The New Nation - Internet Edition

Unrest in RMG sector: Engineered conspiracy against national economy

A.T.M.Nurun Nabi

The apparel sector earned 3022.23 million dollar out of total 4018.67 million dollars during the first four months of the current fiscal, indicating that the country's export earnings heavily depend on the performance of the readymade garment industries. When the multi-fiber agreement (MFA) was withdrawn in December 2004, the vested group predicted landslide in the RMG sector vis-a-vis national economy. The prediction, however, later proved wrong due to correct measures taken by the BGMEA.

Watching no adverse impact of the withdrawal of MFA on the progress of RMG, the conspirators created series of unrest in the sector raising the issue of poor wages, unfriendly environment and unhealthy working conditions during mid 2006. A large number of factories, machineries and products were damaged. The then government after series of talks was successful in reconciliation between the workers and the BGMEA and the unrest came to end. Yet, many foreign buyers turned their faces from Bangladesh and chose new avenues.

Thus it was later observed from the export performance that the apparel sector during the first four moths of the current fiscal failed to catch the last fiscal level. The woven garments lagged behind by 9.34 percent and the knitwear by 0.56 percent. In the meantime, the European Union withdrew sanctions on China, the world's second largest economy at present. China has a reserve of $ 1.218 trillion and a trade surplus of $ 262.2 billion. So, it is hard to match the Chinese in international competition. But it is also true that the quality of the Bangladeshi products is no less inferior to that of China and as a result there can be no fear of avalanche.

One thing is true that standard quality of products are not sufficient. With this, friendly environment, good salary of the workers and healthy working conditions are also necessary. But destroying factories, burning buses and pelting stones on the Police cannot attain those. Negotiation and study of the conditions of the factories in China, India and Pakistan can improve the situation. Sadly, the vested groups do not want that. They are determined to torpedo the national interests. As over 95 percent workers are uneducated, and politically not conscious, it is easy to mislead them. And the best instrument is to spread rumours like death of workers, injury and missing. The workers never want to know the truth and respond to the vested groups.

The RMG workers do not know their extent of rights. What they are doing in Bangladesh would jeopardise own interest. Unfortunately, tthey are unable to realise it.

The RMG workers must not forget that unless the parent organisations are safe, they have no guarantee of work and eventually an income at the end of the month to which it relates. They should not be the easy victims of the anti-state elements.

BB issues guideline on mortgaged backed securities market

Staff Reporter

Bangladesh Bank has introduced a guideline allowing mortgaged-backed securities market in the country to create a new window of investment, officials said yesterday.

"We are trying to open a new window of investment through introducing the new market that will help leave a positive impact on the country's bond market," a BB senior official said.

"The overall bond and securitization market in Bangladesh has not yet flourished significantly. Especially, the concept of 'mortgaged backed securities market' is quite new," the central bank said in its guideline, circulated to the chief executives of all scheduled banks and financial institutions of the country.

However, in recent time, many lending banks, financial institutions, housing finance organizations and investors started showing their interests in the sector, according to the guideline. "Anticipating the future prospects of this sector, Bangladesh Bank as a facilitator and coordinator, feels the necessity to prepare an integrated policy guideline regarding this."

"Since each securitization itself is unique in terms of quality and procedural differentiation, banks and financial institutions may, therefore, customize their structuring model depending on the requirements of the investors and credit rating organizations," the guideline added.

Welcoming the central bank's move, the market players said the new initiative will help infuse dynamism into the country's nascent bond market and create a scope for diversifying the sources of fund.

"We are expecting the new move will give depth to the mortgaged backed securities market in the country," a senior official of Bangladesh Leasing and Finance Companies Association, said. "It will also help the banks and financial institutions to diversify their sources of financing and reduce asset-liability mismatch in their respective balance sheet."

GrameenPhone plans floating IPO by June

Staff Reporter

GrameenPhone, the largest mobile phone operator of the country, plans to list on the Dhaka Stock Exchange by floating its initial public offering (IPO) by June.

The company, 62 per cent owned by Norwegian telecom company Telenor, has more than 16 million of the country's 32 million cellular subscribers.

