United News of Bangladesh

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has expressed concerns over the government’s recent decision to increase the supplementary duty on mobile services by an additional 5%, raising the total from 15% to 20%. This move is anticipated to create significant challenges for both the telecom industry and mobile subscribers, according to an AMTOB statement on Thursday. This increase in duty will elevate the cost of voice and internet services, placing additional financial pressure on users, particularly those from marginalised communities. The organisation warned that this could potentially lead to decreased mobile service usage, which would negatively impact businesses and reduce government revenue. Additionally, the  statement said the higher VAT on SIM cards is expected to discourage new users, further slowing the growth of mobile connections in a country where 45% of the population remains unconnected. AMTOB stressed that these measures will hinder the overall digitisation of the country, adversely affecting GDP growth and contradicting the Smart Bangladesh Vision of the Government. In light of these concerns, AMTOB urged the government to reconsider these duties and take into account their earlier telecom budget recommendations to support the industry and ensure continued progress towards a digital Bangladesh.

The Bangladesh Bank has granted the final licence to Nagad Digital Bank PLC – paving the way for commencing operations as the country’s first full-fledged digital bank. With this, Bangladesh is going to formally enter the world of digital banking, Nagad said in a media release on Monday. Mohammad Shahriar Siddiqui, director (BRPD) of Bangladesh Bank, handed over a copy of the digital bank licence to Tanvir A Mishuk, founder and chief executive officer (CEO) of Nagad Ltd., at the office of Bangladesh Bank’s Governor Abdur Rouf Talukder today. Among others, Deputy Director of Bangladesh Bank Nurun Nahar, Executive Director (BRPD) Saiful Islam, Additional Director (BRPD) Manirul Islam; and Nagad Ltd.’s Additional Managing Director Mohammad Aminul Haque, Deputy Managing Director Mohammad Anwar Hossain and Chief External Affairs Officer Sheikh Shabab Ahmed were also present. Once Nagad Digital Bank PLC is launched, it will function the same as all scheduled banks do, reads the release. Nagad to solely disburse PM’s education assistance On 24 October 2023, the central bank issued letters of intent to Nagad and another company for digital bank licences. Only Nagad met all the conditions within the stipulated time, leading to its receipt of the first digital bank licence. Earlier, around 500 companies, including Nagad, submitted 52 applications for securing a digital bank licence following the central bank’s call for applications through its website. However, based on technical capabilities and other considerations, only two companies were granted letters of intent. Nagad founder and CEO Tanvir A Mishuk said, “We have been advocating for a digital bank to transform Bangladesh into a smart economy through cashless transactions. A significant portion of the country’s people remains out of financial inclusion, and Nagad Digital Bank will work with them. Getting the license for the country’s first digital bank is historic. I extend my greetings to our 9.5 crore customers and everyone involved.” Nagad becomes successful unicorn startup within three years: Palak Regarding the preparations for launching the digital bank, Tanvir A Mishuk mentioned, “Customers will no longer need to visit banks; instead, banking services will be at their fingertips. We will offer single-digit interest loans without any collateral, introduce micro savings schemes and provide solutions to people’s day-to-day transactions. We have completed all preparations and expect to launch this innovative banking service soon.” In just five years, Nagad has onboarded 9.5 crore people, showcasing disruptive innovations and advanced technology in mobile financial services. The company ensures market competition by providing quality services to customers at low costs. Nagad’s rapid progress has earned it recognition from Prime Minister Sheikh Hasina as the country’s fastest-growing unicorn. As part of its digital banking preparations, Nagad has achieved significant technological advancements and partnered with Silverlake Group, one of the world’s leading banking solutions companies. The company is now working on credit rating capabilities using artificial intelligence. Now the wait is for the start of digital banking operations.

