United News of Bangladesh

President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Md. Jashim Uddin took charge as the president of the SAARC Chamber of Commerce and Industry (SCCI), the apex trade body of the South Asian region, at the Hotel Intercontinental in Dhaka on Thursday. He will be serving as the SAARC Chamber president in 2023–24. The new president said that South Asia with its diversified resources and skilled workforce has tremendous potential to be the fastest-growing exporting region to the world.  “As we begin this new tenure, our region is experiencing rapid economic growth, but we must also confront a range of complex issues and barriers to trade that limits cross-border regional trade,” he said. The Intra-trade among SAARC countries continues to be low ranging between 5-7% of total trade. In addition, this is declining every year, he said. “On the other hand, we are seeing increased integration in other regional blocks. Intra-regional trade is over 40% in NAFTA, 68% in EU, 27% in ASEAN. Their economic integration is directly tied to their GDP per capita, higher productivity and, lower poverty and unemployment,” he added. “It is imperative for us to draw lessons from the successes achieved by other regional agreements, and channel their experiences of regional identity and solidarity into our efforts to propel SAARC towards new heights,” he said. It is the responsibility of the SAARC leaders to find innovative and sustainable solutions to these challenges, and to work together to create a brighter future for the people of the region, he opined. The priority will be given to enhance collaboration on sectors with high growth potential such as information technology, manufacturing, energy, tourism, and agribusiness that derive tangible results, he added. Jashim Uddin joined the Board of Bengal Group of Industries as director in 1983 while studying commerce at the Dhaka University. He is the chairman of Bengal Commercial Bank Limited, vice-chairman of the Bengal Group of Industries and Bengal Media Corporation. He is also the president of the Bangladesh Plastic Goods Manufacturers and Exporters Association.  

OPPO Research Institute has announced the launch of “2023 OPPO Inspiration Challenge” on World Smile Day. Based on the brand proposition of "Inspiration Ahead", OPPO and its global technology ecosystem partners aim to bring new and innovative solutions to life by providing funding, support, and partnership opportunities worth $4,40,000 in total, said a press release. The institute has partnered with Qualcomm Technologies, GSMA 5G IN, Amazon Web Services and LinkedIn in launching the initiative.   Applications for the “2023 OPPO Inspiration Challenge” will start from May 8 to June 30, with three regional demo events set to take place in Bangkok, Boston and Shenzhen in early August, said the release. Finalists from each regional demo event will be invited to join the Inspiration Challenge Acceleration Camp and meet with OPPO executives and technical experts to revise their proposals before the global final demo event at the end of August. All the proposals for “OPPO Inspiration Challenge” this year will be evaluated based on the four criteria of Feasibility, Technological Innovation, Long-term Potential, and Social Values.  A total of 15 qualified proposals from regional demo events will be selected as global finalists and top five winning proposals will be selected in the global final demo event, each being awarded a grant of USD $50,000, added the release.  Meanwhile, Oppo Research Institute will provide further partnership opportunities to the top 45 proposals worldwide – made up of the top 15 proposals in each regional challenge – including, productization and commercialization opportunities. An incubation fund totaling US$190,000 will be set up to co-develop solutions for implementation, strategic partnership and investment opportunities, opportunities to showcase at global technology events, opportunity to receive cloud resources and technical support from Amazon Web Services, according to the press release. "OPPO believes deeply in the idea of ‘Virtuous innovation.' As we continue to explore new technology, we remain dedicated to doing so in a way that puts people first," said Levin Liu, head of the OPPO Research Institute. "With global issues like public health, accessible technology and environmental protection being the key concerns, we could not rely on our own efforts to provide solutions, he said. “We have therefore initiated the Inspiration Challenge to empower like-minded innovators to tackle these big issues together with us using the power of technology and create a better world for all."    