GrameenPhone has named Citibank as its adviser for the IPO, Bangladesh Telecommunications Regulatory Commission (BTRC) said in a statement. An announcement would be made later on the number of shares that would be sold, the BTRC said.

Grameen Telecom, owned by micro-finance giant Grameen Bank, set up by 2006 Nobel peace prize winner Muhammad Yunus, holds the remaining 38 per cent of GrameenPhone.

"GrameenPhone is the largest company in the country (by sales) and a lot of people are waiting to have slice of the pie," said Yawar Sayeed, chief executive officer of Bangladesh's AIMS brokerage.

Sayeed said he expected the IPO to be the largest in the nation's history as the company is valued at more than five billion dollars.

The biggest IPO in Bangladesh so far was by the country's private Shahjalal Islami Bank, which raised 13.4 million dollars in early 2007.

Representatives of Telenor and Grameen Telecom met officials of the BTRC and said they would list the company by June, the regulator said.

Announcement of the flotation comes after Dhaka's stock market benchmark index soared a record 91 percent in 2007 while market capitalisation jumped more than 139 per cent.

The telecommunications sector has emerged as a key driver of the economy of the country.

The booming mobile phone industry has created nearly 240,000 jobs, a study last year said.

UCBL annual conference held

Hajee Yunus Ahmed, Chairman, United Commercial Bank Ltd. has called upon the branch managers to continue determined efforts for further accelerating growth and development by enforcing adequate business drive with professionalism to strengthen bank's position in the banking sector. He was speaking as the chief guest at the inaugural session of the conference.

In the conference, Md. Jahangif Alam Khan, Chairman, Executive Committee, M. A. Sabur, Chairman, Audit Committee, directors, namely, Hajee M. A. Kalam, Sharif Zahir, Kazi Enamul Huq, Aluned Arif Billah & Mrs. Qumrun Nahar attended the inaugural session and called upon the branch incumbents, executives and officials to carry out sincere professional efforts to increase profit with pragmatic planning, productive utilisation of manpower and information technology.

Earlier, Hamidul Huq, Managing Director of the bank, outlining the performance in various core sectors urged for coordinated effort at the branch level to expand business by way of marketing new products of the bank and expanding profitable lending to further strengthening bank's position in the mainstream of banking. The two managing directors were also present.

Divisional heads and executives of Head Office and branch incumbents from all the spreading branches over the country took part in the conference to review activities of the branches and Head Office for adopting new action plans for strengthening the operational activities in line with socio-economic and global changes. Mirza Mahmud Rafiqur Rahman, Executive Vice-President, conducted the function.

Dhaka Bank starts operation at Keranigonj

Dhaka Bank Limited has formally commenced its new branch on Monday at Khan Plaza (1st Foor), Shaheed Delwar Hossain Road. East Aganagar, Keranigonj, Dhaka. Modern banking facilities like SME Banking. Online Banking along with other banking services have also be introduced right from the beginning. ATM Hayatuzzaman Khan, Director & former Chairman of Dhaka Bank Limited formally inaugurated this branch as the chief guest Among others, Altaf Hossain Sarker, Vice Chairman, Md. Amirullah, Director, Shahed Noman, Managing Director, Sirajul Haque, Head of Operations and Md Azam Khan AVP (Communication & PR) were also present on the occasion.

Vietnam likely to lure foreign investment of over 20 bln USD this year

Xinhua, Hanoi

Vietnam, though targeting foreign direct investment (FDI) of only 14-15 billion U.S. dollars in 2008, is much likely to attract FDI of more than 20 billion dollars this year like it did last year, according to local newspaper Vietnam Economic Times on Thursday.

The country's Ministry of Planning and Investment is considering licensing some FDI projects worth billions of dollars each.

They include a Chinese-invested project on building a thermoelectric plant in central Binh Thuan province with investment of 1.4 billion dollars, an Indian-backed projects on producing steel in central Ha Tinh province with investment of nearly 3.8 billion dollars, and a Swiss-invested project worth 2.9 billion dollars on developing tourism on southern Phu Quoc island. Vietnam lured a record FDI of 20.3 billion dollars in 2007, bringing the total registered capital to 83 billion dollars with 8, 590 operational FDI projects by the end of the year.