DCCI sector beyond TRIPS regime later of the year. The DGDA is firmly on November 2, 2019. Executive 2033,” he added. In this regard, he committed to supporting API Chairman of the Bangladesh emphasized forming joint ventures industry in Bangladesh as well as the Investment Development Authority with international API producers and implementation of policies needed Md. Sirazul Islam was present gain experience from them. for that. But to do something good as chief guest while Director of in the API industry, he said, research Executive Chairman, BIDA Md. the Directorate General of Drug and development are a must. He Sirazul Islam said that locally Administration Md. Ruhul Amin was produced medicines meet 98 percent requested entrepreneurs to invest present as special guest. The DCCI of the local demand. Bangladesh more in this sector. President Osama Taseer presided now exports medicines wroth about Dr. Md. Rabiul Islam, Professor, over the seminar. $135 million to 120 countries which Department of Chemistry, Mawlana Osama Taseer, in his welcome indicates the strength of this sector. Bhashani Science and Technology address, said that one of the major If public and private sectors work University, in his keynote challenges in pharmaceuticals together, nothing is impossible, he presentation, highlighted that industry was dependence on the said. After 2027, “when we will being an LDC country, Bangladesh import of raw materials. On the other become a middle-income country, can produce patents of API. “Our hand, local API producers supply a we may lose the existing facilities domestic pharmaceutical market very insignificant amount, around 5 under TRIPS agreement, but we will is worth Tk 20,512 crore having an percent, which is relatively cheaper have to be prepared by this time,” he annual growth of 10 percent.” He than imported ingredients, he said. said. Terming medical science as a life requested the government to support science, he emphasized an industry- and give incentives to investors. “For the local production of the academia collaboration for research ingredients, we need modern skills and development to do well in the Major General Dr. Jahangir Hossain and technical know-how,” he also API industry. “We need to use our Mollick (Retd.), Former Director said. “The capacity-building of local universities for vigorous research,” General, DGDA, Md. Hafizur research, academic institutions, he said. He mentioned that BIDA will Rahman, Director, WTO Cell, manufacturers and professionals need assist in the development of the API Ministry of Commerce, Dr. Sheikh be immediately addressed through the sector. Maksudur Rahman, Director (API

15 Chamber News DCCI Review October-November 2019

Executive Chairman of Bangladesh Investment Development Authority (BIDA) Md. Sirazul Islam (second from right) speaking at a seminar titled “Prospects and challenges of API (Active Pharmaceutical Ingredients) Industry in Bangladesh” held on November 2. Director of Directorate General of Drug Administration (DGDA) Md. Ruhul Amin (second from left), DCCI President Osama Taseer (third from left), Senior Vice President Waqar Ahmad Choudhury (right) and Vice President Imran Ahmed (left) were also present.

Project), the Acme Laboratories Ltd. The speakers urged extensive should be given. They also urged and DCCI Convenor and Chairman, research and development initiatives an early implementation of the drug for a sustainable API industry. They policy. The sector also needs technical Active Fine Chemicals Ltd. Md. Zia said that the sector should not be support as biotech medicines are Uddin spoke as panellists. neglected and adequate incentives coming rapidly. To grab the $45

16 Chamber News DCCI Review October-November 2019

billion market, the industry needs transfer, they underscored the Directors Nuher Latif Khan, Alhaj proper policy support and incentives, importance of joint ventures with Deen Mohammad, Mohammad the speakers said. foreign API companies. Bashiruddin, Engr. Md. Al Amin, Enamul Haque Patwary, Ashraf Bangladesh is the market leader DCCI Senior Vice-President Waqar Ahmed, Kh. Rashedul Ahsan and among LDCs and the API industry Ahmad Choudhury gave the Shams Mahmud were also present r can attract a huge amount of FDIs, concluding remarks. the speakers said. For technology DCCI Vice-President Imran Ahmed, 17 Chamber News DCCI Review October-November 2019

DCCI President, Osama Taseer (second from right) addressing the Meet the Press on ‘Current State & Future Outlook of Bangladesh Economy: Private Sector Perspective’ held on November 7. DCCI Senior Vice President Waqar Ahmad Choudhury (left) and Vice President Imran Ahmed (right) are also seen.

18 Chamber News DCCI Review October-November 2019

19 Chamber News DCCI Review October-November 2019 DCCI meet-the-press on economy and private sector

The DCCI President Osama Taseer the agriculture sector is only 13.60 caused the contraction of the private organized a meet-the-press on the percent. sector credit growth. The control of “Current State and Future Outlook of non-performing loans and increase Fiscal policy Bangladesh Economy: Private Sector in tax net will increase government Perspective” on November 7, 2019. While highlighting the performance revenue, reduce government The DCCI President shared a paper of fiscal policy of the 2018–19 borrowing and help private sector with journalists on the current state financial year, we found that revenue credit growth. collection largely relies on NBR and future outlook of Bangladesh Inflation economy. He briefly highlighted the tax collection which accounts for state of the Bangladesh economy 88.44 percent of the total revenue The inflation is recorded at 5.47 and the performance of fiscal collection. On the other hand, an percent in October 2019 and it is policy, monetary policy and macro- incremental dependence on national within the targeted level of 5.5 percent economic factors such as inflation, savings certificates to meet the budget for the 2019–20 financial year. The private investment, international deficit weakens the banking sector DCCI recommended rational energy trade and employment situation to deposit. Infrastructure investment prices with an adequate supply and identify the state of private sector, is increasing to reach 3.61 percent proper market vigilance for food considering the private sector as the of the GDP which supports the inflation. catalyst of the economic growth. This growth of the GDP to 8.13 percent. Private investment presentation also included the current Although ADP implementation rate state and challenges of agriculture is satisfactory, the quality of ADP The government has taken reform sector, leading industrial sectors such spending cannot be ensured. initiatives to improve the business as apparel, leather, pharmaceuticals environment, improving our ranking To improve the fiscal policy and power and leading services sector within 100 by 2021. It is encouraging performance, the DCCI recommended such as banking, capital market, ICT that the ranking of Bangladesh giving focus on domestic revenue and port situation, etc. He provided improved by 8 points to 168th mobilization reducing dependency some policy recommendations to out of 190 countries in the World on bank borrowing and national minimize the likely challenges of Bank’s Doing Business Report 2020. savings certificate. Tax net needs to the private sector for sustaining the Bangladesh emerges in the list of top be expanded along with increasing economic growth. 20 improvers in the report. Reform non-tax revenue sources to reduce initiatives help to increase the Economy at a glance the tax burden on the existing tax confidence of foreign investors, with payers. To increase efficiency and According to the World Bank, the highest-ever FDI of $3.6 billion quality in the ADP implementation, Bangladesh is the 32nd largest being recorded in 2018. economy in PPP terms and the 43rd project teams need to be incentivized largest in nominal terms. Bangladesh based on successful implementation However, private investment is is now one of the fastest growing of the project. Budget allocation for stagnant within 22–23 percent of economies in the world having a development expenditure needs to the GDP over the past six years. GDP growth of 8.13 percent. The be enhanced. An inadequate infrastructure and economy is experiencing a structural the high cost of doing business Monetary policy transformation from agriculture to challenge the desired private sector Industry and service-based economy While highlighting about the investment. The DCCI recommended reflected in the relative contribution monetary policy performance, we expeditious reform initiatives, quality to the GDP. While the share of found that non-performing loans infrastructure investment, focused industry and services sectors of the and liquidity shortage because of the institutional and policy reforms and GDP is 35.14 percent and 51.16 diversion of the individual deposits the rationalization of corporate tax percent respectively, the share of to the national savings certificates rate for increasing private investment.

20 Chamber News DCCI Review October-November 2019

International trade Agriculture export dropped by 6.67 percent year-on-year to $10.57 billion. A Merchandize export grew by 10.55 Although contribution of agriculture higher logistic cost, wage hike, to the GDP is decreasing, the sector percent year on year to $40.5 low labour productivity, gas price is contributing the highest of 40.6 billion in 2018–19 financial year. increase and compliance cost affect percent in terms of employment. However, our export basket is not apparel export competitiveness. The However, a huge amount of diversified. The export basket is DCCI recommends a 3 percent cash hugely concentrated on the apparel crops are wasted because of post- incentive for the next three years for sector, accounting for 84 percent of harvest processing and supply the export of all products across the the total export. However, because of chain. The absence of the testing board to make this sector sustainable. the apparel export growth, the trade laboratory facilities is a challenge In addition, sector oriented re- deficit decreased by 14.8 percent. for Bangladeshi companies to meet skilling, up-skilling scheme and the international standards. Lack of incentives to adopt new technology Our export may slow down in the logistics, warehouse infrastructure like 4IR in the apparel sector need to 2019–20 financial year. During July- and low technology adaptation also be ensured. October of the 2019–20 financial limit the growth of this sector. The year, the overall export reduced by DCCI recommended administering Leather sector $930.56 million to $12.72 billion good agriculture practice (GAP) in In the 2018–19 financial year, the every segment of the supply chain. compared with that of the past export of leather and leather products More efforts needs to be given to year. The DCCI recommended a decreased by 6.06 percent to $1.02 product development and new market comprehensive strategy for export billion over $1.09 billion in the exploration to grab a larger market basket diversification and new 2017–18 financial year. The central market access. Moreover, the share. In addition, the development effluent treatment plant (CETP) in establishment of the national single of logistics and warehouse Savar has not bee completed yet, window (NSW) in time, improvement infrastructure, international standard staving off the relocated tanneries of logistics infrastructure including testing lab facility and strong from becoming compliant. Because port infrastructure, FTA with potential processing industry are critical. of the non-compliance, local raw countries and more emphasis on Manufacturing sector hide cannot be sold to export- focused economic diplomacy to oriented manufacturers. For the reduce non-tariff barriers are needed Although Quantum Index of leading development of this sector, the DCCI to increase our export. manufacturing sectors has increased urged a quicker completion of the from previous year except in the CETP and implementation of leather Skills and employment apparel sector, lack of backward and leather goods development linkage industries, energy security According to ILO, the unemployment policy 2019. and technical skill limit the growth rate is 26.1 percent among people of this sector. In view of this, the Pharmaceutical sector with higher education, which has DCCI recommended recution in For a sustainable pharmaceutical some social implications. In terms corporate taxes for both listed and of the average income of expatriate industry, the government should non-listed companies. A long-term concentrate on an early completion labour, Bangladesh is behind regional and predictable energy pricing of the API Park. Moreover, more peers such as India for the lack of policy needs to be worked out. The investment needs to be mobilized skilled labour and professionals. The DCCI also proposes an input tax to enhance API production DCCI recommended an update of the credit for all VAT payers and advance capability and to initiate research course curricula at all educational tax exemption on imported raw and development for the patent of levels with a special concentration on materials. pharmaceutical products before 2024 technical education and orientation to Readymade garment sector as patent payment will be required the changing dynamics of real world after Bangladesh’s graduation from professions and entrepreneurship. In the past five financial years, the LDC. In addition, relevant authorities apparel export of Bangladesh has need to examine the economic and grown on average by 7.66 percent Small and medium enterprises labour market demand of destination a year. However, in first four months The SME is the lifeline of economy countries. of the current financial year, apparel with 23–24 percent contribution 21 Chamber News DCCI Review October-November 2019

