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Walton receives US$ 32m worth export orders from China’s Canton Fair
Bangladesh's electronics products manufacturing firm ‘Walton’ has received a huge orders worth US$ 32 million dollar from global buyers at the world's largest trade show 'China Canton Fair'.
The importers, traders and buyers of the electronics and electrical products attended from different countries at the expo were surprised by witnessing Walton’s products fridge, air conditioner and electrical appliances' advanced technologies, features, aesthetic designs, world-class quality and affordable rates, said a media release on Saturday.
Abdur Rauf, vice-president of Walton Global Business Section and chief coordinator of Walton Pavilion at Canton Fair, said the representatives from different foreign companies including from Asia, Middle East, Africa, Europe, North and South America have already assured the organisation of placing orders worth US$ 32 million for fridge, AC and electrical appliances from Bangladesh, it said.
Read: Walton-DRU Media Football advances to quarter-finals on Sunday
Tofail Ahmed, chief business officer of Walton Refrigerator, said, "We received huge responses beyond our expectations at the 'Canton Fair'. From the beginning day of the fair, a good number of electronics product's importers and buyers thronged at Walton Pavilion. And, the traders from Brazil, Argentina, America, Germany, Spain, Italy, Africa, Sri Lanka and India showed keen interest in importing more than $30 million worth fridges from the super brand Walton, according to the release.
Md. Tanvir Rahman, CBO of Walton Air Conditioner, said Walton's huge power saving, sustainable, eco-friendly and high efficient smart split type and VRF air conditioners lured the global buyers and visitors at the fair. Specially, Walton's IoT based inverter technology's offline voice control AC were in the center of the buyers' attraction as this AC can be operated in any language of the world.
He noted that Walton secured the top position in the Bangladesh's electronics and electrical market. Meeting the local market’s demands, Walton products are being exported to more than 40 countries of the world. Now, Walton's vision is to be one of the top global brands in the world by 2030. China's 'Canton Fair' will play an important role in achieving that vision, it continued.
Read: Walton appoints new chairman, vice-chairman and MD
Mentionable, the first phase of the 134th Autumn Canton Fair was held from 15 to 19 October, 2023 at the China Import and Export Fair Complex in Guangzhou city. Walton is the only Bangladeshi electronics' brand took part in the Canton Fair for the third times and highlighted Bangladesh's revolutionary advancement in the electrical and electronics manufacturing industry.
Read more: Walton to unveil advanced features fridges at China's Canton Fair
Staff-level agreement reached with IMF for next tranche of $4.7 bn loan
The International Monetary Fund (IMF) mission and Bangladesh have reached a staff-level agreement on the policies needed to complete the first review for $681 million in the second portion of its $4.70 billion loan.
The IMF issued the statement after concluding its first review through a series of meetings with the stakeholders of Bangladesh.
The staff-level agreement is subject to IMF Management approval and Executive Board endorsement, which is expected in the coming weeks, the statement said.
The Bangladeshi stakeholders and IMF staff conducted discussions for the 2023 Article IV consultation and reached staff-level agreement on the policies needed to complete the first review under the ECF/EFF/RSF arrangements, the statement further said.
The global lender of last resort said that Bangladesh has made substantial progress on structural reforms under the IMF-supported program, but challenges remain. Continued global financial tightening, coupled with existing vulnerabilities, is making macroeconomic management challenging, putting pressures on the Taka and FX reserves.
It said further monetary tightening, supported by neutral fiscal policy, and greater exchange rate flexibility, is needed to restore near-term macroeconomic stability.
Article IV policy consultation focused on reforms to create additional fiscal space for social and developmental spending; modernize policy frameworks; enhance governance; and strengthen climate resilience.
The IMF team is also grateful to the Bangladesh authorities and other stakeholders for their hospitality and candid discussions.
The team held meetings with Finance Minister A H M Mustafa Kamal, Bangladesh Bank Governor Abdur Rouf Talukder, and other senior government and central bank officials. The team also met with representatives from the private sector, think tanks, bilateral donors, and development partners.
