Uber in Dhaka

Uber to launch taxi service in Dhaka soon
For those who are familiar on what "Uber" is,  they will be excited to know that Uber is coming to Bangladesh. Having planned to launch this transport service for the last eight months, it is reported that Uber will hit Dhaka streets in a matter of weeks.

An American multinational online transportation network company, Uber have revolutionized transport in many cities. Using requests through an app, people can commute more easily to and from their destinations. Costs are based on either distance in a smooth ride, or travel time in typical Dhaka congested roads.

If you want to know more about it, find out in the link.

The advent of E-Koshai

With the rise of E-commerce and the burgeoning of "smart" entrepreneurs in Bangladesh, the type of business is progressively expanding from product to service. When businesses make this transition, it is an indication of a tertiary stage of development, with service-based solutions overlapping commodity-based ones.

Online shopping has been growing popular throughout the years and with innovative packages offered during peak seasons, Eid is a target for most e-commerce businesses. Apart from all the other promotional products offered at discounts or attractive prices, other services have been seen to solve basic problems during Eid. The other biggest Islamic festival in the country, brings with it some regional and traditional issues that many a times entail the sufferings of the citizens.

A e-solution for the Koshai problem?
Discovering new business trends and current opportunities, businessmen have been quick to offer innovative solutions, this Eid in the form of "E-Koshai", a butcher service for all the livestock slaughtered during Eid-ul-Adha. Two such businesses have been identified. They claim in their social media that business this Eid has gone successfully. One of those, Sheba Platform Limited, had a supply of 158 three-member butcher teams covering the city with 17 supervisors throughout the Eid. Rated quite highly, the expert butchers cost Tk250 for every Tk1,000 of the cost of the animal. Medium skilled butchers cost Tk200 for the like. The other business, Quicknok, had 120 butcher team. They have maintained high standard by collecting information on these butchers around the city, including their NID.

A risky country for Business

Bangladesh ranks among riskiest countries for business

To all woe and worry, are times Bangladesh has set its landing page in, in an international business homepage. Recent flout of events striking fear in all respects of the country, not only the restaurant/cafe business, is at the heart of the all the upheaval.

Rated by a London-based risk analysis firm, the Civil Unrest Index lists Bangladesh at No.6 of the top 200 countries, staging public protests, mass demonstrations, ethnic or religious violence, which aggravates Bangladesh's image further. Previously, the World Bank listed Bangladesh the 174th easiest country to do business, revealing the difficulty businessmen face in this economy.

Investing in the Stock Market - Interview with CES Director Sajid Amit

The Director of Center for Enterprise and Society (CES), Sajid Amit, shares some invaluable opinion about the share market of Bangladesh, during the recent CES training on Technical Analysis. 

Part 1:

In Part 1 of the interview, he emphasizes how the risky feature of the sector should not be taken lightly by the middle and the lower-middle class to invest in the stock market, without Investor-Literacy and adequate information. The potential of the Stock Market in the economy is undeniable according to him, since investment in real-estate is not a affordable substitute for the citizens. 

Below is Part 1 of the two-part interview:

Part 2:

In Part 2 of the interview, Sajid Amit talks about the characteristic of the Bangladeshi stock market.

He explains capital market efficiency in Bangladesh and in the US explaining how they fall in the spectrum of weak to strong form.

The Director emphasized the value of financial journalism, which was inaccurate previously. So a multi-faceted awareness training program should be designed, including financial journalists, traders and researchers.

Speaking about IPOs, in-comparison with India, the big companies and locally operating MNCs are not listed in our stock market. Along with introducing their IPOs, big banks should also invest.

With these strategies in place, the development in Bangladesh would be quicker than in other countries and the future of Stock market, according to Sajid Amit, looks promising.

Below is Part 2 of the two-part interview:

PayPal enters!

Sonali Bank signs MoU with PayPal
PayPal is finally coming to Bangladesh!

After holding talks with the ICT minister in July 2015, an MoU has been finalized by PayPal after sending it to them a month back.

PayPal is an electronic payment systems used on a regular basis worldwide for paying online. Businesses and shopping most of them use this system. Since Bangladesh was facing difficulty in arranging remittances to enter the country, while a vision of thriving e-commerce is dawning, the government has made it official. State-owned Sonali Bank has signed this MoU of business cooperation.

Apps and games development institutes on way

A prospect of creating 2,000 new jobs in the IT industry is being planned with a vision to cross boundaries of our current economy. This is no revolution in the globe, but it certainly is a revolutionary prospect for Bangladesh. Apps and Games development is the new initiative for the ICT division of the government. A USD $100 bn global market, the extension of IT in this field will enable youths, the target employment demographic, to jump on board and drive the industry.

Training is being setup, costing around Tk 281 crore, utilizing 525 trainers, 8,750 app developers and 2,800 game animators, along with marketing and content experts, who will receive high-level training. Focus initially is towards the local 13 crore mobile users, who currently suffice their demand through software imports. This is the targetted turnaround, while tapping into local opportunities

Tips on your first job : university students

7 steps university students need to know to prepare for today’s job market

The job market. Familiar to all and a walk-in-the-park for none. The Director of CES, Mr. Sajid Amit, upholds the stark reality of the rising income class and the larger young population with the relatively small proportion of the present overall student size of the country. In doing so, he presents 7 practical steps that students can take to come prepared for the job market. Job creation will not boom overnight, whether it be private or government initiatives. Neither will high-paid, high-skilled work, even if the young imminent workforce is preparing for with more university education. What can they do to succeed amidst 99 other competitors for a single position?

