The New Nation - Internet Edition

Singaporean investment to Bangladesh to increase

The visiting High Commissioner of Singapore to Bangladesh Verghese Mathews said the Singaporean investment to Bangladesh which is already over $ 1 billion is likely to increase in near future. The High Commissioner, who is headquartered in the Singaporean capital, said this when he called on Foreign Advisor Dr. Iftekhar Ahmed Chowdhury at the Foreign Office on Monday afternoon, said a press release. The Foreign Adviser told him that he had met with Foreign Minister of Singapore, George Yeo, during the very successful ASEAN Regional Forum Meeting in Bangladesh and both had shown keen interest in "widening and deepening political and economic relations." Bangladesh recently held an investment forum in Singapore which was largely attended by Singaporean business houses and the investors showed interest to invest in Bangladesh. Speaking to the media afterwards Dr. Iftekhar Chowdhury said, "Singapore is an extremely successful economy. Bangladesh is also a country with huge potentials. I am sure our cooperation will bring great benefits for both countries."

WTO talks sour as 'blame game' begins

AFP, GENEVA

The United States, China and India exchanged hard words as WTO negotiations dragged into a second week on Monday, with Washington accusing India and China of hampering progress to a world trade pact, delegates said.

"The blame game has started. The US began by pointing its finger at India and China, and then China retorted sharply," a diplomat in the meeting told AFP.

Delegates from all of the 153 member states of the World Trade Organization were meeting this morning when the accusations flew.

The United States accused India and China of threatening to shatter a fragile deal reached by key parties in Geneva over the week, according to a statement obtained by AFP.

"All their invocations of development during the past years ring hollow when these major players threaten the development benefits already on the table that are absolutely vital to the vast majority of the membership," the US deputy head at the Geneva mission to the WTO, David Shark, said.

India's ambassador Ujal Singh Bhatia responded that the US accusation was "unfair", and that it was only saying so since it was "not achieving its aims", Indian negotiator Amarendra Khatua told AFP.

Ministers from about 35 key trading economies have been in Geneva for more than a week in an attempt to conclude the basis of a global trade pact.

However, an initial optimism which emerged on Friday dimmed over the weekend as emerging economies held out for a better deal.

Leaving talks on Sunday night, US Trade Representative Susan Schwab showed her frustration against the emerging economies.

She told reporters that there was a path "for a successful outcome on Friday night", and that while it was not perfect, it was delicately balanced, with a strong endorsement.

"Unfortunately a few emerging markets have decided that somehow they want to re-balance it in favour of one or another issue," she said.

"That was a very delicate balance that was strcuck. You pull one thread, it threatens to unravel."

Best Air starts flights to Colombo and Male

BUSINESS REPORT

Best Air started its direct flights on two new international destinations--Colombo, Sri Lanka and Male, Maldives from yesterday.

This is the first time in Bangladesh that any airline has started direct flights to these destinations. M Haider Uzzaman, Chairman of Best Air, Chatermpol Thanchitt Ambassador of Thailand, V. Krishnamoorthy, J Ariyarathe, Charge De Affairs, Sri Lankan Embassy Dhaka, Dta Tshering Dorji, Ambassador of Bhutan, Nguyen Van That, Ambassador of Vietnam, Mrs Zenaida Tacorda Rabago, Ambassador of the Philippines, Hassan Farazandeh and Ambassador of the Islamic Republic of Iran and newly appointed Ambassador of Maldives Dr Samad were present at the inaugural function at ZIA.

Group Capt Alamgir, Director Admin and HR, Ali Reza Khan, Director Regularity Affairs, Sadiqque Ahsan, Consultant Finance, Farhad Hossain, Director Marketing and Sales and other Best Air high officials were also present at the inaugural function at ZIA.

