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With manufacturing being about 40% of GDP, manufacturing is
certainly in a sharp recession (negative growth) and the overall
economymaybeclosetoarecession
So the 6.8% growth was actually a 0% growth or possibly
negativegrowth inQ4;andtheQ1figures lookevenworse.So
China is in a recession regardless of what the highly massaged
officialnumbersclaim.
AlbertEdwards,ChiefGlobalStrategistatSocieteGeneral,anda
well known China bear, has suggested that the Chinese
manufacturingsectorisalreadycontracting.Hestatedthat:Thatthis outturn (Q4 Chinese GDP of 6.7%) was bang in line with themedian estimate of economists surveyed by Bloomberg makes itall the more unbelievable in my mind.All other economic dataworldwide have been surprising massively on the downside andChina should be no exception.Afew hours earlier,for example,South Korea reported Q4 GDP had declined a hefty 5.6% QoQ,massively worse than a Reuters consensus which looked for acontraction of 2.7%! I naively thought that this QoQ decline wasalreadyannualized,butitwasnot.OnaUSstyleofreporting,theSouthKoreaneconomycontractedata20%annualizedrateinQ4.
Asia is in depression. Whatever the heavily manipulated ChineseGDP is telling us, that economy must now be contracting. TheYuanneedstobedevalued...wecannothighlightstronglyenoughhow truly mindbogglingJapans collapse in exports to China are.LastJuly they were expanding at a 16% yoypace. Now they arecontractingata35%yoyrate! This isaphenomenonthroughoutthe region. Hence despite the notoriously manipulated ChineseGDP data showing a shocking slowdown in GDP growth to 6.8%yoy, I would eat my hat if the Chinese economy was doinganythingotherthancontractingrightnow.
TheGlobalBankingCrisisPart67
Bank stocks came under severe pressure last weekwith Bank of
Americaleading
the
charge
lower
in
the
US
and
Barclays
playing
the rabbit in the headlights in the UK. The charts below from
Bespokeinvestment.com highlight just how extreme the
downwards repricing of the financial sector of the S&P 500 has
been.Thefirstchartbelowdatesbackto1990,andasshown,the
sectorclosedatitslowestlevelsinceMarch1995yesterday. The
sector is now down 79% from its highs in 2007. A chart of the
sectorallthewaybackto1940showsjusthowmuch thesector
hasfalleninsuchashortperiodoftime.
Global Markets Last Week Oil Bounce Appears Unsustainable
givenWeakGlobalEconomy
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Bangladesh is ranked 90 in the overall ranking for starting a
business compared to good practices. It requires 7 procedures,
takes73days,andcosts25.67%GNIpercapitatostartabusiness
inBangladesh.Proceduressuchasverifyingtheuniquenessofthe
proposed company name with the Registrar of Joint Stock
CompaniesandFirms,filingdocumentswiththeRegistrarofJoint
Stock Companies and Firms for registration, registering with the
taxauthorityandforVAT,shouldallbesimplifiedinordertoease
theprocess
of
starting
up
abusiness.
Dealing with construction permits is also an arduous process in
thecountry Itrequires14procedures,takes231days,andcosts
739.81 % GNI per capita to build a warehouse in Bangladesh.
Obtaining project clearance and building permit from the City
Development Authority (RAJUK), obtaining zoning clearance,
receiving foundation inspection and electricity inspection, are
some of the procedures that need to be simplified in order to
enhancetheoveralleaseofdoingbusinessinthecountry.
Although Bangladesh ranks low at 175 (after Pakistan, India,
Afghanistan) in registering property compared to global best
practices, it has simplified the number of procedures needed to
registerproperty, timerequired to registerproperty,and official
costs to register property. The time needed to register property
has been cut by almost half, from 425 days to 245, through
reformsattheMunicipalDeedRegistryOffice.Simpleprocedures
toregisterpropertyareassociatedwithgreaterperceivedsecurity
ofpropertyrightsandlesscorruption.
Bangladeshs ranking for getting credit has fallen from 51 in the
2008Doing Business report to 59 in the 2009 report. The credit
information index in the graph below shows that over the past
threeyearsthelevelofcreditinformationavailableinBangladesh
hasremainedstagnant,while inSouthAsiaasawhole,therehas
been a significant improvement in the availability of credit
informationsince2008.
IFCBICF stakeholders opinion survey shows there is
overwhelmingsupportforreforms
It isevident fromtheDoingBusiness2009report findingsthat
Bangladesh isstill lackingbehind inanumberofareascompared
to global practices, which can use major reforms and
improvements. Along with specific regulatory reforms pertaining
to
businesses,
such
as
simplifying
procedures
for
obtaining
construction permits, accessing credit, trading across borders,
enforcing contracts, reforms in areas of education, corruption,
energy, infrastructure, are also mandatory in order to attain
highereconomicgrowth.
IFCBICF conducted a stakeholders survey in 2008 (from
SeptembertoNovember) inordertoanalyzehoweconomicand
business conditions affect different groups of stakeholders.
Stakeholders include citizens, opinion leaders/ elites,businesses,
andpublicofficials.Theobjectivesofthesurveysweremainlyto
understand:
what are the key perceptions and attitudes of the stakeholders
towardeconomicandbusinessenvironmentinBangladesh
What are the views of the stakeholders about economic and
businessreformsinBangladesh
How confident are the stakeholders about the economy and
businessenvironment inBangladesh,andhowdoestheir levelof
confidencechangeovertime
Howdoestheknowledgeandattitudeofthestakeholdersabout
economicandbusinessreformissueschangeovertime.
The surveys were broken down into three categories
Stakeholders Perception Survey (SPS), Business Confidence
Survey (BCS), and Public Perception Survey (PPS). With a fairly
large sample size, the survey was the first of its kind in
Bangladesh.Belowaresomekeyfindingsfromthesurveyresults.
Perceptionsof
current
business
environment
A majority of the stakeholders said that the country's economic
situationdeteriorated inSeptember2008butsaw improvements
in October 2008. This was mainly because high prices of
commodities and essentials were a concern in September 2008
butsome improvementswereseen inOctober2008 intheSPS
survey conducted in September, when asked about some of the
leadingconcernsintheeconomy,83%ofopinionleadersand84%
ofthegeneralpopulationsurveyedhadhighpricesonthetopof
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their list of concerns, followed by jobs and employment,
corruption, electricity, lack of democracy, crime and terrorism,
education,etc.
Similar to the economic situation, the countrys business
environment is also viewed as unfavorable, and the situation is
notexpectedtoimproveanytimesooneither.
The business confidence survey revealed that there was a
completereversal inthe investmentsituation in the firstquarter
ofFY2008comparedtothecorrespondingperiodof2007,dueto
adecliningprofitmarginandashortageofrawmaterials.
Sixty two % of respondents during the survey said they did not
invest during JulySeptember of 2008 while only 38 % replied in
theaffirmative.
Overwhelming support for reforms across all groups of
stakeholders
When asked how much the stakeholders have heard about
business reforms, 85% of ordinary citizens and 66% percent of
opinion leadersrespondedbysayingthattheyheardnothingat
all about reforms; 8% of ordinary citizens and 20% percent of
opinion leaders said that they had some idea about business
reforms.Although
both
the
general
population
and
the
elite
group
do not know or hear much about reforms, their support for
reformsisoverwhelming84%ofopinionleadersand76%ofthe
general population surveyed feel that reforms are necessary for
theirowneconomicbetterment.
Aninterestingfindingwasthatreformsintheagriculturesectoris
givenalotofimportance,especiallybythegeneralpopulation
56%ofthegeneralpopulationand31%ofopinionleadersstated
thattheagriculturebusinessclimateneedsimprovement.
Supportforparticularlybusinessreformswasexpressedbyboth
opinionleadersandordinarycitizensduringthesurveys
Whenaskedwhy theysupportbusiness reforms,a largenumber
ofstakeholders
responded
that
abetter
business
environment
will
create more job opportunities and will help in controlling
inflation. High prices are still a major concern, and so, many
believe that a good business climate will ultimately help in
loweringpricesofessentials.
MajorityoftheStakeholdersviewBangladeshseconomic
situationisworsethanbefore(SPS,Sept08)
2 2 0
2113 16
3242
34
73
83
81
0
20
40
60
80
10 0
12 0
14 0
GeneralPo p u lat io n O p inio nL ea de rs S ME/ Micr o
Somewhat worse
Muchworse
Somewhatbetter
Muchb et t er
Majorityofthebusinessesviewtheiroverallsituationisworse
todaythan3months
16% 2%
38% 11%
35%
0% 20% 40% 60%
Better
Unchanged
Worse
ModeratelyBetter Substantially
Better Moderately
Better Substantially
Better
Inyouropinion, whatistheoverallsituationofyourbusiness
todaycomparedto3monthsago?
Decliningprofitmarginandshortageorrawmaterialsarethe
leadingconstraintsforlackofinvestment(BCS,OctNov08)
2026 2 8 28 29
38
52 61
0
10
20
30
40
50
60
70
% ofFi rms
Reformsarenecessaryforthestakeholders(SPS,Sept08)
76
84
24
16
0
10
20
30
40
50
60
70
80
90
GeneralPopulation O pinion Leaders
Necessary
No t necessary
Mostimportantreforms(SPS,Sept08)
4
4
22
27
56
25
29
31
10
13
13
29
31
32
35
37
0 10 20 30 40 50 60
Infrastructure
Constitutional
Crime&Terrorism
Business
Agriculture
Political
Corruption
Education
OpinionL e ad er s G en er alPopulation
Regardlessofwhichtypeofreformsthe governmenthasbeenworkingon,inyour
opinion,whichtwoofthefollowingareasismostimportanttoreforms?