The Director of CES shares some strategies, in these 7 steps to a higher quality candidate.

1. Identify yourself, aided by a mentor.

2. Target companies of your choice

3. Prepare a CV during first year

4. ....

Read more to find out.

 

Reading in the time of Dubsmash - Dhaka Tribune

Reading in a time of Dubsmash
Reading is virtue, or so it can be said. This was certainly so for the Director of CES, Mr. Sajid Amit, who wrote an article recently about his younger self growing up as an avid consumer of the product of well-known, classic English writers. The habit was reinforced through english medium curriculum, whereas he also acknowledged the regular popularity of Bengali writers amongst the youths, on the flip-side of bangla medium backgrounds. Later on he experienced exposure to more advanced, specific topics during higher education abroad.

From all of these experiences, and the knowledge accumulated, Mr. Sajid Amit has admitted to have enhanced his current business interactions with clients. Occasionally even, these supported him in streamlining business deals.

In the article, attesting that social media has taken over much of our reading habits, he publicized a wish to have an outlet wholeheartedly for readers, to remedy the dwindling hobby of reading amongst our current generations.

Read more in the article.

Apparel sector impacts on recent terrorism

Moody’s: Terror attack has long impact on Bangladesh economy
Global credit-rating agency Moody's Investor Service proposed in a recent analysis about the impact of terrorism that has been plaguing Bangladesh. The agency generally has "political risks", factored into govenrment bond rating calculation and so far the nation's vulnerability has been moderate. This is subject to change in the wake of recent developments.

The Agency, particularly focused on the investor confidence and external payments standing, through diminutive foreign direct investments, especially towards the main forerunner, garments exports. This sector and textile, contribute to over 80% of total export share. Both of these are vital for growth and are stimulated by FDI. 

Plea for incentives - E-commerce

Withdraw all taxes on e-commerce: FBCCI
With the speculation of the possible arrival of e-commerce giants Amazon and Alibaba in Bangladesh in 2017, the domestic sector is still at a nascent stage of development. This thought was shared by the president of the E-commerce association, E-CAB, at a discussion on the aspect of IT in the proposed budget for FY17, at the FBCCI office. The FBCCI president also compared the robust and sustained growth of the RMG sector, which was possible only through continuous government support. He urged this to be replicated to the E-commerce sector as well, a USD$500 bn market globally, with healthy allocations for entrepreneurial loans and waver until of taxes until 2024.

Transit facilty inagurates with India

Indian transit thru BD begins formally

Bangladesh and India are set to formally allow transit facility for trade and transportation, with provision of a third-country access. Goods in transit will be brought from Kolkata to Ashuganj through a river route and then from Ashuganj to Agartala, the capital of Tripura, on land route. It will be inaugurated with transshipment of a consignment to India's northeastern state. All charges are to be bourne by Indian traders, which was free previously.

FBCCI and Realtors on Budget

FBCCI ashamed of ever complicated budget
The FBCCI have expressed their disappointment and frustration regarding the policies in the new budget. Their focus was on the way the budget left out 394 out 447 recommendations made by them, approving a mere 11%. The result anticipates that realtors are will refrain from future pre-budget meetings.

CES Director Sajid Amit's articles featured in Dhaka Tribune

The Director of CES, Mr. Sajid Amit recently featured a few articles which were published by the popular daily newspaper Dhaka Tribune.

A powerful yet simple story was used to illustrate the structure of the financial economy of Bangladesh. The Director of CES, Mr. Sajid Amit related a simple hypothetical story to depict the structure of bank lending and consumer spending in Bangladesh. It also demonstrates the velocity of money circulation in the economy.Please find the featured article in the link below.
June 13: The Story of the $100 bill

The following article was regarding the outlook of the proposed Budget for FY 17 on one of the dimensions of the marco economy – banks, capital markets and NBFIs.
June 11: The budget and outlook for banks, capital markets, and NBFIs

The article below is regarding the recently presented National Budget for FY17.
June 2:   A budget for middle-income aspirations

Workplace safety in domestic RMG

RMG in Bangladesh vis-à-vis global supply chain

Recently a resourceful article was published by The Financial Express, featuring research work from ULAB Business Faculty member Muhammad Faisol Chowdhury. It emphasizes the various developments of the RMG sector of Bangladesh, focusing on the pressing issue of worker's safety.

Mega project Financing

Mega-projects to get Tk 18,700cr

Three ongoing plans for Mega infrastructural projects, has been boosted with new pledges. The government has outlined their decision for injection of greater financial resource for the projects, including the Padma Bridge, Metro Rail and the Rooppur Nuclear Power Plant.

Designing a separate roadmap, a new policy which will include 10 projects in total, will receive Tk18,700 crore allocation in the next budget. The total costs are equivalent to the whole of next year's Fiscal and values at USD $43.61 bn or Tk 340,214 crore.

India's third internet gateway

Cox's Bazar: India's third internet gateway

With Bangladesh's simultaneous exports and imports of Digital Bandwidth to India, both countries are looking on for development. As Bangladesh has the first Submarine Cable SEA-ME-WE4, landing in Cox's Bazar in 2005, the country is struggling at times to provide consistent internet during outages. During this time, 6 other private outfits through Kolkata, are insufficient to meet local demand. Bangladesh is eagerly waiting for the second promised under-sea cable. which lnads at Kuakata.

