The New Nation - Internet Edition

JETRO holds investment seminar in Singapore : Japanese investors show keen interest to invest in Bangladesh

BUSINESS REPORT

Japan External Trade Organisation (JETRO) the official trade and investment promotion organisation of government of Japan organised an Investment Seminar in Singapore on July 23, 2008. More than 65 participants from Japanese companies operating in Singapore took part in the seminar.

This is the first time, the JETRO organized investment seminar aimed at attracting Japanese investment to the South West Asian countries, had taken place in a third country. The country representatives of JETRO Dhaka, Colombo and Karachi attended the seminar as guest speakers.

Through his presentation, Tomohiro Kinomoto, Country Representative of JETRO Dhaka informed the Japanese businessmen regarding the attractive investment incentives offered by the Bangladesh government.

Besides the basic information, the presentation worked as tools to develop country image, which was found very poor in the minds of participating investors.

From the valuable comments of the participants it has been reflected that the fact and figures in the form of presentation by JETRO Dhaka succeeded to a great extent to change the existing image of Bangladesh in the mind of Japanese investors operating in Singapore. The development among the audience was quite evident. Many of the participants opined that the pictorial information of high rise buildings as well other information related to investment, trade and economy demonstrated Bangladesh's growth momentum.

Moreover, they were conveyed effectively the message that Bangladesh has developed herself to offer congenial business atmosphere to the prospective foreign investors.

Through the seminar a good number of Japanese investors have shown their instant interest to invest in Bangladesh. Already some of them decided to curry out a feasibility study on the new investment from this month.

Garment workers starve while fashion brands flourish: Kearney

"Garment workers in Bangladesh are going hungry while their local bosses flaunt their wealth and the big fashion brands sourcing in the country flourish", said Neil Kearney, General Secretary of the International Textile, Garment and Leather Workers' Federation, speaking in Dhaka.

Describing the situation in Bangladesh as 'obscene' Mr. Kearney said that while local factory owners are living in palatial-style mansions and being driven around in the biggest and most stylish vehicles, the workers who produce the source of this wealth-millions of garments exported daily from Bangladesh-are living in poverty and often denied the legal minimum wage of US$ 25 a month.

"This is a scandal of the utmost proportion", said Mr. Kearney. "Workers are skipping their own meals so that their children can eat.

One woman told me this week that her only food all day is a dish of rice and watery vegetables served up in the factory canteen at lunchtime.

"Inflation in Bangladesh has rocketed with some items of food doubling in the last six months. Recent reports indicate that basic wage workers in Bangladesh are now spending 70% of their wages on rice alone. Even wealthy middle managers told me they are finding it difficult to survive.

"The US$ 25 legal minimum wage was set two years ago and twelve years after the previous increase. In 2006 it constituted only half of what a family needed to exist. It is under a third of the living wage figure for Bangladesh.

"A total ban on trade union activity for the past eighteen months has rendered Bangladesh's workers voiceless and is driving the country further into poverty.

"It is a sobering thought that it would take a Bangladeshi worker, earning the minimum wage, 85,000 years to earn the US$ 15 million annual wage packet of the CEO of one leading global sporting goods brand sourcing heavily in Bangladesh.

"This obscenity has to stop. Workers must get back their right to form and join trade unions of their choice and to bargain on wages and working conditions with their employers.

"A monthly wage of at least US$ 70 (Taka 4,500) is urgently needed to lift Bangladesh's 2.5 million garment workers out of absolute poverty.

And even an increase of that size wouldn't constitute a living wage. The global and national garment industry can well afford such an earnings hike!" concluded Mr. Kearney.

(International Textile, Garment and Leather Workers' Federation)

City Bank's training on Financial Analysis, Loan Structuring held

BUSINESS REPORT

A second phase training programme on 'Financial Analysis and Loan Structuring' was organised by City Bank in collaboration with 'Amplitude Solutions Limited' held at Gulshan in the city recently. The training programme was conducted by Johnny Tan, Principal Trainer of Impact Consultancy and Training Pte Ltd, Singapore.