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Survey results show that the general population and opinion
leaderswantagreaterfocusonSMEs
The Business Confidence Survey results show that the business
condition of SMEswas worsening in the last quarter of calendar
year 200816%ofsmallcompaniessaid theirsituationbecame
substantially worse in October, compared to 8% of medium
companiesand
3%
of
large
companies.
That
SMEs
need
agreater
attention was also emphasized by both the general population
andopinion leadersduringthesurveyasignificant62%ofthe
generalpopulation,and61%ofopinionleadersstatedduringthe
survey that the government should focus more on helping small
andmediumenterprises.
SMEshave longbeenconsideredastheprincipaldrivingforceof
Bangladeshseconomy.Alongwithstimulatingprivateownership
andentrepreneurialskills,SMEsareflexibleandcanadaptquickly
to changing market demand and supply situations, generate
employment, help diversify economic activity, and make a
significant contribution to exports and trade. At a time such as
now, when the economy is vulnerable to the adverse affects of
theglobal financialcrisis,boostingtheSMEsector,knownasthe
economys thrust sector, is absolutely imperative. Thus
improvementsinareassuchasaccesstoloans,trainingonhowto
start up businesses and procedures required, and registration
processes,arenecessaryinordertoencourageSMEstogrow.
RRCs efforts for modernizing the countrys public
administration
TheRegulatoryReformCommissionwasformedbythecaretaker
government inOctober 2007,uponrealizing that it is imperative
to modernize public administration and simplify legal and
procedural complexities, in order to create the right enabling
environment
for
foreign
as
well
as
domestic
investment.
Thecommissionconsistsoffoursubcommittees,withinwhichone is
working on utility service related reforms, and one for land
registration and related reforms. The RRC is responsible for
reviewing and updating all government regulations totaling to
about50,000,manyofwhicharedecadesoldbutstillbeingused
todaythecommission isremovingallredundantandinefficient
regulations, and is identifying those regulations that should be
modifiedorleftunchanged,simplifyingcertaingovernmentforms,
and is reducing the time required to process applications and
licensesbygovernmentdepartments.(PleaserefertoAppendix1
toseesomeofthekeyrecommendationsmadebytheRRC)
OneoftheimportantrecommendationstheRRCmadewasforthe
Directorate of Land Registration to be transferred from the Law
Ministryto
the
Ministry
of
Land
to
allow
a"one
stop
service"
for
land registration. However, this recommendation is yet to be
implementedduetocomplexitiesrelatedtotheHighCourt.
However,anumberofrecommendationshavebeenimplemented
successfully. Following RRC recommendations, the Government
startedtopublishgazettenotificationson itswebsiteandstarted
developinganewwebsiteincorporatingallpreviousgazettes.The
RRCsuggestedthatallproposedregulationsmustbepublishedin
draft form for feedback from civil society members before
finalization.
The commission recommended online registration with the BoI,
uniform fees or charges for registration of investment projects
and reforms in the BoI. A consultant was appointed for starting
onlineregistration
and
the
BoI
took
the
issue
of
uniform
fees
into
consideration.
ThecommissionproposedthatBangladeshBankshouldbeableto
make decisions regarding private sector foreign loans without
informing the BoI. In August 2008, the Chief Adviser's Office
during theCaretakergovernmentdirectedtheBoIandtheBBto
implementthiswithintwomonths.
Extenttowhichcitizensagreewiththestatementthatbusiness
reformsaremuchneededinBangladesh86
2
12
96
1 3
0
20
40
60
80
100
120
Agreeorstronglyagree Disagreeorstrongly
disagree
Don'tknow/Refuse
OrdinaryC it izens E li teGroups
AttentionneededonSMEversuslargecompanies(SPS,Sept08)
24
34
62 61
0
10
20
30
40
50
60
70
GeneralPopulation OpinionLeaders
TheGovernmentshouldbefocusmoreattentiononhelpingsmallandmediumenterprises
TheGovernmentshouldbefocusmoreattentiononhelpinglargecompanies
SomekeyobstaclesfacedbytheSME/microentrepreneurs(SPS,
Sept08)
1
3
4
10
11
12
21
34
43
0 1 0 2 0 3 0 4 0 5 0
Interacti on w i t h ta x officials
I n c o m e ta x
Val ue a d d e dta x ( V A T )
G o v e r n m e n t corrupti on
P r e s s u r efrom fami l y, fri ends
G o v e r n m e n t regi strati on process
Lackof access to l oans
L e a r n i n gho w to do busi ness
Ow n fear of failure
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TheRRCsuggestedlegalizationof"courierservice"inthecountry,
by amending the Post Office Act 1898. The Ministry of Post and
Telecommunicationshaveimplementedthis.
RRCs recommendation for reducing the time of giving location
clearance and environment clearance certificates was accepted
andimplemented.
The
government
has
also
implemented
the
recommendation
regardingbondedwarehouselicensingprocesses.
Although the RRC has made over 30 recommendations and has
sent them to the ministries for immediate implementation, the
implementationprocesshasnotbeensuccessfulinallcases. Red
tapism,bureaucraticcomplexitiesandsomependingcases inthe
HighCourthavehinderedtheprogressofthereforms,apartfrom
a few. It has also been reported that some ministries have not
cooperated with the RRC. According to The New Nation, a local
daily, the RRC selected 202 laws and regulations for review and
amendment, and drafted their synopsis. In order to do this, the
RRC sent notifications to 47 ministries or departments back in
November 2007. However, only nine ministries or departments
respondedtoRRC'srequestforassistanceandcooperation.
Need to adopt Regulatory Impact Assessment (RIA)
asatooltoimproveregulatoryenvironment
In a recent Financial Express article regarding the need for
introducing RIA to the regulatory system in Bangladesh, Syed
AkhtarMahmoodwrote:
We often talk about streamlining the existing stock of
regulations.Thisisindeedatoppriority.Butwealsoneedtothink
about the quality of new regulations. If the flow of new
regulations isofpoorquality,thestockwill remainbad. It is like
cleaning thewater inaswimmingpool.Nousedoingthat ifyou
cannotensurethatthenewwaterflowinginisalsoclean.
So how do you ensure this? The answer lies in introducing a
processwherebynewrulesandregulations,atleasttheimportant
ones,aresubjected toan impactanalysis.The ideaofan impact
analysis is not novel in Bangladesh. When a government agency
doesaproject,sayaroad,ahospitalorapowertransmissionline,
it is required to carry out a costbenefit analysis andjustify the
planned investment. The Planning Commission then reviews the
analysis, and approves or rejects the project. Whether these
exercises are done properly is of course a matter of debate
Bangladesh is replete with examples of projects that were done
on purely politicalconsiderations with little analysis of the costs
and benefits to society. But the rules of business of the
governmentdorequiresuchanalysis.
While
it
is
definitely
a
priority
to
remove
redundant
regulations
andupdatetheexistingones,thequalityandeffectivenessofnew
regulationsalsoneedmuchattention. Inshort,RegulatoryImpact
Analysis (RIA) aims to improve the quality of regulations,
regulatory institutions and regulatory systems. It is basically a
systematic process of evaluating the cost and benefits of
regulations.
In Bangladesh, new rules and regulations are often introduced
without any prior notice or consultation with relevant
stakeholders. Even where consultation takes place, this is often
inadequate and the feedback is not adequately incorporated in
the framing of the regulations. This creates major uncertainty
regarding theeffectivenessof the regulations.RIAexaminesand
measuresthelikelybenefits,costsandeffectsofneworchanged
regulations. It provides decisionmakers with valuable empirical
data and a comprehensive framework which they can use to
assess options and the consequences their decisions may have.
RIA
is
used
to
define
problems
and
to
ensure
that
government
actionisjustifiedandappropriate.
RIAaimstoimprovetheregulatoryenvironmentby:
I. Building a regulatory management systemRegulate the
regulators through transparency and accountability mechanisms
(laws,policies,institutions,enforcement,etc.)
II. Improving the quality of new regulationsControl of the flow
(RIA,consultation,alternatives,coordination,etc.)
III. Upgrading thequalityof existing regulationsControl of the
stock (deregulation, updating, codification and restatement,
formalities,etc.)
RIA has been widely used in OECD countries, and is increasingly
beingusedindevelopingcountriesalso.Around40countrieshave
introduced
RIA
including
90
%
OECD
countries,
while
about
20
developing countries are implementing or actively exploring the
scopetoestablishRIA.
TheRiseinRIA
RIAreducesregulatoryburdens
The chart below shows that the RIA process is extremely
comprehensive. Internally, it is the key mechanism for assessing
the impact of new or existing regulations, and thereby reducing
duplicative and contradictory policies. Also RIA helps to identify
possibledifficultiesandshortcomingsduringthe implementation
and
enforcement
phase
of
regulation.
Externally,
RIA
promotesregulatory transparency and accountability of administration
through consulting with stakeholders and incorporating their
suggestions. As its use expands, RIA can help define which
governmentactionsaresuitedtoamarketeconomy.
Source:Jacobs&Associates
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InternationalexperienceofusingRIA
More than half of the OECD governments and many Eastern
Europeancountries intransitionhavebeensuccessfullyusingRIA
tools in regulatory decisions. The OECD reference checklist for
regulatory decisionmaking is elaborated in Appendix 2. In Asia,
theuseofRIA isstillagrowingconcept,but isnonethelessbeing
used in several countries. A survey organized by the Centre on
RegulationandCompetition(CRC)attheUniversityofManchester
in 2003 2004, indicated that at least nine Asian countries have
developed elements of a modern RIA: India, Jordan, Korea,
Malaysia,Oman,Pakistan,thePhilippines,SriLanka,Thailand.