CES - Technical Analysis Training Program

ULAB launches training program on Stock Market
 
On Saturday, April 30, 2016, the Center for Enterprise & Society (CES) at the University of Liberal Arts Bangladesh (ULAB) began a three-day skills development program on Technical Analysis Training for stock market brokers and traders at Haji Ahmed Brothers Securities Limited (HABSL).

To inaugurate the training inauguration ceremony, the Vice Chancellor of ULAB, Professor Imran Rahman, the Managing Director of HABSL, Mrs. Ayesha Dada, Director of CES at ULAB, Mr. Sajid Amit, and

Market Bubbles, Structural Developments and Present Trends: An Overview of Bangladesh Capital Markets

The Center for Enterprise and Society (CES) is pleased to announce the publication of our latest report under the Sector Report Series, here. 

Title of Report:

Market Bubbles, Structural Developments and Present Trends: An Overview of Bangladesh Capital Markets 

Month: April 2016 

Publication Series: Sector Report Series 

Author: Sajid Amit, Director, Center for Enterprise & Society (CES) 

By way of a brief excerpt:

Bangladesh Capital Markets: An Overview Over the last 12 years, the Bangladesh economy has sustained average GDP growth of around 6% per year, accompanied by significant shifts in the sectoral output, away from agriculture to industry and services, towards an increasing contribution of the private sector to growth in investment. One of the drivers of the private sector contribution to investment has been the remarkable growth of the Bangladesh banking sector. Although less than a quarter of the population are formally classified as “banked”, there are over 50 private commercial banks in the country, and several of them have acquired mobile banking licenses to bridge the gap between the banked and the unbanked. 

With regard to capital markets organizations, although merchant banks and brokerage firms typically constitute the nonbanking financial institution (NBFI) sector of the economy, several banks have sister concern brokerage firms and merchant banks. However, despite the growth and development of the banking sector, the NBFI sector at large, and the capital markets in particular, have lagged behind. 

Our piece was also featured on the Financial Express. You can access it here. 

E-commerce and the Digital Frontier

Producers eye e-commerce to boost sales
Some of the consumer product brands are betting on e-commerce as their expansion pathway, riding on the booming technology wave. Big producers and esteemed fashion houses shared their opinions about the boons of e-commerce. Targeting global consumers is the new window of opportunity being discussed presently.

Robi introduces free WiFi services in commuter buses, taxicabs
Robi is coming up with leading technological advances in the country, with Wifi Hotspots in buses and taxis. 100 of each have received free Wifi Internet powered by Robi. Robi will encourage consumers further with provision of this service soon to 500 top resaurants, cafes, retail outlets, 100 educational institutes, 10 public places, as well as increasing the number to 350 buses and taxis. 1GB Robi Internet pack subscribers can access Wifi in these places for free. The telecom has partnered with the ISPsAccessTel, Qubee and Amra to plan this. Robi believes about creating "digital bridges" and has been delivering on that front purposefully.

Grameenphone, Facebook launch Free Basics
Grameenphone has already established Easynet, which provides information about learning the internet for free. It has already attracted 1.5 million users. Now, Facebook Free Basics is being introduced which allows people to use Facebook for free.

Bangladesh Bank not electronically secure

Bangladesh Bank exposed to hackers by cheap switches, no firewall: cops

The big-money electronic heist that scourged the country has identified some basic shortcomings of the Bangladesh Bank itself, which contributed to the international siphoning. The shocking absence of a Firewall security to prevent cyber attacks. Furthermore, cheap USD $10 switches to network computers in turn connected to the SWIFT global payment network has piled up lax security.

Warnings for ill-businesses

NBR: New budget to be dreadful for dishonest business

The NBR is officially coming down on mal-practicing businesses, as stated by the NBR Chariman. The statement directly implied NBR's monitoring will be fortified and it will be reflected in the upcoming Budget. Policy measures will be present as always for incentivizing honest businesses, while serving dishonest ones severely.

BIMAN flies high

Biman carries over 2m more passengers in FY 2014-15

Biman has been on a loss-incurring streak from 2009-10 to 2013-14, due to irregularities and mismanagement which plagued the industry. In FY 2014-15, new policies were adopted. Some of them were hiring a new CEO, phasing out old DC-10 aircrafts, induction of new aircraft to the fleet including a Boieng 777 300 ER, detecting and utilizing profitable routes while discontinuing loss making ones. The new CEO was replaced by an Acting CEO during his absence and a loss making first half.

In 2014-15, Biman carried over 20 lakh more passengers being 28% more, transported almost 31% more cargo, earned a profit of Tk 272 crores.

Bond facilities - NBR policy changes

NBR plans policy changes to check misuse of bond facilities
To battle duty evasion exercised in bonded warehouse facilities the government has detected the incapacity in the existing system to deal with this. Thus, before the next fiscal, the NBR has planned initiatives to ensure bonded warehouse facilities are not extended to regular imports. It has planned to reduce or withdraw VAT on the items under this facilities. Only the 5% duty will be kept and the 15% VAT will be abolished.

