Local-Business
Bangladesh keen to export readymade garments to Nepal, seeks collaboration to unlock opportunities
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday expressed keen interest in exporting readymade garments to Nepal and emphasized the importance of collaboration between the two countries to unlock mutually beneficial opportunities.
Visiting Nepali delegation highlighted the investment potential within Nepal and showcased the various opportunities available to investors.
The delegation representing the Ministry of Industry, Commerce and Supplies of Nepal held a meeting with BGMEA president Faruque Hassan on Wednesday (September 20).
During the meeting held at BGMEA Complex in Dhaka, both sides discussed issues of mutual interests, potential areas of collaboration, and trade and investment opportunities between the two countries.
Read: Nepal could be a source of clean energy for Bangladesh: FBCCI
The Nepali delegation, led by Baburam Gautam, Director General of the Department of Industry within the Government of Nepal, exchanged ideas and information with the BGMEA president.
The discussion encompassed a wide range of topics, including the thriving readymade garment industry in Bangladesh, its future prospects, and the strategic vision for its continued growth.
Read: FBCCI president says they are against dishonest businessmen
Faruque shared insights into Bangladesh's emphasis on diversifying its market for garment exports and its ongoing efforts to explore new export destinations.
In the meeting, both parties expressed willingness to work together to realize mutual benefits, according to BGMEA.
Read more: Japan wants to increase investment in Bangladesh: Japanese envoy told FBCCI
Selling dollars at higher prices: What is Bangladesh Bank’s action against treasury heads of 10 banks?
Bangladesh Bank is working to take disciplinary action against the treasury heads of 10 commercial banks over selling US dollars at prices higher than the fixed rate.
The central bank sent letters to these banks mentioning the offence with instructions of punishment.
Bangladesh Bank stated in the letter that the treasury chief cannot ignored the responsibility of such offence.
Read: Bangladesh Bank assures businesses interest rate won't go too high
Banks’ treasury departments handle the demand and supply of money and dollars. In some banks, there is also an officer, of deputy managing director rank, as the head of the treasury department.
According to information from various sources, the 10 concerned banks are: Mercantile Bank, Premier Bank, BRAC Bank, Madhumati Bank, Midland Bank, Exim Bank, Social Islami Bank, Al-Arafah Islami Bank, Shahjalal Islami Bank and Trust Bank.
Read: Bangladesh Bank relaxes rules for EFPF loan payment
Sources said this number of banks may increase.
In August last year, Bangladesh Bank removed the heads of the treasury departments of six domestic and foreign banks based on the same complaint. But in the end, the regulatory body could not uphold that decision.
Chairman of Association of Bankers, Bangladesh (ABB) and Managing Director (MD) of BRAC Bank, Salim RF Hossain, said that this is a bilateral issue between the central bank and the respective scheduled banks. “Such letters come regularly. Therefore, I do not want to make any specific comments on this issue,” he said.
Read: Bangladesh Bank seeks explanations from 13 banks for selling dollars at higher prices
SEAPEX opens Bangladesh Chapter in Dhaka
Southeast Asian Petroleum Exploration Society (SEAPEX) has launched its Bangladesh chapter at acolourful event in Dhaka.
The inauguration programme was held on Monday at Baridhara. The programme was opened byMichael Whibley, Seapex Committee Member and Asia Pacific Scoutcheck (APSC) Chairperson and
Masud Khan, DMD Cosmos Group. Edwin Bowles, General Manager, KRISENERGY Bangladesh, amongst others were present there.
Singapore-based SEAPEX is a non-profit organization formed with an objective to promote petroleum and natural gas exploration, development, and production in Southeast Asia.
Every two years SEAPEX arranges a conference in Singapore which is one of the renowned andprestigious summits of oil and gas professionals in the Asia Pacific region.
BGMEA calls for collaboration to create enabling environment for responsible business practices
Prime Bank, BASIS sign MoU to ease banking transactions
Prime Bank and Bangladesh Association of Software and Information Services (BASIS) signed a Memorandum of Understanding (MoU) to ease banking transactions for BASIS.
The agreement was signed in a ceremony organized at the BASIS office recently.
Read: Quality unmatched: Mercedes-Benz buses now in Bangladesh
Prime Bank Deputy Managing Director and CFO Mohammad Habibur Rahman Chowdhury and BASIS Secretary Hashim Ahmed signed the MoU on behalf of their respective sides.
The MoU was signed to provide an Export Retention Quota Account (ERQ) facility to BASIS member companies actively involved in outsourcing, BPO, business services, and professional and advisory services.
As a result, members can make payments (received through inward remittance) in USD accounts and BDT accounts simultaneously. A member may also transfer USD funds from his USD ERQ account to a foreign currency account for legitimate business purposes as per regulatory requirements and bank policy, said a press release.