M Haider Uzzaman said "Several thousands of Sri Lankan citizens now working at the country's export processing zones, RMG sectors, educat ional institutes, hospitals and other businesses in Bangladesh. Besides several hundreds of students of Sri Lanka are studying at several educational institutions including the University of Science and Technology of Chittagong. Since there was no direct flight between DAC and CMB, they had to come to Bangladesh via Singapore or Bangkok with a higher price. Best Air direct flight will be blessings for them. He also mentioned that over 50,000 Bangladeshi people are working in Male. The DAC-MLE flight will carry great significance for them too."

Best Air will operate Colombo and Male on every Friday and Monday. Dhaka- Colombo--Dhaka will cost $800 (including all taxes and surcharges) and Dhaka-Male--Dhaka will cost $860 (including all taxes and surcharges).

Best Air which launched its operation on the domestic route on January 14 this year. Just after inauguration, with in 4 months this carrier started its First International flight in DAC-BKK-DAC route. Now it has added two more international destinations to its route - structure. Best Air already got the permissions to operate flights to Kolkata, Chennai, Kuala Lumpur, Kunming, Dubai, Bahrain and Kuwait.

Best Aviation started operations in 1999 as a Helicopter operator, pioneering this service in Bangladesh. Best Air started its journey as a Freighter Airline beginning 2000. Best Air has been operating different types of freighter in the Domestic & International Sectors.

Best Air obtained License in 2006 from Civil Aviation Authority of Bangladesh to operate Passenger Service in the International & Domestic Sectors. This Airline has a team of Professionals Multinational ensu ring safe Internati onal Standard flights for the passengers.

Best Air has also developed a strong base in the total Aviation Business and offers a varied range of aviation services including aircraft sourcing, emergency evacuation of patients and VIP aircraft mobilization.

Islami Bank holds business promotion meeting in Ctg

A meeting on 'Business Promotion' was held recently at Muslim Institute Hall of Chittagong organised by Chittagong Zone of Islami Bank Bangladesh Limited.

M Fariduddin Ahmad, Managing Director of the bank was present at the meeting as chief guest.

Mohammad Abdul Mannan, Deputy Managing Director and Head of Investment Wing and Md Habibur Rahman, Deputy Managing Director and Head of International Banking Wing of the bank were present as special guests.

The meeting was presided over by Abul Hossain, Executive Vice President and Head of Chittagong Zone of the bank.

M Fariduddin Ahmad said in his speech that Islami Bank Bangladesh Limited has been able to achieve the confidence of all by unveiling itself as a 'Model Bank' to local and foreign financial institutions. In this context, he urged all to improve their individual qualities up to the mark side by side developing the customer services in line with current trend of the globalised world.

He said the IBBL officials would have to acquire professionalism to such an extent that they could be able to find out acceptable and easy solutions of all the problems arised in the way of transactions through supreme sacrifice and hard work.

Mohammad Abdul Mannan said that it is our commitment to apply the principles of Shari' ah in all stages of investment.

He called upon to strengthen the foothold of the bank by recovering classified and over due investments.

Md Habibur Rahman said that all should work relentlessly with a view to reinforcing the role of Islami Bank through the wide collection of remittance and increasing export business. He also stressed upon providing special service to expatriate clients.

Microcredit summit in Bali debates profit: Nobel laureate says shouldn't make money from poor

AP, Thailand

When Nobel Peace Prize winner Muhammad Yunus began making US$27 loans to women in Bangladesh three decades ago, he wasn't thinking of initial public offerings and return on equity.

Now that the field of microfinance is become increasingly commercialized, though, such terms weigh heavily on his mind.

"Poor people should not be considered an opportunity to make yourself rich," Yunus said by phone from Bali, Indonesia, where he is attending a meeting on microcredit that opened yesterday.

This week at the Microcredit Summit Campaign conference, privatization advocates will be pitted against those who believe you can save the world or make a buck - but not do both at the same time.

Members of the pro-market faction argue that civic-mindedness alone will never draw enough capital to serve the billion people who want rudimentary banking services. Profitability is the key to sustainability, they say. Those against commercialization fear the microcredit movement is losing its soul, prioritizing investors over the world's farmers, sheepherders and street vendors, many of whom struggle by on less than a dollar a day.