to the GDP. The SME has challenge was disbursed during the period. The draft and siltation, container of market information, access to interest rate offered by most of the handling equipment shortages finance, technical know-how and banks ranges between 11 percent and and underdeveloped hinterland SME friendly infrastructure. To 15 percent. Non-performing loans are connectivity are the major sea increase the SME contribution to the key challenge. The government port infrastructure bottlenecks the economy, an SME Act and credit is trying to implement a single-digit for increasing handing capacity. guarantee scheme need to be made. lending rate, which is encouraging. Lengthy customs procedures, lack of To implement this, inflation control, coordination, hassle in inspection, Energy and power sector reduced national savings certificate documentations and approvals Our daily gas demand is 3650mmcfd interest rate and good governance increase the lead time in cross and the supply is 2650mmcfd with need to be ensured. And a separate border trade. A master plan for port a 1000mmcfd supply gap. Our mechanism can be developed by development is needed including industrial gas tariff is is higher than the central bank to identify wilful short, medium and long-term that in Vietnam, India and Indonesia and unintentional defaulters which planning for the port infrastructure although electricity tariff is cheaper. will help banks to take necessary development. Moreover, a single port Moreover, inadequate gas exploration safeguard against non-performing development and oversight authority causes gradual dependence on other loans. such as the “national maritime liquid fuel energy import. The DCCI and port authority” needs to be Capital market recommended a stable, predictable established to regulate and facilitate and business-oriented primary energy The absence of bond market, lack all port related policy issues. fuel sourcing mix and pricing policy. of good companies and corporate ICT sector Exploration and distribution policy governance limit the potentials needs to be short-, mid- and long- of capital market to long-term Bangladesh is the second largest term with focused plan of actions. financing. The DCCI, therefore, urges source of online freelancers. Export of In addition, local exploration and the development of an effective bond Telecommunication and Information production companies need to be market and encourages the use of services is $550 million in the 2018– well-equipped and enlisted in capital mutual fund for long-term financing 19 financial year. The outsourcing market for raising fund. under special purpose vehicles sector has a huge market potential (SPV). Moreover, regulators need to in $500 billion worth global market. Banking sector allow listing green-field projects and Lack of necessary infrastructure In the banking sector, in January- effective function of the DSE SME and skills need to be addressed. June 2019, the disbursement of platform to raise fund from market. In this regard, ICT research and total industrial-term loan increased development investments, updated Port situation by 0.97 percent compared with the IT training courses considering the same period in 2018. In addition, a Despite having growth in container Fourth Industrial Revolution and ICT total of Tk 19,905.28 crore SME loan handing in major sea ports, low startup fund are required r DCCI inks MoU with WBAF on start-up promotion Osama Taseer, President of the Dhaka Angels Investment Forum will the expansion of start-ups and scale- Chamber of Commerce and Industry cooperate with the the DCCI to ups. and Baybars Altuntas, Chairman of empower Bangladesh and world The WBAF is an international World Business Angels Investment economy through innovation, start- organization aiming to ease access Forum, signed a memorandum of ups, entrepreneurship and angel to finance for businesses from start- understanding on behalf of their investment. up to scale-up, with the ultimate respective organizations at the With this agreement, the DCCI goal of generating more jobs. The Radisson Hotel on November 23, and the WBAF aim to enhance WBAF is committed to collaborating 2019. business growth for start-ups, scale- globally to empower world economic As an affiliated partner of the G20 ups, entrepreneurs and SMEs in development by creating innovative Global Partnership for Financial Bangladesh by engaging in activities financial instruments for innovators, Inclusion (GPFI), the World Business and programmes that work towards start-ups and SMEs.

22 Chamber News DCCI Review October-November 2019

DCCI President Osama Taseer (seated, left) and Chairman of World Business Angels Investment Forum (WBAF) Baybars Altuntas (seated, right) signed a MoU to facilitate startups in Bangladesh on November 23. DCCI Senior Vice President Waqar Ahmad Choudhury (sixth from left), Vice President Imran Ahmed (seventh from left), Members of the Board of Directors, former Presidents, DCCI Benjir Ahmed (fifth from right) and Md. Sabur Khan (seventh from right) are also seen.

The memorandum was signed with funding environment for the Now angel investors, incubation the aim of setting up a collaboration development of Bangladeshi start- centres, accelerators, private framework to reinforce the links ups, scale-ups, entrepreneurs and equity funds, co-investment funds, between respective members of the SMEs. technology parks, corporate ventures DCCI and the WBAF and explore Both the parties will arrange common and aspiring entrepreneurs in Bahrain positive synergies to generate programmes to favour the economic will be more connected with global economic and social benefits. development of Bangladeshi start- investment markets r The DCCI and the WBAF will work ups, scale-ups, entrepreneurs and together to promote a favourable SMEs. Country competitiveness a must for improved economy Policy reforms, skill development, SEZs, product diversification, faster implementation of large projects are key changers The Dhaka Chamber of Commerce Osama Taseer, in his welcome the United States, Hong Kong and the and Industry organized a seminar address, said that the private Netherlands, he said. on “Country Competitiveness of sector is the lifeline of economy. In doing business index, Bangladesh’s Bangladesh: Challenges and Way Investment and trade promotion Forward” at the Six Seasons Hotel position is the 168th. The largely rely on doing business and on November 23, 2019. Salman F. country competitiveness state of government’s fast-track infrastructure Rahman, MP, Adviser to the Prime a country. Bangladesh stands in projects will enable competitiveness Minister on Private Industry and of Bangladesh, he said. “But we have Investment, was present on the the 105th position, according to occasion as Chief Guest. The DCCI Global Competitiveness Report some challenges such as energy price President Osama Taseer chaired the 2019 out of 141 countries, where increase, unplanned urbanization, seminar. Singapore stands atop followed by unemployment, limited skills

23 Honourable Adviser to the Prime Minister on Private Industry and Investment Salman F. Rahman, MP (fifth from left) speaking at a seminar titled ‘Country Competitiveness of Bangladesh: Challenges and Way Forward’ held on November 23. DCCI President Osama Taseer (fourth from left), Senior Vice President Waqar Ahmad Choudhury (left), Vice President Imran Ahmed (right), President of BGMEA Dr. Rubana Huq (third from right), Policy Advisor, a2i Programme of ICT Division Anir Chowdhury (third form left), Chairman & CEO, PRAN RFL, Ahsan Khan Chowdhury (second from right) and Executive Director of SANEM Dr. Selim Raihan (second from left) were also present.

diversity, slow reforms, climate paper where he said that Bangladesh diversification, SEZs can be the game change, a limited capacity of adopting was witnessing a sluggish private changer, he said. 4IR technologies and industrial sector investment. In recent year, Salman F. Rahman said, “We need “we have also seen a falling trend infrastructure. We need to work to work hard and more to improve in export-GDP, remittance-GDP and hard to improve the competitiveness the investment climate”, hoping that FDI-GDP ratios. Although FDI share through focused development moves by 2021, Bangladesh will be able to of doing business and competitiveness of the GDP is lower, Bangladesh place itself in a double-digit ranking indices. Improved competitiveness of is doing better in attracting FDIs.” in the Ease of Doing Business index. Bangladesh will support footwear, He suggested reforms in critical A lot of reforms have been done by plastic goods, ceramic, furniture, jute economic domains. the government and he urged that the processing, electronics and ICT to He also urged a faster and cost- business community should reach emerge.” effective implementation of large this message out to the people as well Dr. Selim Raihan, Executive Director, projects and skills development. To as to the outside world. Bangladesh SANEM, presented the keynote attract large-scale FDI and export has achieved a tremendous success

24 especially in the agriculture sector. He She said, “We need to focus on resolution. He said, “We have to also emphasized the diversification diversification of other sectors to improve the port facility on priority of agro-products for more export. He compete in the international market.” basis to improve on competitiveness. said that access to finance was still The entrepreneurs of Bangladesh are Anir Chowdhury, Policy Advisor, a2i a challenge for the entrepreneurs. He courageous and they will lead the Programme of the ICT Division, said, suggested a specialized bond market economy to the next level.” “We have to modernize and update as a long-term financing mechanism. our existing education system to DCCI Senior Vice-President, Waqar For a better competitiveness and create skilled human resources that Ahmad Choudhury, Vice-President to cope up with the challenges of will take up the challenges of the Imran Ahmed, Directors Abul Kasem 4IR, he stressed the need for skills fourth industrial revolution.” He said Khan, Engr. Akber Hakim, Andaleeb development. that as a part of skills development Hasan, Ashraf Ahmed, Alhaj Deen Dr. Rubana Huq, President, initiatives, the government started Mohammed, Enamul Haque Patwary, BGMEA, urged an inter-ministerial training the youth in Internet of Hossain A Sikder, Kh. Rashedul coordination for a smoother Things. Ahsan, Engr. Md. Al Amin, Md. decision making process. She also Ahsan Khan Chowdhury, Chairman Rashedul Karim Munna, Mohammad urged innovation and research and and CEO, PRAN RFL, said, “We Bashiruddin, Nuher L. Khan, Shams development in the apparel sector for need to identify the problems of each Mahmud and S.M. Zillur Rahman its sustainability. sector and appropriate measures for were also present r 25 Article DCCI Review October-November 2019

At last Asset Management Company?

Dr Junaid Kamal Ahmad, a Bangladeshi economist is liquidation. Rehabilitation may also serve a broader social country Director of World Bank in for India. Recently Dr interest, for example, by granting the debtor a second Junaid delivered 18th Nurul Matin Memorial Lecture at chance as well as protecting the jobs of the employees of BIBM on ‘Ethics in Banking’. Dr Junaid categorically told the debtor. But the policy of the IMF is different than the the distinguished audiences that default loan situation suggestion given to Bangladesh. is a management failure of Bank. The media was silent The original policy of the IMF suggested to other over the opinion of the globally recognized economist. countries and its experiences in Korea, China and all Interestingly All other distinguished lecturers of same ASEAN countries succeeded with the creation of the memorial lectures in the last 17 occasions had blamed Asset Management Company (AMC). In many respects, the borrowers for default loan. The Finance Minister AHM these measures-the AMCs and development of out-of- Mustafa Kamal at annual business conference of Padma court centralized corporate debt workout frameworks- Bank on 2nd April that bad management spoils banks. have come to define the crisis asset management setting Recently government rescued Farmers Bank after in these countries. Around 20 years back, IMF suggested partially rehabilitation of BASIC Bank. Government also Bangladesh Bank to set up AMC but BB declined the set to cure problem of AB Bank. The government has proposal with a plea that Banks can resolve the default allocated Tk 50 billion in this fiscal year reportedly as per loan issues with Artho Rin Adalat act. This loan recovery a recommendation by the International Monetary Fund law is one of black laws of the world and violated the (IMF) under its extended credit facility (ECF) program constitutional rights of borrowers even than, Banks could in a bid to re-capitalize four ailing state-owned banks. not ‘recover’ default loans. According to the policy-makers, the government had no other choice but to allocate the funds in the budget as Bangladesh needs a successful NPA management policy they were concerned about the financial health of four guided by well-defined objectives. The following are the state-owned commercial banks in Bangladesh - Sonali, most important of these objectives: (a) Asset management Janata, Agrani and Rupali. policies should aim at restoring liquidity and solvency in financial institutions, restoring confidence in their Banks are in credit crunch of non-performing assets valuation and enhancing credit discipline (by discouraging (NPAs) and provisioning of certain amount for the NPAs opportunistic defaults) and allowing them to resume their which limit the fund for extending credits. The solution is normal functions; (b) a high rate of recovery is primarily not in financing through budgetary allocation from tax- an equity objective, restoring to holders of assets what payers’ money. Other countries separate the NPAs from is owed to them. In addition, a high rate of recovery banks and transfer those to other organizations for taking performs a signaling function, reassuring lenders at large care of such assets to come out of credit crunch. as to the prospects of any outstanding and new credits; The Legal Department of IMF in a paper in 1999, (c) a speedy resolution of the problem through efficient titled ‘Orderly and Effective Insolvency Procedures: measures and (d) a large overhang of non-performing Key Issues’, suggested that in most countries when a assets can paralyze financial markets. debtor has failed to meet his liabilities as these become Asset management is the process whereby non-performing due, the insolvency system provides the creditors (and assets are first identified and organized into one of sometimes the debtors) with the option to initiate either four categories of actions (1) selling, (2) recovering, (3) liquidation or rehabilitation procedures. Creditors often restructuring, and (4) writing off of such assets according opt for rehabilitation when restructuring of the operations to their individual characteristics and then resolved. (company reorganization, downsizing and so on) or balance sheets of the debtor will enable the creditors Asset management policies are institutional arrangements to recover more than what they would expect through or techniques that facilitate this process:

