Business
Indonesia shares JV investment proposals of US$ 1.3bn in Bangladesh’s energy sector
Indonesia has shared some new proposals of large joint-venture (JV) investment, approximately to the tune of US$ 1.3 billion, in the energy sector of Bangladesh.
If materialized, this would add significant economic substance to the bilateral relations with Bangladesh and help strengthen it further, says Indonesia.
The issue came up for discussion when Indonesian Ambassador to Bangladesh Heru H Subolo met Foreign Secretary Masud Bin Momen at the Ministry of Foreign Affairs on Tuesday.
Masud shed light on the phenomenal socio-economic development Bangladesh achieved under the dynamic leadership of Prime Minister Sheikh Hasina.
He encouraged the Indonesian investors and business community to take advantage of the huge opportunity prevailing in Bangladesh for the mutual benefit of the two countries.
While discussing the global supply chain disruptions and inflationary pressures caused by pandemic and the Ukraine-Russia conflicts, Foreign Secretary Masud stressed on accelerating bilateral & regional cooperation to cope with such challenges.
He also emphasized on starting direct air connectivity between Dhaka and Jakarta, according to the Ministry of Foreign Affairs.
They discussed important aspects of the existing excellent bilateral relations between Bangladesh and Indonesia and exchanged greetings on the occasion of the Golden Jubilee of diplomatic relations this year.
While discussing the many commonalities that bind the two countries, the Foreign Secretary made specific mention of the syncretic culture and the liberal, tolerant and moderate practice of religion that form the very basic fabric of society both in Bangladesh and in Indonesia.
Read: US wants to expand trade, investment partnership: Ambassador Haas
Masud shared that the independence of Bangladesh was achieved on the very ideals of democracy, justice, tolerance and secularism.
The Ambassador assured of taking necessary initiatives to celebrate the 50 Years of Diplomatic Relations in a befitting manner.
Foreign Secretary welcomed the Indonesian Ambassador to Bangladesh, wished him well and assured him of all possible support to him and to his Mission here.
Padma Bridge: Shariatpur transport owners eye massive boost to business
Transport owners of Shariatpur, one of the two districts connected by the Padma Bridge, have expressed their expectation that massive changes will be happening in the transport sector of the district after the inauguration of the much-awaited bridge on June 25.
After the opening of the bridge, direct road communication will be introduced between Shariatpur and the capital Dhaka. To take advantage of the direct road communication system, transport owners of the district have already invested around Tk 300 crore to launch new buses over the Padma Bridge from the very first day of vehicular movement on the bridge.
In a recent visit to the Shariatpur municipality bus terminal, the UNB correspondent found that construction works for new buses are underway at the terminal in full swing. World-renowned car brands Volvo, Ashok Leyland, and Tata car chassis are being installed in the bus bodies. Besides Shariatpur, bus bodies are being constructed in Dhaka and Savar.
However, local passengers are skeptical about the standard of the locally made buses. They said buses plying on the regional routes in the district are below standard. Some of these are unfit for movement.
They urged the authorities concerned to introduce a standard transportation system on the Dhaka-Shariatpur route.
Good governance major challenge to implement budget: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday said good governance is a major challenge in implementing the proposed budget for the fiscal year 2022-23.
FBCCI president Md. Jasim Uddin came with the remark at a press conference on post-budget reaction held at FBCCI Building in Motijheel.
He said, "The size of the budget is very timely to implement the government's commitment to meet the needs and aspirations of people in face of inflation due to Covid-19 pandemic and the Russia-Ukraine war.
He noted the importance of ensuring clear direction and planning for the continuous development of efficiency, transparency, accountability and quality of supervision in the implementation of the proposed budget.
He proposed to include in the budget- employment growth, increased domestic investment, increased food production and continued fertilizer subsidies, emphasis on health, education and human resource development, export diversification, job creation and rural development and completion of PM incentive packages and expansion of social security initiatives.