Microfinance, for profit or not, is booming. According to Deutsche Bank, the volume of microfinance loans hit US$25 billion in 2007, up from US$4 billion in 2001, and another US$250 billion is still needed. The bank expects that private investors will pour US$20 billion into microfinance institutions in 2015 - ten times more than they did in 2006.

Many groups that started as nonprofits have become for-profit, and a plethora of microfinance investment funds, targeted at institutions and individuals, have opened in the last few years.

Citigroup, Credit Suisse, Deutsche Bank, and Morgan Stanley have all entered the microfinance market, either providing direct funding, backing investment funds or securitizing debt, and private equity investors have also started to pile in, according to the World Bank's CGAP, a microfinance research group. "You are seeing more and more financially driven investors going into this market," Eric Savage, managing director of Unitus Capital, a new for-profit firm that will help microfinance groups raise capital, said by phone from Bangalore, India.

"The microfinance sector has been relatively isolated from the global credit crisis," he said.

At least two microfinance institutions are publicly traded: Mexico's Banco Compartamos, SA., and Kenya's rapidly expanding Equity Bank Ltd.

The Compartamos initial public offering, in April 2007, was a watershed event. The bank raised US$474.7 million - and the hackles of the field's civic-minded pioneers, who say the bank is making indecent profits by charging too much interest.

Compartamos founders Carlos Danel and Carlos Labarthe, argue that microfinance is, first of all, finance. In an 11-page "Letter to Our Peers," published this year, they argued that high interest rates are needed to cover the cost of administering small loans in difficult markets.

The combination of high costs and small loan size in Mexico means interest rates are higher than in many other countries, they said.

Globally, microfinance institutions charged an average of 28 percent a year in 2006, according to CGAP.

Many, however, remain galled by what Yunus, who won the 2006 Nobel Peace Prize, calls the "distortion" of the field he forged.

His pioneering bank, Grameen, is owned by the poor borrowers it serves, and sustains itself with local deposits. The bank reported a narrow profit of 106.9 million Bangladeshi takas (US$1.6 million) on revenues of 10.6 billion takas (US$155 million) in 2007.

Grameen charges a simple interest rate, noncompounded, of about 20 percent a year.

Charity, Yunus said, "shouldn't tickle people's greed."

HSBC branch in City Centre, Motijheel resumes operation

BUSINESS REPORT

The City Centre, Motijheel branch of The Hongkong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh resumed operations from yesterday.

HSBC had been running the operations of the branch in an alternative location ever since the City Centre building was vacated due to precautionaty reasons in April of this year.

The City Centre branch is being re-opened following the report by a government appointed expert committee which stated that the City Centre building is safe for use.

In addition, the building authority has followed the recommendations by the committee for better safety of the installation process in future.

HSBC City Centre branch is located at 103, Motijheel Commerical Area.

The bank's management would like to thank its valued patrons for their continued support and patience, and apologise for any inconvenience that may have been caused during the interim period.

Masih-ul-Huq joins as MD of IPDC

Masih-ul-Huq Chowdhury has joined Industrial Promotion and Development Company of Bangladesh Limited (IPDC) as the new Managing Director and CEO from July 27, 2008.

Prior to his joining IPDC, he was employed with Standard Chartered Bank as the Regional Head of Consumer Credit (SME) for West Africa based in Nigeria.

Mr. Chowdhury has 16 years of enriched banking career at home and abroad with three of the world's most renowned financial institutions i.e. Standard Chartered Bank, American Express Bank and Citi Bank NA. He served different capacities under Corporate, Consumer and Global Markets with the organisations during the tenure.

Nizamuddin Ahmed re-elected Meghna Life Insurance chairman

Prominent insurance personality Nizam Uddin Ahmed has been re-elected as the Chairman of Meghna Life Insurance Comany Ltd for the next two years. This was declared at a meeting of the Board of Directors of the company held recently.