26 Article DCCI Review October-November 2019 u To sell a non-performing asset, the market for such help facilitate financial restructuring and maximize the an asset must exist and, if there is no such market, it recovery of non-performing assets at the same time. must be organized. The sale of non-performing assets On the other hand, rehabilitation of non-performing facilitates diversification of risks and reallocation of assets may be beneficial not only to borrowers and resources (our law permits such sale but does not banks but may also produce welfare gains on a wider evaluate the market demands for such assets). social scale. For these reasons, policymakers in Asian u To recover a non-performing asset, the AMC initiates crisis countries have increasingly focused their attention a process, often legal, by which a part or the whole on debt restructuring and, to facilitate the process, have of the value of the asset can be recouped through implemented out-of-court centralized debt workout seizure and liquidation of its collateral and/or through frameworks. sale of other assets in possession of the borrower. The To minimize the fiscal and/or private cost associated effective functioning of this process largely depends with the restructuring of distressed financial institutions, on the existing legal frameworks and procedures, financial restructuring programs should aim at maximizing the perceived working of which often will have a the value of restructured financial institutions and that significant influence on market valuation of asset and of the assets of closed financial institutions overtime. To assets in general (the Artho Rin Adalat Act has better achieve these objectives, it has sometimes been suggested provision for such legal actions). that good assets of distressed financial institutions should be separated from the bad ones and that AMCs should be u To restructure a non-performing asset, the holder set up as vehicles to take over the latter. enters into negotiation with the asset’s obligor with the aim of strengthening his ability to service and In the USA, the legal provision is to take action against eventually repay the principal. This usually involves the banks. For example, the US Federal Deposit Insurance redefining of the terms of the original contract, a Corporation (FDIC) is obliged by law to take over the process that often entails some concessions on the assets (in addition to the liabilities) of failed banks. In its parts of both the holder and the obligor. Successful role, the FDIC is to undertake liquidation of assets of these debt restructuring can benefit both creditors and banks and issue receivership certificates to depositors debtors. However, the process should be initiated with uninsured funds and to other creditors of failed only if the economic return from the rehabilitation of institutions, entitling them to a share of the net proceeds from the liquidation. the asset exceeds that of its liquidation, The policy of Bangladesh is to file case against the u To write off a non-performing asset, the holder takes a borrower, blame the legal system and the existing laws loss equivalent to its book value and removes it from for ‘failure’ to recover the money for banks. This is not the balance- sheet. The holder will normally only do the policy in any other country. They look into weakness so when the prospect of recovery is very low and of management, banking policy and different options to when the cost of recovery or maintenance of the asset solve the issue considering the best beneficial process for exceeds its value (banks sometimes write off such banks, borrowers and the economy. loans for some influential borrowers but not within their policy or not under the law of the country). Government has at last decided to set up AMC but there are many issues related to formation and operation of Bangladesh may have a law to set up AMCs entrusting AMC. It should not be another Bank and managed by un- the responsibility of (1) selling, (2) recovering, (3) successful Bankers or bureaucrats. restructuring, and (4) writing off of some loans etc.

AMCs may be public or private entities as per law, whose main function should be to take over the non-performing M. S. Siddiqui assets of distressed financial institutions. These are Legal Economist e-mail: [email protected] generally founded on the supposition that they can

27 Chamber News DCCI Review October-November 2019

Honourable Prime Minister of Bangladesh Sheikh Hasina, MP (seated fifth from right), Minister for Railway and Commerce, India Piyush Goyal (seated fourth from left), Commerce Minister Tipu Munshi, MP (seated third from right), Minister for Foreign Affairs Dr. A K Abdul Momen (seated fourth from right), Adviser to the PM on Private Industry and Investment Salman F. Rahman, MP (seated right), Adviser to the PM on Economic Affairs Dr. Mashiur Rahman (2nd row third from right), Principal Secretary Md. Nojibur Rahman (2nd row second from left), DCCI President Osama Taseer (2nd row third from left), FBCCI President Sheikh Fazle Fahim (2nd row eighth from right), BGMEA President Dr. Rubana Huq (2nd row seventh from left), MCCI President Barrister Nihad Kabir (2nd row second from right) are seen in a group photograph after the meeting of select CEOs with the Prime Minister of Bangladesh Sheikh Hasina, MP in her India visit on October 4. 28 Chamber News DCCI Review October-November 2019

29 Chamber News DCCI Review October-November 2019

Honourable Prime Minister of Bangladesh Sheikh Hasina, MP (second from right) addressing the meeting of select CEOs during her state visit to India on October 4 in New Delhi, India. Honourable Commerce Minister Tipu Munshi, MP (right) and Foreign Affairs Minister Dr. A. K. Abdul Momen, MP (third from right), Honourable Adviser to the Prime Minister on Private Industry and Investment Salman F. Rahman, MP (fifth from right), BGMEA President Dr. Rubana Haq (ninth from right), MCCI President Barrister Nihad Kabir (11th from right) and DCCI President Osama Taseer (12th from right) along with other business leaders and dignitaries were present.

30 Chamber News DCCI Review October-November 2019

31 Chamber News DCCI Review October-November 2019

32 Chamber News DCCI Review October-November 2019

33 National Economy DCCI Review October-November 2019 Bangladesh second in South Asia in GDP growth: WB The Bangladesh economy is forecast to achieve the second highest growth rate this fiscal year in South Asia, the World Bank said in its biennial regional economic update. Bangladesh’s gross domestic product is projected to grow at 7.2 percent this fiscal year and 7.3 percent the following year, according to the latest edition of the ‘South Asia Economic Focus, Making (De)centralisation Work’,. Bhutan topped the list with an In the Maldives, growth is expected estimated 7.4 percent growth this a priority to improve the delivery of fiscal year. to reach 5.2 percent in 2019 while public services. it is projected to average 6.5 percent With multiple initiatives underway “The outlook is clouded by rising in Nepal over this and the next fiscal across the region to shift more financial sector vulnerability, but the year. Afghanistan is expected to political and fiscal responsibilities to economy is likely to maintain growth recover and reach 3 percent in 2020 local governments, the report warns, above 7 percent, supported by a and 3.5 percent in 2021. robust macroeconomic framework, however, that decentralisation efforts political stability and strong public In line with a global downward trend, in South Asia have so far yielded investments.” growth in South Asia is projected to mixed results. For decentralisation slow to 5.9 percent in 2019, down to work, central authorities should The WB forecast is much lower than 1.1 percentage points from April wield incentives and exercise quality the government’s target of 8.2 percent 2019 estimates, casting uncertainty control to encourage innovation and for the current fiscal year. The GDP is about a rebound in the short term. accountability at the local level. estimated to have grown 8.1 percent in the fiscal year that ended in June, The report finds that strong domestic Rather than a mere reshuffling of in the highest expansion in the demand, which propped high growth power, the report calls for more region. The fiscal year ends in June in the past, has weakened, driving a complementary roles across tiers in Bangladesh, Bhutan, Nepal and slowdown across the region. of government, in which national Pakistan, and for India it is in March. “Declining industrial production authorities remain proactive in empowering local governments for Bangladesh will also clock the and imports, as well as tensions in better service delivery. highest growth in fiscal 2020-21 too, the financial markets reveal a sharp according to the report. economic slowdown in South Asia,” Decentralisation in South Asia said Hartwig Schafer, vice-president has yet to deliver on its promises In India, after the broad-based of the World Bank for South Asia, in and, if not properly managed, can deceleration in the first quarter of the a statement. degenerate into fragmentation, said fiscal year, growth is projected to fall Hans Timmer, chief economist of the to 6 percent come March next year. As global and domestic uncertainties WB for South Asia. Growth is then expected to gradually cloud the region’s economic outlook, recover to 6.9 percent in fiscal 2020- South Asian countries should pursue “To make decentralisation work for 21 and to 7.2 percent in the following stimulating economic policies to their citizens, we encourage South year. boost private consumption and beef Asian central governments to allocate up investments, he added. Pakistan’s growth is projected to their resources judiciously, create deteriorate further to 2.4 percent this In a focus section, the report highlights incentives to help local communities fiscal year. In Sri Lanka, growth is how—as their economies become compete in integrated markets and expected to soften to 2.7 percent in more sophisticated—South Asian provide equal opportunities to their 2019. countries have made decentralisation people” r

34 National Economy DCCI Review October-November 2019

Bangladesh slips in global terms of ranking but lagged behind failure in climate change adaptation competitiveness ranking India and Sri Lanka. and industrial pollution. Bangladesh’s competitiveness Save for Nepal and Sri Lanka, the “Neither we can get out of traditional is eroding owing to weakening other Saarc countries’ ranking challenge nor are our policymakers macroeconomic stability, declined in GCI 2019 from a year and businesses ready to face new deterioration of labour market earlier. Afghanistan, Bhutan and challenges.” conditions, lack of ICT adoption Maldives did not take part in the Addressing those four-pronged and inadequate progress in competiveness survey. challenges through unidirectional infrastructure, according to the Bangladesh ranked among the top approach would not work. World Economic Forum’s Global 50 countries only in one pillar: “A business-as-usual approach would Competitiveness Index (GCI) 2019. market size. Its weakest positions not help to improve Bangladesh’s The country’s position slipped are in business dynamism, labour falling competitiveness.” two notches to 105th in this year, market, product market and skills, said the report. The GCI 2019, which has been according to the GCI, which was prepared based on secondary data unveiled by the Centre for Policy Complex administrative require- and survey among businesses, Dialogue (CPD), a partner of the ments and weak entrepreneurial said institution and governance WEF. culture have weakened business are the weakest areas in business The index maps the competitiveness dynamism. competiveness and businesses perceived that the majority of the landscape of 141 economies Inadequate skills of current work indicators had deteriorated. through 103 indicators organised force and lack of preparedness of into 12 themes. workforce to face future challenges Some 77 entrepreneurs took part in Each indicator, using a scale of technologies are the other the survey. As many as 78 percent of the participants said bribe is from 0 to 100, shows how close weaknesses, according to the GCI somewhat a usual practice to get an economy is to the ideal state 2019. public contracts, said Moazzem, or “frontier” of competitiveness, “The report gives indication that a adding that 76 percent of the with 100 representing an optimal large number of labour force can entrepreneurs said the use of bribe situation. turn into burden in future for lack is somewhat common in export and The pillars, which cover broad of preparedness for fourth Industrial import. socio-economic elements, are: Revolution (4IR) technologies. The notion of availability of cheap labour A high percentage of them institutions, infrastructure, ICT will be seen from the perspective of complained of expectations of bribe adoption, macroeconomic stability, skills,” Moazzem said. in connection with tax payments and health, skills, product market, low ethical standards of politicians. labour market, the financial system, Bangladesh is confronting four- market size, business dynamism and pronged challenges in terms of “The extent of corruption has further innovation capability. competitiveness. increased. This has squeezed the scope for doing business particularly The report showed that Bangladesh’s The lack of improvement in for the new entrants and micro, competiveness declined in 10 out of governance and institutions, poor small and medium enterprises.” 12 pillars. infrastructure, financial system and Corruption has become a major business operations are traditional Significant deterioration in ranks was burden for businesses, which reduce perennial problems, Moazzem said. observed in case of macroeconomic competitiveness both in local and stability, labour market, ICT But the lack of preparedness for 4IR global markets. adoption, and infrastructure, said technologies, absence of necessary The GCI 2019 said entrepreneurs’ CPD Research Director Khondaker regulatory framework and skills, no perception has deteriorated in 11 Golam Moazzem while presenting clear pathways for businesses are out of 19 indicators. Businesses also the report at the Economic Reporters emerging concerns. complained of ‘illegal’ diversion Forum. And then there are emerging market of public fund and distorting fiscal The country was ahead of its South risks: rise in energy price, failure in measures for competition, according Asian peers Nepal and Pakistan in urban planning, underemployment, to the GCI r

