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.