The above training programm was inaugurated by K Mahmood Sattar, Managing Director and CEO of the bank. In the inauguration session, DH Chowdhury, DMD (Legal and Compliance), Ehsan Khasru, SEVP and Head of CRM, B Choudhury, EVP and Head of SME and Shakeeb Juned from Amplitude Solutions Limited were also present. In the closing ceremony of the training program, Sohail R. K. Hossain, DMD (Business) of the bank gave away certificates among the participants.

It may be mentioned that the bank has advanced an immense deal in capacity building of its manpower to cope with the upcoming banking challenges and to enable the officials to realize their full potentials.

HSBC launches 'Smart Capital' for NRBs

BUSINESS REPORT

The Hongkong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh yesterday launched a new custodian service called 'SMART CAPITAL' for Non-Resident Bangladeshis (NRBs) through its Bangladesh International proposition.

Non Resident Taka Account (NITA) is an account that can be opened by any NonResident Bangladeshi in any bank as per the guideline of central bank of Bangladesh to invest in the capital market. 'Bangladesh International-Smart Capital' would be a service proposition of HSBC that will allow the NRB customers to bring in the inward remittances through NIT A and invest in Initial Public Offering (IPO) through HSBC, who will provide custodian services to the NRBs.

Chief Executive Officer of HSBC Bangladesh Sanjay Prakash announced the launching of 'Bangladesh International-Smart Capital" at a press conference held at Sonargaon Hotel.

Under this offer, HSBC will facilitate the sales transactions of the shares that are awarded to the NRBs through IPO by the designated broker of customer's choice. For the time being, Bangladesh International-Smart Capital will deal with IPO shares and the subsequent sales of these very shares only.

To facilitate the sales transaction, HSBC has signed a MoU with Equity Partners and Securities Limited, which is represented by the Managing Director Saiful Islam, one of the premium brokerage houses of the country.

Prakash went on to say that with HSBCs presence in 83 countries, the bank is in a unique position to offer international connectivity to NRBs to help them maintain a link with their family as well as support the Bangladesh economy.

Head of Personal Financial Services Shafquat Hossain also spoke on the occasion.

Zubayer Ershad, Customer Propositions Manager and Shohiduzzaman, Division Head Institutional Banking and Securities Services took part in the question answer session.

IBBL holds business promotion meeting

A meeting on 'Business Promotion' was held on August 2 at branch premises of Barisal Branch organized by Barisal Zone of Islami Bank Bangladesh Limited.

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

Presided over by AKM Harunur Rashid, Executive Vice President and Head of Barisal Zone the meeting was attended by executives, officials and staff of all segments of Barisal Zone of the bank.

Fariduddin Ahmad in his speech said that Islami Bank Bangladesh Limited has been able to achieve the reliance of all by exposing itself as a 'model bank' to local and foreign financial institutes.

He said to sustain the success achieved so far customer service should be improved. He called upon the officials to receive the best training course in the light of globalisation for serving the purpose.

He urged to convey the facilities of deposit schemes of the Bank to the doors of the mass people. He said, the people of the country should be made aware of the positive aspects of the Bank. He specifically laid emphasize upon Mudaraba Waqf Cash Deposit Account, Mudaraba Muhr Savings Account, Mudaraba Hajj Savings Account. He urged all to work concertedly to achieve the aim of establishing Islamic economic system.

He mentioned the multi-dimensional investment of the bank and opined that investment facilities should be disseminated keeping the sector, size, purpose, geographical areas and security of the investment into consideration.

SIBL Babu Bazar branch shifted

Social Investment Bank Limited, Babu Bazar Branch has been shifted to 31, Nawab Yusuf Road, Nayabazar on August 3. Abdul Awal Patwary, Chairman, Board of Directors of Social Investment Bank Limited was present as the chief guest and inaugurated the functioning of the branch at the new premises. KM Ashaduzzaman, Managing Director, SIBL presided over the inaugural function which was attended, among others, by Director Humayun Kabir Khan, Deputy Managing Director Abu Sadek Md Sohel and other senior executives, valued clients and local elites.