ICC will work with FBCCI in arbitration and skill development sectors
The International Chamber of Commerce (ICC) has expressed its eagerness to assist the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in handling dispute resolution and arbitration.
FBCCI President Mahbubul Alam on Wednesday told UNB that the issues came when he held a meeting with Maria Fernanda Garza, chair of the International Chamber of Commerce (ICC), two days ago in Dhaka.
Also read: FBCCI, EU keen to strengthen bilateral trade ties
Alam said the meeting discussed different issues from skill development to capacity enhancement involving international trade and legal affairs.
The ICC chair also expressed her interest in facilitating training programmes in partnership with the FBCCI, Alam said.
“The services of arbitration offered by the ICC are extraordinary and unique. We have a lot to learn about how dispute prevention and resolution are managed by the ICC,” Alam said.
Also read: Myanmar ambassador meets with FBCCI, keen to start direct flight
“The ICC has already offered several training programmes in this field. We will sign an MoU with the ICC to strengthen the arbitration training of the FBCCI, which will be very beneficial for us,” Alam said.
The FBCCI boss also sought cooperation from the ICC to help enhance the private sector's skill in order to draft appropriate and acceptable proposals for the PTAs and the FTAs, dumping, and anti-dumping issues.
Alam also lauded the friendly and cooperative relations with the ICC Bangladesh.
The ICC chair shed light on the new arbitration facilities offered by the ICC and the ICC Centenary Declaration on Dispute Prevention and Settlement.
Released on 19 January 2023, this declaration outlines a vision for arbitration in the next century, shortening the process significantly.
Also read: FBCCI will work to bring back golden past of jute, says its president
She also praised the remarkable economic development of Bangladesh, especially the country's progress in recent years.
Maria stressed the importance of cross-border commerce, especially during the today’s uncertain global landscape. She also discussed the importance of cutting-edge technology and cybersecurity in the business sector.
Former President of FBCCI and the President of the ICC Bangladesh Mahbubur Rahman, Former President of FBCCI Mir Nasir Hossain, FBCCI Vice President Khairul Huda Chopol, Mohammad Anwar Sadat Sarker, Md. Munir Hossain, Directors, and other dignitaries attended the meeting held on Monday in Gulshan.
Business confidence hit hard amid economic downturn, structural challenges: Report
The country’s business confidence has been hit hard amid economic downturn and structural challenges, according to Business Confidence Index (BCI) report.
LightCastle Partners, a leading business consulting firm, launched the fifth edition of its flagship publication, The LightCastle Business Confidence Index (BCI) 2022-23, at a hotel in the capital on Tuesday afternoon.
The BCI report meticulously evaluates the perspectives of 167 industry leaders representing 25+ sectors, including multinational corporations, local conglomerates, startups, and SMEs, providing a comprehensive snapshot of Bangladesh's dynamic business landscape.
The report delves into the private sector's journey amidst economic headwinds driven by geopolitical challenges, with a specific focus on the impact of the Russia-Ukraine war.
Furthermore, it presents the expectations of thought leaders for the economy, considering industry performance and growth six months into the future.
The report finds that despite facing structural shifts, Bangladesh’s private sector has shown a positive outlook in cumulative business sentiment – represented by an overall score of +6.69. Interestingly the local SMEs have fared better (+14.91) than local conglomerates and MNCs (+6.31).
The difference in scores is mainly driven by external factors as the performance of the larger organizations tends to fluctuate more significantly with the changes in the global market.
While the 2023 BCI remains positive, it is relatively lower than the previous year’s (+28.69), indicating a subtle deceleration in overall business sentiment. Slower economic growth, rising costs, and reduced consumer demand have contributed to a lower but positive confidence index this fiscal year.
According to the BCI survey (done from March to June this year), the businesses have ranked top five problem areas as: rising cost of raw materials, lack of beneficial policy implementation, difficulty in accessing finance, weak demand, and inefficient human resources.