Read: FBCCI to work for restoring confidence in e-commerce sector
Jasim also expressed his dissatisfaction for not implementing the FBCCI’s recommendations related to tax and VAT.
Replying to a query, the FBCCI president said the trade body does not support money laundering and it brings back the process by paying a nominal tax. This will discourage honest business in the country, he said.
FBCCI senior vice president Mostafa Azad Chowdhury Babu, BKMEA president Mohammad Hatem, DCCI president Rizwan Rahman and leaders of various organizations were present at the press conference.
Finance Minister AHM Mustafa Kamal placed the budget of Tk 6.78 trillion for the fiscal year 2022-23 on June 9.
The proposed budget’s expenditure for the fiscal year 2022-23 is 14.25 percent more than the revised budget for the outgoing fiscal year. The proposed budget is 12.32 percent more than the original budget of fiscal year 2021-22.
Budget FY23: Parliament back to business as usual
With ebbing Covid-19 pandemic under control the Parliament on Thursday got back its old atmosphere when the finance minister presented his budget proposals for FY2022-23.
Though the Covid health protocols were still in force the members looked relaxed as they listened and watched the audio-visual presentation of the national budget.
Finance Minister AHM Mustafa Kamal presented the budget for the fiscal year 2022-23 in Parliament in the afternoon. This is the 51st budget of Bangladesh and the fourth budget of him.
Kamal placed a proposed budget of Tk 678,064 crore for the new financial year with the challenge of reversing the lost pace of development due to the COVID-19 pandemic.
The proposed expenditure for the new fiscal year is 14.24 per cent higher than the revised budget of the outgoing fiscal year (Tk 5,93,500 crore). That amount of money is equal to 15.23 per cent of the total GDP of Bangladesh.
The size of the budget given by Kamal in the outgoing fiscal year was 12 per cent more than the revised budget in the fiscal year 2020-21 and was equal to 16.4 per cent of GDP.
Earlier, after approval of the budget at a special Cabinet meeting at the parliament building, President Abdul Hamid signed it for authentication.
Also read:Budget FY23: Prices to go up and down
He arrived at the Parliament House from Bangabhaban.
Prime Minister Sheikh Hasina and Finance Minister Mustafa Kamal walked together from the Prime Minister's Office at the Parliament building to the House. The finance minister was carrying a maroon coloured briefcase.
The Russia-Ukraine war has destabilized world markets in the wake of the COVID-19 epidemic.
The rising US dollar is putting pressure on the economy as food and fuel prices continue to rise.
The World Bank warns that many countries could fall into recession as inflation rises.
The finance minister has prepared this year's budget plan to take the country back to the pre-pandemic development trend despite various pressures.
Usually the day of presentation of the budget wears a festive mood throughout the parliament building.
But the picture of the last two years was different.
The entrance to the parliament building area was restricted.
And in the main building a small number of officers and employees performed their duties.
Even in the session, the mood of that festival was not seen for two years. There were strict warnings everywhere. Public gatherings were controlled to avoid infection.
It has been a different picture this time. Nearly all the seats in the House were occupied by lawmakers unlike last year’s turnout of about 160 members in Parliament.
However, this time the number of MPs in the session room was much higher than the last two times.
For the last two years, the members of the Legislative Assembly were listed and placed in the Parliament.
This time all the MPs who got negative certificates in the Coronavirus test were in the House. There were 260 legislators in the parliament chamber.
The MPs, however, were all wearing masks. Sanitizers were kept at all the entrances including the MP lobby starting from the entrance to the parliament building.
Everyone entering the Parliament building has to take a temperature test for fever.
President Hamid sat in the gallery in his designated place and watched the budget presentation. At the beginning of the session, the speaker informed the Parliament about the presence of the president.
The 'Covid Negative' certificate is mandatory for entry into the budget session which started on June 5.
Also read: Budget FY23: Laundered money to be legalized by 7-15 pc tax
During the last two years of the budget session, journalists were not allowed to enter the session hall. Last year, permission was granted to enter the parliament building only. This time there is no such restriction.