Bank runs, cyber security and building more reliable supply chains to ensure economic security were among items on the agenda of closed-door financial talks Friday in Japan by the Group of Seven advanced economies. Tensions with China, and with Russia over its war on Ukraine, loomed large on the wide horizon of issues the G-7 is tackling this year in Japan, its only Asian member. But while G-7 finance ministers and central bank chiefs discussed ways to protect the international rules-based order and prevent what they are calling “economic coercion” by China, Beijing lashed back, accusing the club of wealthy nations of hypocrisy. Chinese Foreign Ministry spokesperson Wang Wenbin said Thursday that, “to put it bluntly, the international rules that G-7 talks about are the Western rules of ideology and values and the rule of small clique that puts the U.S. first, that is dominated by G-7.” “The G-7 demands that China abide by international rules, but it is a representative of those who violate and break international rules,” Wang said in a routine news briefing. China accuses Washington of hindering its rise as an increasingly affluent, modern nation through trade and investment restrictions that the United States says are needed to protect American economic security. Speaking before the talks began, U.S. Treasury Secretary Janet Yellen said such measures are “narrowly targeted” and focused on national security. "It's not focused on undermining China's economic competitiveness or preventing them to advance economically," Yellen said. Asked what G-7 countries mean by trying to prevent “economic coercion," namely by China, Yellen cited trade actions by Beijing against Australia as one example. "There have been examples of China using economic coercion on countries that take actions that China's not happy with from the geopolitical perspective," she said. “We in the G-7 share a common concern with this kind of activity and are looking to see what we can try to do to try to counter this kind of behavior.” China's relations with the 27-nation European Union, which is also a member of the G-7, have also been frayed by friction over trade and over its tacit support for Russia. Leaders attending the talks in Niigata said they would be considering ways to prevent countries from skirting sanctions against Moscow meant to hinder its ability to continue the war. Both the U.S. and European Union maintain they are not advocating "decoupling," or dismantling extensive economic ties with China, but support “de-risking” relations to avoid becoming too dependent on China. For its G-7 presidency, Japan has prioritized launching a partnership with low- and middle-income countries to build “robust supply chains” to help cut carbon emissions. One key area of concern for all G-7 countries is the heavy concentration in China of suppliers of rare earths materials needed in many high-tech products. Meanwhile, recent failures of banks in the U.S. and Europe have added to the complexity of steering the world economy toward a sustained recovery from the pandemic while cooling inflation that surged to multi-decade highs in the past year. “It’s become clear that financial worries can spread in an instant via social networking sites, and online banking, allowing money withdrawals outside business hours, can cause bank runs,” Japanese Finance Minister Shunichi Suzuki said Thursday. The collapses of Silicon Valley Bank and other lenders stemmed largely from the pressure of interest rate hikes that, by making borrowing more expensive, are designed to slow business activity and cool inflation. The meetings in Niigata are a good chance to “compare notes and to see how we can make the world a little bit more stable and reach the price stability that we very much want to arrive at in short order,” Christine Lagarde, head of the European Central Bank, said in videotaped comments posted online. Overhanging the financial experts' talks is the question of whether President Joe Biden and Congress will come to an agreement on raising the ceiling on the national debt before the U.S. government runs out of money to pay its bills. Yellen said a default on the national debt would be catastrophic and was “unthinkable.” A meeting between Biden and lawmakers on the issue was pushed back to May 18 to allow staff talks to continue over the weekend. Administration officials portrayed it as a positive step and it did not appear to indicate a breakdown in talks. The three days of talks in this port city on the Sea of Japan are the last in a series of ministerial meetings to prepare for a summit of G-7 leaders next week in Hiroshima.

To support young entrepreneurs in Bangladesh, Unilever Bangladesh Ltd. (UBL) has signed an agreement with Orange Corners, an initiative of the Ministry of Foreign Affairs of the Netherlands. Implemented by YY Ventures, BYLC Ventures, and SAJIDA Foundation, and supported by the DBL Group and Unilever, the Orange Corners programme in Bangladesh aims to create opportunities for the next generation of Bangladeshi business leaders by providing them with the necessary tools and resources to succeed, said a press release on Thursday. With a presence in 17 Hubs across Africa and the Middle East, Orange Corners launched its 18th Hub in Bangladesh - its first Asian nation, in early February 2023. The Orange Corners programme in Bangladesh will equip youth, aged between 18 and 35 years, with skills, funding, and resources to build sustainable businesses, particularly those that address the UN's Sustainable Development Goals; all while the program partners combine their strengths to create an inclusive and equitable entrepreneurship ecosystem in Bangladesh. The programme has a strong focus on inspiring Bangladeshi youth to participate in solving local challenges, and ensuring gender equity across all phases of the programme. Unilever has a long-standing commitment to supporting sustainable and inclusive growth. This partnership with Orange Corners Bangladesh aligns with Unilever's global mission to help create a more equitable and sustainable future. By supporting young entrepreneurs in Bangladesh, Unilever hopes to drive economic growth and create a positive impact in the community, reads the release. Zaved Akhtar, CEO and Managing Director of Unilever Bangladesh said, "Bangladesh's journey over the last few decades has been nothing but short of a miracle, and the economy has immense potential with an enormous pool of young talent. If all young people get the opportunity to acquire the right skills and their personal development, our progress should be unlimited. From raising productivity and reducing inequality to creating businesses and improving communities, there is no end to the benefits their talents and ideas could bring. However, young people today face extraordinary economic, social and cultural challenges and need a wide variety of skills to thrive in work and life. As part of Unilever's Compass priorities and commitment to youth skills development, we have committed to helping 10 million young people aged between 15 and 24 years to gain employment skills that will help them find meaningful work opportunities and prepare for the future of work. Since 2020 Unilever has been working with social enterprises in Bangladesh and helping innovative social businesses to solve market-based solutions which can play vital roles in poverty reduction, economic development and pollution reduction. Our collaboration with Orange Corner will allow us to reach a larger group of youth. I believe our combined strengths will create an inclusive and equitable entrepreneurship ecosystem in Bangladesh." Orange Corners Bangladesh is gearing up for its first hackathon to be held in May 2023. For additional information on the Orange Corners program in Bangladesh, please contact the team through [email protected].  