Nearly 70% of businesses surveyed reported being impacted by the rising costs of raw materials and weak demand, which are primarily attributed to the ongoing Russia-Ukraine conflict. Financial challenges surfaced as a result of financial irregularities, high level of NPL, cash shortages, reduced savings, and currency devaluation. Inefficient human resources and lack of beneficial policies have been consistent issues in previous BCI surveys and are highly demanded to be resolved for better business efficiency.
Industry leaders highlighted higher projections across sales, consumer demand, selling price, and employment; profitability, investments, and exports are expected to remain on the lower side. The rising expenses and difficulties in managing operational cash flow have led companies to abandon their hopes of higher profitability in the next 6 months. They are also forfeiting further investments to maintain necessary cash reserves to withstand any potential volatility.
As part of the launching event, a roundtable discussion was held with the participation of the industry leaders.
M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, moderated the discussion.
M Masrur Reaz said, “What an index can do is help give a structured snapshot and quantify a situation, making it more comprehensible for industry leaders and policy makers. It also helps businesses, foreign investors, in making their decision, who look at documents like Doing Business Index, which was discontinued.”
Ivdad Ahmed Khan Mojlish, Managing Director, LightCastle Partners, welcomed the participants, while Zahedul Amin, Director, LightCastle Partners, kicked off the event by presenting the key findings of the report.
Bijon Islam, Chief Executive Officer (CEO) of LightCastle Partners, was also present at the event.
LightCastle Partners is a leading consulting firm in Bangladesh, working closely with private, public, and development sector clients, providing them with the insights they need to make informed decisions for their businesses and development projects.
Over the past six years, LightCastle has been conducting the annual business confidence index study to gauge the confidence level among business leaders, encompassing a multitude of sectors.
The BCI report is publicly available and can be downloaded from www.lightcastlebd.com.
Bangladesh urged IMF to downsize required reserves to $20 billion for next loan instalment, says official
Bangladesh has now requested the International Monetary Fund to lower the requirement of foreign exchange reserves at $20 billion as a condition of releasing the second installment of the $4.7 billion loans, an official of Bangladesh Bank confirmed this on Monday (October 16, 2023).
The request was made to the visiting IMF delegation that reviewed with the officials the progress in meeting its conditions.
Read: Myanmar ambassador meets with FBCCI, keen to start direct flight
Despite different measures taken by including cutting unnecessary and luxury goods imports, in the last three months, gross reserves declined by $2.58 billion.
Two main sources of foreign exchange earnings –inward remittances flow saw a record decline to $1.34 billion in September and export earnings failed to achieve the target.
Considering the situation the central bank proposed to the IMF mission led by Rahul Anand to revise the reserves down to $20 billion.
Under the terms of the $4.7 billion IMF loan, the actual reserves were supposed to be maintained at $24.46 billion last June and $25.30 billion in September. At the end of December, Bangladesh must maintain at least $26.81 billion in net reserves.
Read: PGCB, GIZ set up lab to advance country’s clean energy transition
The net forex reserves are now less than $18 billion, according to the calculations of Dr Zahid Hussain, a former lead economist of the World Bank's Dhaka office.
However, the IMF also suggested that BB fix the exchange rate of US dollars on competitive market price, which is now being set by the Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) in the concentration of the BB.
The central bank earlier relaxed the exchange rate of the US dollar gradually and now the official exchange rate is Tk112 per dollar.
Economist Dr Ahsan H Mansur said that Bangladesh has to maintain strict monitoring of trade-based money laundering along with cutting unnecessary imports to check the downslide.
Read: IMF lowers growth forecast for current fiscal to 6 percent
FBCCI, EU keen to strengthen bilateral trade ties
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade organisation of the country, and the European Union (EU) have reaffirmed their commitment to bolster trade relations between the two.
