United News of Bangladesh

Khondker Abdul Muktadir, Minister of Industries, Commerce, Textiles, and Jute said on Wednesday that the government has made the stimulation of the Small and Medium Enterprise (SME) sector a top priority to accelerate economic growth and expand national employment opportunities,  Speaking as the chief guest at a seminar titled "National Budget 2026-27: Expectations and Achievements of the SME Sector," the Minister revealed that the government is working to reduce the time required for a business to secure all operational permissions and certifications from 355 days down to just 14 days.  He also assured that the government aims to ensure an uninterrupted energy supply for industrial enterprises to lower production hurdles. The discussion was jointly organized by the SME Foundation and the Economic Reporters' Forum (ERF) at the ERF Auditorium in Paltan, with ERF President Daulat Akhter Mala in the chair and ERF General Secretary Abul Kashem moderating the session. To boost industrial investment, the Minister announced that the government has reserved Tk 5,000 crore out of a Tk 60,000 crore stimulus package specifically for the SME sector. Furthermore, the government has planned dedicated SME hubs, setting aside 200 acres of land each in Sylhet, Pabna, and Thakurgaon to establish product modeling and training laboratories. Addressing structural economic issues, Muktadir noted that a decade ago, Bangladesh's debt-to-GDP ratio was low, but subsequent administrations took random foreign loans for unproductive sectors, which failed to expand the economy or improve the tax-to-GDP ratio.  Referring to the upcoming Least Developed Country (LDC) graduation, he stated that as the largest economy among LDCs, Bangladesh has formally sought a three-year transition grace period. He also pointed out logistical inefficiencies, stating that while global logistics costs average 10 percent of product value, it stands at 16 percent in Bangladesh. The government is actively monitoring this to lower costs, alongside initiatives to reopen closed state industries for private-sector operation. Presenting the keynote paper, SME Foundation General Manager Mohammad Jahangir Hossain shared that out of 113 proposals submitted by the foundation for the fiscal year FY2026-27 budget, the National Board of Revenue (NBR) accepted 36 proposals—including 12 on income tax, 5 on VAT, and 19 on customs duties. For the first time, a dedicated allocation of approximately Tk 7,800 crore has been proposed for the CMSME sector in the national budget. The keynote speaker, however, highlighted that policy incentives outlined in the National Industrial Policy 2022 and the draft National SME Policy 2026 are not being fully executed by the NBR. To bridge this gap, the foundation urged the formulation of a unified "Preferential Tax Regime for MSMEs" through a separate SRO. The foundation also recommended increasing the current Tk 2,000 crore refinancing fund for easy-term loans, requesting at least Tk 5,000 crore exclusively for the SME Foundation. Additionally, it sought a Tk 100 crore allocation from the proposed Tk 300 crore creative economy fund under the "One Village-One Product" initiative, alongside an annual allocation of Tk 2,000 crore for holistic cluster-based SME development. Speaking as a special guest, NBR Member (Tax Policy) Barrister Mutasim Billah Faruki stated that the government has delivered an industry-friendly budget that transitions toward a progressive minimum tax payment system. SME Foundation Managing Director Anower Hossain Chowdhury also spoke as a special guest, while Deputy General Manager Muhammad Morshed Alam delivered the welcome address. According to latest data, the SME sector contributes nearly 30 percent to Bangladesh's GDP. The Bangladesh Bureau of Statistics (BBS) Economic Census indicates that out of 1.17 crore industrial units in the country, roughly 99 percent belong to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector, accounting for over 85 percent of total industrial employment by employing more than 3 crore people.

