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$ 6.85b remittances so far this year: Foreign market for Bangladeshi workers expanding: Iftekhar

UNB, Dhaka

Foreign job market for Bangladeshi workers is now expanding at record levels, contributing to a faster increase in remittances, said Foreign Adviser Dr Iftekhar Ahmed Chowdhury.

"This year already 733,000 workers have got emigration clearance for foreign employment," he told the media during a visit to the Bureau of Manpower, Employment & Training (BMET) in the city's Kakrail area Wednesday.

At this rate, he hoped, the record figure of 832,000 in 2007 would be exceeded in 2008.

"Also this year so far an amount of US $6.85 billion has been received as remittances, which has already crossed last year's record amount of US $6.4 billion," said Iftekhar Chowdhury, also in charge of the Ministry of Expatriates' Welfare and Overseas Employment. "However, I would reiterate that our main goal is to ensure welfare of our workers abroad, and along with increasing numbers we are underscoring the need for increased welfare," he said.

The Adviser met with the officials of BMET and witnessed a 'briefing session' for outgoing workers to Malaysia.

Addressing the outbound workers, he wished them luck and assured them that everything would be done to ensure that they are not exploited.

He also expressed the hope that more and more workers would come from the 'Monga-hit' areas of North Bengal and urged the officials to make this happen.

"I am told that this year so far 10,000 workers have gone abroad from the Monga-affected region compared to 8000 last year, which is an encouraging signal," he said.

IFC Links with Singer and Al Amin Enterprise

BUSIENSS REPORT

IFC, a member of the World Bank Group, has facilitated a partnership between Singer and Al Amin Enterprise that will generate employment in Bangladesh's light engineering sector.

The two companies recently signed an agreement for producing 20,000 electric fans to be supplied by Al Amin.

Singer is a multinational organisation that produces and markets electrical goods and appliances. One of its leading products is an electric ceiling fan imported from China. Al Amin Enterprise is a manufacturer and marketer of electric fans in Bangladesh.

Like many local small and medium enterprises, the company has the potential to grow and compete with other companies that import goods, given the proper guidance and opportunity. This partnership is expected to help create jobs locally and increase income for Al Amin, and it also sets a precedent for other linkages in Bangladesh's light engineering sector.

In the long run, the partnership may help foster the development of local manufacturing companies to compete globally.

Deepak Adhikary, Deputy General Manager and Head of IFC Advisory Services in Bangladesh, Bhutan, and Nepal, said, "In countries like Bangladesh, small and medium enterprises are left to their own fate.

Linking them to larger firms helps improve local supply chains and gives them a chance to reach larger markets."

This initiative, led by IFC Advisory Services in South Asia, is part of IFC's strategy to promote and develop Bangladesh's light engineering sector.

As part of a broader effort, IFC is partnering with the Bangladesh Electrical Merchandise Manufacturer's Association to facilitate business linkages between large multinationals and small manufacturers.

Such linkages are critical for local economic development and the growth of small businesses, and they also allow for a much needed transfer of knowledge and expertise and market access.

Asian stocks hit 4-year lows

Reuters, Hong Kong

Asian stocks slumped to their lowest since December 2004 on Wednesday as poor U.S. corporate results and falling commodity prices fanned worries of a protracted global economic slowdown.

The U.S. dollar surged to a two-year high against a basket of currencies on expectations that central banks around the world will react to slowing growth in their economies by catching up to this year's deep interest rate cuts by the Federal Reserve.

European stock index futures pointed to drops of up to 2.6 percent in early trade, darkening the outlook for global equity markets. The cost of protection against defaults in Asian debt spiked to records after Argentina moved to take over its private pension system, and as fears over debt defaults rocked confidence in emerging markets. Some Asian companies have been caught off guard by how much credit markets have tightened, which constrains their access to capital, as well as the pace at which global demand has dropped.

"As the credit crunch has worsened, wholesale business inventories have risen, causing an alarming rise in inventories in Asia and emerging markets at a time when seasonally these are usually being drawn down," said Sean Darby, chief Asia strategist with Nomura in Hong Kong. "We would expect earnings to be further revised down within Asia and global emerging markets," he said in a note. Losses in Asian shares accelerated in the afternoon, with Japan ending down 6.8 percent, and South Korea slumping 5.1 percent.

Mitsubishi UFJ Financial Group's shares, which recently invested in Morgan Stanley dropped 8.8 percent after the Nikkei business daily said Japan's top lender will sharply cut its half-year net profit estimate.

The MSCI index of Asia-Pacific stocks outside Japan declined 5.1 percent, at one point touching its lowest since December 2004.