The finance minister took 48 minutes to deliver his budget speech in 2020. Last year, the budget was presented for more than an hour, but he read it for 15 minutes only. The rest of the time his budget proposal was presented in PowerPoint and audio-visual presentations.
This time too he presented the budget in audio-visual presentation with the welcome speech with the permission of the speaker.
At the beginning, the finance minister spoke for about five minutes.
At the end he stood and talked for about two minutes. In all, he spoke for only seven minutes in a budget presentation of 2 hours and 10 minutes.
The finance minister stood up and prepared to present the budget. Later the speaker said he can sit and read if he wants. Mustafa Kamal started by reciting verses from the Qur'an.
After the presentation of the budget, the finance minister raised the Finance Bill-2022 in the Parliament. The speaker then adjourned the House till 12 noon on June 12.
As in the last two years, no guests were invited to witness the budget presentation.
Earlier, diplomats and important people of the state would be present during the presentation of the budget.
Kamal arrived at the parliament building with a maroon briefcase at 11:30 am to complete all the formalities before presenting the budget.
According to the decision of the Working Advisory Committee of the Parliament, after the presentation of the budget, there will be a general discussion on the supplementary budget for the financial year 2021-22.
The supplementary budget will be passed on June 13. After that, the members of parliament will discuss the budget of the new financial year.
The finance bill for the new fiscal year will be passed on June 29. The budget will be passed on June 30 and it will be effective on the first day of July.
Although the budget session has been short for the last two years, this time Parliament will sit on all days except Friday and Saturday. Last year, the Parliament session lasted 12 working days. The previous year saw the shortest session in history with nine working days.
Every year, budget documents are distributed to the media personnel from the public relations branch on the seventh floor of the parliament building.
Last year, budget documents were distributed in the lower tunnel in the South Plaza of Parliament. This year, like in 2020, the documents were given from the media center outside the parliament building.
The finance minister will answer various questions at a customary post-budget press conference at Osmani Auditorium at 3 pm on Friday.
China's foreign trade regains momentum in May
China's foreign trade rebounded in May as total imports and exports went up 9.6 percent year on year to 3.45 trillion yuan on top of April's 0.1-percent expansion, official data showed Thursday.
In the first five months of 2022, the country's foreign trade volume gained 8.3 percent year on year to 16.04 trillion yuan, outpacing the 7.9-percent-growth in the January-April period, according to the General Administration of Customs.
In U.S. dollar terms, total foreign trade came in at 2.51 trillion U.S. dollars in the five-month period, up 10.3 percent year on year.
In the first five months, exports grew 11.4 percent year on year while imports rose 4.7 percent, leading to a trade surplus of 1.84 trillion yuan, customs data showed.
Read: Bangladesh yet to reap full benefits of Chinese market facilities: Speakers
During this period, China's trade with its top three trading partners -- the Association of Southeast Asian Nations, the European Union and the United States -- expanded by 8.1 percent, 7 percent and 10.1 percent from a year ago, respectively.
From January to May, China's trade with Belt and Road countries jumped by 16.8 percent year on year to 5.11 trillion yuan.
Private enterprises reported a faster growth as their imports and exports rose 11.8 percent to 7.86 trillion yuan in the first five months, accounting for 49 percent of the country's total, marking an increase of 1.5 percentage points from the same period last year.
In terms of types of goods, exports of mechanical and electrical products expanded by 7 percent to account for 57.2 percent of the total, while labor-intensive products increased 11.6 percent in the first five months, customs data showed.
Read: Chinese investors can maximise profits by setting up industries in Bangladesh: Envoy
Reports: Twitter to provide Musk with raw daily tweet data
Twitter plans to offer Elon Musk access to its “firehose” of raw data on hundreds of millions of daily tweets in an effort to push forward the Tesla billionaire’s agreed-to $44 billion acquisition of the social media platform, according to multiple news reports.