EU Ambassador to Bangladesh Charles Whiteley and FBCCI President Mahbubul Alam expressed their commitment to strengthen bilateral relations between Bangladesh and EU during a courtesy meeting held on Monday at the FBCCI office in Gulshan of Dhaka, said a media release.
The trade body’s President Mahbubul Alam expressed his gratitude to the EU for their support during the COVID-19 pandemic. He also conveyed his sincere appreciation to the EU for providing Bangladesh an additional three-year transition period to enjoy EBA facilities till 2029, it reads.
This year marks the 50th anniversary of Bangladesh's diplomatic relations with the European Union, underscoring the enduring commitment to friendship between the two regions, said Mahbubul Alam, according to the release.
Read: Myanmar ambassador meets with FBCCI, keen to start direct flight
He highlighted the EU's significance as the largest export destination for Bangladesh, accounting for approximately 45 percent of Bangladesh's total exports in 2022-23, particularly in the readymade garments (RMG) and frozen food sectors.
FBCCI head lauded the EU's dedication to climate action in Bangladesh and its support for investment in environmentally friendly technologies. This support encompasses climate-smart infrastructures, renewable energy, resilient supply chains, improved water management, human resource management, coastal barriers, industrial pollution control, and food security, it reads.
Read: FBCCI will work to bring back golden past of jute, says its president
Furthermore, he called upon the EU to ensure that the proposed carbon border adjustment mechanism (CBAM) considers the needs of developing countries like Bangladesh to secure GSP+ status.
Mahbubul sought the EU's guidance in formulating and implementing carbon reduction policies.
The business leader expressed his appreciation for the EU's humanitarian assistance to Rohingya refugees and sought EU support in repatriating them to Myanmar.
EU Ambassador to Bangladesh Whiteley conveyed his greetings and best wishes to Mahbubul on his presidency of FBCCI and reiterated the EU's commitment to enhancing bilateral relations between Bangladesh and the European Union.
Read: Salman F Rahman inaugurates FBCCI Innovation and Research Center
Ambassador Whiteley further mentioned the EU's active collaboration with the government of Bangladesh on youth skill development and addressing climate change-related issues.
FBCCI Vice President Khairul Huda Chopol, Mohammad Anwar Sadat Sarker, Shomi Kaiser, Md. Munir Hossain, Directors and other dignitaries were present at the meeting.
Imported eggs to be available in market this week: Tipu Munshi
Commerce Minister Tipu Munshi on Sunday said imported eggs will be available in the market in the current week.
He said considering the market situation the government allowed 15 traders to import around 15 crore eggs in order to price control through increasing the supply of eggs in the domestic market.
Munshi said this while speaking as the chief guest in the opening of selling 5 subsidised products among one crore family card holders nationwide in the month of October by Trading Corporation of Bangladesh (TCB) at Dhanmondi in the capital.
Read: Govt to import 5 crore more eggs
Out of 15 traders, seven have opened Letters of Credit (LCs) and the first shipment of imported eggs is expected to enter the country this week, he said.
Several conditions were given for importing eggs, he said adding one of which is the eggs must be free from avian influenza or bird flu virus and harmful bacteria and the exporting country must submit a certificate a certificate on it to the government.
Munshi said that to ensure transparency and accountability in the distribution of TCB cards, the work of converting one crore cards into smart cards is in the final stage.
Read: Govt fixes prices of potatoes, onions, sugar, soybean and eggs
Tapan Kanti Ghosh, Senior Secretary of the Ministry of Commerce, spoke as a special guest on the occasion. TCB Chairman Brigadier General Md. Ariful Hasan PSC and Dhaka North City Corporation Ward No. 15 Councilor Rafiqul Islam Babla were present among others.
Walton appoints new chairman, vice-chairman and MD
SM Shamsul Alam, SM Ashraful Alam and SM Mahbubul Alam have been appointed the chairman, vice-chairman and managing director (MD) respectively of the country’s electronics giant Walton Hi-tech Industries PLC.