A ship carrying record numbers of reconditioned vehicles imported from Japan and Singapore has arrived at Chittagong port recently. The Malaysian flag carrier 'MV Malaysia Star' carrying 1265 reconditioned vehicles berthed at  the port's Jetty No. 7 and 8,  said Barrister Badruzzaman Munshi, deputy commissioner of Chittagong Customs House. He said that 569 vehicles were unloaded at Chittagong Port. The rest will be cleared at Mongla port, he added. According to Chittagong Customs sources, because of the dollar crisis, the opening of LC for luxury goods was closed for a long time. Recently,  vehicle LCs have been opened again as the economic situation has become normal. The port authorities have expressed hope that the revenue from these cars will be over Tk 200 crore. Habibur Rahman, the former general secretary of Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), an organisation of car dealers, said that if the economy of the country is to be kept alive, the use of cars must be continued.

World Bank will provide USD 2.25 billion as loan to Bangladesh to develop various sectors, including regional trade and connectivity, disaster preparedness and environmental management. A loan agreement was signed on Monday (May 01, 2023) between Bangladesh and the World Bank for implementing five projects. Prime Minister Sheikh Hasina and World Bank President David Malpass witnessed the exchanges of the financing agreement. Read: Stay with us in implementing future physical & social mega projects: PM Hasina to WB This loan agreement comprises five projects: ·        Accelerating transport and trade connectivity in Eastern South Asia (ACCESS) – Bangladesh Phase-1 Project worth USD 753.45 million. ·        USD 500 million Resilient Infrastructure Building Project (RIVER) for resilience, adaptation and vulnerability reduction that will be the first major investment to support Bangladesh’s Delta Plan 2100. It will help improve disaster preparedness against inland flooding. ·        USD 500 million First Bangladesh Green and Climate Resilient Development (GCRD) project is the first such credit that will help the country’s transition to resilient development. ·        USD 250 million Sustainable Microenterprise and Resilient Transformation (SMART) project aims to help transform the microenterprise sector into a more dynamic, less polluting, resource efficient and climate resilient growth sector. ·        USD 250 million Bangladesh Environmental Sustainability and Transformation (BEST) project to help strengthen environmental management and promote private sector participation in green investment. Read More: External pressure behind World Bank's withdrawal from Padma Bridge, says PM Hasina urging it to look into future

Bangladesh may soon prefer to set the petroleum fuel prices in line with with the international market prices. Such an idea was floated by the Energy and Mineral Resources Division during its meeting with the visiting team of the International Monetary Fund (IMF) on Sunday, said a source at the division. According to sources, the IMF has been pressing the government to follow a specific formula to set its petroleum fuel prices as per the prices in the international market as part of the lending agency’s $4.7 billion loan agreement, as it does with the LPG price at present. Currently, at the beginning of every month the government announces the LPG price as per the global market rate. As a result, no subsidy is being given on LPG. But the government has to provide a huge subsidy in the petroleum sector. Officials said the IMF has been pressing the government to withdraw its subsidy by liberalising the petroleum fuel price like the LPG price. The IMF team was led by Rahul Anand, the head of the Asia Pacific Region of the lending agency, while energy secretary Dr Khairuzzaman Majumder led the Energy and Mineral Resources Division at the meeting. Official sources said the officials of the Energy and Mineral Resources Division briefed the IMF teams about the measures taken by the division in the energy sector following the government’s loan agreement with the lending agency. They said that earlier the government had to raise the prices of gas, petroleum and electricity as per conditions of the IMF to receive the $4.7 billion in loan. “But the lending agency wants Bangladesh fully pursue a policy in setting the energy prices under which it should not need to provide any subsidy,” said a senior official of the Energy and Mineral Resources Division. However, energy secretary Dr Khairuzzaman Majumder was not available to comment on the issue.  

Trade with India via Sonahat land port in Kurigram's Bhurungamari Upazila resumed on Saturday after 10 days of closure on the occasion of Eid ul-Fitr, port authorities said. Mohammad Rahul Amin, assistant director (Traffic) of Sonahat Land Port, said trade through the land port remained suspended from April 19-28 due to Eid ul-Fitr and the weekly holiday on Friday. “Export and import of goods via the port has restarted. Vehicles coming from India with goods have started entering the land port since morning,” said Rahul Amin.  

