United News of Bangladesh

Amidst the ongoing crisis, entrepreneurs in the e-commerce sector have sought government assistance to recover from the extensive damage caused by the disruption of internet services and other issues. E-CAB President Shomi Kaiser presented the extent of the damage and the current situation, along with several demands and suggestions for overcoming the crisis at a press conference at its Banani office on Wednesday. At the outset, the E-CAB President thanked the government for restoring internet and Facebook services. She mentioned that over the past 13 days, this sector has suffered losses amounting to approximately Tk 1,700 crore, with the losses increasing daily. She said due to the internet shutdown, this business came to a complete halt. Although internet services have been restored, the low speed and the continued blockage of social media platform Facebook mean that the crisis has not yet been overcome, she added. She noted that 95 percent of transactions in the e-commerce sector are still halted due to curfew, security risks, and other reasons. She mentioned that E-CAB is conducting a survey to assess the actual damage. E-CAB leaders called for extending the repayment period of bank loans by at least six months for affected entrepreneurs, providing loans on easier terms, temporarily waiving VAT on logistics and digital marketing, waiving and extending the renewal fees for trade licenses, and suggested the government to contact Facebook to refund or reschedule advertisements that were active but not running. E-CAB Senior Vice President Mohammad Sahab Uddin Shipon, Vice President Syeda Ambarin Reza, General Secretary Nasima Akter Nisha were present at the time, among others.

Chinese company Baida Industrial Company Limited is going to invest US $1.26 million to set up a Printed Materials and Packaging Products manufacturing industry in Uttara Export Processing Zone (UEPZ) in Nilphamari. A deal was signed in this regard in the presence of the Executive Chairman of BEPZA Major General Abul Kalam Mohammad Ziaur Rahman. The deal signing ceremony was held at BEPZA Complex, Dhaka on Tuesday. Md. Ashraful Kabir, Member (Investment Promotion) of BEPZA, and Zhang Hu, Managing Director of Baida Industrial Company Ltd, signed the agreement on behalf of their respective organizations. This foreign-owned company will produce 8,000 metric tons of various types of cartoon boxes, paper bags, box files/storage boxes, different types of books and magazines, sticker/label/hang tag/barcode stickers, calendars, diaries and different types of printed cards yearly. 1,150 Bangladeshi nationals will get employment opportunities in this company, according to a press release.

They’re not lovin’ it. McDonald’s global same-stores fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped meals out or chose cheaper options. The company said it’s working on fixes, like meal deals and new menu items, but it expects same-store sales to be down for the next few quarters. “Consumers still recognize us as the value leader versus our key competitors, it’s clear that our value leadership gap has recently shrunk,” McDonald’s Chairman, President and CEO Chris Kempczinski said Monday during a conference call with investors. “We are working to fix that with pace.” Sales at locations open at least a year fell 1% in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home. In the U.S., same-store sales fell nearly 1%. McDonald’s saw fewer customers but it said those who came spent more because of price increases. Kempczinski defended those increases, saying McDonald’s costs for paper, food and labor have increased as much as 40% in some markets over the last few years. The company also reported lower store traffic in France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza. Kempczinski said weak consumer sentiment in China has customers fleeing to lower-priced rivals. McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period. McDonald’s U.S. President Joe Erlinger said Monday that $5 meal deal sales are running ahead of expectations and are getting lower-income consumers back into McDonald’s stores. Erlinger said 93% of McDonald’s franchisees have agreed to run the promotion through August. Other countries like Germany and the United Kingdom are also seeing success with meal deals, the company said. But Kempczinski said McDonald’s needs to be providing broader value and boosting that message with better marketing. “Trying to move the consumer with one item or a few items is not sufficient for the context that we’re in,” he said. New menu items are also in the works. The company is testing its value-oriented Big Arch double burger in three international markets through the end of this year, Kempczinski said. For the second quarter, revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet. The company’s net income fell 12% to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring charges, McDonald’s earned $2.97 per share. That was far from the per-share profit of $3.07 that industry analysts had forecast. Investors appeared satisfied with McDonald’s plans to reverse its slide. McDonald’s shares rose 3.5% in morning trading Monday.

The global apparel brands and retailers in a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have emphasized timely shipment amid internet disruptions, and port delays. Government decides to waive demurrage charges for BGMEA's imported inputs The BGMEA president S M Mannan Kochi told UNB that the retailers and brands assured them that they will not seek any discount, air shipment or cancellation of purchase orders because of the latest violence and disruption of production in the country. International apparel brands and retailers, on Monday (29 July), expressed concern about the timely shipment of garment products. BGMEA, Cascale discuss collaboration to make garment industry sustainable In a meeting with the leaders of the BGMEA at the Uttara office of the organisation in Dhaka, the buyers urged the garment exporters to ensure the timely shipment of products. They also called on the BGMEA leaders to talk with the government officials to restore uninterrupted internet with high speed so that they can communicate with their headquarters. BGMEA, Chinese business delegation explore collaboration opportunities After the meeting with the international retailers and brands, BGMEA president S M Mannan Kochi told the reporters about this.

