News Clippings from the Week (15 November)

Industrial output rises very marginally in FY 2012 (The Financial Express, November, 15, 2012)

The general index of industrial production of medium and large scale manufacturing operations increased by only .02 percentage points in the last fiscal year (2011-2012). Production of furniture, food and beverages, tobacco, chemical, petrol, rubber goods recorded a decrease during this period.  Cotton, woven apparel, leather, fabricated metal products, paper products, and non-metallic products all increased.  Some increases in power availability were noted.  Small-scale manufacturing recorded a larger increase of 3.54 percentage points.

Bangladesh could be next China (The Daily Star, November, 14, 2012)

According to a World Bank report, Bangladesh can become an alternative to China despite several obstacles, including poor governance, lack of foreign direct investment, poor infrastructure and unplanned urban growth.   In order to be the next China Bangladesh will need to improve its business environment. But the payoffs are potentially huge.  Capturing just 1 percent of China's manufacturing export markets would almost double Bangladesh's manufactured exports. Experts said that said skilled labour shortage outside Dhaka and Chittagong is the main impediment to dispersion of economic activities.

Big time for garment (The Daily Star, November, 12, 2012)

According to Richard Vuylsteke, leader of a delegation of international buyers, Bangladesh is their first choice in apparel production after China. The comment was made during a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA). As China is shifting away from apparel manufacturing to heavy industry now is the best time for Bangladesh to fill the vacuum.  BGMEA officials commented that energy and infrastructure are the two biggest challenges.

Women entrepreneur not getting desired loans (The New Age, November, 11, 2012)

According to Bangladesh Bank the entrepreneurs of small and medium enterprises are not getting desirable loan from the banks and NBFIs. Earlier the BB had asked the banks and NBFIs to disburse minimum 10 percent loans to the women entrepreneurs.  Loan disbursements to women have increased; however, they only amounted to 3.65%, far short of the goal. 

A lack of business ethics leads to scams: Latifur Rahman (The Daily Star, November, 11, 2012)

Latifur Rahman, who received Business for Peace Award 2012 said that the recent financial scandals in Bangladesh have occurred due to the absence of ethical business practices and exemplary sentencing of the culprits. He stressed on ethics and morality for sustainable business.