Read: BGMEA calls for collaboration to create enabling environment for responsible business practices
Besides, members will have the facility of using an international card issued against their ERQ account.
BGMEA urges Chattogram Port Authority to continue capacity development efforts to meet growing trade demand
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called for enhancing the capacity of the Chittagong Port in line with the growing demand of export-import sector of Bangladesh, particularly the export-oriented readymade garment industry.
The trade association also laid emphasis on enhancing the port efficiency to handle export-import cargoes within the shortest possible time to reduce lead times.
Also read: BGMEA calls for streamlined bond services to boost RMG competitiveness
BGMEA President Faruque Hassan made the call during a meeting with Chairman of Chittagong Port Authority (CPA) Rear Admiral Mohammad Sohail.
Underling the importance of the port in accelerating the trade, the BGMEA president said the RMG industry of Bangladesh has set a target of achieving 100 billion dollars from garment exports by 2030, which necessitates increasing the capacity of the port to handle export-import goods.
The industry also aims to diversify from basic to high-end fashion segment to increase its export share in the global market. Such segment requires shorter lead time.
In this competitive business world, lead time reduction is necessary to remain ahead in market competition, he added.
Also read: BGMEA urges Custom House to make services faster and simpler for RMG industry’s competitiveness
Faruque Hassan thanked the CPA for taking all the steps that have led to smooth functioning in the Chattogram Port, urging them to continue the efforts to accelerate export-import activities.
BGMEA First Vice President Syed Nazrul Islam, Vice President Rakibul Alam Chowdhury, Directors A.M. Shafiul Karim (Khokon), M. Ahsanul Hoq, former Directors Helal Uddin Chowdhury and Anjan Shekhar Das, and, Chair of BGMEA Standing Committee on Trade Fair Mohammed Kamal Uddin, and Chair of BGMEA Standing Committee on Cash Incentive Humayun Kabir Salim were also present at the meeting held at CPA office in Chattogram on September 18.
Also read: BGMEA calls for collaboration to create enabling environment for responsible business practices
Commodore Mohammad Mahbubur Rahman, Member (Engineering); Md Habibur Rahman, Joint Secretary, Member (Admin and Planning); Commodore M Fazlar Rahman, Member (Harbour and Marine); Mohammad Shahidul Alam, Additional Secretary, Member (Finance); and other high officials of the CPA were present at the meeting.
Quality unmatched: Mercedes-Benz buses now in Bangladesh
Mercedes-Benz buses are now available in Bangladesh.
German-manufactured Mercedes-Benz OF 1623 bus chassis has entered the market through Rancon Trucks and Buses Limited.
The Mercedes-Benz OF 1623 bus chassis was launched in Dhaka’s Tejgaon on Sunday at an event.
This bus chassis comes in two variants. This chassis is powered by Mercedes-Benz's highly dependable OM 906 engine, which produces 6393 cc and 810 Nm at 1600 RPM. Additionally, the chassis boasts 230 horsepower and features parabolic and air suspension.
During the product launch, Romo Rouf Chowdhury, Managing Director of Rancon Trucks and Buses Limited, said, "We have brought two types of buses today, keeping comfort and safety in mind. Not just comfort and safety, this chassis will provide more fuel efficiency. We are introducing a new chapter in Bangladesh with this chassis."
Read: Shishir gets brand new Mercedes-Benz from Shakib as gift
Sultanuzzaman Sazan, Executive Director of Rancon Trucks and Buses shared, "Mercedes-Benz buses have been producing the world's best bus chassis for 128 years, and their quality is unmatched, even in Bangladesh. Our chassis, with a propeller shaft and retarder attached to each cylinder, ensures more safety and extended brakes. It features a high-pressure (1800 bar) unit pump injection system for better combustion, and engine-mounted compressors reduce noise and vibration. In addition, the chassis is equipped with modern technologies such as an interactive dashboard, which displays signals monitored by the ECU, ensuring the vehicle's safety in any situation. Furthermore, the vehicle will have a speed lock to maintain the speed limit."
Regarding fuel efficiency, he added, "Our chassis will excel in fuel efficiency because each cylinder has a separate fuel pump, ensuring the correct mixture of air and fuel. Not only that, but for passenger safety and smooth rides on uneven roads, there will be air suspension."
Read: Hyundai Creta Grand 2023 has started its Production in BD
About the chassis lifespan, he stated, "Undoubtedly, this chassis will have a long service life. With a 100,000 km warranty and a high-quality chassis frame, suspension, and brakes, it requires minimal maintenance even in challenging driving conditions. Moreover, the powder-coated chassis frame is resilient in harsh environments and remains rust-free for an extended period."