In response to a request from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), a policy decision has been made to waive demurrage charges imposed on imported garment products currently held up at the Chattogram port due to the ongoing national crisis. On July 28, a BGMEA delegation led by its President, SM Mannan (Kochi), met with Honorable Minister of State for Shipping Khalid Mahmud Chowdhury at his office. During this meeting, the delegation requested the waiver of port demurrage charges, and a policy decision was subsequently made in this regard. Currently, a large number of import containers are waiting to be cleared at the Chattogram port, with the majority pertaining to the garment industry. Already, over Tk10 crore in port demurrage charges have been levied on garment exporters. In light of this situation, the delegation requested the quick clearance of these containers without demurrage charges to ensure uninterrupted import-export operations through the port and to support timely delivery of goods as per buyer agreements. The Honorable Minister of State for Shipping acknowledged the contribution of the garment industry to the national economy and assured that his ministry is always ready to extend all possible support to the sector. The BGMEA delegation included First Vice-President Syed Nazrul Islam, Senior Vice-President Khandakar Rafiqul Islam, Vice-President Rakibul Alam Chowdhury, and Directors Ashikur Rahman (Tuhin) and Mohammad Mohiuddin Rubel.

The government is seeking the cooperation of the business sector in helping it restore the country’s image internationally, which has been severely dented by the quota reform protests that descended into rioting bordering on anarchy, and eventually a curfew that has stretched past 10 days now.  Cabinet members and advisors who actually made their names as businessmen presented the government's vision made their opinions known during a views-exchange meeting with business leaders at the office of the Bangladesh Investment Development Authority (BIDA) in  the capital's Agargaon on Sunday. They are the Prime Minister's Private Industry and Investment Adviser Salman F Rahman, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, and State Minister for Commerce Ahasanul Islam Titu. State Minister for Posts, Telecommunications and Information Technology Zunaid Ahmed Palak and FBCCI President Mahbubul Alam along with top business leaders from various sectors were present on the occasion. At the beginning of the exchange meeting, Prime Minister's advisor Salman F. Rahman at the beginning of the event said, "We have come to a critical situation. We have to admit that there is an image crisis after this incident. It must be repaired. This work is not possible without the cooperation of businessmen.” State Minister for Commerce Ahasanul Islam Titu also said that the country is facing an image crisis in the ongoing situation. “Now we have to find a way out of it. Blaming someone will not solve the problem. For this, "a long-term solution should be sought,” he pointed out. State Minister for Power, Energy, and Mineral Resources Nasrul Hamid said that the country is currently going through an "unwanted event". He said, “The issue has hurt and pained everyone. It has spread not only within the country but also outside to the world. It has become a problem for all of us now. We are not denying it. There needs to be an open discussion about what has gone wrong in the current situation and how quickly we can return to normalcy.” Businessmen spoke at the meeting about various sufferings due to internet service being stopped or limited for a long time in the country. Apart from this, they pointed out problems related to container congestion at ports, paying extra charges for delays in clearance of import-export goods, increased interest rate, the steep rate of the dollar, customs clearance and taxes at an extra rate, lack of uninterrupted electricity, and gas, etc. FBCCI President Mahbubul Alam said that broadband internet should be made fully operational using optimum bandwidth as soon as possible. “What is currently in operation (internet) is not up to the desired level. As a result, many business activities are delayed. Apart from this, it is necessary to see how the affected industries can be compensated in the long term,” he opined. He also expressed concern over the devaluation of the taka, which created a fluctuation in the price of goods.  

Bangladesh received US $1.5 billion in remittances in the first 24 days of July, according to the latest report from Bangladesh Bank. In the first 18 days of July, the country received an average of $79 million in daily remittances. However, from July 19 to 24, a total of $78 million was received over six days, indicating a significant drop. NRB leaders should encourage Bangladeshis to send remittances through legitimate channels: President In July 2023, expatriates sent $1.97 billion, highlighting a significant decrease in remittances year-over-year. This information was disclosed in the updated report from Bangladesh Bank. Md. Mezbaul Haque, Executive Director and Spokesperson of Bangladesh Bank, noted that the remittance volume might increase slightly as banking operations were interrupted for five consecutive days. Banks reopened last Wednesday and Thursday but operated for a very limited time, he said. Bangladesh received $23.91bn remittance in FY2023-24, 2nd highest in fiscal history: Bangladesh Bank He explained that remittances in Nostro accounts (accounts held in foreign countries by domestic banks) are not fully reconciled. The complete account of remittances will be available by the end of the month once banking activities return to normal. From July 19 to 24, banking operations were disrupted, with banks only open for one day. The government imposed a curfew starting the night of July 19 to control the unrest surrounding the quota reform movement. Banks remained closed until Tuesday, and online transactions were also halted due to internet connectivity issues. Banks reopened on July 24, operating for four hours from 11 am to 3 pm. An analysis of central bank data shows that the lowest remittance this year was received in March, totaling $1.99 billion. Before that, remittances were $2.11 billion in January and $2.16 billion in February. Bangladesh forex reserves soar to $19.53bn boosted by remittance In April, Bangladeshi expatriates sent $2.04 billion, followed by $2.25 billion in May. June saw a record $2.54 billion in remittances, the highest in the last 47 months. The previous highest remittance record was $2.59 billion in July 2020.