Amongthesecountries,thePhilippines,Malaysia,andKoreahave
made significant progress. Philippines established RIA as a legal
requirement, though the government had not published the
implementing regulations and guidelines. In practice, the
Philippines government has concentrated its RIA effort on new
economic regulations complementing its efforts through
enhanced public consultation and the use of public notices and
invitationstocomment,followedbypublicmeetings.
InMalaysia,elementsofaRIAprocesshavebeenusedwithinthe
government, though not on a consistent and systematic way.
Unlike in the Philippines, the MalaysianRIA, when adopted, was
applied to social and environmental regulations as well as to
economic ones. In Malaysia, public consultation before the
introduction of new regulations seems well developed with all
respondentsinagreement.
Korea,
which
has
attained
remarkable
economic
growth
partlyduetosuccessfulbusinessandeconomicreforms,introducedRIA
to itsregulatorysystem in1998. InarecentDailyStararticleon
the Korean experience on reforms, Anwarul Islam wrote, [In
Korea, RIA] enables the public officials in charge of designing
regulations to take informed decisions on how to make
regulations viable, sound and effective. Assessment areas and
factors for RIA include: overview of regulation in question,
identifying regulated entities and stakeholders, lifetime of
regulation,shortdescriptionofboththeexistingregulationbeing
reviewedandthenewregulationbeingdevelopedandregulation
mapping,i.e.,themappingofrelationshipbetweentheregulatory
proposal in question and the existing regulations relating to it,
costbenefitanalysisofalternativestotheregulation inquestion.
The ministry concerned must gather public opinions during the
stipulated 20day notice and comment period and report the
resultsofitsreviewtothosewhoprovidedinputsontherelevant
regulatoryproposals.
OthercountriesinAsiawhichhavestartedtoexperimentwithRIA
are Vietnam, China and Sri Lanka. Vietnam recently launched a
prototype RIA for helping the government reform two key laws:
TheUnifiedEnterpriseLawand theCommon InvestmentLaw. In
Sri Lanka, the Institute of Policy Studies together with the
ManchesterCenterforRegulationandCompetition,initiatedaRIA
WorkingGroupwherepublicofficialsandacademicparticipateon
thedevelopmentofaRIAsystemforthecountry.
LaunchingRIAinBangladesh
Efficient and businessfriendly governance requires the modern
methodsandtoolsoftheRIAprocess. Althoughtheredoesexista
review process in the government of Bangladesh for new laws,
rules
and
regulations,
it
merely
ensures
that
the
proposed
rules
andregulationsareconsistentwiththeexistingones.ButtheRIA
undertakes more than just that, as it analyzes the impact of
proposed rules and regulations. If Bangladesh wants to become
one of the most attractive investment hubs in Asia, business
regulationsneedtobepredictableanduseful,andthiscanonlybe
donebyintroducinganRIAprocesstotheregulatorysystem.
SuggestionsforeffectivelydevelopinganRIAsysteminBD:
- It will be useful to have a program of regulatory impact
analysis (RIA) within various ministries, monitored by an
independent body overlooking all the RIAprograms. Hence,
all new laws and regulations that are passed through each
ministry should be justified through basic cost benefit
analysis.Inordertoenactthis,allministriescouldbeasked/
required to answer the basic regulatory quality questions
designedbytheOECD (PleaseseeAppendix2).Thegoalfor
thejustificationshouldbetoshowthattheproposed lawor
regulationminimizescoststoconcernedbusinesses.
- As mentioned above, a politically neutral and independent
body needs to be in place to monitor, oversee, and
strengthen the RIA process. This advisory body should
receive the regulatoryjustification statements, and consult
with stakeholders and the business sector, and make the
suggestions public. Hence, the public should be involved
extensively in the process interest groups should be
consulted widely and in a timely fashion. Korea is a good
example
where
public
opinion
is
integrated
into
the
rulemakingprocessTheRRChasconductedsurveyseveryyear
to hear the public and experts' opinions on the regulatory
reform.Theresultsofsurveyhavebeenusedasfeedbacksin
setting future policy directions every year (Anwarul Islam,
Regulatory Reforms: Korean experience, Daily Star).
Consultation before the introduction of new regulations is
imperative in creating a transparent and accountable
regulatorysystem.
Source:presentationmadeatCRCbyProf.DavidParketattheUniversityofManchester
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- Althoughallregulationsneedtobejustifiedbyacostbenefit
analysis,analyticalmethodscanvaryaslongasRIAidentifies
and weighs all significant positive and negative effects and
integrates qualitative and quantitative analyses. Mandatory
guidelines should be issued by the independent oversight
bodytomaximizeconsistency.
- ResultsofRIAmust be communicated clearly with concrete
implications
and
options
explicitly
identified.
A
common
formatshouldbeusedinordertocommunicateeffectively.
- The independent body monitoring the RIA process should
also be in charge of guidance and training upgrading the
qualityandconsistencyofRIAtraininggovernmentwide,and
ensuring that good practices around the world are
transmittedquicklyandefficientlytocivilservants.
- The private sector will play a vital role in making RIA
successful in Bangladesh. Second, business involvement in
RIA has several significant benefits in terms of improved
information. Businesspersons, especially those affected by
regulations,canconstitutecosteffectivesourcesofthedata
needed to complete high quality RIA. Consultation can also
provideimportant
indications
on
the
feasibility
of
proposals,
ontherangeofalternativesconsidered,andonthedegreeof
acceptance of the proposed regulation by affected parties.
Moreover,activeparticipationbythebusinesssectormeans
better compliance with the regulation and thus savings in
termsofimplementationandenforcement.
- Some of the institutional methods that Bangladesh could
exploretomaximizebusinessparticipationintheRIAprocess
consist of establishing (Cordova, Cesar Enabling
Environment and Economic Zones for Private Sector
DevelopmentinBangladesh)
Expertgroups,suchasacademicandindustrygroups;
BusinessTestPanelsorganized foraparticularregulation.They
canbefast,butdataqualitycanbeaproblem;
Focusgroups,whichcanprovideawiderangeofdata;
Developmenttogetherwith thebusinessassociationsofmodel
enterprisesthatrepresenttheaffectedpopulation;
Opinion surveys, which can identify major issues, and in
particularrepeatedlyrunningtheFIASadministrativebarrier
surveys,and
Directinterviewswithbusinesspersons.
IftyIslam
ManagingPartner
JishaSarwar
SeniorResearchAssociate
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APPENDIX1
Some of the key recommendations made by the RRC and their
implementationstatus(asofmid2008):
1. All gazette notifications must be published on the website,
which has already been implemented with technical assistance
fromBangladeshInvestmentClimateFund(BICF) amultidonor
initiativemanagedbytheInternationalFinanceCorporation(IFC).
2. All proposed regulations must be published in draft form for
feedback from civil society members before finalization. The
MinistryofLaw,Justice,andParliamentaryAffairshasvettedthe
amendment of the government's "Rules of Business, 1996" to
include"Rule16,"andthisrecommendationnowawaitsapproval
ofthecouncilofministers.
3.TheinvestmentregistrationprocessoftheBoardofInvestment
(BOI)mustbesimplified.AccordingtoSection10(1)ofInvestment
Board Act, 1989, BOI will introduce speedy online investment
registrationprocessthroughitswebsite.Paperregistrationsmust
be processed within 24 hours. According to section 11(5) of the
Investment Board Act, 1989, investment enquiries must be
answered within 15 days unless otherwise advised. BOI
registrationservice
fee
is
being
contemplated
to
be
set
at
aflat
rate,regardlessoftheproposedinvestmentamount.
4.Subcommitteeon"processingandapprovalof foreignprivate
loans", under the leadership of Bangladesh Bank's governor,
proposedthatthesoleresponsibilityandauthorityforapprovalof
foreignprivateloansbevestedwiththeBangladeshBank.TheBOI
and BB have been directed by the Chief Adviser's Office to
implementtheRRCrecommendationwithintwomonths.
5.Thelegalizationof"courierservice"inthecountry,byamending
the Post Office Act 1898. The Ministry of Post and
Telecommunicationsistakingstepstoimplementthis.
6.TheDirectorateofLandRegistrationshouldbetransferredfrom
the Law Ministry to the Ministry of Land to allow a "onestop
service"forlandregistration.TheHighCourthasplacedawritand
stay order against this executive decision for a period of three
months.
7. Subcommittee on location and environmental clearance
recommended that the "Bangladesh Environment Conservation
Act, 1995" and "Environment Conservation Rules, 1997" be
amended by the Department of Environment, so that the time
takento issueLocationClearanceCertificatesandEnvironmental
ClearanceCertificatescanbehalved.
8. Subcommittee on duty drawback and exemption system,
capital machinery import clearance system, and bonded
warehouselicensing
system
recommended
the
National
Board
of
Revenue(NBR)tosimplifythedutydrawbackapplicationformby
June 30 and move to an industrybased instead of enterprise
basedcoefficient identificationsystemtostreamlinetheprocess.
NBRisadvisedtointroduce"riskbasedinspectionandclearance"
system for capital machinery imports, where about 5%10%
consignmentswillbeinspectedbySeptember30.Inaddition,NBR
is advised to improve Bond Warehouse Licensing Process by
allowing nonassociation members to apply for such licenses
withoutreferralsfrommembers.