Currently, these chassis will be available in all Rancon Trucks and Buses showrooms nationwide, along with after-sales service and parts. A mobile service team is also available in all unfavorable conditions.
The event was also attended by Divisional Director Shoeb Ahmed, Divisional Director and Chief Operating Officer Mohammad Shadiqul Mostuk, Vice President of Daimler Truck (South East Asia) Christoph Stemmer, and General Manager of Daimler Truck (South East Asia) Satyam Prakash, among many others.
Read more: Hyundai Experience Center inaugurated in Dhaka
'Liquidity challenges' persist in Islamic banking sector in Bangladesh: Fitch Ratings
The Islamic banking sector in Bangladesh, a significant part of the country’s wider banking sector, continues to face liquidity challenges, according to Fitch Ratings, the global credit agency.
The situation however is improving, underpinned by central bank support in the form of the Islamic Bank Liquidity Facility and Mudarabah Liquidity Support and still-notable public demand for Islamic deposit products, Fitch said in a non-rating action commentary last week.
Islamic banks held 25.3% of all domestic industry deposits at end-1H23, albeit down from 28.2% at end-1H22, it added.
Read: Bangladesh Bank relaxes rules for EFPF loan payment
Islamic banks in Bangladesh faced sizable customer deposit outflows in 2022-1H23 and lower liquidity buffers than conventional banks amid reports of loan irregularities.
Islamic banks’ excess liquidity, defined as total cash reserves minus required reserves with the central bank, declined significantly by 66.6% yoy (Tk 9.82 billion) at end-1H23, said Fitch.
However, excess liquidity has since improved, with a 12.7% quarterly rise.
In contrast, deposit growth is slowing. Islamic banks’ total deposits grew by only 3.8% yoy as of 1H23, a significant fall from the 12% yoy growth of 1H22, it added.
Read: Bank loan interest will go up in future: Salman F Rahman
Bangladesh had the eighth-largest Islamic banking market globally at the end of 2022, with total assets of Tk 4,970.7 billion (US$45.3 billion), ahead of Indonesia, Bahrain, Pakistan, Egypt, Jordan, and Oman, based on data from the Islamic Financial Services Board. The market share, based on industry loans, is rising and reached 29.1% at end-1H23 (end-1H22: 28.5%).
However, the industry has significant untapped potential, as 62% of the Bangladeshi population does not have an account at a financial institution, whether conventional or Islamic, according to 2021 World Bank data. Bangladesh has the third-largest Muslim population globally, with sizable segments being sharia-sensitive, the credit rating company observed.
Many conventional banks are increasing their offering of Islamic products, either by opening new Islamic branches or windows or by converting into full-fledged Islamic banks. This is driven by customer demand and more lax prudential requirements.
Islamic branches and windows of conventional banks are expanding, with an 8.2% share of Islamic banking deposits as of end-1H23 (1H22: 7.1%), with the remaining 91.8% held by full-fledged Islamic banks, it said.
Read: Islami Bank holds discussion on Shari’ah Compliance in banking operations
Islamic banks in Bangladesh can receive customer deposits based on either mudaraba (a profit-and-loss sharing contract) or wadiah (a safe-keeping contract). Mudaraba-based deposits accounted for more than 85% of customer deposits at Islamic banks at the end of 1H23.
Fitch has not observed Islamic banks passing on losses or not paying profits to depositors. Passing losses can increase reputational risk and may lead to customer deposit outflows.
The company also expected that Bangladesh Bank would not let depositors’ bear losses, as this would shake investor confidence in the banking system. Financing based on profit and loss (mudaraba and musharaka) was less than 1% of total financing.
The Islamic finance industry in Bangladesh continued to face key structural impediments. These include a lack of sukuk and other sharia-compliant investment options, gaps in human capital development, a lack of unified shariah rulings, and an Islamic finance regulatory framework that requires an update.
In general, the banking sector’s balance sheets, governance, and regulatory quality are weak. The central bank has taken steps to improve governance at public-sector banks, including the appointment of observers to bank boards, but progress has been slow, the company said.
FBCCI leader Jibon Deb Nath obtains D.Litt degree from France’s Thames International University
Dr. Joshoda Jibon Deb Nath, vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), has been awarded the prestigious Doctorate of Literature (D.Litt) by The Thames International University of France.
This esteemed recognition was bestowed upon Dr. Deb Nath in honor of his exceptional contributions to the nation's economy. The announcement was conveyed through a letter from The Thames International University on Thursday.
Dr. Joshoda, a visionary entrepreneur, has played a pivotal role in advancing the Digital Economy landscape in collaboration with the government. His journey commenced in 2001 when he founded Technomedia Limited, an ICT-based company.