Mis-use of bonded warehouse

Businessmen concerned over misuse of duty-free bond facility

Those businesses which are enjoying bonded warehouse facility, which is the importing duty free raw materials for export oriented production processes, are mis-using the aid. Instead of utilizing imported materials for processing export commodities, they are selling it to the local market. This is hitting small traders hard. The FBCCI president alerted traders to remain vigilant. An unchecked and ongoing process, which costs the government Tk 58,000 crore annually. The NBR has been asked to provide a list of merchants enjoying the facility.

Other issues related to encouraging VAT payment, reduction, taxpayer expansion and transparency have been discussed at a pre-budget discussion.

Insurance fair 2016

First-ever insurance fair kicks off tomorrow

The first Insurance Fair is starting today, March 23. Headed by the Insurance Developemnt and Regulatory Authority (IDRA). Over one thousand insurance clients will be paid off their debts and jobseekers will be made aware of present opportunities in the industry.

The aim of the fair is to change public perception about Insurance and the industry, which is generally negative still. This will help an industry bloom, which is a largely successful one in developed countries.

World Online Ad spending outgrow TV

Internet ad spend to overtake TV by 2017

The internet is consuming everything in its path! Well, this time its the immediate future of Advertising on TV. The internet, driven by the enormous constant, live, recurring traffic has been understood to demand more promotional activities than broadcast on TV!

First time on 2017, it is predicted that global businesses are planning to spend more on internet advertising than on television. A French forecasting company said that online ads will outgrow the rest of the advertising sectors in 2016 driven by social media, online video and paid search. Challenges remain, but confidence is not shaken. With Rio Olympics, European sporting competitions and the US Election, many campaigns are set to run and make their marks on the worldwide ad industry.

Direct flight bans to the UK

DCCI calls for quick fix to ban on direct air cargo

Deep concerns for business as of March 8th, the UK banned direct cargo flights from Dhaka, reasoning Bangladesh not meeting international security requirements. Previously, Australia has done so too with similar complains during December 19, 2015.

Flights to the UK travel four times a week with domestic passengers and 25 tonnes of cargo each. Exports are US $3.2 bn and imports are US $330.72 million, to and from the UK. Garments and frozen fish consist mostly of the trade. Rerouting through Hong Kong, Singapore and Thailand will hike costs immensely.

UK ban not to hurt vegetables export much
Although this ban is of great concern, vegetable exports are not going to be impeded or made costlier, due to the traditional choice of non-direct flights for the category to the UK. Daily averages of 30-35 tonnes of veges consist of 40% to the UK and the rest to other global destinations.

"According to Export Promotion Bureau data, during July-February period of the current fiscal year, Bangladesh earned $2.46bn from exports to the UK, of which, $2.27bn were RMG products and $7.5m vegetables and other agricultural goods."

The March of Women

More than 40pc of India's women confined to domestic work: report



Women in India depict only 27 percent of the formal labor force, despite recent inspiring statistics of improving literacy rates. Health and nutrition is also being formalized, much so in Bangladesh, which is a diffusion of going one-up on the diminutive status of women in third world countries. This is undoubtedly inspired by the global awareness of the recognition of women and their roles in the community. In India however, domestic household work, a product of historic marginalized attitudes, is still not considered in formal policy. Working 10 times more than men at unpaid work, considering household compensated productivity would contribute US $300 bn to India annually. However, much like Bangladesh, many challenges remain, to liberate women and shine a light of success towards their gender.

Women's economic footprints are growing
Delightful news, in contrast, where women-led households have been noticed to multiply six-folds, in the last decade in Bangladesh. From around 62 thousand, it stood at 3.63 lakh in 2013.

Overseas investment challenges

FBCCI wants freedom in overseas investment by local entrepreneurs
Investors have been called upon to invest abroad, to eventually utilize and boost our current foreign exchange reserves of US$28 bn. For such, the current account needs to be converted so that investors can invest outside the country.


Further, loan default problems, promotion of corporate governance, proper enforcement of laws and consumer rights and bankruptcy, and promotion of a culture of self control by chambers and  associations as challenging for the private sectors integrity.

More about the fight for transparency and dealing with corruption in the private sector can be found in the news link covering a seminar with the FBCCI, NBR, JICA nad NIS.

Jute hopes

Diversification needed to revive jute exports
Diversification, with innovation being taken into consideration should be the key factor to proper in the light of potential global demand for Jute products of Bangladesh. Furthermore, participation of manufacturers and analysis of the need of Jute in an international context are as vital. With nations and governments supporting "green", green products like for shopping bags, geo textile, pulp and paper are growing, while plastic is being frowned upon. Bangladesh is already operating with major crops being stocked in jute bags, by new law.

Highlights Feb 22 - Mar 3

This post features Highlights from the past 2 weeks. The last week of February screened some developments on growth and electronic media, but also featured inefficient processes involving the Farmer's bank and the RMG sector. Last week, starting March, featured some positive news, with a promising change to the Industrial Policy, construction progress of the Hi-tech park and Banglalink pledging for MFS. Finally, a comparative and insightful post covered content on Cyber Security measures in the country, with questions on SIM registration, initiative on VAT through MFS, etc.