APPENDIX2
TheOECDReferenceChecklistforRegulatoryDecisionMaking
1.Istheproblemcorrectlydefined?The problem to be solved should be precisely stated, giving
evidenceof its natureandmagnitude,andexplaining why ithas
arisen(identifyingtheincentivesofaffectedentities).
2.Isgovernmentactionjustified?Government intervention should be based on explicit evidence
that government action is justified, given the nature of the
problem, the likely benefits and costs of action (based on a
realisticassessmentofgovernmenteffectiveness),andalternative
mechanismsforaddressingtheproblem.
3.Isregulationthebestformofgovernmentaction?Regulators should carry out, early in the regulatory process, an
informed comparison of a variety of regulatory and non
regulatorypolicy instruments,consideringrelevant issuessuchas
costs, benefits, distributional effects and administrative
requirements.
4.Istherealegalbasisforregulation?Regulatory processes should be structured so that all regulatory
decisions rigorously respect the rule of law; that is,
responsibility
should
be
explicit
for
ensuring
that
all
regulations
are authorised by higherlevel regulations and consistent with
treatyobligations,andcomplywithrelevant legalprinciplessuch
as certainty, proportionality and applicable procedural
requirements.
5.Whatistheappropriatelevel(orlevels)ofgovernmentforthisaction?Regulators should choose the most appropriate level of
government to take action, or if multiple levels are involved,
shoulddesigneffectivesystemsofcoordinationbetweenlevelsof
government.
6.Dothebenefitsofregulationjustifythecosts?Regulatorsshouldestimatethetotalexpectedcostsandbenefits
of each regulatory proposal and of feasible alternatives, and
should make the estimates available in accessible format to
decisionmakers. The costs of government action should be
justifiedbyitsbenefitsbeforeactionistaken.
7.Isthedistributionofeffectsacrosssocietytransparent?To the extent thatdistributive and equityvalues are affected by
governmentintervention,regulatorsshouldmaketransparentthe
distributionofregulatorycostsandbenefitsacrosssocialgroups.
8. Is the regulation clear, consistent, comprehensible andaccessibletousers?Regulators should assess whether rules will be understood by
likelyusers,andtothatendshouldtakestepstoensurethatthe
textandstructureofrulesareasclearaspossible.
9. Have all interested parties had the opportunity to presenttheirviews?Regulations should be developed in an open and transparent
fashion,
with
appropriate
procedures
for
effective
and
timelyinput from interested parties such as affected businesses and
trade unions, other interest groups, or other levels of
government.
10.Howwillcompliancebeachieved?Regulators should assess the incentives and institutions through
whichtheregulationwilltakeeffect,andshoulddesignresponsive
implementationstrategiesthatmakethebestuseofthem.
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StockMarketWeekly
Marketsummary
DSEperformance:30days
DSE erformance:52weeks
Valuationsnapshot
Re ionalstockmarket erformance lastweek)
Marketnews
Shinepukur Ceramics to raise BDT 800mn (USD
11.62mn)inbonds.
ACItoraiseBDT1.3bn(USD18.88mn)inbonds
Bangladesh remains decoupled from both regional
andglobalmarkets
RSI indicators have moved back to neutral territory
suggesting market overbought condition has
corrected
FuelandPower+Investmentleadthewaylower
IndexperformanceDSEGeneral
IndexDSE20
Openingofthisweek 2695.58 2,199.3
Closingofthisweek 2671.06 2,189.2
Changewithinaweek (%) -0.9% -0.5%
Changewithinaweek (Point) -24.5 -10.1
Capitalizationandturnover ThisWeek LastWeek %Change
NumberofTradingDays 5 5
MarketCapitalization(USDbn) 14.80 15.15 -2.34%
TotalTurnover(USDmn) 209 255 -18.0%
DailyAvg.Turnover(USD mn) 41.75 50.91 -18.0%
TotalVolume(mn) 124 156 -20.7%
DailyAvg.Volume(mn) 25 31 -20.7%
Weightedavg.P/ERatio* IssuesThis
Week
Last
Week
ThisWeek 17.06 Advanced 144 104
LastWeek 17.34 Declined 121 158
%Change -1.6% Unchanged 3 2
*WeightedonMarketCap. NotTraded 31 29
SectorP/E
Aug08 Sep08 Oct08 Nov08
Banks 19.08 18.24 15.62 15.62
Cement 10.96 10.34 10.32 8.91
Ceramic 49.92 43.93 41.76 32.17
Engineering 39.11 41.36 40.8 31.94
Food&Allied 17.85 19.44 17.09 14.77
Fuel&Power 17.81 20.2 19.14 16.29
Insurance 23.17 24.77 23.12 17.69
Investment 45.08 55.48 28.93 21.42
IT 41.44 45.64 47.89 33.96
Jute 16.16 16.16 14.18 14.18
Miscellaneous
25.46
33.95
32.2
23.32
Paper&Printing 8.36 8.08 9.97 7.32
Pharmaceuticals 23.97 28.45 30.25 26.26
Service&Real Estate 20.57 22.87 23.55 18.74
Tannery 19.05 19.89 18.44 14.87
Textiles 15.74 15.45 14.55 12.43
Source:DhakaStockExchange
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WeeklyStockMarketCommentary
Thisweekthemarketwasdownby0.9%forthethirdconsecutive
week, and the daily average turnover was down by 16.5%. The
turnover volume dropped significantly as investors, especially
retail investors,remainedshakyamidtherecentbearishtrend in
the market. Out of 297 stocks, 144 advanced, 121 declined, 3
remained
unchanged
and
29
were
not
traded.
Two
newly
listed
companies started trading this week. BSRM joined the stock
market by floating 2mn ordinary shares at BDT 100 each, while
RepublicInsurancejoinedbyoffloading90,000ordinarysharesat
BDT 100 each. Similar to the previous week, this week retail
investors also focused intensively on Zlisted stocks. Among the
top ten gainers, nine of them were from Zlist categories. Zlist
stocksare categorised by virtue of their lackofcompliance with
SECregulations(Ex.filingofaccounts)orareunprofitablesoare
largelyconstitutedofcompanieslackingfundamentalqualities.
RSI indicators have moved back to neutral territory suggesting
marketoverboughtconditionhascorrected
TheRelativeStrengthIndex(RSI)oftheDSEGeneralIndexisnow
at 48 .8 with a consolidating trend in the last three days of this
week.AlsotheMACDlineisbelowandparalleltoits9dayssignal
line, showing that a significant trend has not developed yet. As
can be seen in the chart below, the key overbought/oversold
indicatorsfortheDGENare70and30respectively.Typicallywhen
theRSIhits70,themarkettendstocorrectandselloff,aswasthe
caseearlierthismonth,whereaswhentheRSIhits30,wetypically
getabounce. The principalbehindmomentum indicators is that
they capture when too muchof the market is positioned in one
direction. If there are a majority of investors who are long the
market,thereisdiminishingnumbersofprospectivebuyerswhich
leavesthemarketvulnerabletoprofittaking.ThecurrentRSIdoes
notgiveanystrongtechnicalsignal ineitherdirectionsuggestion
consolidation until the market receives some new fundamental
news.
RSIandMACDmovementofDSEGeneralIndex:
Bangladesh remains decoupled from both regional and global
markets
WiththeSensexdownalmost6% lastweekandtheKSEdowna
massive17%+,themoves in theDGENremainextremelymuted.
With
the
S&P
500
down
3.5
%
andthe
European
stock
markets
also down sharply, Bangladesh remainsone of the few truly de
coupledEMmarketsintheworld.
Sector Update Fuel and Power + Investment lead the way
lower
This week the Fuel and Power and Investment sectors
declined significantly by 4.9% and 4.1%, respectively. The major
reasonofthedecline intheFuelandPowersector isthe100%
bonusshareand50%cashdividendissuedbyPadmaOilCompany
Ltd., a state owned petroleum products distribution company.
AftertherecorddatewhichwasJanuary18,thepriceofthisstock
droppedby47%andthusaffectedthemarketcapitalizationofthe
FuelandPowersector,thoughthebonussharehasnotstarted
tradingin
the
market.
In the Investment sector, among the 17 mutual funds, only
threeincreasedwhilepricesofrestoftheunitfundsdecreased.
TheEngineeringsectorgrewby5%thisweek,largelydrivenby
Atlas Bangladesh Ltd., a state owned motorcycle and three
wheelerassemblingcompany.AtlasBangladeshLtd.isthesecond
largestcompany in theengineering sector,as it contributes 20%
towardsthesectorstotalmarketcapitalization.
The IT sector grew by 1% last week following an increase of
2.7% the previous week. The sector is showing a rising trend
recentlywiththenewgovernment'sthrustinthearea.According
to DSE statistics, the IT issues' weighted average price earnings
(P/E) ratio surged 46.5 in 2008 against 15.2 in 2007 and 11.1 in
2006. The rising P/E ratio of this sector implies the investors
positiveperceptionaboutthegrowthofthesector.
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StockMarketNews
Shinepukur Ceramics to raise BDT 800mn (USD 11.62mn) in
bondsTheDailyStar,TuesdayJanuary20,2009Shinepukur Ceramics, an exportoriented bone china and
porcelain
tableware
manufacturing
company,
has
decided
to
borrow BDT 800mn (USD 11.62mn) from its parent company
Beximco by issuingconvertible bonds , inorder to setupa new
bonechinaunit.However,inordertoissuebonds,thecompanys
shareholders and the Securities and Exchange Commission must
approve.