Air Arabia records 39pc growth in net profit

Xinhua, Abu Dhabi

Air Arabia, a low-cost airline of the United Arab Emirates (UAE), announced yesterday a net profit of 160 million dirhams (43.6 million US dollars) for the first half of 2008, growing by 39 per cent over the same period of 2007, the official Emirates News Agency reported.

In the first six months of 2008, the Sharjah-based airline achieved a turnover of 871 million dirhams (237 million US dollars), representing an increase of 70 per cent compared with 513 million dirhams (140 million US dollars) in the corresponding period of last year.

The number of passengers served by Air Arabia in the first half of 2008 reached 1.6 million, up 33 per cent compared with 1.2 million passengers in the same period of 2007.

The airline's average seat factor, which means passengers carried as a proportion of available seats, stood at 86 per cent for the first half of 2008, up 3.6 per cent compared with the same period of 2007.

Executive Committee meeting of Al-Arafah Islami Bank Ltd held

The 218th meeting of the Executive Committee of Al-Arafah Islami Bank Ltd was held at its head office on July 30, 2008. Abdus Samad, Chairman of the committee presided over the meeting. The meeting reviewed the overall business and investment position of the bank. Co Chainnan of the Executive Committee Abdul Malek Mollah, Chairman Board of Directors Md Anowar Hossain, Directors Mir Ahmed Sowdagar, Harun-ar-Rashid Khan, Ahamedul Haque, General Manager of Bangladesh Bank Md Amzad Hossain, Managing Director of the bank MA Samad Sheikh, Additional Managing Director ATM Harun Ur Rashid Chowdhury, Executive Vice Presidents Syed Emdadul Hoque, Sr Vice President ANM Abdus Shahid and Company Secretary and Sr Vice President Md Mofazzal Hossain were present at the meeting.

BCIC factories reach production targets, earn profits

BUSINESS REPORT

Four factories of Bangladesh Chemical Industries Corporation (BCIC) named TSP Complex, Usmania Glass Sheet Factory (UGSF), Bangladesh Insulator and Sanitary Ware Factory (BISF) and Karnaphuli Paper Mill (KPM) achieved their production targets in the financial year (FY) 2007-08 and earned profits.

TSP Complex earned Tk 320.3 million (Tk 32.03 crore), UGSF earned Tk 63.6 million, BISF earned Tk 4.1 million and KPM earned 120.4 million in the previous fiscal.

Takaful Islami Insurance Ltd declares 100pc cash dividend

The 8th Annual General Meeting of Takaful Islami Insurance Limited held on August 2 at the Head Office of the company. Chairman of the company Professor Md Fazle Azim presided over the meeting which was attended by all shareholders of the company including Managing Director Abul Kashem Chowdhury.

The meeting expressed satisfaction about the performance of the company during the year and approved Balance Sheet of the year ended on December 31, 2007.

The Chairman declared 10% cash dividend for the shareholders for the year 2007.

Crude oil falls below $120

Crude oil fell below $120 a barrel in New York as meteorologists forecast Tropical Storm Edouard will miss most offshore production facilities in the U.S. Gulf Coast while approaching Texas. Oil dropped 3 percent yesterday as Edouard's wind speed eased concern that offshore and platforms would be damaged by the storm. The Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline yesterday since March. ``The impact from Edouard seems very limited though storms can be unpredictable,'' said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. ``The sentiment towards oil has become bearish because of weak demand.'' Crude oil for September delivery fell as much as $1.50, or 1.2 percent, to $119.91 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $120 at 2:46 p.m. Singapore time. Yesterday, crude oil dropped $3.69 to settle at $121.41 a barrel in New York, the lowest close since May 5.