The government has decided to collect funds through ‘Sukuk Bond’ to develop the Upazila and Union Road network in the Chattogram Division. In line with this, the auction of a five-year term sukuk bond will be held on June 5 at Bangladesh Bank.   Omera Petroleum ties up with Green Delta to provide insurance benefits to distributors Meanwhile, in the last few years, the government has raised Tk 18000 crore through three separate investment sukuk issues. In continuation of this, it has been decided to issue the fourth Bangladesh Government investment sukuk with a face value of Tk 1000 crore against the project titled 'Upazila and Union Road Widening and Strengthening (CDWSP) of Chittagong Division' under ‘Istisna’ and ‘Lease’ method. The prospectus prepared for the issue of investment Sukuk (CDWSP Social Impact Sukuk) for the implementation of the said project has been finalized with the approval of BB's Shariah Advisory Committee. According to the prospectus, the sukuk will be issued on an Istisna and Ijara basis, with a maturity date of June 6, 2029. 104 Crores per annum (at the rate of 10.40%) will be paid semiannually to the investors against investment in this Sukuk. All banks and financial institutions having Current/Al-Wadiyah accounts with BB can participate in the direct auction. FBCCI calls on businesses to prevent supply of substandard fire safety equipment Apart from this, domestic and foreign individual investors including insurance companies, provident funds and deposit insurance funds, and banks/financial institutions having current/al-wadiyah accounts with the BB can participate in the auction.

Green Delta Insurance and Omera Petroleum Limited have recently signed an agreement to provide micro-health insurance for Omera s exclusive distributors. This insurance will cover comprehensive micro-health insurance coverage, encompassing hospitalization (IPD), outpatient services (OPD), natural death, accidental death, PTD, PPD, and disability benefits, complemented by 24/7 teleconsultation services. Top-level executives from both organisations who attended the agreement signing ceremony on May 30, include Syed Moinuddin Ahmed, Additional Managing Director of Green Delta Insurance; Md. Nurul Alam, Sales Advisor of Omera Petroleum Limited; Md. Moniruzzaman Khan, Digital Business representative of GDIC; Md. Rokonujjaman, Head of Sales at Omera Petroleum Ltd.; Sheikh Moshfequr Rahman, Head of Sales Excellence; and Ziaul Karim, Head of Supply Chain. Syed Moinuddin Ahmed said that this agreement is the first of its kind in the petroleum industry to cater to the healthcare and wellness needs of the distributors of the industry and Green Delta Insurance is really excited to be part of this initiative. Md. Nurul Alam said that Omera’s exclusive distributors are more than business partners; they are an integral part of its family.  Ensuring their well being is vital, as they serve as the primary contact points with our customers.

The country's apex trade body FBCCI on Sunday urged businesses to prevent and regulate the supply of substandard fire safety equipment in the market  to ensure safety of residential, commercial and industrial establishments. It also called upon the businesspeople and entrepreneurs of this sector to take necessary initiatives in this regard. FBCCI eager to boost trade between Bangladesh and Russia Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubul Alam directed the businesses concerned and entrepreneurs to take steps in this regard. He made the call in the meeting of FBCCI Standing Committee on Fire Safety and Security, Disaster and Explosion organised at Motijheel office of the FBCCI chaired by Chairman of Standing Committee and Vice President of Electronic Safety and Security Association of Bangladesh Matin Khan. Participating in the meeting virtually, FBCCI President Mahbubul Alam said that fire safety and security have now become a part of life. FBCCI President urges investment in industrialization “There is no alternative to ensuring fire safety in the protection of life and property. Therefore, during the construction of any building or factory, provision should be made for fire safety.” But he said that substandard fire safety equipment puts investment at risk.“Those who are bringing these substandard products to the market should be identified and brought under the law.” For this, the FBCCI chief said that it is necessary to form an investigation committee with all the stakeholders of this sector. Mahbubul Alam emphasised on creating widespread awareness among common people about fire safety and disaster management. “We spend money to build houses. There we use expensive tiles, marble stones or construction materials. But I do not spend any money on fire safety. We need to change our mentality for the sake of security of property and life.” Make taxes affordable for media outlets: FBCCI standing committee Senior Vice President of FBCCI Md Amin Helali said that to make our business, trade and economy sustainable, the issue of fire safety and security must be taken seriously. “A rich database should be created by linking fire safety requirements, equipment market and demand, import dependency, potential and constraints for setting up industry at local level.” He urged the participants of the fire safety equipment industry to take the lead in this regard. Director-in-charge of the committee Md. Niaz Ali Chishti urged the standing committee to provide information to the marketers of fake and substandard equipment. In collaboration with FBCCI and BSTI, Electronic Safety and Security Association of Bangladesh and associate organisations will be more strict in preventing counterfeit products, he said. He also informed about organizing a seminar at the national level with all the stakeholders including Ministry of Home Affairs, Ministry of Security, Directorate of Disaster Management, BSTI, NBR. In the discussion, he also emphasized on starting production of fire safety equipment at the local level. Chairman of the committee Matin Khan said that the progress made by the country's garment industry in terms of fire safety and compliance issues is commendable. “But other industries are far behind in this regard. The government should pay attention to this. In addition, training and skill building should be provided to ensure proper use of fire extinguishers,” he said.

