FBCCI
Private sector should prepare to face challenges of LDC graduation, FBCCI president says at AGM
FBCCI president Md Jashim Uddin said Bangladesh's graduation from the Least Developed Country will strengthen the image of the country in the international arena along with creating huge trade and investment opportunities.
The president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) said this at the Annual General Meeting (AGM) of the organisation held at a convention hall in the capital on Wednesday.
Read more: FBCCI wants to enhance bilateral trade relations with Mozambique
Due to Covid-19 Pandemic, the AGM of the session 2020-2021 could not be held as per schedule. As a result, two separate AGMs of the session 2020-2021 and 2021-2022 were held on the same day.
He said, “Bangladesh will lose special trade privileges in several markets including in Europe, one of the top export destinations of the country, as a result of the LDC graduation. The private sector has to face competition in maintaining the price and product quality. This is why emphasis should be given to research, innovation, and product diversification.”
To make sustainable export trading, the government should initiate more bilateral trade agreements including Free Trade Agreements (FTA), and Preferential Trade Agreements (PTA), he said.
Read more: FBCCI urges policy support in tourism development
Jashim emphasized obtaining certificates from various institutions, reducing complexity in its renewal, effective automation, and increasing the capacity of port management to attract more foreign investment.
“The Covid-19 pandemic and the Russia-Ukraine crisis have resulted in an abnormal increase in energy price, food price, agricultural production cost, industrial raw materials, parts, and transportation cost. High inflation is also occurring in currency exchange rates. Rising costs of doing business have made it difficult for local entrepreneurs to survive in the global competition,” he said.
In such a situation, he suggested that the private sector should focus on increasing the use of technology in the industry, creating a skilled workforce, increasing efficiency in business management, and increasing the capacity to produce goods at competitive prices.
In the ongoing situation, the FBCCI President urged the District Chambers and Associations to be more proactive to maintain productivity. At the same time, he suggested identifying sector-wise problems and bringing them up at the policy-making level through FBCCI.
FBCCI former president Abdul Matlub Ahmad, former first vice president Mohammad Ali, Monowara Hakim Ali, former vice president Abu Alam Chowdhury, Dewan Sultan Ahmed, Helal Uddin, and others participated in the open discussion.
FBCCI wants to enhance bilateral trade relations with Mozambique
The FBCCI Senior Vice President Mostofa Azad Chowdhury on Monday said the federation is looking to enhance bilateral trade relations and investment opportunities between Bangladesh and Mozambique.
“Both Bangladesh and Mozambique occupy a strategic position as business hubs and could benefit from a more robust trade and economic partnership,” he said while presiding over a discussion meeting with the Mozambique Business Delegation at the FBCCI.
Mostofa said, “Our presence in Africa is mostly due to the large contribution of our peacekeeping forces. But now we are trying to increase business ties with the southern economic bloc by enhancing trade and investment.”
The delegation was led by the Director General for Asia and Oceania of Mozambique Jose Matsinha.
He said, "There is huge potential in economic relations between Mozambique and Bangladesh. We’re here in Bangladesh to see which area we both can work on."
Read more: FBCCI urges policy support in tourism development
Jose Matsinha said, “We can get experience from Bangladesh in strategic areas with mutual interest. We have a large amount of land and plenty of water in Mozambique but we lack expertise. Bangladesh can help us in the agriculture sector.”
He also praised the Bangladeshi peacekeepers who worked in Mozambique.
High Commissioner of Mozambique to India Ermindo Ferreira, Director General (Bangladesh’s foreign wing) for Africa Md. Tarikul Islam, representative of the Ministry of Economy and Finance (of Mozambique) Jose Fernando Messias, Mozambican Investment, and Export Promotion Agency Dique Francisco Bacar, and FBCCI Directors, among others, were present on the occasion.
FBCCI urges policy support in tourism development
Leaders of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) said the tourism sector is frustrated as it is not in the list of the top ten sectors of Bangladesh, though the sector has 100 percent value addition to the country's economy.