Thenewbonechinamanufacturingunit,which isexpectedtobe
completed inOctober2009,aimstoincreaseproductioncapacity
and sales turnover.Productioncapacitywill increase by150% to
25,000pieces a day fromcurrently10,000manufacturedpieces.
Additional exports worth BDT 1.1bn (USD 15.98mn) and a net
profitofBDT200mn(USD2.9mn)isexpectedtobegenerated.
Shinepukur signed an agreement with a German company on
January18th
for
setting
up
the
new
unit
at
the
Beximco
Industrial
ParkatGazipur.
http://www.thedailystar.net/story.php?nid=72078
ACItoraiseBDT1.3bn(USD18.88mn)inbondsTheDailyStar,MondayJanuary19,2009Advanced Chemical Industries (ACI) Limited has decided to raise
BDT 1.30bn (USD 18.88mn) by issuing convertible zero coupon
bonds,forloanrepaymentandfresh investments.Azerocoupon
bond isabondboughtata price lower than its facevalue,with
the face value repaid at the time of maturity. Convertible zero
couponbondmeansthatthebondisconvertibleintoacompany's
commonstockorshare.
The issuanceofthe 'ACI20%ConvertibleZeroCouponBond',the
first of its kind, is however subject to the approval of the
Securitiesand Exchange Commission.Thematurityperiodof the
bond is five years with yearly redemption, meaning that 20%
valueofthebondwillberepaidtotheinvestorseachyearwitha
10.5%discountrate.
Alongwiththediscountorinterest,theinvestors,excludingbanks
and insurance companies, will get tax exemption on the income
generatedfromthezerocouponbonds.Thebondswillbetraded
ontheDhakaandChittagongstockexchanges.
The bond will be issued through both private placement and an
initial
public
offering.
Alliance
Financial
Services
Ltd
is
the
issue
manager of the bond, and Industrial and Infrastructure
DevelopmentFinanceCoLtdisthefacilitymanager.
ACI,whichhas investments inpharmaceuticals,consumerbrands
and commodity products, agribusinesses, crop care and public
health, livestock and fisheries, fertiliser and seeds business,
posted net profits of BDT 362.5mn (USD 5.27mn) in 2007.
http://www.thedailystar.net/story.php?nid=71947
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ResearchTeam
IftyIslam
ManagingPartner
SyeedKhan
Partner
MohammadEmranHasan
SeniorAssociate
DGENPerformanceLTMDGENPerformanceYTD
Correlation withotherindices*
S&P500 Sensex NIKKEI225 KSE100 SSECI FTSE100 Hangseng DSES&P500 1Sensex 0.609533 1
NIKKEI225 0.479296 0.57751 1KSE100 0.137983 0.245628 0.136849 1
SSECI 0.315464 0.411735 0.245613 0.09449 1
FTSE100 0.843726 0.610483 0.494904 0.238387 0.431538 1Hangseng 0.704434 0.677905 0.526227 0.110829 0.509843 0.786434 1
DSE 0.161589 0.193995 0.103366 0.05588 0.035032 0.131261 0.143725 1*Basedonthelast86monthsUSDreturns
Source:ATCapitalResearch
Marketcap.bysector*
Banks 51.0%
Fuel&Power 13.8%
Pharmaceuticals 11.6%
Insurance 5.5%
Cement 5.1%
Miscellaneous 3.0%
Engineering 2.4%
Foods 2.1%
Textile 1.9%
Service&RealEstate 1.2%
Tannery 1.2%
Ceramics 0.7%
IT 0.5%
Paper&Printing 0.1%
Jute 0.03%
Total 100%
*AsofNovember30,2008
Turnoverleaders
(Allfiguresinmn) BDT USD
Beximco Pharma 1285 18.7
BEXIMCO 1074 15.6
ShinepukurCeramics
Limited
991
14.4TitasGas 939 13.6
SummitPower 754 11.0
BSRMSteelsLimited 584 8.5
GrameenOne:Scheme2 375 5.5
UttaraBank 345 5.0
ACIFormulationLimited 339 4.9
SummitAlliancePortLimited
326 4.7
Source: Dhaka Stock Exchan e
Bestperformers* Worstperformers*
%Change %Change
Meghna PET 49.0% PadmaOilCo. -46.7%
Shaympur Sugar 37.8% BEMCO -25.3%
Rangamati Food 35.9% Al-HajTextile -16.7%
Quasem Silk 35.7% EagleStarTextile -10.7%
Quasem Textile 32.6% NationalHousingFinanceandInvestmentLtd.
-9.7%
Lexco 30.3% 8thICBM.F. -8.2%
B Monospool Paper 29.0% 3rdICBM.F. -7.9%
Bd. Welding Electrodes 28.7% PragatilifeInsurance -7.3%
Al-Amin Chemicals 28.6% GlobalInsurance -7.1%
Megha Condensed 26.5% BEXTEXLimited -6.6% *Byclosingprice
Source:DhakaStockExchange
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Economics
Selectedmacroeconomicindicators
Country'stradebalancenarrowsinfirsthalfofFY09
Inflowofforeignaidnormal
Uptrendinexportearningscontinues
Manpower export suffers blow as KL bans overseas
recruitment
BEPZAexpectstoattractmoreinvestmentsinEPZs
Series of BB steps to expedite flow of inward
remittances
Recessionfearsloomovershrimpexports
JishaSarwar
SeniorResearchAssociate
Latesttreasuryyields
Marketnews
LatestBangladeshInflationRates
20Jan08 13Jan09 20Jan09
Forexreserves(USDmn) 5677.81 5471.15 5430.92
USDBDTaveragerate 68.5800 68.9500 68.9499
Callmoneyrate 13.79 9.32 9.48
Dec07 Dec08 200708
Remittances(USDmn) 635.34 765.79 7,914.78
Annual%agechange 14.46 20.53 32.39
Nov07 Nov08P 200708
Imports(USDmn) 1,661.80 1,816.50 21,629.00
Annual%agechange 7.91 9.31 26.07
Nov 07 Nov 08P 200708
Exports(USDmn) 1144.47 1297.47 14,110.80
Annual%agechange 24.94 13.37 15.87
Sep07 Sep08P 200708
CurrentA/CBalance(USDmn) 20.00 46.00 672.00
Nov07 Nov08P 200708
Taxrevenue(USDmn) 506.24 551.57 6,868.43
Annual%age
change
26.59
8.96
27.06
Source:SelectedindicatorsbyBangladeshBank,21January2009
Oct08 Nov08 Dec08
General 209.31 207.14 204.90
Inflation 7.26 6.12 6.03Food 226.88 223.98 220.64
Inflation 8.08 6.68 6.83Non
food
186.13
184.95
184.29
Inflation 5.95 5.25 4.76Source:BangladeshBureauofStatistics
Auction date Tenor & security type Weightedaverage yieldDec-08 91-dayT-bill 7.91%
Dec-08 182-dayT-bill 8.16%
Dec-08 364-dayT-bill 8.58%
Dec-08 5-yearT-bond 10.60%
Dec-08 10-yearT-bond 11.72%
Source:BangladeshBank
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EconomicNews
Country'stradebalancenarrowsinfirsthalfofFY09
TheFinancialExpress,SundayJanuary25th,2009Thecountry'sbalanceoftrade inthefirsthalfoffiscalyear2009
narrowedtoUSD3.2bnfromUSD3.5bnduringthesameperioda
year
ago,
owing
to
a
rise
in
exports
and
decline
in
imports.
DuringthefirsttwoquartersofFY09(JulyDec)exportsearnings
stood at USD 7.5bn while import payments were USD 10.7bn.
DuringthesameperiodinFY08,thecountryreceivedUSD6.49bn
forexportswhileimportpaymentswereUSD9.078bn.
The country's export target for the current fiscal year has been
fixed at USD 16.29bn, 15.5% higher than FY 08. During the last
fiscal year, the country exported goods worth USD 14.5bn and
madeimportpaymentsofUSD20.37bn.
Export growth was 18.33% during the first 6 months of FY 09,
which is around 3 percentage points higher than the projected
target.Thecountry'soverall importpaymentduring the firstsix
monthofFY09grewby only6.84%compared to17.25%during
thesame period inFY 08,mainlydue todecliningpricesof fuel,
edibleoilandothercommoditiesintheinternationalmarket.
If the present trend continues, it will ease pressure on the
countrys balance of payment and will help strengthen the
country'sforeignexchangereserve,whichstoodatUSD5.6bnon
January22,2009.
http://www.thefinancialexpress
bd.info/search_index.php?page=detail_news&news_id=56958
Satisfactoryinflowofforeignaid
TheFinancialExpress,SaturdayJanuary24th,2009InflowofforeignaidintoBangladeshhasnotbeenaffectedbythe
global financial downturn, as the government has received USD
830.41mn in foreign aid during the first half of the current
financial year. The amount received was USD 8.0mn higher than
that received during the corresponding period of last financial
year(200708).
ThegovernmentexpectstoreceiveUSD2.14bn inaidduringthe
currentfiscalyear.Outofthetotalamount,USD65mnisexpected
tocomeasfoodaid,USD10mnascommodityaid,USD1.72bnas
project aid and USD 350mn as budgetary support credit.
Out of the total USD 830.41mn disbursed foreign assistance
duringJulyDecemberofthisfiscalyear,USD748.62mnwasgiven
asloan,
and
only
USD
81.79mn
was
given
as
agrant.
http://www.thefinancialexpressbd.info/2009/01/24/56831.html
ManpowerexportsuffersblowasKLbansoverseasrecruitment
TheFinancialExpress,FridayJanuary23rd,2009Bangladesh'smanpowerexportisexpectedtodeclinesignificantly
as Malaysias government declared that it will not hire new
foreign workers in the manufacturing and services sectors amid
fearsthatitseconomiccrisiswillleadtomorejoblossesforlocals.