The government will provide cash incentives for leather products manufactured in the exporters' own factories, as well as in 100 percent export-oriented manufacturing companies." A circular in this regard was issued by the Foreign Exchange and Policy Department of Bangladesh Bank on Thursday. The circular stated that, according to the government decision, cash assistance would be given to 100 percent export-oriented manufacturing companies, as well as for the export of leather products produced in their own factories. Other instructions related to cash assistance mentioned in the circular will remain unchanged. The government has been providing 15 percent cash assistance to leather industry companies that are 100 percent export-oriented to support the leather sector for a long time. However, in January this year, on the advice of the International Monetary Fund (IMF), cash assistance was reduced for 43 products. The leather sector was one of them. On January 30, the government decided to reduce the cash assistance for leather and leather products from 15 percent to 12 percent.

The Dhaka Stock Exchange (DSE) has urged the government not to impose a capital gains tax on individual investors in the forthcoming budget. The call was made today during a pre-budget press conference held at the Dhaka Club. Professor Dr. Hafiz Md. Hasan, Chairman of the DSE, emphasized the detrimental effects of the COVID-19 pandemic and ongoing global conflicts on stock market investments. The market needs additional facilities to invigorate investor confidence, Dr. Hafiz stated. Huawei keen to develop DSE as a smart stock market The DSE board of directors, present at the conference, highlighted the importance of the capital market, which supports the livelihoods of about 1 crore people in Bangladesh. Dr. Hafiz stressed the need for governmental financial policies that ensure the long-term stability of capital markets, particularly in a globalized economy. The DSE outlined five critical demands for the FY 2024-25 budget: 1. No new taxes on the capital market. 2. Reduction of withholding tax on brokerage house transactions. 3. A corporate tax gap of at least 20 percent between listed and unlisted companies. 4. Dividend income up to Tk 50,000 to be tax-free. 5. Complete tax exemption on bond income. DSE chairman urges NBR not to impose new tax on capital gains Dr. Hafiz highlighted that 90 percent of investors in the stock market are institutional investors, who currently face a 5 to 10 percent tax on capital gains. The remaining 10 percent are individual investors. If individual investors are taxed on capital gains, it will negatively impact the market, he warned.

Bangladesh's readymade garment (RMG) exports to the European Union reached $19.90 billion during July-April of the 2023-24 fiscal, marking a 3.66% increase compared to the same period in the previous fiscal, according to the latest statistics from the Export Promotion Bureau (EPB). Mohiuddin Rubel, Director of BGMEA, highlighted specific growth figures in various EU markets.  Exports to Spain, France, the Netherlands, Poland, and Denmark saw increases of 6.07%, 3.42%, 17.51%, 20.65%, and 32% respectively.  BGMEA, Jack discuss ways to enhance Bangladesh's RMG industry’s competitiveness However, apparel exports to Italy declined by 2.45%, he informed.  Germany, the largest market for Bangladesh's RMG exports in the EU, experienced a significant decline by 9.40%, with export values dropping to $5.01 billion compared to the previous fiscal year's corresponding period. In the US, RMG exports fell by 1.90%, reaching $6.81 billion in the first ten months of FY 2023-24.  BGMEA seeks Foreign Ministry’s cooperation in product, market diversification for RMG sector Conversely, the UK and Canada saw substantial growth in imports of Bangladeshi garment products, with values reaching $4.8 billion and $1.26 billion, reflecting year-on-year increases of 14.55% and 2.95%, respectively. Exports to non-traditional markets showed robust growth, increasing by 10% to $7.70 billion from $7 billion in the previous year. Among them, exports to Japan, Australia, and South Korea recorded growth of 6.14%, 17.18%, and 14.73% respectively.  However, exports to India saw a significant decline by 22.44%, a downturn that Rubel noted has been ongoing since August 2023. RMG employment injury scheme expands coverage to commuting accidents