Feb 22  :    Requirements for growth
Feb 24  :    Farmer's Bank cleared
Feb 25  :    Mismatch of electronic media delivery
Feb 25  :    Unutilized RMG development fund

Feb 28  :    Industrial policy helping FDI
Feb 29  :    Block 2 and 5 of Hi-tech park
Mar 01  :    Banglalink on MFS
Mar 03  :    Initiatives on Cyber Security
   

Initiatives on Cyber Security

Cyber security is getting a lot of attention in these past few days. Fresh in our frightful and alert minds, we had the ATM scam. Now we are all getting worked up about getting our SIM biometrically registered with various slogans and inspirational offers. What about the flip side? The significance of being online in our lives is stepping onto a new step though online payment and personal information disclosure. This post features a few activities happening towards a word of caution

Calls for stronger cyber security get louder
On a seminar on integrating VAT e-payment, some top policymakers suggested that every precaution is fore sought to safeguard online financial transactions. Giving caution to the wind, they expressed the risks we are posing to ourselves by integrating our lives and money online. Since it is common knowledge that FBI, WB and IMF has also been caught under fire of hackers, the Bangladesh Bank Governor expressed the need to be cyber secure. Already many systems are in place and further being suggested.

Banglalink on MFS

Banglalink keen to expand mobile financial service

Vimpelcomp, the parent company of Banglalink, on a visit to the country expressed interest in investing in Mobile Financial Services, as it harbors the innovation technology, strong network and retail distribution, a ready customer base and the global experience in this segment. However, the potential of reaping benefits is not perceived attractive since the government has capped the share of extending this service to 15% for the consortium. The companies representative believes multiple ownership will complicate, slow down and frustrate service provision.

Block 2 and 5 of Hi-tech park

Summit to kick off construciton of blocks 2 and 5 in High-Tech Park today

The much awaited Hi-tech park will see construction finally in progress as of Feb 28, with block 2 and 5. The 232 acre Hi-tech park will house 65 acres for block 2 and 29 for block 5, which Summit Technopolis will take to construction under the Public Private Partnership. The deal with Bangladesh Hi0tech park authority will witness collaboration on park design, build, finance, operate, own and transfer. Summit will be cashing in USD $207.59 million for the construction of block 2.

Technocity, investing USD $25 million already started construction of block 3 in October 2015.

Industrial policy helping FDI

Foreign investors to get wider benefits in new industrial policy

A new refreshed Industrial Policy for 2016 is set to contain specific incentives for foreign investors to re-think Bangladesh as a lucrative and investor friendly business oriented economy. One-stop-service, country-specific economic zones, industrial parks, green business incentives will all be made available for foreign investors in a bid to revive the economy to international players.

Unutilized RMG development fund

$200m RMG fund left untouched

The EU ambassador said $USD 200 million was available for the RMG manufactures for development of the industry on behalf of the EU, USAID, JICA, IFC and few smaller organizations. Improvements can be significantly made in the areas of fire safety, electricity and overall structure of the factories. The fund created offered interest at minimalistic rates of 1-3% on loans, while commercial banks are charging 15%. However, this opportunity for development of the RMG industry, foremost of which being worker's safety is still not being utilized by the RMG manufactures.

 522 RMG units make less than 40% progress on Remediation
The Accord of Fire and Building Safety produced a list of 522 garments factories which are slack to produce increasing efforts to improve workplace safety. They have only updated improvement and remediation efforts only less than 40%. Previously, the Accord listed 36 RMG units who were slow to comply after which some good results were seen.

Mismatch of electronic media delivery

Digital content for grassroots people is the way forward

With the progressing growth of internet connectivity across the country, the former president of the Bangladesh Computer Samity has expressed some insight about the current status of digitalization. Smartphones, tablets and computers increasingly becoming the means of connecting online for even the people in the grassroots nowadays. However, he has referred to the mismatch of content with infrastructure, pointing out that the government is not stressing on content, first.

Farmer's Bank cleared

Farmers Bank apologises to BB for loan irregularities

The Farmer's Bank, plagued by allegations of loan irregularities, not following Bangladesh Bank's rulings. It had marked Tk 38.26 crore to six financial institutions as investment. The infringement occurred when the bank decided to trump the central bank's radar by branding it investment, since they failed to bring down the credit-deposit ratio by a stipulated time frame. The rate was to be brought down to between 70-75%, to check aggressive lending.

Requirements for growth

Equip youth with skills to accelerate growth

Bangladesh's prominent strides towards a middle-income country faces many challenges, but it's also presented with many possibilities. One such possibility is unlocking the potentials of the youth, so that they can enjoy demographic dividends. Drawbacks for demographic dividends are that the proportion is increasingly being owed to elderly and dependents. Another such deficiency is the abundance of untrained and semi-skilled workforce. A significant connectivity must be created between educational institutions that communicate seamlessly with the various industries to provide highly skilled labor.

Further discussions and outlines of developmental issues were discussed in a conference on "Bangladesh: Way towards a middle income country". Policies and institutions, public perception on politicians, judiciary independence and governance agenda, uncertainty about the future reflected by private investments were some of the issues discussed in the meeting.

Headlines Feb 15 - 17

Finishing the long weekend, we look back at the events of last week. Predominantly, the ATM inconsistencies gave us a big scare and so much of the news was covered.