Lawyers involved in the deal would not confirm the data sharing agreement. Musk made no comment on Twitter, although he has previously been vocal about various aspects of the deal. Twitter declined to confirm the reports and pointed to a Monday statement in which the company said it is continuing to “cooperatively” share information with Musk.
Musk, who struck a legally binding agreement to buy Twitter in April, contends that the deal can’t proceed unless the company provides more information about the prevalence of fake accounts on its platform. He has argued, without presenting evidence, that Twitter has significantly underestimated the number of these “spam bots” -- automated accounts that typically promote scams and misinformation — on its service.
On Monday, Texas Attorney General Ken Paxton also announced an investigation into Twitter for allegedly failing to disclose the extent of its spam bot and fake accounts, saying his office would look into “potential false reporting” of bots on Twitter.
Read: Elon Musk wants to buy Twitter, make it 'maximally trusted'
The Washington Post first reported Twitter’s plan to provide Musk with full access to the firehose, citing a person familiar with the matter. Other reports suggested the billionaire might only receive partial access.
Twitter’s reported offer could blunt Musk’s attempts to use the spam bot issue to cast doubt on the deal’s future. This week, lawyers for Musk accused the company of refusing to surrender information about the true number of bot accounts on Twitter. Mike Ringler, the Palo Alto, California, attorney who signed that Monday letter, told the AP he was not at liberty to speak about the matter when reached Wednesday afternoon.
Fake social media accounts have been problematic for years. Advertisers rely on the number of users provided by social media platforms to determine where they will spend money. Spam bots are also used to amplify messages and spread disinformation.
The problem of fake accounts is well-known to Twitter and its investors. The company has disclosed its bot estimates to the U.S. Securities and Exchange Commission for years, while also cautioning that its estimate might be too low.
Twitter CEO Parag Agrawal has said that Twitter has consistently estimated that fewer than 5% of its accounts are spam. But Musk has disputed that figure, contending in a May tweet — without evidence — that 20% or more of Twitter’s accounts are bogus.
Finnish companies urged to explore business opportunities in Bangladesh
Bangladesh has encouraged the Finnish companies to benefit from the “attractive” business opportunities that exist in Bangladesh.
Non-Resident Ambassador of Finland to Bangladesh Ritva Koukku-Ronde met State Minister for Foreign Affairs Md. Shahriar Alam at his office on Tuesday and discussed possible economic engagements between the two countries.
Also read: We just want an election with people’s participation freely: US envoy
Both of them noted the friendly ties between Bangladesh and Finland and discussed ways to expand the relations across sectors, specially in the areas of trade and investment, climate action, SDG, migration and mobility, education and research, renewable energy and digital cooperation. Both sides also exchanged views on regional and multilateral issues including the Ukraine conflict and its implications.
He also advised the Ambassador about Bangladesh’s desire to work together in the areas of migration and mobility.
The Finnish Ambassador appreciated Bangladesh’s role in maintaining regional stability by hosting 1.1 million Rohingyas and providing them with sustainable livelihood and education.
She also praised Bangladesh’s well recognised role in peacekeeping and peace building.
The Ambassador expressed interest in establishing cooperation in the areas of smart city and smart port constructions. She also conveyed the interest of the Finnish energy companies to collaborate with Bangladesh.
The State Minister sought for Finland’s support to Bangladesh’s United Nations Security Council candidature.
The Finnish Ambassador indicated to give due consideration to Bangladesh’s bid, said the Ministry of Foreign Affairs on Wednesday.
The State Minister noted the need for further cooperation in the areas of higher education, skill development and capacity building in key sectors between the countries.
Also read:Success requires partners like Bangladesh amid new global economic order: Hungary
He also flagged the issue of the visa difficulties experienced by the students aiming to go to Finland for pursuing higher studies.
The Ambassador expressed her desire to collaborate more in the higher education sector and assured of easing the visa complexities shortly. Both sides affirmed their desire to continue the positive momentum in the bilateral relationship.