They urged for the government's support in national and international branding besides increasing policy support for the development of this potential sector, they said.
Read more: FBCCI seeks dollars from reserves to import commodities for Ramadan
They said this in the second meeting of the standing committee on Hotel, Motel, Resort and Guest House Development held at FBCCI on Tuesday.
The businessmen said that the tourism industry in Bangladesh has developed. But the development is far behind compared to that of the neighboring countries. Businessmen believe that the tourism sector will be at top if government policy support increases.
Speaking as the chief guest FBCCI Vice President Md Amin Helaly said, “Tourism sector has made a lot of progress in the past years. Modern facilities, equipment, and technology are being used in our hotels, motels, and resorts like in developed countries. But still, the industry faces the lack of infrastructure, skilled manpower, and transport facilities.”
Read more: FBCCI seeks partnership with UK in technology transfer, supply chain development
He said, “Seven Sisters of India could be the potential market for Bangladesh’s tourism sector.
Helaly urged for taking the integrated initiative to tie up with the tourists of seven sisters region of India.
The other speakers demanded the simplification of license or clearance, more development of the communication system, bringing all tourism in the country under the license, and a government funding system for training of tourist guides.
FBCCI Director MGR Nasir Majumder, Hafez Harun, Abu Hussain Bhuiyan (Ranu), Akkas Mahmood, Secretary General Mohammad Mahfuzul Hoque, Committee Co-Chairman Khandaker Ruhul Amin, AHM Aminul Islam Bhuiyan, Irfan Ahmed, Jalal Uddin Tipu, and others also spoke in the meeting.
FBCCI seeks dollars from reserves to import commodities for Ramadan
Top business houses in a meeting with Bangladesh Bank (BB) on Monday sought several facilities including foreign exchange support from the forex reserve to import essential commodities and moratorium on loan repayments up to June 2023.
Though Bangladesh exported a record $5 billion worth of goods in November, the traders sought the moratorium, which is similar to deferment, when a lender allows deferred loan repayments for a specific period. Usually, the reason involves some kind of financial hardship, but it was also allowed during the pandemic period.
After the meeting, president of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Md Jasim Uddin told reporters, “In Ramadan requires many other products besides essential commodities. That's why I asked for ease of import and requested to provide foreign exchange assistance from reserves for opening LC from the reserve if required.”
Read: No forex crisis from Jan 2023, Bangladesh Bank Gov says
Bangladesh Bank has assured to do so, he said.
The BB Executive Director and Spokesperson Mezbaul Haque told UNB that the global context and the current economic situation of the country were discussed in the meeting.
“FBCCI has sought policy benefits. We will consider FBCCI matters. But no decision has been taken till now,” he said.
Jasim also said that production has been disrupted due to the energy and gas crisis. Due to these factors, the factories cannot be run. Raw material cannot be imported due to LC complexity. This has an impact on business.
“If you can't do business, you can't pay the loan instalments. So the differed loan repayment facility should be extended till June next year. So that no one would become a defaulter. If the customer defaults, the bank will also default. So I think it is logical to increase the loan repayment time.”
Read: Despite taka depreciating, banks selling dollars at Tk3-4 extra
The business leader also sought a single rate of dollar resolving the existing several rates of dollar for LC opening and another purpose.
Responding to a question regarding the interest rate cap, the FBCCI president said that if the interest rate is low, investment is high.
“So I don't see the need to lift the interest rate cap now. For this reason, I have requested that the interest rate cap should not be lifted for the next one year,” he added.
FBCCI seeks partnership with UK in technology transfer, supply chain development
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has sought a partnership with the UK in technology transfer and supply chain development to face the challenges of Bangladesh's LDC graduation and the fourth industrial revolution.
The leaders of the FBCCI made the call at the discussion "Bangladesh-UK Trade and Investment 2022" in London on Wednesday.
The government is doing everything to create new opportunities for businesses and investors, Jashim Uddin said.