Feb 15  : ATM loopholes!
Feb 17  : ATM Transactions decline

ATM Transactions decline

ATM forgery takes toll on electronic transactions

Following the recent transaction-scam in ATM booths, personal financial dealings have immediately taken a dip. Bangladesh Bank statistics have informed that in the month of February till the 15th, Tk 2.53 billion was recorded; till February 13, the aggregate transaction records came to Tk 2.38 billion.  With a daily average of Tk 181 million, on February 14 saw withdrawals of only Tk 46 million.

The average citizen is expressing serious concerns about the card-skimming issue. Between February 6-12, information of 200 debit/credit cards have been discovered stolen from these booths. Tk 25 lakh has been reported stolen from 6 ATMs of 3 banks, the highest amount from EBL. No one has been arrested yet.

Find out more in this link, which demonstrates how the forgery was done by a possible culprit from a CCTV photo:
Probe on to find ATM frauds

ATM loopholes!

ATM frauds rattle banks, customer

As the economy of Bangladesh is progressively embracing the revolution towards advanced technology in banking, so are its counterparts of high-tech pilferage. Banking scams, counterfeits and frauds have been evolving with the changing face of the banking industry. Like dynamic hackers who continuously create new online virus, Bangladeshi fraudulent experts are also challenging themselves to abuse loopholes in the banking system. Fraudsters have been reported to use clever technologies to skim ATM card information and make fake cards. 21 such card transactions have been detected recently that has forced suspension of ATM transactions through the National Payment Switch.

A fake EBL card was detected to be used for this fraud. The bank victimized was UCBL. EBL immediately suspended all ATM transactions for 6 hours, while the Central Bank requested all banks to remain alert on a Friday.

People with special intentions have been reported to present fake IDs as IT experts and install cameras on top of the ATM machine or attach a small device to the ATM reader to copy cardholder information. The copied information is then transferred into a new fake card using a blank magnetic strip. This has been accused of vulnerability using the NPS.

Find out more in the link.

Headlines Feb 7 - Feb 11

In the second week of February, we saw hints of a new industrial policy with prioritized industries outlined, a slow-march towards meeting possible investment horizons and new tariff guidelines drastically change Titas Gas market value.

Feb 7  :     New Industrial Policy
Feb 10 :    Investment a target to be achieved
Feb 11 :    Titas gas facing the heat

Titas gas facing the heat

Titas Gas share price battered by cuts in distribution charges

Due to a operational policy reformulation, the net market value of Titas gas has fallen by more than Tk3000 crore in the last five months, its share price dropping to a lowest of Tk 42, which didnt fall below Tk60 in the last two years.

By resetting the distribution charges in-line with the new tariff structure allocated by BERC, immediately in one month, the profit disclosed dropped 33%. Titas gas decided to appeal against this decision, since all power and energy resources were re-priced higher, unlike gas. Find out more statistics in the link.

Investment a target to be achieved

Raising private investment a major challenge: MCCI

To pursue the economic growth target of 7% it is widely known that private investment growth is extremely essential for the country. Currently it is just hovering around 28%, substantially below the target of 35%.

Local and Global investors are interested in their initiatives, given the country backs them up with three things. They are:

• political stability
• easy availability of reasonably priced utilities and infrastructure
• accessible credit at low interest

Since political clout in 2013, investors have been restructuring slow. They have significant complains regarding various processes, which the government needs to address. The agriculture and service sectors are improving, but needs support for sustainability.

Read more in the link to find out how the investment climate is harnessing currently in Bangladesh.

New Industrial Policy

Proposed industrial policy brings in reforms

A list of high priority industries are being formulated within the new industrial policy. 2 new sectors included are the creative industry and the high-priority industry, which is mentioned in the draft Industrial Policy 2016 replacing the previous one.

The prioritized industries are

• agriculture and food processing
• garment
• ICT and software
• Pharmaceuticals
• Leather 
• Jute and jute goods 

Find out more about the draft policy plans in the link

Highlights Jan 31 - Feb 2

Featuring the recent CES Sector Report on E-commerce, last week the blog further extended on this by focusing a spotlight on the possible formulation of an e-commerce policy. Some statistics from the highly jam-packed International Trade Fair was also covered.

Jan 31  :   CES Sector Report
Jan 31  :   Flyover update
Feb 1   :   E-Commerce policy preview
Feb 2   :   Booming export orders at DITF

Booming export orders at DITF

DITF ends with record export orders
Exhibitors reject DITF export order claim

The Dhaka International Trade Fair 2016 ended on January 31st and its concluding statistics said the export orders received at the fair was an abnormaly mammoth one - a total of Tk 235 crore order, which is 176% more than that of last years at only Tk 85 crore. Although it is expected that foreign buyers are present in the fair every year, this time there has been a doubt about their presence. This constitutes a discripency in the statistics.

Some exhibitors expressed the lack of initiatives to attract foreign buyers. However, official sale statistics have been reported to be above Tk 121 crore, which was Tk 71 crore higher than previously. This has been acclaimed towards the prevalent political stability which was a sharp contrast during the last year's fair. With 22 countries participating, 553 stalls were allocated, 56 of which were foreign companies. Within 14 categories, 38 institutions were awarded of which, Walton Hi-Tech industries received the first prize in premier pavilion category.

The FBCCI has proposed that this sort of arrangement be held at all divisional levels as well.