FBCCI President Mahbubul Alam has called on the government, private companies, and industry owners to channel investments into industrialization efforts. He made this appeal while addressing a meeting of the FBCCI Standing Committee on Capital Market and Bonds held at its office on Sunday. “There is no alternative to investing in industrialization to strengthen the country's capital market. It is also relatively easy for industrial owners. But sadly, only a few big companies have entered the capital market so far,” Alam said. The apex trade body chief urged top companies from both domestic and international markets to participate in the capital market. He emphasized the importance of having a safe exit facility for investors to boost confidence in the market. Alam noted that foreign direct investment (FDI) tends to increase when the capital market improves and called for all stakeholders to work together for the development of the capital market and bond market. He also suggested organizing a discussion meeting at the FBCCI on this issue. Committee Chairman and former FBCCI director Asif Ibrahim highlighted the crucial role of the capital market in achieving the goals of Vision 2041, including LDC graduation and Smart Bangladesh. He pointed out that the capital market is currently lagging behind the overall market in the country and stressed the need for collective efforts to establish a strong capital and bond market by reducing reliance on banks. Former FBCCI senior vice-president and standing committee director-in-charge Muntakim Ashraf noted that the number of large investors in the capital market is significantly lower than that of small investors. “This situation needs to be improved. However, it is important to ensure a safe exit system for investors,” he said. Ashraf also mentioned that the media can play a crucial role in the development of the capital and bond markets. During the open discussion, speakers emphasized the need to expand the size of the capital and bond markets in the country. They advocated for encouraging investors, increasing public awareness, and simplifying rules and regulations for stock exchanges.

Acknowledging Bangladesh's strides towards becoming a competitive hub for high-value products, BGMEA President S. M. Mannan (Kochi) on Sunday urged Jack Technology Co. Ltd to support the industry by facilitating technology transfer and sharing expertise in advanced machinery. A delegation of Jack Technology Co. Ltd., a leading Chinese sewing machine manufacturer, led by its CEO Yangyou Qui, visited the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and met BGMEA leadership to discuss potential partnerships aimed at elevating the competitiveness of Bangladesh's ready-made garment (RMG) industry. During the meeting held at BGMEA Complex in Dhaka, the BGMEA side was represented by President S. M. Mannan (Kochi) while Senior Vice President Khandoker Rafiqul Islam, Vice President (Finance) Md. Nasir Uddin, Vice President Miran Ali, Vice President Abdullah Hil Rakib, Directors Mesbah Uddin Khan, Shams Mahmud, Md. Mohiuddin Rubel, Barrister Shehrin Salam Oishee, Md. Nurul Islam, Saifuddin Siddiquie Sagar, and Md. Rezaul Alam (Miru) were present. Discussions revolved around the development trends in the Bangladesh garment industry and the current global market situation. Both parties emphasized the need for cooperation to enhance the industry's competitiveness through innovation and technological advancement. Mutual interest was expressed in collaborating for the development of the RMG industry, aligning with emerging technologies and evolving business dynamics, according to BGMEA. The Jack delegation included General Manager Guoce LI, General Manager Wenhai Hu, Vice General Manager Lingzhi Lai, Key Accounts Director Binbon Tang, and Key Accounts Director Lidong Feng.