Read: FBCCI partners with CNN to promote trade, investment opportunities in Bangladesh globally
But to face the challenges of Bangladesh's graduation from the least developed country (LDC) category and its integration into the fourth industrial revolution, the country urgently needs technology transfer and joint venture partnership in the global supply chain, he added.
Innovative knowledge should be applied in agricultural and industrial production and services sectors and the FBCCI wants a partnership with the UK in these areas, Jashim said.
"We are manufacturers of diversified pharmaceuticals products, leather goods, plastic, frozen seafood, ceramics, jute products, and home appliances," he added.
Read: FBCCI signs MoU with Greater New York Chamber of Commerce and Industry
"The UK could invest in Bangladesh in energy, agro-processing, pharmaceuticals, plastic and petrochemical, engineering, logistics sector, financial services, and support skills development programme for upgrading Bangladesh's middle managers and workers."
Also, the FBCCI president invited the UK government and business leaders to join the "Bangladesh Business Summit," which will showcase the competitiveness of Bangladesh in the above-mentioned areas.
FBCCI partners with CNN to promote trade, investment opportunities in Bangladesh globally
The Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) will organise the "Bangladesh Business Summit 2023" in March 2023 to celebrate its 50th anniversary.
To cover this mega event globally, the FBCCI signed a memorandum of understanding (MoU) with US-based multinational news channel Cable News Network – better known as CNN – as its international media partner Saturday.
Under this agreement, CNN will promote trade potential and investment opportunities in Bangladesh globally.
Read: FBCCI signs MoU with Greater New York Chamber of Commerce and Industry
FBCCI President Md Jashim Uddin and CNN South Asia Sales Director Abhijeet Dhar signed the MoU in the capital. Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman was present at that time.
Salman said: "The business representatives and investors of different countries can learn about the success and potential of Bangladesh through the business summit, which will attract foreign investors."
"Besides national and international investment, the small and mid-size enterprise (SME) sector will get special attention at the summit."
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Jashim said potential sectors like textile, digital economy, circular economy, and the blue economy will be showcased at the summit.
Entrepreneurs who have contributed to the country's economy and freedom fighter businessmen will get recognition from the FBCCI.
Through this summit Bangladesh can benefit from industry relocations across the world, Jashim said.
Read More: FBCCI for building skilled workforce for achieving SDGs
The director general of the World Trade Organization, the trade commissioner of the European Union, the chairman of Jetro, SEOs of several multinational companies, ministers of several countries, and business representatives will attend the summit.
Floor area ratio a big challenge in new DAP, FBCCI standing committee meeting told
Government has approved the Detailed Area Plan (DAP) to ensure sustainable development of capital Fhaka. However, developers and real estate companies regard the floor area ratio in the new DAP as a big challenge.
They came up with this observation at the FBCCI Standing Committee on Real Estate and Housing held on Sunday at the FBCCI office. Businessmen said according to the new DAP, they can’t make buildings more than 4 to 5 storeys high, where they could in the past build 8 to 10 storey buildings even if there were no wide roads.
Read more: Bangladesh doesn’t need to borrow from IMF if dignity is sacrificed: FBCCI President
Real estate sector is going to face a crisis, they noted.
Also, the land registration fee will be determined according to the market price which is going to be another challenge for the construction sector, committee members said.
Speaking as the Chief Guest, FBCCI President Md. Jashim Uddin said, there are opportunities to discuss with policy maker about challenges and way forwards. Before that, business owners should acquire deep analysis about the new DAP, he suggested.
Director In-charge of the committee and REHAB President Alamgir Shamsul Alamin said, “There many good aspects in the new DAP; some complications are there still."
FBCCI Vice President Md. Amin Helaly urged the policy-makers to work with the issues businessmen face as challenges for the development of this sector. He urged REHAB to be strict with dishonest entrepreneurs in the housing business.