E-Commerce policy preview

Policy for e-commerce in the making

E-Commerce is being prioritized as a burgeoning sector in the country, to be the recipient of foremost infrastructural support. The E-Commerce Association of Bangladesh (e-CAB), the official association founded for e-commerce, has adopted formulating the policy guidelines for e-commerce in the country. The ICT minister is observing this sector as more crucial this year. A draft preparation is assigned to e-CAB, which will be finalized upon comprehensive review.

CES Sector Report

The Center for Enterprise and Society has published a Sector Report on E-Commerce in Bangladesh.

The report provides an overview of the e-commerce sector in Bangladesh, analysis of different types of e-commerce businesses, regulatory developments, business strategies, and challenges to the sector. Rapidly growing mobile phone and internet penetration in Bangladesh has spurred entrepreneurs to envision and implement a variety of online business platforms. This sector report highlights such growth trends and also shares findings from a focus group discussion of e-commerce practitioners and experts.

It has been featured in Dhaka Tribune as a three-part analysis series. Find out about it from our very own link:

E-Commerce in Bangladesh Sector report

and from these news articles:

E-commerce in Bangladesh (Part I) 

E-commerce in Bangladesh (Part II) 

E-commerce in Bangladesh (Part III) 
E-commerce in Bangladesh (Part IV) 
E-commerce in Bangladesh (Part V)  

Highlights Jan 24 - Jan 27

Last weeks highlights were predominantly on the telecom sector and the internet connectivity. Starting with a flashback of snapshots in 2015 for the telecom sector and the introduction of 3G, the blog featured recent happenings and growth in e-commerce in Bangladesh. Although the digital economy is growing, a World Bank study stated some statistics that speaks different about Bangladesh, which was featured. Lastly, a different topic was presented. The hyped Moghbazar-Mouchak flyover has significantly caused traffic trouble in the designated construction zones in the last couple of years. In addition to the paralyzing and extended timeline, the project is marred by debacle over design flaws.

Find out all of the news in the links:

Jan 24  :   3G and telecom in 2015
Jan 25  :   Internet "non"-penetration
Jan 26  :   E-commerce through smarphones rise
Jan 27  :   The Maghbazar-Mouchak flyover

Flyover update

Concrete block in city's heart

Upon the feature in the CES blog last week, there has been more news coverage previously of the discrepancies with Maghbazar-Mouchak flyover construction, which is taking eons to complete. Even which was blueprinted, there are significant design drawbacks, which cast a shadow over the pledged traffic congestion remedy. The image highlights at least 6 design flaws and few irregularities that contribute to the fiasco of flyover construction.

The Maghbazar-Mouchak flyover

Flyover fiasco runs up costs

The Maghbazar-Mouchak flyover is facing the music, while dabbling on excuses and extensions, making life in Dhaka city ever so in sync with the rest of the worst-livable city on the planet. One of the early flyover projects, it was approved in 2011 and started in February 2013 expecting a finish-line in December 2015, but now seeks extension till June 2017.

E-commerce through smarphones rise

86pc of users trust e-commerce: surveyStudy: Well-off consumers opt for online shopping
The combination of online marketplace and the affordability of smartphones are driving a strong sector to a steep growth curve: E-commerce. It is reported in a survey that 18% of the middle-class in Dhaka, Chittagong and Sylhet buy online, everyday. LightCastle Partners have reported that 86% of the the 450 respondants have a trustworthy perception regarding E-commerce. These respondants are young, between ages of 20-40, and belong to the middle class, with earning between US$251-US650.

Internet "non"-penetration

Bangladesh has fifth largest offline population globally: WB

In a recent World Bank study has found that Bangladesh has about 148 million population still out of the the reach of internet connection. This makes the country the fifth largest offline economy in the globe. India, China, Indonesia and Pakistan are ranking higher in the list above our country. The study also stated that 60% of the worldwide population are outside net of digital connectivity.

Bangladesh national statistics reports otherwise and have dismissed the World Bank's figures. BTRC has provided national statistics of total active internet connections to be 53.94 million as of November 2015, which is significantly different from the World Bank's estimates of 11.98 million. Internet penetration from BTRC is reported to be above 34% currently. This figure is accepted as official.

3G and telecom in 2015

3G brings a boom to telecom

In 2015, the Association of Mobile Telecom Operators of Bangladesh are greatly satisfied at the expanse of 3G distribution all over the country. Figures showed 40,000 new 3G connections being rolled out everyday. November 2015 final figures for the economy highlighted 2.47 crores (24.7 million) existing 3G subscribers, with internet connections to be 5.39 crores (53.9 million). Six mobile phone operators grew 1.28 crore (12.8 million) new SIM connections, while the government slashed SIM tax from Tk300 to Tk100, helping digital growth in the country. On that front, mobile phone imports in October only totaled 2.69 crores (26.9 millions), 46.7 lakh (467 thousand) of which were smartphones. Astonishingly for mobile phone growth statistics, the whole of 2014 managed imports of 2.59 crores (25.9 millions).

Headlines Jan 17 - Jan 21

Last week's headlines read a little bit about how banks should consider mergers, ICT expansion and possible revenue in future, RMGs to be setup in economic zones and neglecting lessons from Rana Plaza.

