local-business
BGMEA urges Rajuk to allocate land for apparel club for foreign nationals
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the Rajdhani Unnayan Kartripakkha (Rajuk) to allocate land at Purbachal to build an apparel club to facilitate the meeting and recreation of foreign nationals working for global brands and buyers in Bangladesh offices and apparel factories.
The club would help to build a good rapport with the foreign nationals and expats working in the readymade garments (RMG) sector, BGMEA President Faruque Hassan said Monday.
He met with Rajuk Chairman Md Anisur Rahman Miah at his office in Dhaka. BGMEA Vice-President Miran Ali was also present.
Faruque talked about the achievements of the RMG industry that have boosted the trust and confidence of global buyers in the garments with the "Made in Bangladesh" tag.
Now global brands and buyers are more interested in expanding their business in Bangladesh, he said.
Under, over-invoicing to stop if commodity exchange is launched: BSEC Chairman
Prof Shibli Rubayat Ul Islam, Chairman of Bangladesh Securities and Exchange Commission (BSEC), said on Monday that commodity exchange once introduced in the country would eliminate the scope for under-invoicing and over-invoicing.
“Work is going on to introduce commodity exchange in the country. If commodity exchange is introduced, then it will be possible to see both the international market and the scenario in the local market while staying inside the country,” he said.
READ: General inflation in Bangladesh slightly down to 8.85% in Nov
The BSEC Chairman said this while addressing as the chief guest in a discussion titled “Problems and Challenges of Capital Market in Bangladesh” organised by the Economic Reporters Forum (ERF), at its auditorium in the capital’s Paltan area on Monday.
Terming generating employment as one of the major problems of the country, the BSEC Chairman said, “We were working hard to accommodate suitable workforce with better jobs with higher salaries. But, all of a sudden, the (Ukraine-Russia) war started and thus put an impact on the global economy.”
The supply of the world’s second largest gas and fuel oil producing country has suddenly stopped supplying due to the war., he said. The country which supplies the basic foods to other countries was also engaged in war. Subsequently, the impact started to put on other European countries, he said.
He said whenever there is an impact on the fuel oil, and then it puts an impact on the global economy.
“As a result of the shock following the start of the war, an unusual situation was created in the country as Bangladesh had to suffer from load-shedding although there was surplus electricity. Although the country had been self-reliant on food, its people have been asked to remain prepared for facing a future situation,” he said.
The BSEC Chairman noted that many big incidents took place across the globe over the last few months beyond the analysis and imagination of the common people.
He said that the British Prime Minister was changed thrice while the leadership of some four to five countries has also changed. “But, we’re yet to fall into such a situation,”
Turning to the capital market situation, Shibli said that Bangladesh did not receive such a shock as it was supposed to experience owing to the global condition.
READ: LCs under scanner to check money laundering: Tipu Munshi
He said although institutional investors occupy around 80 to 90 percent of the capital market across the globe, the situation is totally reversed in the country as around 80 percent of investors in the capital market here are small investors.
“We need to take necessary measures to give protection to the small investors. That’s why we’ve taken a temporary measure through floor price. But it’s not a permanent measure,” he added.
The BSEC Chairman mentioned that if the commodity exchange is launched in the country, then anyone can know the price of rice in Ghana while staying in Bangladesh as well as which countries want to take Bangladeshi RMG items in what price.
“With commodity exchange, we’ll be able to see the international market and the local market while saying at home for which there will be no scope for under-invoicing and over-invoicing,” he noted.
DSE Chairman Eunusur Rahman while highlighting the various challenges of the capital market said that the number of knowledgeable investors in the country is very small.
“We often make investments after taking advice from others. This is a big challenge for us. Besides, the number of institutional investors and skilled workforce is also less here in Bangladesh,”
Noting that the policy support in the country is still insufficient, he said that there are still caps on the bank interest rates, which means that anyone can take loans from banks at a 9 percent interest rate. But large companies can take loans from the banks at an 8 percent interest rate, the DSE chairman said adding that for this they might not go to the capital market as they would have to give dividends at a higher rate.
READ: Bangladesh received $1.59 billion in remittance in November
CSE Chairman Asif Ibrahim said that there is no commodity exchange in Bangladesh considering the overall size of the economy. “We’ll ink an agreement very soon with the Indian multi-commodity exchange. We’ve already sent the draft rules to BSEC in this regard. If we get approval, then hopefully we’ll be able to launch here commodity exchange,”
Former President, Bangladesh Association of Publicly Listed Companies (BAPLC) Azam J. Chowdhury, and Vice President of Bangladesh Merchant Bankers Association (BMBA) Md. Moniruzzaman also spoke at the function.
General inflation in Bangladesh slightly down to 8.85% in Nov
Bangladesh’s general inflation ratio in November 2022 dropped slightly to 8.85 percent (point to point). In last three months, the ratio of inflation dropped.
In October, the inflation rate was 8.91 percent, while September saw an inflation rate of 9.1 percent.
Fuel price hike in August pushed the point-to-point inflation in a decade-highest 9.52 percent, which had dropped by 0.61 percent in the last two months.