35 National Economy DCCI Review October-November 2019

Source tax on export of anti-dumping duty slapped by said, adding that the platform would to be slashed India in 2017 and falling demand facilitate auto-matchmaking. in other markets abroad. The official There are more than 16,000 The National Board of Revenue said the source tax on export institutional investors from 39 is likely to reduce source tax on proceeds from jute goods is also countries registered on the V-Next. proceeds from all export items, likely to be reduced to 0.25 percent including apparels, to 0.25 percent for the current fiscal year. “We The match-making is algorithm- to help increase competitiveness expect to issue a notification in this based and carried out automatically of local products in international regard soon,” he said. on the basis of pre-defined markets, said a senior official. parameters. Latest data on the collection of tax “We are considering to cut the tax at source on export earnings are not More than 1,100 companies have at source so that entrepreneurs available. The tax authority got Tk already raised about $5 billion using can implement the new wages for 2,136 crore in fiscal 2016-17 from the platform. garment workers,” said the official. the source, up 17 percent from Tk The window will facilitate the The move followed demands 1,811 crore a year ago, according country’s listed and non-listed from garments and knitwear to an NBR annual report. The tax companies to explore equity and manufacturers and exporters after cut will cause a loss of quite a good strategic partnership, seek business the withholding tax on export amount of revenue, said the official r earnings went up to 1 percent on the collaboration, and diversify business first day of July because of expiry of and technology channels in China, reduced source tax benefit on June Startups, SMEs to get officials said. 30 this year. easy funds The DSE has another platform for The tax authority reduced advance Bangladeshi hi-tech start-ups and SME entrepreneurs, named DSE or source tax on export earnings SME entrepreneurs can now receive SME, where entrepreneurs need to of readymade garments twice last funding from local and foreign be listed to raise funds, but V-Next fiscal year -- from 1 percent to 0.60 investors by pitching their ideas will allow them to mobilise funds percent to 0.25 percent-- in the face and enterprises on a platform of the without being listed. Shenzhen Stock Exchange (SZSE). of demands from apparel markers. The new platform has not set any The NBR has not extended the The Bangladesh window of the mandatory paid-up capital limit as reduced withholding tax privilege V-Next platform of the SZSE was listing requirement. But in order in its bid to increase collection from launched in Bangladesh on May to get listed on the DSE SME, a exporters to attain higher tax targets. 6 under a strategic investment company needs to have a minimum Apart from garments, jute goods were agreement between the Dhaka Stock paid-up capital of Tk 5 crore. enjoying 0.60 percent withholding Exchange (DSE) and its strategic Entities such as auditors and merchant tax on export proceeds since July partner, formed by the SZSE and the bankers will ensure the authenticity 1, 2016. The reduced rate ended on Shanghai stock exchanges. of the data of entrepreneurs, so the June 30 this year. Jute millers earlier Today, the platform will be presented decision-making for investors will urged the government to withdraw to investors and entrepreneurs at a be a lot easier, Patwary said. the source tax on export proceeds to programme at the InterContinental help the sector withstand the fallout Dhaka hotel. The DSE is the chief In order to get entry to the platform, strategic partner of the V-Next both entrepreneurs and investors will platform in the country. have to be registered. However, no The entrepreneurs will showcase fees will be levied until a successful their ideas and enterprises on the lending or borrowing takes place. platform and the investors will make Enterprises that are registered can investment decision by analysing publish their financing requirement potential, said Abdul Matin Patwary, for specific projects on the platform, acting managing director of the DSE. and also highlight their demands “This is an excellent system for new in various forms, including video, entrepreneurs to get finance,” he graphics and text r 36 National Economy DCCI Review October-November 2019

Govt launches three online product developers are connected Using this platform users can browse platforms with it. all government websites, apply for online services and verify other Prime Minister’s ICT Affairs Adviser Anyone can upload their product government services. Any fees or Sajeeb Wazed Joy launched information after getting listed with charges related with the services can the platforms in a ceremony the platform, while buyers can also be paid directly from the platform, organised by the Information and purchase products from popular a2i officials added. Communication Technology (ICT) online shopping houses. division at the ICT Tower in Dhaka. Some 16 leading e-commerce Jami said they have developed an interconnected architecture for The platforms were developed by platforms are now listed with the digital services that will help citizens the Access to Information (a2i) platforms while about 10 lakh to get government services easily programme under the ICT division. products are being showcased. Users will also get support from the and also save their time and money. By 2021, the government plans government’s union digital centres to deliver majority of the citizen “In future this architecture will bring to buy and sell their products. services through the mobile phone new innovations,” Jami added. or union digital centres, said Joy at The platform has logistics and LGRD and Cooperatives Minister the launch, report BSS. payment facilities incorporated, so Md Tazul Islam, State Minister for it will be easy the get any kind of Using the Ekpay platform citizens ICT Division Zunaid Ahmed Palak, online shopping related support will be able to pay all kinds of utility ICT Division Senior Secretary NM bills, tuition fees for education and from here. Zeaul Alam and South Korean other government payments like Sellers also can sell their products to Ambassador in Dhaka Hu Kang-il holding taxes easily. other countries through the platform, addressed the function. Currently, EkPay is offering bill which has already partnered with a At the same programme Joy also payment solutions to over 50 Malaysian company, according to unveiled the digital municipality assisted agents and more than Jami. services system to provide five 50,000 syndicated agents. Within a short time, this service will citizen services in Mymensingh City Corporation and nine municipalities Some 15 banks have already been be launched in Singapore, Nepal under the pilot programme. integrated with the platform and and 21 other countries, said a2i more than 30 service providers are officers. The government has targeted to currently allowing their customers Joy also launched an online service reach 300 municipalities by 2021. to pay bills with their cards, bank delivery gateway Eksheba, which Joy went on to term the launch of accounts including internet banking, has 167 government services on the digital services as ‘buildings mobile financial services, among board and a2i has targeted to place blocks’ to implementing the Digital other options. more than 3,000 services here. Bangladesh vision r Currently, there are just six options, but in the coming days more and more options will be integrated with the payment gateways and all the banks will be connected, said Rezwanul Haque Jami, head of commercialisation at a2i. “This service will bring relief to users. They will no longer need to go from one bank to another to pay their utility bills, which can now be done with a few taps on one’s mobile phone,” Jami added. Ekshop is a platform for buying and selling and thousands of remote

37 Pictorial DCCI Review October-November 2019

DCCI President Osama Taseer (left) seen in a group photo with the Fijian Minister Aiyaz Sayed Khaiyum (second from right) on October 2.

DCCI Senior Vice President Waqar Ahmad Choudhury (left) speaking at the inaugural ceremony of “Promoting DSE SME and V-Next Platform” organized by DSE on October 7. Chairman, Bangladesh Securities and Exchange Commission Dr. M Khairul Hossain (second from right) and Chairman, DSE Professor Dr. Abul Hashem (third from right) among others were present.

DCCI President Osama Taseer (center), Senior Vice President Waqar Ahmad Choudhury (fifth from left), Vice President Imran Ahmed (eighth from right) and Members of the Board of Directors were present at the DCCI’s Board Meeting held on October 19.

38 SAARC News DCCI Review October-November 2019 India’s GDP growth falls to slowest pace since 2013 Growth in India’s economic output slowed to 4.5% in the three months that ended in September and experts are predicting a further slowdown for the world’s seventh-largest economy. Growth slowed to its weakest since the first quarter of 2013, according to Reuters, and was down from the 5% registered for the previous three months. “High frequency indicators continued to trend lower in September, with industrial production clocking its worst decline in eight years,” Sanjay be 4.7% for the period, or down from profits are likely to weigh on business Mathur, chief economist for Southeast 7% for the same period in 2018. investments and job creation to keep Asia and India, and Rini Sen, an India India’s fiscal year starts in April and its workforce employed. Recent economist, at ANZ wrote in a research ends in March the following year. policy reforms have left many small- note. ANZ has downgraded its full Currently, India is in its fiscal year and medium-sized businesses reeling. fiscal-year growth forecast from 5.8% 2020, which ends in March next year. Ratings agency Moody’s recently to 5.1%, the note said. The South Asian country is currently downgraded its outlook on India’s Singapore’s DBS Group held a facing a number of challenges. Apart from “stable” to “negative,” and cited conservative estimate of 4.3% from an economic slowdown, there growing risks that economic growth growth for the third quarter of 2019. is an ongoing crisis in the financial will remain “materially lower than in On average, economists polled by sector, which has hamstrung lending. the past” r Reuters said they expected growth to Weakness in corporate earnings and Central Bank seen keeping rates on hold under new Govt. The Central Bank is likely to leave its All 12 economists surveyed by the rates steady due to a liquidity key interest rates on hold at a policy Reuters expected the Central shortage,” said Dimantha Mathew, review, a Reuters poll indicated, while Bank of Sri Lanka to keep both its head of research at broker First it waits for the new Government’s standing deposit facility rate (SDFR) Capital Holdings. “However, the economic policies after the election and standing lending facility rate probability of a rate cut in the next of a fresh President on 16 November. (SLFR) steady at 7.00% and 8.00% meeting is higher.” New President Gotabaya Rajapaksa respectively r The Central Bank has cut its promised to boost annual growth to benchmark rates by 100 bps in two 6.5% in his election manifesto. He meetings since May and reduced the swore in his elder brother, former Statutory reserve ratio would SRR by 250 bps, releasing around President Mahinda Rajapaksa, as also be kept at 5.00% Rs. 150 billion ($ 832 million) of Prime Minister and Finance Minister, liquidity to the financial market. It cementing the family’s political The Central Bank has loosened also imposed caps on rupee deposit comeback. policy in several steps to boost sluggish growth after tourism and interest rates that enabled banks to Local investor sentiment has been investments plummeted following reduce the cost of mobilising funds positive on the election of Rajapaksa, from the general public. a former wartime Defence Chief who the Easter Sunday bomb attacks has pledged to secure the country by Islamist militants. “The external As a result, the commercial banks’ against militant threats following the sector is supporting a rate cut, but average weighted prime lending rate Easter Sunday bombings this year. this time the Central Bank will keep (AWPR) fell 62 basis points between 39 SAARC News DCCI Review October-November 2019