Singer Bangladesh Limited has recently announced its unaudited financial results for the second quarter ending June 30, 2024. The company reported a turnover of Tk. 11.9 billion, reflecting an 8.8% increase compared to Tk. 10.9 billion in the same period last year, according to a media release. This growth was driven by two Eid festivals and a hot summer during Q2 2024. Gross profit remained steady at Tk. 3.1 billion, similar to Q2 2023. However, the gross profit margin decreased to 25.9% from 28.2% last year, a decline of 2.3%, mainly due to increased costs and foreign exchange impacts. The margin was lower by 2.8% compared to the previous year, affected by higher sales of trade goods including locally sourced products, increased discounts, and promotional activities. The product SKU and sales channel mix also negatively impacted the margin. Operating expenses rose to 17.7% of turnover compared to 17.0% last year. This increase was due to higher advertisement and sales promotion costs, shop operating expenses including new shops, rent, repair and maintenance expenses of the new factory, and IT-related expenses. Finance costs surged by 83.9% due to a more than 4% rise in interest rates, representing a 45.7% increase compared to last year, and a 27.5% increase in short-term borrowing utilization. Additionally, a significant currency depreciation in May 2024 (approximately 7%) resulted in a foreign exchange loss. Profit after tax decreased to Tk. 236 million from Tk. 583 million in Q2 2023. Earnings per share declined from Tk. 5.85 to Tk. 2.37. The effective tax rate for Q2 2024 was 35.2%, up from 34.2% in Q2 2023. Net operating cash flow per share (NOCFPS) improved significantly to Tk. 5.93, compared to (Tk. 2.58) in Q2 2023. Singer Bangladesh Limited continues to navigate economic challenges while focusing on growth and efficiency improvements, read the release.

Bangladesh Bank has lent around Tk 25,521 crore to commercial banks and financial institutions to meet cash demands on Wednesday. Shariah-based banks have borrowed around Tk 1500 crore, while other banks and financial institutions have borrowed the rest. The central bank shared the information in a press release on Thursday. BB announces tight monetary policy hoping to cut inflation to 6.5 percent Banks faced tremendous cash withdrawal pressure on Wednesday when they opened only for four hours after days of closure due to curfew. With lack of money at ATM booths and days of internet shutdown, the demand for cash skyrocketed. The central bank also informed that the auction of Bangladesh Bank Repo, Assured Repo, Assured Liquidity Support (ALS) for commercial banks and financial institutions, and Islamic Banks Liquidity Facility (IBLF) for Shariah-based banks was held on Wednesday. Bangladesh Bank to publish monetary policy statement online amid potential boycott by economic reporters In this auction, 14 banks and 2 financial institutions received Tk 5007 crore under the 7-day repo facility, Tk 2370 crore to 9 banks under the 14-day repo facility, Tk 7197 crore to 12 banks and 2 financial institutions under the 28-day repo facility. Apart from this, Tk 5691 crore was given to 3 banks under 180 days of assured repo, and Tk 3774 crore was given to 11 primary dealer banks under 1 day of assured liquidity support. Besides, under the Islamic Banks Liquidity Facility for 14 days, Tk 497 crore was given to 1 bank, and Tk 984 crore was given to 5 Islamic banks for 28 days.

Banks witnessed overcrowding and long queues of customers today as they reopened on Wednesday for only four hours. All banks were closed for three consecutive workdays due to curfew across the country. Bangladesh did not have internet for five consecutive days due to widespread violence over quota protests. After overcoming the situation, government, private offices, and banks were open today from 11 am till 3 pm. Customers thronged branches of the banks since 11 am; most had gone to withdraw money. Visiting different areas of Dhaka including Motijheel, Dilkusha, Paltan, and Kakrail, this correspondent observed overcrowding and long queues at banks. Bank officials said there were more withdrawals than deposits during the day. Customers said that due to no internet over the last five days, mobile financial services (MFS) and most ATM booths were out of service. This led to long lines at banks today to withdraw money via cash checks. “I was very anxious over the last few days due to a shortage of cash. I couldn’t withdraw money from ATM booths either. After visiting several ATM booths in vain, I saw many facing difficulties like me,” said Kawser Ahmed, who was waiting in line at Sonali Bank’s Motijheel branch around 11:30 am. “Hearing the banks were open today, I came here right away,” he added. Joynal Uddin, a retired individual who visited Pubali Bank’s Dilkusha branch, said, “Due to cash shortage, I have been facing various problems. I couldn’t go shopping and buy medicine.” “I’m really relieved that banks are open today for transactions. Having cash at hand brings peace of mind,” he added.