Swiss banking giant UBS said Tuesday it took in $28 billion of net new money for its wealth management business in the first quarter, with $7 billion of that coming in the days after the announcement of its government-backed takeover of ailing rival Credit Suisse. The Zurich-based bank, which is set to become Switzerland's banking titan after the merger closes in coming months, said underlying pre-tax profit dropped 22 percent to $2.35 billion in the quarter compared to a year ago, while underlying revenues fell 8 percent. UBS said it had bought back $1.3 billion worth of its shares during the quarter, and reiterated that the share-buyback program has been temporarily suspended ahead of the closing of the 3 billion Swiss franc ($3.4 billion) takeover of Credit Suisse announced on March 19. Also Read: Credit Suisse, UBS shares plunge after takeover announcement “In the first quarter, we maintained positive momentum across the firm and attracted $28 billion of net new money in GWM (Global Wealth Management), of which $7 billion came in the last 10 days of March, after the announcement of our acquisition of Credit Suisse,” UBS said in a statement. The bank said it “captured demand” for higher yield into money market and U.S.-government securities at a time of rising interest rates that can increase the return on lower-risk assets like U.S. government bonds. “We delivered these results during a quarter characterized by persistent concerns about interest rates and economic growth exacerbated by questions about the stability of the banking system, especially in the U.S.,” UBS said. “Against this backdrop, private and institutional investors’ activity remained muted.” Also Read: UBS to buy Credit Suisse for nearly $3.25B to calm turmoil The net inflows at UBS came in marked contrast to the 61 billion Swiss francs (nearly $69 billion) in outflows that Credit Suisse reported Monday for the first three months of the year, adding that clients are still withdrawing assets. The forced marriage of Switzerland's two biggest banks — arranged by the Swiss executive branch, central bank and financial markets regulator — was designed in part to help stabilize the global financial system that had been roiled by the collapse of two U.S. banks. The reputation of 167-year-old Credit Suisse had been pummeled in recent years over stock price declines, a string of scandals and the flight of customers worried about the bank’s future.

Volkswagen unveiled an electric luxury sedan that promises a 700-kilometer (435-mile) battery range as global and Chinese automakers showed their latest SUVs, sedans and muscle cars Tuesday at the world’s biggest auto show. Auto Shanghai 2023 reflects the intense competition in China’s fast-growing electric vehicle market after the ruling Communist Party poured billions of dollars into promoting the technology. China accounted for two-thirds of global electrics sales last year. Brands including General Motors, BMW and Nissan and Chinese rivals BYD Auto and NIO unveiled dozens of new EVs in the cavernous Shanghai exhibition center. Brands touted faster charging, satellite-linked navigation and entertainment, and the future possibility of self-driving technology. Volkswagen’s ID.7 sedan, the new flagship model for its electric vehicles, was one of 28 models displayed by the German automaker, half of them electrified. “We are turbo-charging our electric campaign,” said the CEO of VW’s passenger car brand, Thomas Schäfer, who rode onto the stage aboard an electric minibus. Automakers are looking to China to drive sales growth at a time of slack American and European demand, but that requires them to invest to develop competitive models in a crowded market. Established global brands face pressure from ambitious Chinese newcomers and to meet government sales quotas for electrics. Many are forming partnerships to split soaring development costs. China is “playing a leading role in the industry’s electric and digital transformation,” said Ford Motor Co. CEO Jim Farley in a recorded message played on a video screen. Electrics accounted for just over 1 in 4 of the 23.6 million SUVs, sedans and minivans sold last year in China while sales of traditional gasoline-powered vehicles declined. BMW AG showed an all-electric lineup including two new models, the i7 M70L and XM Label Red. The German sport luxury brand’s M760Le was shown in China for the first time. GM debuted an electric SUV, the Buick Electra E5, ahead of the auto show. Toyota Motor Co. unveiled two new models for its bZ line of zero-emissions vehicles. Toyota also displayed a prototype self-driving taxi developed with China’s Pony.ai, a leading competitor in the country’s fast-evolving autonomous vehicle industry. For the first time since 2019, executives flew in from the United States, Europe and Japan for the show after anti-virus controls that cut off most travel into and out of China were lifted in December. VW flew in its entire board of directors and that of Porsche in a show of commitment to the Chinese market. The organizers said automakers would debut 100 new models, 70 of them electric, according to Chinese media. Drivers in the world’s biggest auto market bought 5.4 million pure-electric vehicles last year — about two-thirds of the global total of 8 million — plus 1.5 million gasoline-electric hybrids. That was more than one-quarter of total auto sales of 23.6 million. This year’s EV sales are forecast to rise another 30%. Beijing is winding down government support and shifting the burden to automakers by requiring them to earn credits for EV sales.