the last rate cut in August and 22 10 onshore sites for hydrocarbon in per capita electricity consumption November. The rate cuts have already exploration, starting December 2019, in Pakistan, which currently stood put pressure on the rupee currency, said Power and Petroleum Minister around 500 kilowatts (kw) lower than which has fallen 0.6% amid foreign Omar Ayub Khan in a meeting with the 2,500kw per capita consumption outflows from Government securities. German Ambassador Bernhard in China. The attacks on luxury hotels and Schlagheck r “This means electricity consumption churches on 21 April killed more will further increase in Pakistan with than 250 people, and private sector the adoption of business-friendly OGRA recommends slight policies by the government,” he credit growth remains sluggish. The reduction in petrol price island nation’s economic growth remarked r eased to a 17-year low of 3.2% in Special Assistant to the Prime Minister 2018 and the IMF expects the pace on Petroleum Nadeem Babar was also Rift between OGDC high-up, to slow to 2.7% this year. A Reuters present in the meeting. The minister board deepens poll has predicted 2019 growth will emphasised that Pakistan’s energy be the lowest in nearly two decades. sector was developing fast as it was The minister reiterated that Pakistan offering around $60-billion market government had formulated a circular State finances, meanwhile, remain debt capping plan and the increase for renewable energy generation, under pressure with a heavy external in debt, which was growing by Rs39 transmission and distribution along debt repayment schedule between billion per month during the tenure with the petroleum sub-sector, which 2019 and 2022. Central Bank chief of previous government, was brought offered huge oil and gas exploration Indrajith Coomaraswamy said he was down to little more than Rs10 billion opportunities at around 40 new sites. resigning and would step down on per month. “This will be arrested by Auction for these sites would be held 20 December because of personal the end of next year.” next month. reasons and an age limit. He threw light on the steps taken He pointed out that for the first by the government for bringing Central Bank sources said Senior time provinces in Pakistan had efficiency in the power sector. Owing Deputy Governor Nandalal been given a major and leading to an extensive anti-theft campaign, Weerasinghe was an option if the role in decision-making on new recovery drives, action against President opted for a career central renewable energy projects as well as employees of power companies and banker r project implementation. A steering such other measures, 80% of feeders committee, with representation from across the country are now receiving all provinces, would be constituted uninterrupted power supply. Work Pak to offer 35 offshore sites on the remaining 20% feeders is also for the purpose in the Alternative for oil, gas exploration going on at a fast pace and is on track. Energy Development Board (AEDB), Pakistan has decided to auction 35 he added. He said the government Apart from these, power distribution offshore sites next month for drilling had formulated a 25-year power companies are making considerable to find oil and gas reserves ina generation plan alongside the investment in new technology major move to step up hydrocarbon transmission plan for commissioning including AMI meters and Areal production and meet growing new projects in the country. Bundled Cables to enhance their demand. The decision came after efficiency and slash losses. Regarding exploration of new oil and public-sector companies including Speaking on the occasion, Nadeem gas reserves, the German ambassador Oil and Gas Development Company Babar revealed that a multi-year was apprised that due to the absence auction of bulk renewable energy (OGDC), in a joint venture with Italy’s of a clear globally acceptable policy, Eni and US energy giant ExxonMobil, projects on a competitive bidding there was little exploration work as basis was under consideration. made efforts to discover oil and gas compared to the potential Pakistan deposits at an offshore site in the had. “It will also be beneficial for Arabian Sea near Karachi. However, the manufacturing of renewable they could not find anything but Now, after the policy has been energy equipment such as solar panels and wind turbines in the were able to collect data that could revamped, the government is ready to auction around 35 offshore and country, providing investors with be useful for upcoming offshore 10 onshore sites for oil and gas a good market size and terms for ventures. exploration, starting December 2019. their businesses besides creating In addition to the 35 offshore sites, The power minister briefed the envoy considerable job opportunities,” he the government is poised to auction about the huge potential of increase added r 40 Pictorial DCCI Review October-November 2019

DCCI President Osama Taseer (left) seen addressing the AmCham’s luncheon meeting held on October 16.

DCCI President Osama Taseer speaking at the 10th Founding Anniversary Ceremony of Dot-5 held on October 19.

DCCI President Osama Taseer (third from right) and British High Commissioner to Bangladesh Robert Chatterton Dickson (3rd from left) among others are seen at the agreement-signing ceremony between Bangladesh Express Leather Products Limited and Lee Coopers (a British renowned shoe brand) held on October 28.

41 Asia Pacific DCCI Review October-November 2019 Asia’s food sector needs $800b investment over 10yrs: study Asia’s food and agriculture industry needs investment of $800 billion over the next 10 years to meet the region’s growing food demand, a jointly produced report showed. Investments will unlock annual market growth of around 7 percent, with the region more than doubling its spending on food to more than $8 trillion by 2030, according to the report by consultancy PwC, Rabobank and Singapore state investor Temasek. Asia’s growing population and rising Challenge, sees several Asian cities, Agency has set a goal to produce 30 incomes are resulting in higher such as Beijing, Hong Kong, Mumbai, percent of the country’s nutritional demand for protein-rich foods which Singapore and Tokyo, having the needs by 2030 by adopting new require investment in setting of food potential to become agriculture-food solutions and technologies to grow supply chains. tech hubs. more with less r The report, titled The Asia Food The report said the Singapore Food Asian shares mixed as doubts grow on elusive U.S.-China trade deal Asian share markets were mixed, as “There are some lingering doubts The next deadline in the dispute is another day awaiting clearer news over whether a phase one deal can Dec. 15, when another round of U.S. on the progress of U.S.-China trade be struck ... I think the suspicion is tariffs on Chinese good is scheduled negotiations left investors bereft of that there’s a lot more wrinkles to to take effect. Wall Street’s main trading motivation. MSCI’s broadest iron out than initially thought.” indexes traded mostly flat, looking index of Asia-Pacific shares outside Overnight, CNBC had reported the for direction on trade, though they Japan inched 0.2% higher as hopes mood in Beijing was pessimistic ended the day inching higher to for stimulus in China lifted Shanghai about the prospects of sealing an record closing levels. blue chips by 0.8% and Hong Kong’s agreement. On the other hand, a new The Dow Jones Industrial Average Hang Seng by 1%. extension allowing U.S. companies rose 0.1%. The S&P 500 gained to keep doing business with Chinese Japan’s Nikkei, however, shed 0.2% 0.05%, and the Nasdaq Composite telecoms giant Huawei suggested and South Korea’s Kospi 200 dropped something of an olive branch. . 0.1%. The yield on benchmark 10- 0.3%. Australia’s S&P/ASX 200 rose year Treasury notes rose to 1.8118% 0.4%. Volumes were light across the Still, neither morsel shed much compared with its U.S. close of light on progress in U.S.-China board. E-Mini futures for the S&P 500 1.808% . were flat. negotiations, and this week’s listless trading suggests optimism that Currency markets were similarly “It’s subdued today for sure,” said resolution is near is beginning to run indecisive and range-bound. The Vishnu Varathan, head of economics out of steam. safe-haven Japanese yenclimbed and strategy at Mizuho Bank’s Asia as high as 108.45 per dollar before Treasury Department in Singapore, “We’re still waiting,” said Michael retreating to trade flat at 108.64. adding that focus was by default McCarthy, chief market strategist at on efforts to resolve the trade war brokerage CMC Markets in Sydney. The Australian dollar nudged 0.2% “The longer we go on, the more between the world’s two biggest lower to $0.6793 after the central concerns will arise. The reality is the economies that has dented global bank said it had seen a case for clock is ticking.” growth. cutting rates this month. 42 Asia Pacific DCCI Review October-November 2019

The biggest mover overnight was the Stocks in South Korea “You start to turn to the election British pound which headed towards and India could ‘surprise’ season in the U.S., there’s not going $1.30 as four polls showed Prime investors in 2020 to be a lot of policy impulse as we Minister Boris Johnson’s Conservative go to that period of time,” he said Party tracking toward victory at the J.P. Morgan has an optimistic outlook referring to the 2020 elections in Dec. 12 election. on Asian stocks, with South Korea November r A.I. use is still rising globally, but and India positioned to perform most firms’ tech isn’t yet close to particularly well going into 2020. India to see boost from ‘real’ intelligence “We’re looking at an MSCI Asia ex- domestic policy Every time someone asks a smart Japan index target of 750 at the end For India, domestic policies could fridge to remind them to pick up milk, of first half. Year end, however, we’re help drive those stocks higher. “We’re they’re helping lay the groundwork looking at 700,” J.P. Morgan’s head of seeing an impulse of fiscal stimulus. for what’s expected to be a $100 Asia ex-Japan equity research, James We’re starting to see a bottoming out billion world-changing industry. Sullivan, said. of earnings negative revisions that A fridge’s artificial intelligence (AI) we’ve seen for the past year and a Still, J.P. Morgan said its 2020 year- digests the user’s words, running them half now,” he explained. through machine-learning software, end target for the index which tracks which gets smarter every time you large and mid-cap stocks across Asian In September, the Indian government talk to it, said Dorando Doo, senior markets, including China, Korea, and cut taxes on companies and vice president at iFlytek, a Chinese India is roughly 8% above current manufacturers, in an attempt to boost economic growth. Now, Indian AI firm. As the fridge’s software gets levels. smarter, it’ll help inform a wide range companies only need to pay taxes of of other AI systems. The investment bank said it is “bullish 22% on their profits, down from 30%. on Asian equities,” explaining, “With J.P. Morgan said in its report that the “That learning capability can be aggressive policy easing this year, corporate tax cut could translate to a applied to various industries, such as bottoming of the trade uncertainty- “fiscal impulse of about $20 (billion), education or health care,” she said at or 0.7% of GDP). CNBC’s East Tech West conference in driven sentiment shock, and limited the Nansha district of Guangzhou, macro imbalances, growth looks set The firm has an “overweight” rating China, this week. to bottom out in 4Q19 and improve on cement manufacturer Ultratech in 2020.” Cement and ICICI Bank. J.P. Morgan AI is being hailed as a revolutionary said Ultratech is positioned for technology, which could eventually But Sullivan told CNBC that the “strong earnings growth,” while improve everything from banking to environment could “get significantly ICICI’s valuation is “attractive relative transportation. It promises software more difficult” in the back half of the to its private banking peers” r that, once deployed, can continue year. learning and evolving, perhaps solving complex problems outside the scope of human abilities. But current AI tech is used in more pedestrian ways, with the lion’s share in customer service, sales processes, and threat detection, according to research firm IDC. Worldwide, some 14% of companies have already deployed some form of it in their processes or products, up from 4% a year ago, according to Gartner. In China, 14% of firms have embraced AI tech, an IBM executive said this week r

43 Pictorial DCCI Review October-November 2019

DCCI Senior Vice President Waqar Ahmad Choudhury (right) addressing the Technical Session titled “Potential Cross Border Surface Route Trade” of `India-Bangladesh Stakeholders Meet’ held on October 22 in Guwahati, India.