Malaysian Home minister Syed Hamid Albar told the country's
leadingEnglishdaily,NewStraitsTimes,thatthereisnoreasonto
bring in foreigners after a government report showed 45,000
peoplewillbelaidoffattheendofJanuary.
Thetwo
sectors
manufacturing
and
services
employ
one
million
foreign workers currently. These employees will be allowed to
work until their permits expire, unless they are laid off before
then. Malaysia's Deputy premier Najib Razak said the foreign
workers will be sent back in batches so as not tojeopardize the
country'seconomy.
"Almost all of the 131,000 Bangladeshis that found jobs in
Malaysiain2008were inthemanufacturingandservicessector,"
said a senior official of Bangladesh Bureau of Manpower and
Training(BMET)."AhiringfreezeinMalaysianmayresultindrastic
drop inmanpowerexportsandremittance.Alreadythousandsof
workers have returned home from Singapore," he added.
Malaysiawas the third biggest employer ofBangladeshi workers
lastyear,
followed
by
Saudi
Arabia
and
the
United
Arab
Emirates
(UAE).
Manpower exports in December slumped by nearly 50 % to
44,000,theworstmonthlyfigurelastyear.
Arecord875,055Bangladeshifoundoverseasjobs lastyear,with
the UAE employing 419,355 and Saudi Arabia 132,124 people.
During the period, eight million overseas workers sent home a
recordUSD8.9bn,whichaccountsforover12%ofBangladesh's
grossdomesticproduct(GDP).
http://www.thefinancialexpressbd.info/2009/01/23/56716.html
BEPZAexpectstoattractmoreinvestmentsinEPZs
TheFinancialExpress,ThursdayJanuary22nd,2009The Bangladesh Export Processing Zones Authority (BEPZA) is
expecting to attract more investments in the country' Export
Processing Zones (EPZs) as the government has approved their
proposal for setting up two new EPZs. The country will have a
totalof10EPZsafterthetwonewzonesinFeniandMeghnaare
setup.
BEPZAofficialsstatedthattheirdecisionforexpansionwasmainly
based on the high demand and flow of both local and foreign
investment. In fiscal year 2008, total investment was USD
302.19mn, almost a 100% increase from USD 152.37mn in fiscal
year 2007. Investments reached USD 74.7mn during the first six
monthsof
the
current
financial
year.
According to Prasanta Bhusan Barua, a member (Investment
Promotion) of the BEPZA, the BEPZA signed agreements worth
USD1.4bnwithanumberofinvestorslastyear.
Data showed that the BEPZA's contribution to total national
exportisincreasingsteadily.InFY08,thetotalexportofEPZswas
worthUSD2.4bn,whichwas17.2%ofBangladesh'stotalexportof
USD14.11bn; InFY07 thetotalexport ofEPZs wasUSD2.06bn.
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ExportearningsstoodatUSD1.26bnduringthefirsttwoquarters
ofthecurrentfiscalyear(July08Dec08).
Currently, a total of 292 enterprises are operating in eight EPZs
and,125plants intheprocessofbeing implemented.Ofthe292
industrialplants,173areforeignowned,48arejointventuresand
therest71areownedbylocalinvestors.Currently228,932people
areworking intheEPZs.Ofthem82,416(36%)aremaleandthe
restare
female
(64%).
BEPZA officials stated that each EPZ will have a central effluent
treatment plant. Chittagong Waste Treatment Plants Ltd. has
beenapprovedforsettingupsuchaplantintheCEPZ.
http://www.thefinancialexpressbd.info/2009/01/22/56645.html
SeriesofBBstepstoexpediteflowofinwardremittances
TheFinancialExpress,TuesdayJanuary20th,2009TheBangladeshBank (BB)hastakenaseriesofmeasuresaiming
toexpeditetheflowofremittancesintothecountry.
TheBBhasrecentlyformedasevenmembercommittee,thefirst
ofits
kind,
in
order
to
monitor
and
supervise
the
overall
inflow
of
remittances.Furthermore,theBBhasgivenpermissionstothree
privatecommercialbanks(PCBs)recentlyforsettingupexchange
houses in Malaysia and United Kingdom. Both Malaysia and UK
are important sources of remittances. Earlier, the BB took an
initiativetoboostremittanceinflowfromMalaysia.Aspartofthe
move,theBBaskedtencommercialbankstosubmitactionplans
forincreasingtheflowofinwardremittancesfromthecountry.
BangladeshreceivedatotalofUSD92.44mn inremittancesfrom
Malaysia in fiscal year 2008 compared to only USD 11.84mn in
fiscalyear2007.Remittance inflow fromUKalsogrew fromUSD
886.9mninFY07toUSD896.1mninFY08.
RemittanceinflowreachedUSD486mnduringthefirsthalfofthis
month. In December Bangladesh received USD 765.8mn in
remittances from abroad, an increase of USD 4.4mn from
November.Thecountry's foreignexchange reservestoodatUSD
5.5bn on Monday due to robust growth in remittance inflow,
accordingtothecentralbank.
http://www.thefinancialexpress
bd.info/search_index.php?page=detail_news&news_id=56499
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Agriculture
ACIwillopen200chainshopsasitforaysintoorganizedretailing
TheFinancialExpress,Sunday,January25,2009Leading conglomerate ACI plans to open around 20 value stores
across the country in the next four months, making it the first
companytodonationwideorganizedretailing.Thecompanyhas
opened two stores in Dhaka and plans to replicate them across
the country. At present the company is working with the price
propositions; they want to make the chain stores affordable for
themasspeople.Anofficialfromthecompanystated,Wehave
already opened up twostoresand willopenat least20byMay.
Wehaveaplantolaunch200storesinprimelocations."
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56962
Agrobased
industries
to
be
set
up
in
CHT
TheDailyStar,Saturday,January24,2009The government will set up agrobased industries in the
ChittagongHillTracts (CHT)region. Fruits like lemon,pineapple,
orange,jackfruitandguavaarelargelygrowninthreehilldistricts
oftheregion.Ifagrobasedindustriesareestablishedthenvarious
foodproductscanbeproducedbyprocessingthefruits.
http://www.thedailystar.net/story.php?nid=72650
GiveenoughloanstoBorofarmers
TheDailyStar,Monday,January19,2009BangladeshBankaskedeightpublicsectorbanks,whodistribute
80%
of
total
agricultural
loans,
to
provide
adequate
loans
tofarmers during the Boro season. The BB mandate followed the
governmentsrecentdecisiontocutfertilizeranddieselprices.
Bangladesh Bank Deputy Governor directed the banks to give
quickandhasslefreeloanstofarmerssothattheydonotfaceany
financialproblemsinbuyingagriculturalinputsincludingfertilizers
and seeds. He told managing directors of the banks to monitor
properdistributionof loansatthefield level.HesaidBangladesh
Bankwouldmonitortheirprogress.
http://www.thedailystar.net/story.php?nid=71973
Recessionfearsloomovershrimpexports
TheDailyStar,MondayJanuary19th,2009Shrimpexportsare expected to fall significantly thisyear,as the
priceanddemandforshrimpshavefallenindevelopedcountries,
themainconsumersoflocalshrimpexports. BuyersintheUSand
EuropehavebeenurgingBangladeshiexporterstoreduceshrimp
prices. According to industry insiders, the price of shrimp has
droppedbyUSD1perpound,oraboutBDT155perkilogram, in
late2008comparedtothe2007price.
In fiscal year 2008, the price of 16 to 30 grade shrimps, which
accountsforaround65%ofthetotalfrozenshrimpexport,ranged
betweenUSD5.20andUSD5.50,butnowithascomedowntoas
lowasUSD4,markinga3032%decline,AccordingtotheBFFEA
(BangladeshFrozenFoodsExportersAssociation).
In Bangladesh frozen food is the second highest export earner
after apparels. In FY 2008, the country exported frozen foods
worthUSD534mn.ThegovernmentsetatargetofUSD574mnfor
thisfiscalyear,butexportersrevised ituptoUSD600mn.Shrimp
accountsforover80%offrozenfoodproducts.
TheEuropeanUnion,USAandJapanarethethreemainmarkets
for Bangladesh's frozen shrimp, with the EU and the US
accountingfor48%and40%,respectively,oftotalexports.
About 10mn people are directlyand indirectly involved with the
shrimpbusiness,whichisconcentratedintheKhulnadistrict.
The BFFEA has already requested the government to create an
emergencyfundfortheshrimpexporterstoprotectthemfroma
liquiditycrisis.According totheassociation, formationofa40%
interestfreeblockaccountfacilityforaperiodoffourtofiveyears
willhelptheindustrycopewiththesituation.
http://www.thedailystar.net/newDesign/newsdetails.php?nid=71944
Aviation
TwonewairlineswillbeginoperationsinDhakasoon
TheDailyStar,WednesdayJanuary21,2009Two new airlines Indian Kingfisher Airlines and the Malaysian
carrierAirAsiaBerhad willbeginoperations inDhakawithinthe
nextthreemonths.