Read: FBCCI president says they are against dishonest businessmen
Over the years, he strategically expanded the company's presence in the banking sector, securing the distributorship of the Systemedia Division of NCR Corporation (USA) in 2005.
Technomedia Limited (TML) has firmly established itself as a trusted vendor and service provider in the Financial Sector, particularly excelling in MICR Encoded Cheque processing for the Banking and Financial industry in Bangladesh.
TML's impressive portfolio encompasses ATM booths, Note Sorting Machines, Note Binding Machines, Banking Software, Online Check Clearing Software, and Security Services, catering to banks nationwide. Remarkably, the company is responsible for servicing approximately 70 per cent of the country's total ATM needs.
Read: Japan wants to increase investment in Bangladesh: Japanese envoy told FBCCI
Dr. Deb Nath, whose academic achievements included a PhD in Finance and Banking, has received numerous accolades, including the prestigious Bangabandhu Industrial Award and recognition as a Commercially Important Person (CIP) by Bangladesh government.
In addition to his exceptional professional journey, Dr. Deb Nath actively engages in various social initiatives, underscoring his versatile and impactful leadership profile.
Read more: Dependence on any market will put Bangladesh at risk: FBCCI President
BGMEA calls for collaboration to create enabling environment for responsible business practices
President of Bangladesh of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan has emphasized the critical importance of addressing human rights and environmental concerns in today's interconnected global economy.
Highlighting Bangladesh's vision for sustainability, President Faruque Hassan outlined BGMEA's Sustainability Vision 2030, which includes ambitious targets for reducing carbon emissions, sustainable raw material usage, groundwater usage, chemical usage, energy consumption, and deforestation.
The vision also emphasizes inclusive work practices, gender equality, and good governance, with an online data platform to monitor progress.
Speaking as the chief guest at a seminar on Thursday, he stressed the need for learning about due diligence protocols, capacity building, and transparency to ensure future business success.
Bangladesh-German Chamber of Commerce and Industry (BGCCI) hosted the seminar on German Due Diligence Supply Chain Act in Dhaka.
The event brought together distinguished industry leaders, policymakers, and stakeholders to discuss the significance of human rights and environmental due diligence in the global business landscape, BGMEA said on Friday.
Dr. Michael Klode, Project Manager, Programme for Sustainability in the Textile and Leather Sector (STILE), GIZ gave a presentation on German Due Diligence Supply Chain Act, focusing on different aspects of the new law.
M. Maksud, President, and Dr. Md. Kamruzzaman, Senior Vice President of BGCCI also spoke at the seminar. BGMEA's commitment to supporting manufacturers in adapting to new regulations was highlighted with the establishment of the 'Responsible Business Hub.'
This dedicated unit, supported by GIZ, serves as an information center, providing training, awareness, and guidance on Human Rights and Environmental Due Diligence.
The President also called upon stakeholders, particularly buyers, to consider the cost of compliance and collaborate to share the burden, ensuring competitiveness and fairness.
He emphasized the need for uniformity among different international legislation to avoid conflicting obligations.President Faruque Hassan stressed the importance of continuous attention and collaboration among supply chain stakeholders to create an enabling environment for responsible business practices.
Biman resumes direct flight to Guangzhou
Biman Bangladesh Airlines resumed its direct flights between Dhaka and China’s Guangzhou on Thursday.
Biman flight BG366 with 146 passengers departed Hazrat Shahjalal International Airport at 10:20 pm and will arrive in Guangzhou at 4:00am (local time) on September 15 (Friday), said Md Siddiqur Rahman, director (admin) of Biman Bangladesh Airlines.
Read: Bangladesh Biman Corporation (repeal) Bill 2023 passed in JS
Following the resumption, there are now six weekly round-trip flights on the route, with a capacity of more than 900 passengers, he added.
Biman flights will depart from Dhaka every Sunday, Tuesday and Thursday at 10:20 pm for Guangzhou and every Monday, Wednesday and Friday from Guangzhou to Dhaka at 05:30 am (local time).
Read: Biman’s Dhaka-Narita direct flights will boost Bangladesh-Japan trade, relations: BCCIJ president
Biman offered a discount on the occasion of the resumption of direct flights on the route. A 15 percent discount on base fare by using promocode HAPPYCAN23 on ticket purchase from Biman's website www.biman-airlines.com and mobile apps.
The passengers can purchase their tickets for this route from Biman's commercial website www.biman-airlines.com, mobile apps, any Biman sales centre, Biman call centre 01990997997 and Biman-authorised travel agencies.
Read: Govt will decide on ground handling at Dhaka airport’s third terminal and Biman is ready: CEO
The direct flight on Dhaka-Guangzhou-Dhaka route was suspended from March 16, 2023.