Hong Kong's Hang Seng index dropped 2.9 percent, with CITIC Pacific hit for a second day after warning of nearly $2 billion in potential losses from unauthorized currency trading. CITIC Pacific shares fell a further 6 percent after losing half of their market value on Tuesday. Earnings estimates for Asia-Pacific companies excluding Japan in 2009 have already fallen for four consecutive months, according to Thomson Reuters data. In the last month to October 16, forecasts fell 3.44 percent, the biggest monthly decline since November 2001.

Companies in Hong Kong, Singapore and Taiwan were all expected to post falling earnings this year, but were still seen having double-digit growth in 2009, according to global estimates tracker IBES.

EMERGING MARKET SELLOFF

The cost of protection against a default in Asin debt surged amid concerns about the deteriorating health of emerging markets. Pakistan, for example, is feared to be in critical condition due to dwindling foreign exchange reserves.

That has raised fears about policy responses in emerging markets, especially following news on Tuesday that Argentina will take over its $30 billion private pension system in order to guarantee payments to retirees.

A key measure of risk aversion, the iTRAXX investment-grade index widened by about 40 basis points (bps) to 380. The equivalent high yield index jumped some 100 bps to as high as 1,200, both marking new records, according to a Hong Kong-based trader.

The worsening mood comes despite massive cash injections, bank bailouts and interest rate cuts by central banks and governments.

On Tuesday, the Federal Reserve unveiled Washington's latest step to end the crisis, saying it could lend up to $600 billion to buy certificates of deposit and commercial paper from money market funds.

The weaker outlook for the global economy is hitting commodities as well. U.S. crude oil futures slid $3 to $69.17 a barrel, on mounting worries that expected output cuts by producer group OPEC will not be enough to offset weakening global demand.

FRANTIC FOREX TRADE

The euro fell 1.7 percent to $1.2831 after dropping as low as $1.2740 on trading platform EBS, a fresh 20-month low. Sterling was down 2.5 percent at $1.6255, after sliding as low as $1.6201, its lowest since September 2003.

The dollar index, which measures the greenback's value against a basket of six currencies, was up 1.5 percent to 85.658, after rising to 85.921, the highest since November 2006.

Trade was frantic, with bid/ask trading spreads much farther apart than usual, indicating very illiquid trade.

Investors reacted to the sliding equity prices by moving into the safety of government debt, with Japanese government bond futures up a full point.

December 10-year JGB futures rose by a full point to 136.65 and the 10-year JGB yield fell 4.5 basis points to 1.540 percent.

IBBL received award for best Islamic Financial Institution

Global Finance, a US-based financial magazine, awarded Islami Bank Bangladesh Limited as the Best Islamic Financial Institution in Bangladesh for 2008.

Joseph D. Giarraputo, President and Publisher of Global Finance handed over the prize to M Fariduddin Ahmad, Managing Director of the Bank in a function held at National Press Club of Washington DC, USA during the Annual Meetings of IMF and World Ban1e Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Board of Directors of the Bank was present on the occasion.

CEO's and representatives of different leading banks and financial Institutes of the world participated in the function.

Earlier, Global Finance awarded IBBL as the Best Bank in Bangladesh in 1999, 2000, 2004 and 2005.

WB's micro finance project for rickshaw pullers

BUSIENSS REPORT

An innovative project funded by the World Bank aims to assist the rickshaw pullers and poor owners to switch to alternate professions so that they can restore income and livelihood affected by ban on non-motorized vehicles in major roads of Dhaka city.

A World Bank team recently concluded the second implementation support mission for the Additional Financing: Second Poverty Alleviation Microfinance Project (Microfinance II).

The objective of the Additional Financing, in addition to the broad objective of poverty alleviation through microcredit, is to diversify microcredit operations to reach a new underserved segment of the urban poor and to provide them with technical skills for utilizing the microcredit for productive gain to improve their livelihood. A major component of the additional financing is to build institutional capacity of the implementing agency - Palli Karma-Sahayak Foundation (PKSF), the participating Partner Organizations (POs) and the poor borrowers.

Supported by the World Bank with US$ 15 million equivalent interest-free loan, project has taken-off at the field level implementation stage from the first quarter of 2008 after a series of awareness-building workshops, meetings and several rounds of other project preparatory activities. PKSF has been closely supervising progress of the project being implemented through 32 branches of 10 selected POs working in Dhaka city.

As a consequence of social and livelihood training received from the project and motivation provided by the project staff, the general level of awareness increased among the rickshaw pullers on the downside of rickshaw pulling and on importance of switching to a new profession. Up to August 2008 about 20 thousand rickshaw puller/poor owner household members had been organized and, having gone through training sessions, about 12 thousand members had received loans. It was found that around 15% of the borrower households completely eliminated their dependence on income from rickshaw pulling; another 30% - 35% engaged themselves in new professions but still are supplementing part of household income from rickshaw pulling.

Microcredit project for urban floating people intending to switch to alternative livelihood is new in Bangladesh. Therefore, the partner organizations including PKSF are undergoing learning curve on successful handling of the implementation challenges.