KingfisherAirlines,ownedbyIndianliquorbaronVijayMallya,will
operateon theDhakaKolkata route frommidFebruary,andwill
bethesixthairlineontheroute.AirAsia,oneofthemostlowcost
carriers in Asia, will start DhakaKuala Lumpur flights from early
March.Theairlineplanstooperatesevenflightsaweek.
http://www.thedailystar.net/newDesign/newsdetails.php?nid=72259
SectorNews
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Banking
Fiveforeignbanksfailtodisburseagricultureloans
TheDailyStar,ThursdayJanuary22nd,2009
Despite the central bank's order, five foreign commercial banks,
including HSBC, have failed to disburse any agriculture loans
duringthe
first
two
quarters
of
FY
09.
Other
banks
that
have
not
disbursedanyfarmcreditincludeBankAlFalah,HabibBank,State
BankofIndiaandWooriBank.
Nearly BDT 1340mn (USD 19.46mn) in agriculture loans was
disbursed by nine foreign banks during the first two quarters of
the current fiscal year; these banks include Standard Chartered
(USD14.49mn),CitiBankNA (USD2.47mn),CommercialBankof
Ceylon (USD 2.03mn) and National Bank of Pakistan (USD
0.44mn).
The central bank last year asked all local private and foreign
commercialbanks toallocate a reasonableamountof their total
loanportfolioforfarmcredit.TheBBisnowconsideringsettinga
farm
credit
target
for
private
and
foreign
commercial
banks
in
ordertoboostagricultureoutput.
http://www.thedailystar.net/newDesign/newsdetails.php?nid=72370
Infrastructure&Energy
10powerplantsongovernment'sprioritylistThe Daily Star, Sunday January 25, 2009
As part of its efforts to solve the country's chronic power crisis,
the new government has decided to implement 10 power plant
projects,whichwere initiatedbypreviousgovernments.Eight of
theprojects will be implementedby thepublicsectorwhile two
will
be
undertaken
by
the
private
sector.
Theproposedprojectstobeimplementedinthepublicsectorare
300MWSiddhirganjpeakingplant,360MWHaripurplant,150MW
Sirajganj plant, 150MW Khulna plant, 150MW Bhola plant,
150MW Sylhet plant and the 210MW Khulna power plant. The
private sector plants are 450MW Bibiyana and 450MW Sirajganj
powerplants.
Amongtheprojects,loanagreementsweresignedbytheprevious
governments for Siddhirganj, Sirajganj, Khulna and Bhola power
plants. As per the agreements, the World Bank is supposed to
financetheSiddhirganjplantwhileJapaneseJBICwillfinancethe
Haripur project. The Asian Development Bank (ADB) will finance
the Sirajganj and Khulna power plants, while the Islamic
DevelopmentBank(IDB)willfinancetheBholaproject.
http://www.thedailystar.net/story.php?nid=72829
WBtofundgasexploration
TheFinancialExpress,SundayJanuary25,2009TheWorldBankhasagreed to fundexplorationofnaturalgas in
Bangladeshforthefirsttimeinitshistory.
Finance and energy ministry officials said the fund would be
primarily provided to the stateowned oil and gas exploration
company,BAPEX,todiscovernewreservesintwoofitsuntapped
onshoreblocksingreaterMymensingh.
BAPEX has not undertaken any exploration activities during the
lastdecade,whichresulted inanoverdependenceonforeignoil
companiesand
ashortfall
of
250
mn
cubic
feet
of
gas
aday
since
Novemberlastyear.
The blocks in Mymenshingh have been considered hydrocarbon
rich, however, BAPEX needs to conduct an intensive exploration
drive toextractgas from them.BAPEXhasplanned toconducta
2400kilometretwodimensional(2D)seismicsurvey,geophysical
andgeologicalstudiesandadelineationofthedrillablesubsurface
structure.
http://mail.google.com/mail/?zx=u7n4lumq4oej&shva=1#inbox
Revenue generation, investment in infrastructures key
challenges
TheFinancialExpress,SaturdayJanuary24th,2009TheAsianDevelopmentBank(ADB)hassaidthekeychallengesfor
the new government over the longer term will be to raise
infrastructure investment and government revenue mobilization
and accelerate the Annual Development Program (ADP)
implementation.
Other challenges include improvement of institutional capacities
inkeylineagencies,creationofmorejobsandcopingwithpower
andgasshortagesforencouragingprivateinvestmenttoenhance
longerterm growth prospects, according to the ADBs recently
publishedreportonBangladesh's'PoliticalandEconomicUpdate'.
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56836
GasshortageaffectsprivateinitiativetogeneratepowerinEPZs
TheFinancialExpress,SaturdayJanuary24th,2009The plan for export processing zones in the country to run
industrialunits with theelectricityproducedby theirownplants
has not yet materialized due to a shortage of gas supply.
Bangladesh Export Processing Zones Authority (BEPZA) officials
said six private power plants with a combined capacity of 240
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megawatt were scheduled to start power generation in 2008.
However,onlytheplantintheDhakaEPZstarteditsoperationon
atrialbasistwoweeksago.
PowerplantsinChittagongandKarnaphuliEPZswereinstalledby
December 2008. However, private power companies, who won
the bid for producing power at Comilla, Adamjee and Ishwardi
EPZs,arewaitingforgassupply.
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56833
BBtofinancecaptivepowerplantsthrough'IPFFproject
TheFinancialExpress,FridayJanuary23rd,2009The central bank will finance the installation costs of captive
power plants along with small power projects (SPP) under its
investmentpromotionandfinancingfacility(IPFF)project.
Additionalfundswillbemadeavailablebythecentralbankshortly
through twoprivate commercial banks (PCBs) for setting up two
more SPPs in Feni and Chittagong to add at least 33 Megawatt
(MW)ofelectricitytothenationalgrid.
Dhaka Bank Limited will finance the Doreen Powerhouse and
TechnologyLimitedtosetupan11MWSPPatFeniwhileEastern
BankLimitedhasagreedtoprovideloanstoRegentPowerLimited
forsettingupa22MWpowerplantinChittagong.
TheWBearlierprovidedUSD50mnforthe IPFFProject for long
term financingof infrastructureprojectsunder thePublicPrivate
Partnership (PPP) framework while the government offered USD
10mnascofinanceroftheproject.
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56712
TullowappointsBAPEXtoexploregasatBangura
TheFinancialExpress,ThursdayJanuary22,2009Stateowned petroleum exploration and production company
BAPEX has entered into a deal with a foreign oil company to
produce gas in the Bangura field in the Comilla district. Irish
company Tullow has recently appointed BAPEX to start gas
productionfromitsnonoperativewell3attheBangurafield.
Tullowplanstoproduceanadditional25to30mncubicfeetofgas
perday(mmcfd) fromtheBangurafield.Thegasfield, located in
Block 9,hasbeenproducingabout100mmcfdofgasfromwell1,
2and5.Well3wasdevelopedinOctober2008.Tullowowns30%
of the total gas in Block9, while Canadian Niko Resources and
BAPEXown60%and10%,respectively.
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56700
Government to initiate power plant projects in pipelineNewAge,TuesdayJanuary20,2009The Awami Leagueled alliance government has taken an
initiativetodevelopthecostlyrentalpowerplantsandsmall
independent power plants, which were approved by the interim
government.
Power secretary, Nasiruddin Ahmed said, The caretaker
governmenttookstepstogeneratearound1100MWofadditional
electricity.Asperthatplan,around322MWelectricitywasadded
by December 2008. We are expecting around 730MW of
additionalelectricitybyJunethisyear.He furtherstatedthatan
additional 157.5MW electricity is expected to be generated in
January,131MW in February,287MW in March, 105MW inMay
and
50MWelectricity
in
June
from
a
numberof
short
and
long
termpowerplants,smallIPPsandonepublicsectorpowerplant.
http://www.newagebd.com/2009/jan/20/nat.html#1
LeatherGoods
Leatherexportsslowinfinancialrout
TheDailyStar,SundayJanuary25,2009Exportsoffinished leatherand leathergoodsdeclinedbyaround
18%duringtheJulyNovemberperiodofthecurrentfiscalyear.
According to the former chairman of the Bangladesh Finished
Leather, LeatherGoodsand FootwearExportersAssociation, Mr.
Sultan, the consumption of leather and its prices in the
international market went down by 30% last year, following a
declineininternationalproductionby6%.Industryinsidersexpect
leatherexportstodropby25% inFY09,whichwilldirectlyaffect
195tanneriesinthecountry.
Therearefourtypesofleather rawhide,wetblue,crushedand
finished leather.Bangladeshmainlyexportscrushedandfinished
leathers, demand for which dropped in the international market
duetotheglobaleconomiccrisis.
Leatherisoneofthemostimportantexportitemsofthecountry.
Some of the most common leather items are shoes, bags and
purses. Currently, the leather industry is worth around USD
508mn
a
year,
with
exports
accounting
for
USD
284mn
in
FY
08.Of
thetotalleatherexportsfromBangladesh,80%iscrushedleather
and the remaining is finished. The main exporting countries are
Italy,Japan,KoreaandChina,Sultansaid.
According to Mr. Sultan, the government should take necessary
measures todevelopandprotectthe leather industry.Essential
chemicals, such as sodium chloride and sulfuric acid that are
needed for conversion of animal hides to leather, have to be
importedandareveryexpensive,hesaid.Sultansuggestedthat
the government should reduce import duties and VAT on these
chemicals.
http://www.thedailystar.net/newDesign/newsdetails.php?nid=72831
Pharmaceutical
Localcostartsmanufacturingrawmaterialsforpharmaceuticals
TheDailyStar,Thursday,January22,2009Active Fine Chemicals (AFC), a private company, started
manufacturing raw materials and chemical reagents for the
pharmaceutical industry, with an aim to reduce import
dependency.