Global ICT infrastructure and smart devices provider Huawei has launched "SME Support Program" with ecosystem partners in the Asia-Pacific to deliver more technical support for economic recovery amid the pandemic. Each eligible Small and medium enterprise (SME) applicant could receive coupons worth up to $3,000 and free professional consulting service including cutting-edge cloud solutions for a variety of industry scenarios including financial service, education, e-commerce, gaming, IoT, application development, and enterprise applications. SMEs that have an account on the Huawei Cloud official website but have never used any paid service could apply for the SME Support Program page and receive consultation from cloud experts. Also read: Huawei posts 3.8% growth in 2020 Applications will be reviewed based on the company's cloud needs and the readiness of workloads for cloud deployment. This programme will continue until December 31 this year. SMEs are the engines of growth and innovation in the Asia-Pacific Economic Cooperation (Apec) region. They account for over 97% of all business and employ over half of the workforce across Apec economies. They contribute significantly to economic growth with their share of total economic output ranging from 40-60% in most economies of the region, according to Apec. Also read: Technology can be engine for human progress: Huawei’s Senior Vice President The pandemic has forced businesses to accelerate their digital transformation and move to the cloud one to three years ahead of schedule. "Huawei Cloud is now working with over 19,000 partners and 1.6 million developers and is committed to strengthening the digital economy to support a sustainable economic recovery. It offers over 220 services in categories such as storage, network, security, big data, AI, and IoT," read a press release. Read Huawei joints with BUET to make ICT talent ecosystem in country

Bangladesh Small and Cottage Industries Corporation (BSCIC) Chairman on Tuesday said that they will provide necessary assistance and supervise the government’s stimulus package of Tk 20,000 crore for the Small and Medium Enterprise (SME) sector.   “Six directors of BSCIC were directed to support the SME loan distribution activities in specific districts according to an office order released on July 15,” said a press release on Tuesday.   BSCIC Chairman Md Mostaaq Hasan said the have formed committees in 42 districts to distribute SME loans and arranged several meetings in this regard.   Meetings in the other districts will be arranged soon, he said.   The BSCIC chairman also informed that loan recoveries for small, micro, cottage and mid-level industries will be 99 percent.   As part of the stimulus package to revamp the economy, the government announced Tk 20,000 crore stimulus package for the SME sector to help it stay afloat amid the coronavirus pandemic.   According to Bangladesh Institute of Development Studies, SME sector contributes to about 25 percent to the country's Gross Domestic Product (GDP) and accounts for 86 percent of the industrial workforce.   BSCIC directors assigned   Dr Md Abdus Salam, director (technology, skills), BSCIC, will supervise SME loan activities in Rajshahi, Pabna, Natore, Chapainawabganj, Kushtia, Meherpur, Chuadanga, Jashore, Jhenidah, Narail and Magura.   Swapan Kumar Ghosh, director (finance), took the responsibilities of Sylhet, Sunamganj, Habiganj, Moulvibazar, Cumilla, Brahmanbaria, Narshingdi, Narayanganj, Munshiganj and Dhaka districts.   Md Khalilur Rahman, director (industrial development and extension), was selected for Rangpur, Kurigram, Lalmonirhat, Gaibandha, Nilphamari, Dinajpur, Thakurgaon, Panchagarh, Joypurhat, Naogaon and Bogura districts.   Md Alamgir Hossin, director (marketing, design, and crafts), will see activities in Khulna, Bagerhat, Satkhira, Patuakhali, Barguna, Barishal, Pirojpur, Jhalakathi, Gopalganj, Madaripur and Shariatpur districts.   According to BSCIC office order, Dr Golam Md Faruk, director (planning and research), will supervise activities in Mymensingh, Kishoreganj, Netrakana, Sherpur, Jamalpur, Tangail, Sirajganj, Manikganj, Gazipur, Faridpur and Rajbari districts.   Meanwhile, Mohammad Ataur Rahman Siddique, director (engineering and project implementation), will supervise SME loan activities in Chattogram, Cox’s Bazar, Rangamati, Bandarban, Khagrachhari, Feni, Laxmipur, Chandpur and Bhola districts.

KM Habib Ullah, chairperson of Small and Medium Enterprise (SME) Foundation, died of cardiac arrest at a hospital in India early Wednesday.   He  breathed his last around 2:30 am while undergoing treatment at a hospital in Kolkata in India, said Morshed Alam, assistant general manager of  SME Foundation.   He had been suffering from kidney problem and admitted to the hospital on March 10.   Industries Minister Nurul Majid Mahmud Humayun, State Minister for Industries Kamal Ahmed Majumder, Secretary to the Industries Ministry KM Ali Azam, Managing Director of SME Foundation Mohammad Shafiqul Islam expressed deep shock at the demise of Habib Ullah.