Here are the links:
Jan 17  :  Too many banks
Jan 18  :  ICT horizons
Jan 20  :  RMG in economic zones
Jan 21  :  Global supply chains did not learn from Rana Plaza
 

Global supply chains did not learn from Rana Plaza

Study: Global supply chains for multinational companies fail to detect serious

After the massive tragedy of the RMG factory Rana Plaza in April 2013, a study from the University of Sheffield still finds labor environment and working conditions are still dwindling. Labor abuse is widespread in global supply chains in places like North America, UK and China. These are factories which are labelled "certified" which means these, despite passing quality and commitment, have still exercising questionable treatment towards work standards.

Find out all the interesting discrepancies reported, in the link.

RMG in economic zones

PM urges RMG makers to set up new factories in economic zones

The BGMEA Administration has called on the government and the Prime Minister to support the RMG expansion with planned and infrastructurally supported initiatives. The Prime Minister has herself urged manufacturers and exporters to set up new industries centered on the economic zones. The BGMEA believes in this call for structurization as it will benefit from those zones.

ICT horizons

Government plans to earn $5bn from ICT sector by 2021

The hope of US $5 billion earnings from the ICT industry is a part of the vision to springboard Bangladesh's growth rate by 2021 contributing 5% to GDP.

In a press conference, the ICT State minister summarized the developments of the ICT sector in the previous two years alongside expressing plans for the future of ICT. He outlined the security sector, to be receiving the promising support of the ICT Division. Digital security act and digital forensic labs are part of the plan, for this current year.

Too many banks

Merge weak banks with strong ones: analysts

In a burgeoning yet small economy of Bangladesh, there are an immense amount of business activities. To support these businesses, a total of 56 banks are in operation in the country. Fifty Six. Naturally, these banks are not large scale banks, which means their profit margin is limited. Consequentially, to survive in the banking business, profit making efforts are exerted: through high interest rates. In a
banking reforms forum, this fact was stated and many attested to having too many banks in the country.

Headlines Jan 10 - Jan 14

Last week, Center for Enterprise and Society blog has looked at various sectors including RMG, mobile banking and leather. How lives of women are changing through making a living in garments, what is the status of Mobile Financial Services, what are the updates of the much talked about tannery relocation to Savar; these were the features of the blog. An interesting post about climate change policy, which is disadvantageous to countries like Bangladesh shed a very different focus. Find them below:

Jan 10  :  Women in the RMG
Jan 11  :  Global climate change diplomacy
Jan 13  :  MFS milestone
Jan 14  :  Tannery relocation process

 

Tannery relocation process

25 tanners face legal notice as they fail to relocate factories

The relocation process of the Hazaribagh tanneries are going on to the more organized and better infrastructurally supported one in the industrial park in Savar. However, some factories are lagging behind and the government has decided to take action.

As of January 10, a 72 hour notice has been dispatched towards tanneries who were behind schedule, to express the seriousness of the matter. A list of 28 tanneries were documented. They are out of the 150 tanneries that have been pushing to be situated at the new site in Savar.

MFS milestone

Mobile banking clients cross 3cr mark

Last year's Novemeber was a milestone for Bangladesh's Mobile Financial Services. Since crosssing that, it kept on moving forward, paving the way for a more financially inclusive nation.

Crossing 30 million or 3 crore subscribers in October, it stood at 3.12 crore in November. Of above 2 crore mobile banking clients in November 2014, it rose 33% by 79 lakh over the year. The expansion of services were pronounced if we look at the last 2 years. From 50 lakh in April 2013, growth figures showed 524% increases to 3 crore in Novemeber 2015. Of the total 7 crore depsitors at the end of September, 42% could access mobile financial services. Around 5.5 lakh agents are involved with this business.

Global climate change diplomacy

 The grammar of climate change

Acknowledging that it is they themselves that are causing the major impact on the tremendously paced nature of climate change, developing countries agreed fervently to globally coordinate efforts to decline increasing carbon emissions. It is such a diplomatic world however, that a certain change in constitution, more precisely a single world, can make all the difference for the not-developed countries, the immediate victims of climate change. When "shall" was altered into "shall/should" for referring to measures of adaptation and mitigation towards vulnerable countries, it made the effort from being a responsibility to being voluntary. Vulnerable countries like Bangladesh, which is a prime model for climate change impacts, is one of those countries affected by these words.

Women in the RMG

How RMG women become decision maker in family


Starting with fables of a common housewife of a poor family, this article reports the status of the RMG industry, where even poor women can make a prosperous living relative to their previous state. From improvement to living standards, internal family status was also lifted. The woman felt more confident individually in their own families. This is what Asian Center for Development's survey expressed, while it was measuring "Garment Workers in Bangladesh: Social Impact of the Garment Industry".

2016's hopes for private investment

Jump-start private investment in 2016

2015's private investment challenges - infrastructure deficit, slow reforms, costly borrowing, sluggish global recover and political uncertainty - are hopeful to be a thing of the past year. The year better than 2014 had better political stability, better interest rates, stable inflation and improved supply of electricity. However, the better business climate did not still mean a positive one, since lesser political turmoil was not enough to transform into better private investments.

Headlines Dec 27 - Dec 31

The last headlines post was of the final week of 2015. We featured some of the initiatives and business sector improvements. The first Business Process Outsourcing Summit 2015 held in Dhaka was intensively covered as a highly emerging and lucrative sector in the economy. Follow the links for more.

Dec 27  : Government Incubator for Startups
Dec 27  : BPO Summit 2015
Dec 28  : Social media stats
Dec 30  : Toursim outlooks
Dec 31  : Major updates 2015