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AlthoughBangladeshspharmaindustryhassuccessfullysecureda
place in the global market in a short span of time, all of its
necessaryrawmaterialsstillneedtobeimportedfromabroad.A
few local pharmaceutical companies that do produce raw
materialscanproduceonly5%ofthetotalrequirement,andmost
of these products are used by themselves; the rest is imported
fromabroad.
AFC hopes to supply a major portion of the required raw
materials, which will save both time and costs. The company is
expectedtosupplyrawmaterialsworthBDT2bn(USD29.2mn)to
thelocalmarketthisyear.AFC'sfactoryhasalreadybeensetupin
Munshiganj at the cost of about BDT 500mn (USD 7.3mn).According to the senior vice president of the company, AFC has
already started producing a number of raw materials, including
reagentsusedindifferentlaboratories. Itwillbepossiblesoonto
produce raw materials used in cancer and diabetes preventive
medicines, he said. He also stated that a team of chemical
engineerscomprisingofmembersfromtheUSand Indiaarenow
workingwiththecompany.
http://www.thefinancialexpressbd.info/2009/01/22/56642.html
Shipbuilding
Shipbuildersdispelrecessionfears
TheDailyStar,ThursdayJanuary22,2009Localshipyardshavebeenreceivingenquiriesfromforeignbuyers
aboutsmallvessels,despiteadownturnintheglobalshipbuilding
industry caused by the global recession. However, according to
localshipbuilders,buyersareoffering lowerpricesassteelprices
havedeclined.
Bangladesh, which has recently entered the global shipbuilding
market, is yet to face any cancellation in orders or delays in
payments.So far, localshipyards mainlyAnanadaShipyard and
WesternMarineShipyard havereceivedoverUSD600worthof
orders for making more than 40 vessels, with a capacity below
15,000 dead weight tonnes (DWT). Most of the orders for these
shipscomefromEuropeancountrieslikeGermanyandDenmark.
Accordingtoindustryinsiders,thereareabout300smallandlarge
dockyards, generating about 100,000 jobs, but only a few
companieshavebeenabletoattractforeignbuyers.
http://www.thedailystar.net/newDesign/newsdetails.php?nid=72371
Telecoms
OperatorsaskgovernmenttoliftSIMcardtax
www.bdnews24.com,WednesdayJanuary21,2009Mobilephone operators asked the government to remove the
BDT 800 (USD 11.8) SIM card tax. During a meeting held on
Wednesday,themembersoftheAssociationofMobileTelephone
Operators Bangladesh asked the telecoms minister Raziuddin
AhmedRazutolookfurtherintotheTelecomOrdinance2008.
AccordingtoAMTOBpresidentandAKTELdirectorFazlurRahman,
theSIMcardtaxhasincreasedcustomers'expensesandimpeded
growthinthesector.
Officials present at the meeting represented grameenphone,
AKTEL, CityCell, Teletalk, WARID and Banglalink, and also the
ministry.
http://bdnews24.com/details.php?id=74333&cid=4
ATCComment:The6mobileoperatorspaidaroundUSD121mnin
sim taxes last year. This is impeding growth in the industry in
terms of mobile operators profitability and acquisition of new
mobile subscribers. Of the 6 mobile operators, only
Grameenphone is profitable, as the operators largely have to
subsidies sim prices in order to attract new customers. On the
otherhand,loweringmobilesimtaxestoPakistanslevel(around
BDT500)wouldallowmobileoperatorstosellsimsatpricesthat
are affordable for the rural population, as that is where mobile
subscribergrowthisexpectedtobeinthefuture.
StateownedBSCCLkeentorunnewcablelink
TheNewNation,ThursdayJanuary22,2009State
owned
BSCCL
(Bangladesh
Submarine
Cable
Company
Ltd)
is
interestedinsettingupanalternativesubmarinecablelinkinthe
country.
Bangladesh is now linked to SEAMEWE4 submarine cable, the
link managed and maintained by BSCCL. Of the 24.12 gigabyte
capacity,7.5GBisbeingused,statisticsshow.
http://nation.ittefaq.com/issues/2009/01/22/news0295.htm
TeleTalknetworktobeexpanded
TheNewNation,MondayJanuary19,2009Post and Telecommunications Minister Rajiuddin Ahmed Raju
Sunday said stateowned TeleTalk mobiles network and
broadband
would
be
extended
to
upazila
and
village
levels
as
soonaspossible.
A task force probe recently found serious irregularities in the
implementation of TeleTalk projects that caused losses of over
BDT 2000mn (USD 29.4mn). The implementation period of the
project was from 2002 to 2004, but it ended in July 2008.
Although the original estimated cost of the project was BDT
5940mn(USD86.22mn),totalcostsendedupbeingBDT8010mn
(USD117.8mn)duetoallegedcorruption.
TeleTalk, which entered the market in 2005, has the lowest
number of subscribers among the 6 mobile operators, with only
0.98mn subscribers. The operator has established its network in
64districts,355Upazilas,andalongmostofthehighways.
http://nation.ittefaq.com/issues/2009/01/19/news0029.htm
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Textiles
NGWFforrefixinggarmentworkers'minimumwages
TheFinancialExpress,Sunday,January25,2009The National Garments Workers Federation (NGWF) has
demanded a readjustment of the minimum wage for garments
workers.
According
to
the
NGWF
members,
the
minimum
wage
forapparelworkerswas fixedatBDT1,662 (USD24.26) in2006,
andhasnotbeen revisedsince then.TheNGWFalsostatedthat
theBangladeshLaborLaw2006shouldbeamendedtoprotectthe
interestoftheworkers.TheNGWFurgedthegovernmenttogive
workers of the country's export processing zones trade union
rights as per the convention of the International Labor
Organization.
http://www.thefinancialexpress
bd.com/search_index.php?page=detail_news&news_id=56979
JapanesefirmseekstobuyUSD600mnRMG
TheDailyStar,Friday,January23,2009Oneof the largest Japanese retail chains, Uniqlo, hasdecided to
purchase readymade garments (RMG) worth more than USD
600mn from Bangladesh in 2009. Currently, Uniqlo purchases
RMG products worth USD 3bn from different countries a year
Bangladeshi products will make up 20% of the companys total
purchasesofUSD3bn in2009.Uniqlocurrentlyhas stores in30
countries, and has a network of over 750 stores in Japan.
Bangladesh exported woven items worth USD 20.801mn and
knitwearitemsworthUSD7.234mntoJapaninFY08,accordingto
theExportPromotionBureau.
http://www.thedailystar.net/story.php?nid=72522
Garmentexportstonewdestinationsontherise
TheDaily
Star,
Wednesday,
January
21,
2009
Thevolumeofgarmentexportstonewdestinationsisincreasing,
as manufacturers aim for market diversification. Exporters have
been exporting garment products to Brazil and Mexico, the two
newexportdestinationssincemid2008. ThechairmanofDekko
Groupstatedthattheyhavealreadyshippedtrousers,shirtsand
some other woven garments, worth USD 500,000, to Mexico.
Moreshipmentstothatcountryareinthepipeline.Thegrouphas
recently started exporting to Brazil. They are also looking at
exporting to some other new destinations such as Japan, Russia
andSouthAfrica.
AccordingtoEPBstatistics,Bangladeshexportedwovengarments
worth USD 5.350mn and knitwear items worth USD 7.374mn to
Russia
in
FY
08.
During
the
same
period,
the
country
exportedwoven products worth USD 32.873mn and knitwear products
worth USD 27.662mn to Mexico. In Brazil, another emerging
export destination for Bangladesh, woven items worth USD
3.090mnandknitwearitemsworthUSD13.281mnwereexported
inFY08.Duringthesamefiscalyear,thecountryexportedwoven
productsworthUSD16.977mnandknitwearproductsworthUSD
12.211mntoSouthAfrica.
http://www.thedailystar.net/newDesign/news
details.php?nid=72258
Germanco. investsUSD200m tosetupmega textilefactory in
Bangladesh
TheFinancialExpress,Thursday,January22,2009A top German company is setting up one of the world's largest
textile
factories
in
Gazipur.
Steffen
Mohler,
marketing
and
sales
director of Multiline Limited, said his company is investing USD
200mninastateoftheartknitcompositemanufacturingfacility.
Thecompanyalreadybought80bighasof land inGazipurand ispurchasing another 220 bighas in the same area. It will have 14
factory halls employing more than 10,000 workers, once it goes
intoproductioninearly2010.Thefactorywillhavealltheforward
andbackwardlinkages spinning,weaving,dyingandwashingand
sewinginonecompound alongwithathreestarhoteltohouse
German technicians.This willbe the biggestGerman investment
in Bangladesh and by far the largest the country's textile sector
hasattractedfromaforeigninvestor.Previousinvestmentsinthe
sectorhavenotexceededUSD25mn.
http://www.thefinancialexpressbd.info/2009/01/22/56689.html
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ATCapitalTeamDhaka
ATCapitalTeamNorthAmerica/Asia
Copyright2008.AsianTigerCapitalPartnersLimited,Level16,UTCTower,Panthapath,Dhaka1215,Dhaka,Bangladesh.
Allrightsreserved.WhenquotingpleaseciteATCapitalResearch.Theaboveinformationdoesnotconstitutetheprovision
of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do not necessarilycorrespondtotheopinionsofAsianTigersCapitalPartnersor itsaffiliates.Opinionsexpressedmaychangewithoutnotice.
Opinionsexpressedmaydifferfromviewssetout inotherdocuments,includingresearch,publishedbyAsianTigersCapital
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