The Ambassador is currently on a bilateral visit to Bangladesh and scheduled to meet the Minister of Commerce and State Minister for Power, Energy and Mineral Resources.
Bangladesh yet to reap full benefits of Chinese market facilities: Speakers
Despite obtaining almost 98 per cent duty-free market access in China, Bangladesh cannot take the opportunities properly yet due to lack of aggressive export promoting activities, building a solid B2B linkage, establishing a local presence, and participating in online sales, speaker said on Wednesday.
They suggested focusing on product quality and diversification, and signing a trade agreement to boost Chinese investment-backed export expansion.
The observations came from the seminar on ‘Making the Most of Market Access in China: What Needs to be Done?’ jointly organized by Bangladesh China Chamber of Commerce and Industry (BCCCI) and Research and Policy Integration for Development (RAPID) in the city on Wednesday.
Ambassador of China to Bangladesh Li Jiming hoped that Bangladesh would be member of Regional Comprehensive Economic Partnership (RCEP) soon which will help Bangladesh to promote export and welfare by trade and investment facilitation.
“The relationship between Bangladesh and China is well in trade and investment. However, Chinese commercial bank can be set up in Bangladesh for the sake of financial cooperation more. There are a lot of projects under taking by Chinese companies in Bangladesh. Many mega projects will also complete soon,” he added.
Jiming also said Bangladesh has a brighter future. There is a meaningful industrialisation. “China government provides Bangladesh zero tariff export facilities. It’s a very crucial. We are working G2G as well.”
Read: Chinese investors can maximise profits by setting up industries in Bangladesh: Envoy
Commerce minister Tipu Munshi said, “Our apparels are exported more to the USA and European countries but the volume is lower in Chinese market. We have to work and make proper strategy to take the opportunities.”
He said Bangladesh is going to graduate LDC by 2026 and now they need a comprehensive action plan. “Besides, the gabs in different sectors should be addressed soon. And, more and more fairs and branding of our products are also requirement,” he added.
Presenting key-note paper, RAPID chairman Dr. Mohammad Abdur Razzaque said despite obtaining zero-tariff market access facility to most products, Bangladesh’s exports to China remain rather modest. Since 2021, China has provided Bangladesh duty-free market access in almost 98 per cent of tariff lines.
Prior to that, Bangladesh used to get similar market access in 61 per cent of Chinese tariff lines.
“Bangladesh exported to China $680 million in 2021 FY while Bangladesh imports around $13 billion from China each year. Bangladesh’s potential exports to China should be at least $3 billion,” the economist said.
He said China imports products from different countries every year worth around $2.7 trillion dollars. So, it has huge market.
“Bangladesh’s duty-free benefits will end with LDC graduation. Bangladesh should negotiate a trade agreement with China. As part of the agreement, China can consider Bangladesh as a regional manufacturing hub to supply to other markets,” the economist also said.
Read: 5,161 more Bangladeshi products to enjoy zero tariff benefits to Chinese market from July 1
He added that Chinese consumers are focusing more on high-quality products. Bangladesh should develop a long-term strategy for export promotion to Chinese as China will soon emerge as the world largest retail market.
RAPID executive director and also Dhaka University professor Dr M Abu Eusuf moderated the function and with BCCCI president Gazi Golam Murtoza in chair.
BCCCI Acting Secretary General Al Mamun Mridha said the trade gap between the two countries should be reduced. “Bangladesh can take the opportunities through product value addition and sipping cost should be reduced to facilitate trade.”
He also urged China investors to invest more in Bangladesh’s potential sectors like e-commerce and agriculture.
Vice Chairman of Export Promotion Bureau (EPB) AHM Ahsan said they scrutinise how to increase Bangladesh’s export volume.
“Our main exportable item is RMG. Our export growth is low in Chinese market despite obtaining more tariff facilities there. We have to work as per the demand of Chinese market,” he added.