Read more: FBCCI signs MoU with Greater New York Chamber of Commerce and Industry
Committee Chairman Liakat Ali Bhuiyan Milan said that this sector has already fallen into crisis due to high prices of construction materials. He called for making the new DAP business friendly.
FBCCI Director, MGR Nasir Majumder, Shafiqul Islam Vorosha, Bijoy Kumar Kejriwal, Hafez Harun, Abu Motaleb, Akkas Mahmood, Secretary General Mohammad Mahfuzul Hoque, Commmitte Co-chairmen Mohammad Nizam Uddin Jitu, Mohammad Ali Deen, Kamal Mahmud, AFM. Ubaidullah and other members were present at the meeting.
Bangladesh doesn’t need to borrow from IMF if dignity is sacrificed: FBCCI President
Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Md. Jasim Uddin has said, Bangladesh does not need to borrow money from the International Monetary Fund (IMF) if the country’s dignity is sacrificed.
He also opposed hiking the current lending interest rate.
Jasim said this while speaking at ‘ERF’s Dialogue’ as the chief guest, organized by Economic Reporters' Forum (ERF), at its auditorium in Dhaka on Saturday.
“Bangladesh is not in such a dire situation that loan must be taken under any condition from IMF. Hiking lending interest rate will drive up production costs as well as become a burden for consumers,” he added.
Jasim said businesses do not believe that all problems will be solved through hiking interest rate. He, however, favoured increasing the capacity of banks.
Read: Dedicated SEZ for US Companies: FBCCI seeks investment in ICT sector
“When the interest rates were reduced, a lot of investors invest here… research firms have different agenda for raising lending rates… whether the industry will survive the impact is what needs to be considered,” he said.
In response to a question about money laundering during the election year, he said, since Bangladesh Bank says that they have found proof of up to 200 percent excess prices under the guise of imports, they should bring those involved under the law. If not, you need to stop making tall claims just for popularity’s sake, he said.
He said those who launder money through manipulating invoices should be caught, and that FBCCI wants the government to take disciplinary action in this regard.
In response to a question on the Prime Minister's statement regarding a possible impending famine, Jasim said if there is a famine, it will impact the whole world, not just Bangladesh.
Read: FBCCI-led 62-member delegation in India to elevate bilateral trade ties
“We need to maintain austerity. Apart from this, we must work on the agriculture sector.” He added.
He also emphasized on uninterrupted power and energy supply to industries and favoured cutting household gas supply for the greater interest of the nation.
Bangladesh has potential to increase trade with EU: Charles Whiteley
Bangladesh has the potential to increase trade with the European Union (EU) countries, Charles Whiteley, ambassador and head of the Delegation of the EU to the country, said Thursday.
He paid a courtesy call on Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin in Dhaka Thursday.
They discussed trade and investment between Bangladesh and EU countries.
Read: FBCCI signs MoU with Greater New York Chamber of Commerce and Industry
Jasim hoped for enhanced cooperation between FBCCI and different trade bodies of the EU region.
Bernd Spanier, deputy head of mission, FBCCI Vice-President Salahuddin Alamgir; directors Syed Sadat Almas Kabir, Nadia Binte Amin, and Secretary General Mohammad Mahfuzul Hoque were present at the meeting.
NBFIs for lifting of 7% interest-rate caps on deposits
The non-bank financial institutions (NBFIs) have demanded the withdrawal of the 7 percent interest-rate caps on deposits.
They made the demand at the first meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Standing Committee on Non-Banking Financial Institutions held in Dhaka Wednesday.
According to the instruction of the Bangladesh Bank, NBFIs cannot offer more than 7 percent interest on deposits, lower than what the banks offer to their clients, the committee said. "The central bank's loan moratorium facilities apply only to banks, making these policies discriminatory to the country's NBFIs."
Also, the committee urged the central bank to increase the size of the refinancing scheme for the NBFIs.
FBCCI President Md Jashim Uddin said: "There should not be any policy of discrimination between the banks and NBFIs. The FBCCI will soon take the issue of interest-rate caps on deposits to the central bank."