They are also founding directors of the company, said a media release on Saturday.
The 35th directors’ council meeting of the organisation took the decision with effect from October 14, the press release reads.
Read: Walton-DRU Media Football advances to round 16
Addressing the trio as successful entrepreneurs, the release said their creative and innovative leadership in the electrical and electronics industry has played an important role in turning Walton into a global brand by expanding international trade to more than 40 countries.
Under their leadership, Walton Hi-Tech Industries PLC was formally enlisted in Dhaka and Chattogram Stock Exchanges.
Read: Walton to unveil advanced features fridges at China's Canton Fair
Walton will be one of the five best global brands under their skilled and visionary leadership by 2030 and able to face any challenge towards its advancement, the release added.
Read more: Walton starts exporting PCB to Greece
TCB to start selling 5 products to 1 crore families at subsidized prices
Trading Corporation of Bangladesh (TCB) is going to start selling 5 products including rice at subsidized prices among 1 crore family card holder low-income families across the country tomorrow (Sunday).
In this phase of the month of October, along with rice and other products, each family cardholder can buy two kg of onion at the rate of Tk 35 per kg.
This sales activity will be conducted from dealers' shops and designated permanent establishments with the cooperation of the City Corporation, District-Upazila Administration, and as per their scheduled date and time plan.
Cardholders can purchase rice, edible oil, lentils, sugar, and onions from regular designated dealers.
A cardholder can buy a maximum of five kg of rice at the rate of Tk 30 per kg, two liters of edible oil at the rate of Tk 100 per kg, two kg of lentils at the rate of Tk 60 per kg, and 1.0 kg of sugar at the rate of Tk 70 per kg.
The TCB notification said that sugar will be sold in some places subject to availability and imported onions will be sold only in Dhaka city.
Myanmar ambassador meets with FBCCI, keen to start direct flight
The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) on Saturday emphasized enhancing bilateral business cooperation with Myanmar and Bangladesh.
FBBCI President Mahbubul Alam said Bangladesh and Myanmar have long enjoyed friendly relations. There is a huge trade potential between the two neighboring countries. However, the volume of bilateral trade between the two countries is very low.
He has urged to strengthen commercial relations by quickly solving the existing problems between the two countries.
Mahbubul made this call in a courtesy meeting with Myanmar's ambassador to Dhaka, Aung Kyaw Moe, at the FBCCI office in Gulshan in the capital on Saturday.
Read: EO Bangladesh organises learning session for young entrepreneurs
In response, Myanmar's ambassador said that Bangladesh and Myanmar have historically maintained friendly relations. Myanmar was one of the first 5 countries to recognize Bangladesh in 1971. Myanmar is interested in strengthening the trade relations between the two countries.
The ambassador also expressed Myanmar's interest in starting direct flights between Myanmar and Bangladesh.
He (Moe) also said that the Myanmar government is working with the Bangladesh government to solve the Rohingya crisis.
Read: PGCB, GIZ set up lab to advance country’s clean energy transition
The FBCCI President said trade between Myanmar and Bangladesh has been going on for a long time. Once upon a time trade was done with Yangon by sea from Chittagong. But due to several reasons, the rate of trade between the two countries has decreased slightly.
“Although there are many potential sectors of both countries, we are not able to utilize that opportunity properly. Resolving the existing problems between the two countries, including the Rohingya problem, will benefit both countries commercially,” he added.
The FBCCI president also said that Bangladesh has gained a great reputation globally in various products including ready-made garments, the pharmaceutical industry, ceramics, jute, and leather products.
Read: Three-day Expo on ‘marine and offshore items’ kicks off in Dhaka
Myanmar can import these products from Bangladesh. Besides, Bangladesh can import various products including rice, onions, and spices from Myanmar, Mahbubul said.
He also said that Myanmar can come forward to meet Bangladesh's energy needs and Myanmar businessmen can invest in Bangladesh's Special Economic Zone.