While the new challenges are slowing down the pace of project implementation innovative strategies are being devised to expedite the pace. The strategies include expansion of project area, use of all available options for rickshaw pullers' skill development training, and a potential extension of project closing date.

Illustrated Book on Liberation War published

BUSINESS REPORT

An illustrated book on the Liberation War named "Tagra" has been published jointly by Centre for Bangladesh Liberation War Studies and Grameenphone Ltd.

The publication ceremony of the book was held in the city on Tuesday. Mostafa Monwar, renowned artist, Prof. Anisuzzaman, eminent educationist, and Aly Zaker, celebrated cultural personality graced the event with their kind presence.

Syed Yamin Bakht, Director, Public Relations, Grameenphone delivered the welcome speech, while Major Kamrul Hassan Bhuiyan (Retd.), Chairman and Chief Researcher of Centre for Bangladesh Liberation War Studies presented the keynote describing the aim and purpose of the project.

'Tagra' is the first book of a series of publications, a joint initiative by Centre for Bangladesh Liberation War Studies and Grameenphone Ltd. Grameenphone is sponsoring the publication and distribution of these books on the Liberation War.

The targeted beneficiaries are school children, from class iv to class viii, who will be provided with copies free of cost.

The Liberation War is the central component of Bangladesh's history. This series of publications aims to present the untold heroics of the Freedom Fighters, essentially during frontal battles fought in the fields of Bangladesh, to the current generation.

While "Tagra" will be distributed only among the students of Dhaka division, the other books of the series will subsequently be distributed among students in the other divisions of the country. Some of the gallantry award winner freedom fighters of the country's liberation war inaugurated the distribution programme with presentation of books among the school students present at the ceremony.

Haroon, Ferdous elected president, GS

BUSIENSS REPORT

Managing Director of Hamdard Laboratories (WAQF) Bangladesh Hakim Md Yousuf Haroon Bhuiyan and Hakim Ferdous Wahid recently have been elected President and General Secretary of Bangladesh Unani Medical Association (BUMA) respectively.

The election was held on Monday last at Engineers Institute auditorium where district level councillors exercise their voting rights. Bangladesh Unani Medical Association is an organisation of registered Unani Hakims of the country.

Election Commissioner Hakim Sayeed Ahmed Siddiqui announced election result.

The other elected office bearers are: First Vice President Hakim SM Ahsan Ullah, Second Vice President Hakim Foyzul Islam Nabatati, Third Vice President Hakim Mahbubur Rahman, Fourth Vice President Hakim Helal Humayun, Fifth Vice President Hakim MA Karim Siddiqui, Joint General Secretary Hakim Saleh Mohammad Abdur Rahman, Assistant General Secretary Hakim Md Rezaul Karim, Organising Secretary Hakim Md Ayub Ali, International Affairs Secretary Hakim Monaem Khan, Social Welfare Secretary Hakim Md Manjur Morshed, Publicity and Publication Secretary Hakim Md Abul Kalam Patwary, Women Affairs Secretary Hakim Nurun Nahar, Office Secretary hakim Hafez Md Mahbubul Hasan, Treasurer hakim Shah Ilham Ullah Chisty andEducation and Cultural secretary Hakim Dr M Mostafa Nabi.

Bangladeshi workers in Malaysian : Action against construction contractor for deducting levy

UNB, Dhaka

The Malaysian authorities in Sungai Petani will take legal action against a construction contractor for not submitting to the Labour Department details of 96 Bangladeshi workers, says an online report.

According to thestar.com report, Sungai Petani Labour Office senior assistant director Mohd Jarjis Abdullah said Tuesday that the contractor who engaged the workers since October 8 last year, had failed to submit their personal details to his office.

He said under Section 60K (1) of the Employment Act 1955, those allowed to hire foreign workers should submit details of the workers to the Labour Department within 14 days of the recruitment by filling in the PA/98 form.

"Even if they are allowed by the Home Ministry to recruit foreign workers, it is an offence not to submit details of the workers to our department," Mohd Jarjis said in an interview.

He said the offence carries a fine of up to RM10,000 if convicted.

The contractor, who secured a two-year contract to hire the workers, was also found to have deducted RM100 in monthly levy from the workers for the past one year without written approval from the Labour Department, he said.

Any deduction of levy from foreign workers should be done only after obtaining written approval from his department, the labour official said, adding that the offence under the same Act carried the same penalty.

The official said his department found these out after 40 of the workers, all men in their early 20s staying in Sungai Petani, lodged a report at his office on Oct 6 alleging that they were not given proper jobs and wages as promised.

Mohd Jarjis said the workers, who were paid RM21 daily, had also alleged that there were times when they were not given any work for days.

"Under the labour laws, they should be given work for 26 days in a month. We are now investigating their complaints," he said.