DCCI Senior Vice President Waqar Ahmad Choudhruy (fourth from right) presenting memento to Industries & Commerce Minister of Assam Shri Chandra Mohan Patowary (fifth form left) on October 22. DCCI Vice President Imran Ahmed (fourth from left), Directors Hossain A Sikder (third from right), Engr. Akber Hakim (third from left), Mohammad Bashiruddin (second from right), Shams Mahmud (second from left), SM Zillur Rahman (left) and Alhaj Deen Mohammed (right) were present.

Chief Minister of Tripura Shri Biplab Kumar Deb (right), DCCI Senior Vice President Waqar Ahmad Choudhury (third from right), Vice President Imran Ahmed (third from left), former Senior Vice President Alhaj Abdus Salam (left) and former Vice President Alhaj Md. Alauddin Malik (second from left) are seen during the `India-Bangladesh Stakeholders’ Meet’ held on October 22 in Guwahati, India.

44 Middle East DCCI Review October-November 2019 UAE non-oil sector slowdown to weigh on Dubai, Sharjah The slowdown in non-oil sectors of the UAE (Aa2 stable) economy will remain protracted over the next few years, which will weigh on revenue growth in Dubai and Sharjah (A3 negative), Moody’s Investors Service said last November 28. Particularly for Dubai, lower growth conditions and counter- cyclical fiscal policy measures are aggravating already high debt levels. By contrast, Abu Dhabi (Aa2 stable) is well insulated from these pressures because of the revenue it derives of total revenues in 2018, with export services like transport and from hydrocarbons and international hydrocarbon proceeds and foreign tourism rather than visible goods. investment income from its sovereign investment income from ADIA In fact, travel, transport and other wealth fund assets. comprising the vast majority of services exports have accounted for revenues, providing a much higher Non-oil economic activity is likely to a greater share of export revenue (ex. degree of insulation from the remain below historical rates across re-exports) than hydrocarbons since economic cycle (albeit with a higher the UAE over the next few years. the oil price shock. Up until 2015, sensitivity to oil price volatility). Dubai’s real GDP growth slowed to these sectors grew strongly, with Abu its lowest rate since 2010, while Abu For Dubai in particular, lower growth Dhabi’s non- oil GDP growing 6.5% Dhabi’s non-oil real GDP growth and counter-cyclical fiscal policy and Dubai’s by 4.0% in 2011-15. decelerated to 0.6%. are aggravating already elevated However, growth has stalled since debt levels. Despite a more cautious We expect the slowdown to be fiscal policy stance since the 2008 the oil shock and the associated protracted due to the soft labour debt crisis, Dubai’s debt burden has regional austerity measures, cooling market, structural constraints in the continued to rise, and we estimate from 6.4% in 2014 to 1.3% in 2018. UAE’s tourism and shipping sectors it will reach 62.5% of GDP by Dubai’s real GDP growth1 slowed to and wage deflation, which is likely the end of the year, from 55.7% in 1.9% in 2018, the lowest rate since to feed through to house prices and 2016, increasing the risk that the 2010, while Abu Dhabi’s non-oil real retail trade. government’s capacity to support GDP growth declined to 0.6%. Slower growth is affecting government government-related entities will be Growth momentum shows little signs revenues more acutely in Dubai and increasingly constrained. Sharjah. Dubai and Sharjah which do of improving: Abu Dhabi’s non-oil Furthermore, if existing revenue not generate significant hydrocarbon real GVA contracted by 0.9% year- sources continue to underperform, revenues have revenue bases which on- year in the first quarter of 2019, the government may opt to upstream are more tightly correlated to while non-oil real GVA for the UAE income from government-related macroeconomic conditions due to grew by just 0.3% in the same period. entities. their heavier reliance on government Dubai released data for the first half fees, fines and (to a lesser extent) tax Non-oil economic activity is likely to of 2019 which showed the economy revenues on consumption, imports remain below historical levels across was growing by 2.1%, marking a and foreign banks. the UAE. slight acceleration from the 2018 rate In contrast, Abu Dhabi’s non-oil Compared with its GCC peers, the of 1.94% but still significantly below revenues (excluding investment UAE economy is relatively diversified the 4% average growth experienced income) accounted for only 10% and many of its non-oil sectors between 2011 and 2015 r

45 Middle East DCCI Review October-November 2019

Qatar Chamber to develop of natural gas rose from 48m tonnes Iran’s economy plummets and organise real estate in FY 2018/19 to 51.1m tonnes this under weight of sanctions year, the source said. market After two years of successive He attributed this year’s estimated Qatar Chamber’s Real Estate contraction, recent reports paint a consumption increase to the Commission recently held a meeting grim outlook for Iran’s economy in increased needs of the electricity to review the issues related to 2020. Widespread sanctions have sector for petroleum products and the country’s property sector, the gas. The sources said that the annual hit the economy hard and ordinary chamber said in a statement. increase in the consumption of Iranians are bearing the burden of a The meeting was presided over petroleum products such as petrol, recession. by Qatar Chamber board member diesel, jet fuel, and gas locally Economic indicators for Iran accounted for about 4%. While Abdulrahman Abuljalil Abdulghani, released recently by the International the liquefied petroleum gas (LPG) in the presence of acting director Monetary Fund (IMF) and the World of the Department of Real Estate cylinders consumption was reduced by about 2% annually due to the Bank show the impact sanctions Intermediaries Affairs at the Ministry expansion of delivering natural gas to have had on the country’s oil-fuelled of Justice, Khaled al-Mahshady, and residential units. economy. In its World Economic members of the committee. Outlook report published in October, He pointed out that the Ministry of According to the statement, the the IMF said Iran’s economy would Petroleum succeeded in reducing the meeting reviewed topics, such as deficit between domestic production contract 9.5% this year. the real estate brokerage law, as well and consumption of petrol by 3.8% The number makes 2019 one of the as a proposal to set mechanisms during the current fiscal year, bringing worst years for Iran’s economy since for developing and organising the the total domestic production to about 1984. Only Libya (19% of GDP real estate market. It also discussed 7.6m tonnes annually compared to contraction) and Venezuela (35% the participation of representatives 8m tons consumption. of Qatar Chamber in attending of GDP contraction) are expected He added that the production of the training programme on Qatar’s to perform worse economically in domestic diesel will increase to national housing strategy. 2019. about 14.7m tonnes annually during The statement also said the Qatar the current fiscal year, compared to In an economic update on Iran Chamber Real Estate Commission 16.8m tonnes consumption, which published on October 9, the World is responsible for following up reduces the deficit to about 12.5%. Bank came up with a similar developments in the sector, studying The sources pointed out that the figure of 8.7% contraction for the the obstacles of businessmen in this rate of production of the LPG will Iranian economy in 2019 due to sector, and making recommendations increase to 2.6m tonnes per year “plummeting” oil and gas exports, compared to about 3.9m tonnes of aimed at developing the contribution along with new sanctions being domestic consumption, to reduce the of the real estate sector, as well as imposed on Iran’s metals, mining and deficit to 33.3%. contributing to study and analysis of maritime sectors. changes arising in Qatar’s real estate He pointed out that the production market r of jet fuel domestically increased The World Bank said the expected to 4.1m tonnes annually, and deterioration in growth means that Egypt’s petroleum products, consumption at about 670,000 by the end of 2019, Iran’s economy gas consumption up to 92.4m tonnes, which achieves an exportable will be 10% smaller than what it was tonnes in FY 2019/20 surplus of 3.43m tonnes during two years ago. the current fiscal year. The sources A government source estimated said that Egypt has achieved self- Although the IMF and the World Egypt’s consumption of petroleum sufficiency of natural gas locally Bank predict between 0 and 0.5% products and natural gas at 92.4m and began to export shipments of growth in 2020, this is starting from a tonnes in the fiscal year (FY) liquefied natural gas to international much smaller base, and is contingent 2019/20, compared to 89.7m tonnes markets, in addition to providing the on Iran being able to export 500,000 in FY 2018/19. Egypt’s consumption needs of Jordan r barrels of oil every day r 46 Pictorial DCCI Review October-November 2019

Vice Chancellor of University of Dhaka Professor Dr. Md. Akhtaruzzaman (fourth form right), DCCI President Osama Taseer (third from right) along with other executive Board Members are seen at the 2nd meeting of the “Executive Board” of the Innovation, Creativity and Entrepreneurship (ICE) Center, University of Dhaka held on November 3.

DCCI President Osama Taseer (right) seen congratulating Vice Chancellor of University of Dhaka Professor Dr. Md. Akhtaruzzaman (left) for being elected as the Vice Chancellor for second term.

Executive Chairman of Bangladesh Investment Development Authority (BIDA) Md. Sirazul Islam (right) addressing a discussion meeting with Chamber Leaders on November 11. DCCI President Osama Taseer (fifth from right), Senior Vice President Waqar Ahmad Choudhury (seventh from right), Vice President Imran Ahmed (eighth from right), Directors Engr. Akber Hakim (ninth from right), Shams Mahmud (10th from right), former Presidents Asif Ibrahim (sixth from right), MCCI President Barrister Nihad Kabir (fourth from right) and High Officials of BIDA were present during this meeting.

47 International DCCI Review October-November 2019 Brexit deal means ‘£70bn hit to UK by 2029’ Boris Johnson’s Brexit deal will leave the UK £70bn worse off than if it had remained in the EU, a study by the National Institute of Economic and Social Research (NIESR) has found. It concluded that GDP would be 3.5% lower in 10 years’ time under the deal. The independent forecaster’s outlook is one of the first assessments of how the economy will fare under the new deal. But the Treasury said it plans on a ‘more ambitious’ agreement with the EU than ‘NIESR is basing its findings on’. independent economic research models such as those deployed by institute. A year ago, it conducted a the respected National Institute of A spokesman said: “We are aiming to study commissioned by the People’s negotiate a comprehensive free trade Economic and Social Research. Vote which said GDP would be 3.9% agreement with the European Union, “New deal versus no deal” was lower by 2030. which is more ambitious than the the argument put to MPs when the standard free trade deal that NIESR Earlier this month, Bank of England Prime Minister was still trying to has based its findings on.” governor Mark Carney welcomed the pass his deal. It was the position of NIESR said approval of the prime new Brexit deal, saying it was a “net the Chancellor, when he refused to economic positive” as it “takes away minister’s deal “would reduce the publish his own version of such an the tail risk of a disorderly Brexit”. risk of a disorderly outcome, but analysis saying it was “self-evidently” eliminate the possibility of a closer However, the governor said that better. trading relationship with the EU”. the “different” future relationship But we are now in a different Despite the agreement between the negotiated with the EU meant it situation. EU and the UK removing uncertainty, “remains to be seen” if overall the customs and regulatory barriers deal would be as positive for the UK The Prime Minister’s deal is being would “hinder goods and services economy as the deal put forward by put to the electorate versus a remain trade with the continent leaving all Mr Johnson’s predecessor Mrs May. option or a different, far softer form regions of the United Kingdom worse Chancellor Sajid Javid has refused to of Brexit. off than they would be if the UK recalculate Treasury assessments on stayed in the EU,” NIESR said. Crucially, NIESR calculates that the the impact of the government’s Brexit Johnson renegotiation leads to a “We estimate that, in the long run, deal, saying it is “self-evidently in our slightly worse economic outcome the economy would be 3.5% smaller economic interest”. than Theresa May’s deal which it with the deal compared to continued NIESR’s study modelled different EU membership,” it added. replaces, as the Bank of England Brexit scenarios against a baseline of Governor hinted to me earlier this The report also found the proposed the UK staying in the EU. month. free trade deal with the EU was slightly worse for the economy than In the case of a no-deal Brexit, it said, What is driving these results? The Theresa May’s deal of last year. Her the economy would shrink by 5.6 new deal creates more distance from deal would have reduced the size of The government would dearly the European Union economy, with the economy by 3% over the same love to compare its agreement to more regulatory barriers to trade. period, NIESR said. the prospect of no deal. On that Unlike May’s deal, there could be Founded in 1938, NIESR has no party basis, Boris Johnson’s renegotiation checks on the origin of parts in the political ties and is the UK’s oldest looks better on standard economic car industry, for example r