Read: Inflation in Bangladesh falls slightly in Oct to 8.91%
Inflation in Bangladesh decreased mainly due to fuel prices normalizing in the global market, strengthening supply of subsidized essential food items through TCB, and a surplus of winter vegetables, said Planning Minister MA Mannan while talking to reporters at the Secretariat on Monday (December 05, 2022).
The consumer price index (CPI) data prepared by Bangladesh Bureau of Statistics (BBS) saw that non-food inflation and other inflation in November was 8.14 percent and 9.98 percent respectively, while it was 8.50 percent and 9.58 percent in October.
However, general inflation increased slightly in rural areas in November and it stood at 8.98 percent, while it was 8.92 percent in October.
Read: Inflation: UN expert for increasing benefits, wages or lives will be lost
The general inflation in urban areas of Bangladesh has decreased point to point 8.70 percent, while it was 8.90 percent in October 2022.
Citizens Bank opens Narayanganj branch
Citizens Bank PLC, a "fifth-generation bank in the private sector," has opened its Narayanganj branch.
Towfika Aftab, chair of Citizens Bank, inaugurated the branch at Bangabandhu Road recently, according to a media statement.
Masuduzzaman, director and chairman of the executive committee, Chowdhury Mohammed Hanif Shoeb, director and chairman of the risk management committee; members of the board of directors Mukhlesur Rahman, SK Md Iftekharul Islam, and managing director and chief executive officer of the commercial bank Mohammad Masoom were also present, it added.
Citizens Bank emerged as the 61st scheduled bank of Bangladesh.
The scheduled banks in Bangladesh operate under the full control and supervision of the Bangladesh Bank, which is empowered to do so through the Bangladesh Bank Order, 1972 and the Bank Company Act 1991.
LCs under scanner to check money laundering: Tipu Munshi
Commerce minister Tipu Munshi on Sunday said his ministry will soon form a committee to strengthen monitoring and vigilance to check soaring prices of essential commodities.
Bangladesh Bank will also form a crisis management committee to monitor the market and supervise the import of goods, the minister said.
He was talking to reporters after a meeting with the representatives of the chamber and trade bodies at the Secretariat in Dhaka.
Munshi said both committees will monitor the stock, supply and import of some basic commodities so that consumers can buy at an affordable price during upcoming Ramadan.
Also read: Tipu Munshi seeks more US investment
Replying to a query commerce minister said the government will not hold the LCs which quotes the real price of imported items.
The commerce ministry, the central bank and National Board of Revenue (NBR) are working jointly to check money laundering through manipulation of the export income and import costs, Munshi said.
Tk 30,000cr loan from Islami Bank: HC asks S Alam Group to explain reports
The High Court today ordered the authorities concerned to probe into the much talked about and reported “loan scam” in three banks – Islami Bank, Social Islami Bank Ltd and First Security Islami Bank – and submit the report within next four months.
The HC bench of Justice Md Nazrul Islam Talukder and Justice Khizir Hayat passed the order after issuing a Suo Motu (voluntary) rule following newspaper reports.
The court directed Bangladesh Bank’s Bangladesh Financial Intelligence Unit (BFIU), Anti-Corruption Commission (ACC) and Bangladesh Police’s Criminal Investigation Department (CID) to submit the probe report.
Read: Basic Bank loan scam: HC orders ACC to complete probe in 3 months
At the same time, the court ordered the authorities of these three banks to submit the list of bank officials involved in approving loans worth thousands of crores of taka.
The HC also issued a rule, asking why the inaction of the banks to take action against those responsible for approving loans worth thousands of crores and S Alam Group’s Tk 30,000 loan should not be declared illegal.
The rule also asked why no instructions should be given to take action against those responsible.
Read: Loan default case: 12 Pabna farmers get bail
Besides, the HC bench asked S Alam Group to explain the newspaper reports that said the company took Tk 30,000 crore from Islami Bank.
The court also set April 5 next year for the hearing and asked to submit the report after verifying the authenticity of the news published.
Advocate Khurshid Alam Khan for ACC and Deputy Attorney General AKM Amin Uddin Manik for the state were present in the court.
Read More: Loan default case: 12 Pabna farmers get bail
On November 24, a report was published in the daily Prothom Alo stating that an “unscrupulous group” had taken a loan of Tk 2,000 crore from Islami Bank Bangladesh Limited (IBBL) by opening two companies with fake addresses and papers.
In all, about Tk 7,000 crore loans have been approved from Islami Bank in various ways in the name of eight companies this year.
The maximum amount of loan, Tk 2,460 crore, was withdrawn from November 1 to 17, according to the newspaper report.
Read More: Women entrepreneurs repay loans in most cases: Commerce Minister
In the same way, the companies have withdrawn Tk 2,320 crore loan from Social Islami Bank Limited (SIBL) and the First Security Islami Bank.
As a result, the debt of the companies with interest to these three banks has increased to Tk 9,500 crores, it added.
Meanwhile, another report published in the New Age newspaper on November 29 said that S Alam Group alone has taken loan of Tk 30,000 crore from Islami Bank.