Nizam Uddin Ahmed is also the Chairman of Karnaphuli Insurance and founder of Meghna Life Insurance. He is a Vice-chairman of Bangladesh Insurance Association and Editor of the Weekly Muktibani.

Mr Ahmed was born in 1947 in Bhola. He did his MA in Journalism in 1972 from the University of Dhaka and also passed the L.L.B.

Nizam Uddin is associated with various social development works. He is a founder Chairman of Nizam-Hasina Welfare Foundation. He visited many countries including France, Belgium, England, Holland, Switzerland, Egypt, Thailand, Hong Kong, South Korea, Philippines, Saudi Arabia, Japan, Singapore and Malaysia in connection with his business matters.

Banks allowed opening 100 SME Centers in country

Bangladesh Bank has given permission to 14 commercial banks for opening around 100 SME service centers across the country by December 31, officials said yesterday.

"The banks will have to collect their licenses from the concerned department of the central bank by Nov. 30 to open such centers," a senior official of the Bangladesh Bank (BB), the country's central bank, told The New Nation

He also said the Bangladesh Bank has taken such move to gear up financing to the small and medium enterprises (SMEs) across the country.

On May 5, 2008, the central bank asked the commercial banks to submit applications by June 15, 2008, seeking permission to set up SME service centers.

The BB also instructed the chief executives of all the scheduled banks to follow the guidelines for establishing such centers, under which the banks will provide services only to the SME clients through the centers.

MAXUS celebrates its 3rd birth anniversary

MAXUS celebrated its 3rd anniversary yesterday. MAXUS is a WPP company, part of GroupM, operational in Bangladesh from July 28, 2005.

In Bangladesh Maxus is an affiliate of Media Consultants Ltd. It is positioned as a media investment management company, dedicated to a selected client roster, with full and seamless access to all GroupM resources. Its overarching purpose is to cultivate and fulfill a desire for effective profitable communication.

On this day in 2005 it started its operation through releasing advertisement of Camelia Beauty soap, a brand of Marico Bangladesh Ltd.

In 2006 Nokia, the global leader in mobile handset business, became MAXUS' client under the global partnership with GroupM. Within 3 years MAXUS became one of the largest media investment company in Bangladesh.

To address the memorable day Vikram Sakhuja, Chief Operating Officer of GroupM South Asia, said "The spirit of Maxus is a restless energy that is unleashed towards delivering customized and innovative client solutions. It also makes Maxus one of the fastest growing agencies in our group. Bangladesh is no different. We started 3 years ago with the Marico business and have since added 9 prestigious accounts including Nokia, Finlays and many others. I thank all our clients and media owners for their support. We count on your good wishes for the future."

To mark the occasion Aly Zaker, CEO of MAXUS, said "warmest felicitations to MAXUS on their third anniversary of business in Bangladesh. Within this short span of time MAXUS has made effective contribution towards adding more professionalism in media planning, disseminations and implementation. The Asiatic Group is perhaps the only conglomerate in total communication to own, in partnership with the GroupM, three full service media agencies. I am confident that with the dedication of my colleagues in MAXUS it will soon become a leader in its category of business in the country."

MAXUS offers Strategic Media Planning, Media Investment Management, ESP Entertainment, Sports, Partnership, Media Analytical Service, Media PR Management etc with the edge of owning vast media database, global propriety tools and techniques. In Bangladesh, it has also a strategic partnership with Talkingpoint, a communication agency under Asiatic Group, to handle the media business of Talkingpoint clients.

"We are very grateful to the clients, TV channels, publications, radio stations, partners and well wishers for their continuous support and assistance. We believe our seamless relationship will be continued in the glorious future" said by Shikdar Akhtar-Uz-Zaman, Business Group Head of MAXUS.

With 40 offices in 24 countries and backing of the world's largest media group, GroupM, MAXUS is well placed to exploit the changing media environment. Other GroupM assets in Bangladesh are Asiatic MindShare and Mediaedge:cia.