48 International DCCI Review October-November 2019

Still hope for US-China trade has groundlessly laid charges against Australia to join major Asia- deal this year: US official them, which is an act of bullying, he Pacific trade deal RCEP but added, speaking on the sidelines of a India holds out United States national security G20 foreign ministers meeting in the adviser Robert O’Brien has said that Scott Morrison says 15-country Japanese city of Nagoya. an initial trade agreement with China Regional Comprehensive Economic is still possible by the end of the year, US President Donald Trump on Friday Partnership would be ‘bigger and but warned Washington would not said he had told Chinese President Xi better’ with India in it. turn a blind eye to what happens in Jinping that crushing the Hong Kong Australia will sign on to a major free- Hong Kong. protesters would have “a tremendous trade deal involving 15 countries negative impact” on efforts to reach The comments add to growing from the Asia-Pacific region, albeit an accord to end a 16-month trade worries that a Chinese crackdown one diminished by India’s decision war. on anti-government protests in Hong not to join. Kong could further complicate the He has been vague about whether At the East Asia Summit in Bangkok, efforts by the United States and China he would sign or veto US legislation 15 of the 16 participants agreed to sign to end a prolonged trade war that has to back protesters in Hong Kong, up to the Regional Comprehensive roiled global markets and undercut and boasted that he alone had Economic Partnership (RCEP), likely global economic growth forecasts. prevented Beijing from crushing in February next year. the demonstrations with a million “We were hoping to have [a phase soldiers. Were it to include India’s massive one] deal done by the end of the economy, the RCEP would be the year. I still think that’s possible,” O’Brien said he had not spoken to largest free-trade agreement in O’Brien told reporters at a security Trump about his decision on whether the world, spanning India to New conference in Halifax. to sign the Hong Kong human rights Zealand, including 30% of global bill and did not know what he would “At the same time, we’re not going to GDP and half of the world’s people. do, but noted that the president had turn a blind eye to what’s happening It was to include the 10 nations of until early December to decide. in Hong Kong or what’s happening in Asean, plus Australia, New Zealand, The legislation will automatically the South China Sea, or other areas Japan, South Korea, India and China. of the world where we’re concerned become law on December 3 if Trump about China’s activity,” he said. opts to do nothing. But resistance from an Indian government protectionist by instinct “I think the bill passed with a pretty He said that he hoped district in particular concerned about a flood significant majority, so I’m sure that’s elections in Hong Kong would of cheap mass-produced Chinese something the president is taking into proceed without violence. “That goods hurting small businesses in consideration,” O’Brien said. would be a good sign,” he said. its economy, and the impact of free Meanwhile, the Chinese government’s Asked what would be the reaction of agricultural trade on the country’s top diplomat said the US was the the US if China cracked down hard tens of millions of small-scale farmers world’s biggest source of instability on the protests, O’Brien said “I’m saw its prime minister Narendra and its politicians were going around hoping that doesn’t happen. We’ve Modi pull out. already seen too much violence in the world baselessly smearing China. China is keen for the RCEP to Hong Kong.” “The United States is broadly engaged be brought into force amid the in unilateralism and protectionism, “The real question is what is the world debilitating tariff war with the US. and is damaging multilateralism and prepared to do about China if there is Many are keen to see New Delhi in the multilateral trading system. It has that sort of a crackdown? The United the deal as a counterweight to China. States will do its part,” he said. already become the world’s biggest Australian prime minister Scott destabilising factor,” China’s Foreign US Treasury Secretary Steven Morrison insisted there remained a Ministry cited State Councillor Wang Mnuchin had said in October that “very wide, open door” available Yi as saying. US and Chinese trade negotiators to India, should it wish to return to The US has, for political purposes, were working on nailing down a the deal. He met with prime minister used the machine of state to suppress “phase one” trade deal text for their Modi in Bangkok on the sidelines of legitimate Chinese businesses and presidents to sign in November r the East Asia Summit r 49 Pictorial DCCI Review October-November 2019

DCCI President Osama Taseer (third from right), Senior Vice President Waqar Ahmad Choudhury (third form left), Directors Engr. Akber Hakim (left), Enamul Haque Patwary (second from left) and representatives from TFO are seen after a discussion meeting held on November 7.

DCCI President Osama Taseer (right) seen speaking at a session titled “Asia at the Centre of a new World Order” on the occasion of 33rd CACCI Conference held on November 27.

DCCI President Osama Taseer (fifth from right), Senior Vice President Waqar Ahmad Choudhury (fourth from left), former Senior Vice President Haider Ahmed Khan, FCA (fourth from right), former Directors M Anwarul Haque (second from left), Rafiqul Islam Khan, FCA (third from left) and DCCI Officials were present at the Finance Committee meeting held on November 16.

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Ave`yj nvwjg| mvm‡UBb evsjv‡`wkR mvK‡mmÕ wk‡ivbv‡gi wKš‘ evsjv‡`‡k GL‡bv PÆMÖv‡gi m‡½ ‡ij GK cÖwZ‡e`‡b GgbwU D‡jøL Kiv n‡q‡Q| msev` m‡¤§j‡b Rvbv‡bv nq, c`vwaKvie‡j cwien‡bi wbiew”Qbœ †hvMv‡hvMe¨e¯’v bv _vKvq cÖwZ‡e`bwU cÖKvk Dcj‡¶ Av‡qvwRZ Abyôv‡b e¨emvqx‡`i kxl© msMVb GdwewmwmAvBmn G‡¶‡Î cY¨ cwienb e¨q evo‡Q| cÖavb AwZw_ wn‡m‡e Dcw¯’Z wQ‡jb cÖavbgš¿xi wk‡ív‡`¨v³v‡`i QqwU msMV‡bi Qq mfvcwZ‡K A_©‰bwZK welqK Dc‡`óv W. gwmDi ingvb| cÖavb AwZw_i e³‡e¨ W. gwmDi ingvb e‡jb, m¤§vbbv †`Iqv n‡e| GQvov Drcv`b Lv‡Zi cÖwZ‡e`bwU Zy‡j a‡ib wek¦e¨vs‡Ki †R¨ô miKvi `ªæZ hvZvqvZe¨e¯’vi Dbœqb NUv‡Z e„nr wkí K¨vUvMwi‡Z 15 Rb, †mev Lv‡Z A_©bxwZwe` gvwZqvm †n‡iiv `v‡c| ¯^vMZ e³e¨ bvbvgyLx †Póv Ki‡Q| mo‡Ki cvkvcvwk †bŠ I e„nr wk‡í cvuP Rb, gvSvwi wkí K¨vUvMwi‡Z †`b wek¦e¨vs‡Ki Kvw›U« wW‡i±i gvwm© wgqs †ijc‡_i Dbœq‡b ¸iæZ¡ †`Iqv n‡”Q| m¤úªwZ Drcv`b Lv‡Z 9 Rb, †mev Lv‡Z wZb Rb, wUgeb| fvi‡Zi Avmv‡g cY¨ cwien‡bi Rb¨ fviZxq ¶y`ª wkí K¨vUvMwi‡Z Drcv`b Lv‡Z cvuP Rb, cÖwZ‡e`‡b ejv n‡q‡Q, †`‡ki mo‡K hvbRU, e¨emvqx‡`i m‡½ GKwU ˆeVKI AbywôZ n‡q‡Q| †mev L‡Z GK Rb wmAvBwc wn‡m‡e g‡bvbxZ e›`i¸‡jv‡Z Kv‡R axiMwZ, mieiv‡ni Lv‡Z n‡q‡Qb| Ab¨w`‡K gvB‡µv K¨vUvMwi‡Z `yB wZwb e‡jb, Avgiv g‡b Kwi, ïay ch©Ubwkí D”P e¨q, Ach©vß AeKvVv‡gv, jwRw÷K †mev Rb I KywUi wkí K¨vUvMwi‡Z `yB Rb wmAvBwc bq, me ai‡bi †hvMv‡hvM, we‡kl K‡i ißvwb‡K Lv‡Z k„•Ljvi Afve, cÖkvmwbK `ye©jZvi wbe©vwPZ n‡q‡Qb| BwZg‡a¨ Zv‡`i bvg cÖKvk Kvi‡Y Drcv`be¨e¯’v Ges cY¨ cwien‡b AMÖvwaKvi w`‡q ms‡hvM I wbiew”Qbœ †hvMv‡hvM K‡i‡Q gš¿Yvjq| evav m„wó n‡”Q| Gme evavi Kvi‡Y evsjv‡`k e¨e¯’vi Dbœqb NUv‡Z n‡e| wZwb e‡jb, fviZ wmAvBwciv wewfbœ bvMwiKmyweavi †¶‡Î cÖwZ‡hvwMZvg~jK m¶gZvq wcwQ‡q co‡Q| †mB miKvi PÆMÖvg I †gvsjv e›`i e¨env‡ii GKwU AMÖvwaKvi †c‡q _v‡Kb| we‡klZ mwPevj‡q m‡½ kw³kvjx e„w×I c_‡K SyuwK‡Z †d‡j‡Q| cÖ¯Íve w`‡q‡Q| Z‡e H cÖ¯Ívve GL‡bv cÖv_wgK ch©v‡q i‡q‡Q| cª‡e‡k we‡kl cvk; wmwU Ki‡cv‡ikbmn wek¦e¨vs‡Ki †R¨ô A_©bxwZwe` gvwZqvm †n‡iiv wewfbœ miKvwi Abyôv‡b `vIqvZ; Rj, Zvi Dc¯’vcbvq D‡jøL K‡ib, evsjv‡`k ¯^í ¯^vMZ e³‡e¨ gvwm© wUgeb e‡jb, AvšÍR©vwZK ¯’j, †ij I wegvbhvÎvq wUwKU Ges Avmb gRywii †h myweav †c‡q‡Q, †mwU‡Z Pvc evo‡Q| ißvwb evRv‡i cÖwZ‡hvwMZv evo‡Q| GB cÖvw߇Z AMªvwaKvi, wegvbe›`‡i wfAvBwc †gvU ißvwb c‡Y¨i 84 fvM ˆZwi †cvkvKwbf©i| cÖwZ‡hvwMZvq ‡h †`k hZ †ewk Kg `v‡g cY¨ jvDÄ e¨env‡ii my‡hvM QvovI miKv‡ii wKQy GB Lv‡Z cÖwZeQi kÖwg‡Ki msL¨v Kg‡Q †`o w`‡Z cvi‡Q, †m †`k ißvwb evRv‡i ZZB bxwZwba©viYx mfvqI Dcw¯’Z _vKvi my‡hvM cvb| kZvsk nv‡i| d‡j D”P gRywii Rb¨ Pvc GwM‡q hv‡”Q| evsjv‡`k‡K cY¨ cwien‡b wkí mwPe Rvbvb, 2014 mv‡j wmAvBwc wbe©vPb evo‡Q| e¨emvi LiP Kwg‡q Avb‡Z jwRw÷K ÔjwRw÷KÕ mnvqZv evwo‡q, we‡kl K‡i hvbRU bxwZgvjv cªYq‡bi gva¨‡g Av‡iv ¯^”Q, MwZkxj LiP Kgv‡Z n‡e| KviY GB Lv‡Z evsjv‡`‡ki Kgv‡bvi gva¨‡g cY¨ cwienb e¨q Kwg‡q †h e¨q n‡”Q, Zv Ab¨ A‡bK Dbœqbkxj †`‡ki I hy‡Mvc‡hvMx Kiv nq| wZwb e‡jb, ¯’vbxq ißvwb evov‡bvi my‡hvM Kv‡R jvMv‡Z n‡e| Zyjbvq †ewk| wkí Lv‡Zi ¸YMZ gv‡bvbœqb, wk‡ív‡`¨v³v‡`i wZwb e‡jb, wek¦evRv‡ii cÖvq 7 kZvsk †cvkvK g‡a¨ cªwZ‡hvwMZvg~jK g‡bvfve ˆZwi Ges wZwb e‡jb, GKwU c‡Y¨i †h `vg, Zvi M‡o ißvwb K‡i evsjv‡`k| D‡`¨v³v‡`i g‡a¨ cvi¯úwiK m¤úK© Dbœqb, mv‡o 4 fvM †_‡K m‡e©v”P 48 fvM P‡j hv‡”Q †hvMv‡hvM I †mZyeÜb ˆZwi‡Z mnvqZvi j‡¶¨ cwienb Li‡P| hvbR‡Ui Kvi‡Y GKwU U«vK eZ©gvb Ae¯’vq hy³iv‡ó«i evRv‡i 10 kZvsk M‡o NÈvq †h‡Z cv‡i gvÎ 19 wK‡jvwgUvi| ißvwb evov‡bvi my‡hvM Av‡Q| Avg`vwbKvi‡Kiv GB cyi¯‹vi cª`vb Kiv n‡”Q| GQvov †fv³v‡`i d‡j c‡Y¨i LiP ‡e‡o hvq| hvbRU Kwg‡q †¶Î Kg `v‡g cY¨ Pvq| †h †`k Kg `v‡g cY¨ w`‡Z Rb¨ ¸YMZ gvbm¤úbœ cY¨ Drcv`bKvix cªwZôvb we‡k‡l cwienb LiP 7 †_‡K 35 kZvsk ch©šÍ cv‡i, Zviv †mB †`k †_‡KB cY¨ †K‡b| ißvwb m¤ú‡K© aviYv cª`vb, Av¯’vi cwi‡ek ˆZwi Ges Kwg‡q Avbv m¤¢e| GK mgx¶vq †`Lv †M‡Q, 35 evwo‡q D”P-ga¨g Av‡qi †`‡ki w`‡K GwM‡q wkí Lv‡Z †`wk-we‡`wk wewb‡qvMKvix‡`i kZvsk U«vK‡K PÆMÖvg e›`i †_‡K XvKvq Lvwj †h‡Z evsjv‡`‡ki cÖavb P¨v‡jÄ n‡”Q Kg Drmvn cª`vbI wmAvBwc m¤§vbbv cª`v‡bi †diZ Avm‡Z n‡”Q| Li‡Pi cY¨ cwienb e¨e¯’vi Dbœqb Kiv r Ab¨Zg D‡Ïk¨ r 53 Trade Information DCCI Review October-November 2019