Read More: Payment of Hajj Finance Loan and DPS Instalment through Nagad
Walton wins ICMAB Best Corporate Award
Walton has won the Institute of Cost and Management Accountants of Bangladesh (ICMAB) Best Corporate Award 2021 for its contribution to electronic product manufacturing.
Also, the company received the honour for fulfilling special criteria, including market capitalisation, good corporate governance, acceptance of information, and credibility as a listed company in the stock market.
Sixty-four other companies also achieved bronze, silver, and gold awards under 17 categories in 28 criteria.
Commerce Minister Tipu Munshi handed over the award to the representatives of those companies listed in the share market Thursday.
Golam Murshed, managing director and chief executive officer of Walton, received the gold award.
The Bangladesh Securities and Exchange Commission Chairman Professor Shibli Rubayat Ul Islam and Federation of Bangladesh Chambers of Commerce and Industries President Md Jasim Uddin were also present.
Read more: Islami Bank scoops up ICMAB Best Corporate Award
BSCCL makes Tk 250 crore profit in FY22
Bangladesh Submarine Cable Company Limited (BSCCL), a state-owned telecommunications infrastructure agency, made a hefty Tk 250 crore profit on earnings of Tk 441.74 crore in the 2021-22 fiscal.
The information was made public by the company’s Managing Director (MD) Md Azam Ali through an event held at the capital's Hotel Intercontinental on Saturday, at which Post and Telecommunications Minister Mustafa Jabbar was the chief guest.
Speaking as chief guest, Jabbar stressed the need to turn BSCCL into a 'technologically competent institution' to meet the needs of the hour.
“Submarine cable is a critical telecommunications infrastructure of the country. As a public company, BSCCL has a role to play for the country and its people. Providing affordable internet services is one of these roles,” said Jabbar.
Stating the difference between the price of bandwidth in 2008 and now, Jabbar added that the government has been able to reduce bandwidth price to a great extent in the intervening years.
“In 2008, each mbps bandwidth used to cost Tk 27,000, which has now come down to only Tk 240. In FY2017-18, BSCCL earned only Tk 1.4 crore as revenue, which has now surpassed Tk 400 crore. The government is working to provide high speed internet to each and every corner of the country following Prime Minister Sheikh Hasina’s pledge of a Digital Bangladesh,” Jabbar added.
Mohammad Khalilur Rahman, Chairman of BSCCL and Posts and Telecommunications Secretary, Mohiuddin Ahmed, Vice Chairman of Bangladesh Telecom Regulatory Commission (BTRC) and Habibur Rahman, MD of Teletalk, among others, were present at the event.
BAT Bangladesh scoops up ‘ICMAB Best Corporate Award’ for sixth time
BAT Bangladesh secured the ICMAB Best Corporate Award-2021 (gold) under MNC Manufacturing Category for the sixth consecutive time.
The Institute of Cost and Management Accountants of Bangladesh (ICMAB) awarded the prize for their outstanding performance at a function at InterContinental Dhaka in the capital on Thursday (December 01, 2022).
Minister for Commerce Tipu Munshi handed over the award to its Chairperson Golam Mainuddin and Managing Director Shehzad Munim at the programme where Senior Secretary to the ministry of Commerce Tapan Kanti Ghosh was also present.
Read more: BAT wins Bangladesh Innovation Award for SDG Inclusion
Professor Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC) and Md Jashim Uddin, president of FBCCI were also present as special guests there.
Along with the government officials, many entrepreneurs, business elites of the country and top executives of different companies were present in the ceremony as honourable guests.
The ICMAB National Award is given every year to recognize the invaluable contribution made by the corporate entities in different sectors of the national economy and to encourage increased competitiveness for efficiency.
Read more: PM to provide prize money for all SAFF Champion footballers, houses based on need
Bangladesh received $1.59 billion in remittance in November
Bangladesh received $1.59 billion inward remittance in November, showing a slight increase in expatriate income flow, according to a Bangladesh Bank source.
Though the central bank is expecting a sharp rise in inward remittance flow after announcing half a dozen facilities including cash incentives and free-of-cost remittance-sending opportunities, the response is not satisfactory yet.
Expatriate income or remittances have been steadily declining amid the foreign exchange crisis.
The expatriates sent $1.52 billion in October. In July and August, Bangladesh received $2.09 billion and $2.03 billion respectively.
Read more: Bangladesh Bank allows export income, remittance through MFS
Since September the flow of inward remittance has been declining. A rumor spread among the expatriates that sending money to Bangladesh through banking channel is not secure, which has apparently impacted the remittance flow.
According to Bangladesh Bank (BB) data, the country received inward remittance of $8.78 billion in July-November of FY 23 while the figure was $8.60 billion in the same time of FY 22. It shows that expatriates sent more than $180 million in remittances compared to the previous fiscal year.
BB spokesperson Md Abul Kalam Azad told UNB that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollars for remittance.
In addition to 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.
Read more: Bangladesh received $769.88mn remittance in 2 weeks of Oct
Banks will not charge any fee for sending remittances through the legal channel, he said.
Research by Bangladesh Bank found that more than 40 percent of remittance is sent through illegal hundi.