Nordic countries hold business promotion event
To promote Nordic businesses and investments in Bangladesh, the Embassies of Denmark, Norway and Sweden in collaboration with the Nordic Chamber of Commerce and Industry in Bangladesh (NCCI) on Tuesday organized a business promotion event with a specific focus on sustainability.
The event was arranged as a part of the Nordic countries’ celebration of 50 years of bilateral relations with Bangladesh this year.
Nurul Majid Mahmud Humayun, Industries Minister, attended the event as the chief guest and highlighted the long standing, and friendly relations between Bangladesh and the Nordic countries.
He expressed his hope that these ties will be strengthened even further in the imminent future, with more Nordic-Bangladeshi cooperation in areas like sustainability and business investment.
The Nordic countries were among the first to recognize Bangladesh, on 4 February 1972.
Over the years, the volume of trade and investment between the Nordic countries and Bangladesh has grown steadily and there is an increased interest in expanding the overall business relations.
More than 100 Nordic companies do business in Bangladesh, which is a signal of a dynamic partnership in transition. Some of the Nordic investments and imports have gone beyond business purposes and helped empower millions of people (e.g., Grameenphone, H&M and Arla).
During the event, the Ambassador of Denmark, Winnie Estrup Petersen, the Ambassador of Norway, Espen Rikter-Svendsen and the Ambassador of Sweden, Alex Berg von Linde stressed the importance and need for sustainability, where Nordic companies are well-placed to supply many advanced skills, goods, services and technical solutions that Bangladesh will need to continue on its path of sustainable development and economic growth.
A number of Nordic companies with engagement in Bangladesh attended the event together with the Bangladesh business community, prominent business chambers and associations, government bodies and companies, development partners and representatives of the diplomatic community.
READ: Denmark, Norway, Sweden celebrate 'NordicWeek,' 50 years of ties with Bangladesh
The event provided an arena for discussions between a wide range of relevant stakeholders.
Four breakout sessions focused on business sectors like telecom & ICT; energy and power; agriculture and food and logistics and manufacturing.
The event also created an opportunity for the Nordic companies to network with Bangladeshi counterparts, and highlight their work related to sustainability in Bangladesh.
The scope for increased commercial interaction between the Nordic countries and Bangladesh was emphasized during the event, and the added value of the Nordic companies in areas such as sustainability, the green transition, blue economy, smart cities, urbanization, and digitalization.
The strong relation between the Nordic countries and Bangladesh was reaffirmed as well as the opportunities to expand even stronger economic ties through trade and investment.
BYLC Ventures opens applications for 5th cohort
Bangladesh Youth Leadership Center (BYLC) Ventures has launched a new cohort for young entrepreneurs to help them make their mark in the business world.
After completing four cohorts, BYLC Ventures started taking applications for its fifth cohort on May 19.
BYLC Ventures was launched in 2019 to help young founders give shape to their entrepreneurial initiatives.
Also read: BYLC Ventures: Cohort 4 winners announced
The accelerator programme's goals include funding the most promising founders in Bangladesh and supporting their leadership capabilities, business acumen, and business ideas.
The winning teams of BYLC Ventures Cohort 5 will receive seed funding of Tk8 lakh with the option of a further Tk20 lakh in additional investment.
They will also have access to a co-working space, mentoring, and a rigorous accelerator curriculum for six months.
Read: BYLC Career Expo 2022: Learn Leadership Skills, Use Them, and Move Up in Your Career
Twenty startups have received seed funding and training from BYLC Ventures since its inception. They created employment opportunities for over 300 people and generated combined revenue of more than Tk3 crore.
"Young entrepreneurs continue to struggle to find a strong footing and get the right support to take their business forward," says Barisha Rabbe, senior manager at BYLC Ventures.
"We provide the ideal platform for young entrepreneurs. Apart from mentorship and networking support, we help them grow and scale up their ideas into sustainable businesses," he added.
Read BYLC launches Volunteer Awards 2021
Applications for the fifth cohort are open until June 24.