TRADE INFORMATION

8 October-November 2019 The following Trade Inquiries have been received in the Chamber from different sources abroad. Interested member-firms may like to contact them directly without any obligation on the part of DCCI.

FAIRS & EXHIBITIONS

Arab Health Export Promotion Bureau (EPB) Date: 27 Jan-30 Jan, 2020 Mob: +8801552450512 Venue: Dubai World Trade Centre, Dubai, UAE E-mail: [email protected] Organizer: Informa PLC Website: www.epb.gov.bd Contact Person: Mr. Ali Alidina, Marketing Manager Tel: +971 55 884 6186 Gulfood E-mail: [email protected] Date: 16 Feb-20 Feb, 2020 Website: www.arabhealthonline.com Venue: Dubai World Trade Centre, Dubai, UAE Organizer: Gulfood Contact Person: Mr. Gulsum Kayis Arslan, Marketing International Production & Processing Expo Manager Date:28jan-30Jan, 2020 Mob: +91 (022) 2660 5550 Venue: Georgia World Congress Center, Atlanta, USA E-mail: [email protected] Organizer: International Production & Processing Expo (IPPE) Website: www.gulfood.com Contact Person: Ms. Penny Stathes China International Agrochemical & Crop Protection Exhibition Mob:+1 (678) 514-1977 Date: 24 Feb-26 Feb, 2020 E-mail: [email protected] Venue: Shanghai New International Expo Centre(SNIEC) Website:www.ippexpo.org Shanghai, China Organizer: CAC Global Events Frankfurt International Trade Fair (Ambiente) Contact Person: Ms. Ma Chen Date: 07 Feb-11Feb, 2020 Tel: +86-010-64285314 Venue: Frankfurt, Germany E-mail: [email protected] Website: www.agrochemshow.com Organizer: Export Promotion Bureau (EPB) Contact Person: 45th FOODEX JAPAN 2020 Mr. Abdur Rashid Date:10Mar-13Mar, 2020 Deputy Director (Fair and Display) Venue: Tokyo Metropolitan Area, Japan Export Promotion Bureau (EPB) Organizer: Export Promotion Bureau (EPB) Mob:+8801552450512 Contact Person: E-mail: [email protected] Mr. Abdur Rashid Website:www.epb.gov.bd Deputy Director (Fair and Display) Export Promotion Bureau (EPB) MAGIC LAS VEGAS Mob:+8801552450512 Date: 05 Feb-07 Nov, 2020 E-mail: [email protected] Venue: Mandalay Bay Convention Center, Las Vegas, USA Website:www.epb.gov.bd Organizer: Informa PLC Mob: +1 (218) 740-6873 45th FOODEX JAPAN 2020 E-mail: [email protected] Date: 10 Mar-13 Mar, 2020 Website: www.magicfashionevents.com Venue: Tokyo Metropolitan Area, Japan Organizer: Export Promotion Bureau (EPB) Frankfurt International Trade Fair (Ambiente) Contact Person: Date: 07 Feb-11 Feb, 2020 Mr. Abdur Rashid, Deputy Director (Fair and Display) Venue: Frankfurt, Germany Export Promotion Bureau (EPB) Organizer: Export Promotion Bureau (EPB) Mob: +8801552450512 Contact Person: E-mail: [email protected] Mr. Abdur Rashid, Deputy Director (Fair and Display) Website: www.epb.gov.bd

54 Share Market DCCI Review October-November 2019

Share Market Intelligence (as on 28 Novembrer, 2019)

Top 5 Turnover Leaders

Dhaka Stock Exchange Chittagong Stock Exchange

Company Close % Ǿ Turnover Company Close % Ǿ Turnover Price Price (BDT mn) Price Price (BDT mn)

Beconphar 37.00 8.50 111.67 doreenpwr 54.30 -1.09 8.79 ntltubes 161.40 1.45 104.84 natlifeins 258.90 4.78 5.98 sonarbains 49.90 -0.99 103.37 advent 25.10 -3.83 5.74 gp 312.00 -5.31 91.39 silvaphl 18.30 8.93 5.30 vfstdl 25.00 5.93 90.07 sssteel 31.00 -2.52 5.12

Top 5 Market Capitals

Dhaka Stock Exchange Chittagong Stock Exchange

Company Close % Ǿ Turnover Company Close % Ǿ Turnover Price Price (BDT mn) Price Price (BDT mn)

gp 312.00 -5.31 421.294 Gp 312.00 -5.28 421.294 batbc 1093.90 0.93 196.902 batbc 1,094.30 0.51 196.974 squrpharma 214.90 -1.38 181.427 squrpharma 215.70 -0.09 182.102 upgdcl 263.20 -0.15 138.705 upgdcl 263.90 0.19 139.074 renata 1176.40 -1.26 104.216 bracbank 60.10 -0.66 74.126

Share Market Intelligence (as on 28 Novembrer, 2019)

Currency Buying Selling

US$ 85.90 86.80 EUR 91.95 95.95 GBP 106.10 110.10 AUD 55.60 57.60 YEN 0.75 0.78 Saudi Riyal 22.30 23.00 S’pore$ 61.50 63.50

Source : The Financial Express & The New Age

55 Pictorial DCCI Review October-November 2019

DCCI President Osama Taseer (right) seen in a meeting with Deputy Director of the Policy Studies Institute of Ethiopia Dr. Yohannes Ayalew (second from left) held on November 14. DCCI Director Shams Mahmud (left), Customs Advisor to Minister of Ministry of Revenues, Ethiopia Fekadu Bekele YIGEZU (third from left) and Advisor to the Customs Commissioner of Ethiopia Kibru Lakew TEKESTE (second from left) were also present.

Chairman of BUILD Mahbubul Alam (center), DCCI President Osama Taseer (third from left), MCCI President Barrister Nihad Kabir (third from right), CEO, BUILD Ferdaous Are Begum (right) among others were present during the Trustee Board Meeting of BUILD held on November 18.

DCCI Senior Vice President Waqar Ahmad Choudhury (fifth from right) and members of the delegation from China Council for the Promotion of International Trade Committee of Xining, Quinghai, China led by its Secretary General Wang Wenrong (sixth from right) are seen in a group photo session held on November 27.

56 Pictorial DCCI Review October-November 2019

DCCI President Osama Taseer (right) seen exchanging views with the Ambassador of Poland in Delhi Mr. Adam Burakowski (left) at a dinner programmer on the occasion of 101st Independence Day of Poland held on November 20.

DCCI Senior Vice President Waqar Ahamd Choudhury (right) attended the 1st meeting of Entrepreneur Selection Committee on Entrepreneurship and Skill Development Project (ESDP) of BIDA held on November 20.

DCCI Senior Vice President Waqar Ahmad Choudhury (left) addressing a technical workshop on Capacity Development of Chambers of Commerce and Businesses on SDGs and Implementation of ILO’s Global Report on future of work findings in Bangladesh held on November 26.

57 Pictorial DCCI Review October-November 2019

Principal Secretary to Prime Minister’s Office Md. Nojibur Rahman (sixth from left) seen presiding over PSPDC meeting held on November 27. DCCI President Osama Taseer (third from right), former President Asif Ibrahim (sixth from right) among others were present at the meeting.

Executive Directors of World Bank Group posing during a visit Newage Group in Ashulia on November 4. DCCI former President Asif Ibrahim (first row, center) along with the delegation members are seen.

DCCI Convenor Golam Gilani (center), former Vice President M Abu Hurairh (fifth from right), former Director Mamun Akber (third form left) and other members are seen at the Skills Development committee held on November 5.

58

Chamber News DCCI Review October-November 2019

62