The New Nation - Internet Edition

South Asia braces for fall in vital remittances

Agencies

The global economic crisis is putting a dent in funds sent to poor South Asian countries by nationals working abroad amid fears their armies of cheap workers will become redundant, say recruitment agents. Millions of families in Bangladesh, Nepal and Sri Lanka rely on remittances from relatives working in construction or as domestic servants in booming southeast Asian and Gulf nations. Unskilled workers can often save in a month what they could in a year back home, helping prop up shaky balance of payments in their domestic economies.

But recruiters say this is now under threat after oil prices fell to a near two- year low of 61 dollars per barrel and as the worst global financial turmoil since the 1930s grips the developed world.

"The honeymoon seems to be over for us," said Golam Mostafa, president of the Bangladesh Association of International Recruiting Agencies.

"Oil prices have tumbled which will sharply slow down demand for our workers in the Gulf's booming construction industry in coming months. Other jobs will also take a hit." Bangladesh sent a record 832,000 people abroad in 2007, many of whom landed jobs in oil-rich Gulf countries after sky- rocketing crude prices led to a construction boom in the Middle East.

Singapore and Malaysia also took in many Bangladeshi workers as they experienced strong economic growth. In the past fiscal year, migrant workers pumped eight billion dollars into the Bangladeshi economy, accounting for 12 percent of its gross domestic product.

"Prospects in Malaysia and Singapore look bleak. Export- oriented industries, which employ hundreds of thousands of our workers, have been hit hard by recession fears in the US and Europe," Mostafa said.

Bangladesh started sending workers abroad in the 1970s, but a boost came in 2007 when spiralling oil prices dramatically increased demand for cheap labour in the Middle East.

Official figures show five million Bangladeshis are temporarily working abroad, but the number is estimated to be nine million if illegal workers are included.

At home, some 40 percent of its 144 million people still live in poverty, but studies by the World Bank show that number has been dropping by nearly two percent a year thanks largely to the flow of remittances into rural areas.

"Remittance is the lifeblood of Bangladesh's economy. It has changed the country, with districts that have sent more people abroad now far richer than others," said Mosharraf Hossain, an MP-turned-recruitment agent.

In neighbouring Nepal, 2.2 million overseas workers contribute about one billion dollars a year to the economy, according to the Department of Labour, which says the economic crisis has already hit its remittances inflow.

"Our preliminary reports say that there has been a drop of

between five to 10 percent in the numbers going abroad in

September and October," department spokesman Shsyam Khatri Chetri said.

"We are anticipating a further fall in the numbers leaving." In the capital Kathmandu, recruiter Binod Karki has been sending around 100 workers to Malaysia every month for the past five years, but cutbacks have started to bite.

"Since the crash, demand for factory workers has completely dried up," said Karki.

In Sri Lanka, overseas workers sent home 1.97 billion dollars from January to August this year, 23 percent up on the same period last year.

Central Bank governor Nivard Cabraal said the crisis was yet to affect Sri Lanka's remittances and he was hopeful Gulf economies would be shielded from problems in the US and Europe.

In Bangladesh, the World Bank's senior economist Zahid Hussein was also hopeful remittances to poor nations would weather the current economic storm.

"We're monitoring the situation closely," he said, adding that remittances remained fairly robust during economic downturns in 2001 and the early 1990s.

"If this recession is as bad and as deep as people are saying then I would expect the strong growth in remittances seen in the last few years to slow."

Germany imported goods worth 956m euro in first seven months: German Trade Show 2008 begins Nov 6 in city

BUSINESS REPORTER

With a view to promoting trade and business relations between Bangladesh and Germany, Bangladesh German Chamber of Commerce and Industry (BGCCI) is going to organise first ever "German Trade Show 2008," from November 6 to 8, at Bangladesh-China Friendship Conference Centre in the city.

The German Trade Show 2008 is supported by the Embassy of the Federal Republic of Germany-Dhaka and GTZ. The show will remain open to businessmen and members of the public everyday from 10:00am to 8:00pm.

Addressing a press conference on 'German Trade Show 2008' at a hotel in the city yesterday, Saiful Islam, President of BGCCI, said during the first seven months till July of 2008, Germany imported goods and services worth 956 million Euro from Bangladesh, while exported goods and services worth 155 million Euro during the same period.

Among others, Rolf Dieter Reinhard, Deputy Head of Mission, German Embassy, Ms Irmgard Hettich Sherchan, Executive Director, BGCCI, Sadaquat Hossain, Vice-President, BGCCI, Syed Jamil Haider, Feroze Ahmed, Syed Golam Mowla, member executive committee, BGCCI were present at the conference. Different types of intermediate products in fair would attract German investors to invest directly in Bangladesh hoped Saiful Islam, President of BGCCI adding German is the second largest trade destination for Bangladesh.

German intends to invest in power generation in Bangladesh. When asked about German intention helping Bangladesh in the power sector, he said Germany is keen to help resolve the ongoing power crisis in the country.

The BGCCI president said the immediate purpose of the German Trade Show 2008 is to take stock and highlight innovative developments along with bringing manufacturers, traders, institutions, exporters, investors, NGOs and service providers together take up interesting specific topics for information and discussion make business contacts and explore further potential and share and enjoy with German food and jazz by the Jazzy Chopsticks.

Dr Hossain Zillur Rahman, Commerce Adviser is likely to inaugurate the Trade Show as the chief guest at 3:00pm on November 6.

Frank Meyke, Ambassador of Germany to Bangladesh, Kamaluddin Ahmed, Executive Chairman of the Board of Investment (BoI) and Annisul Huq, President of the Federation of Bangladesh Chambers of Commerce and Industry have consented to be special guests at the inauguration ceremony. Around 65 exhibitors will inform about German business, products and services available for Bangladesh and about Bangladeshi products and services available for the German market.

German technology has gained an excellent reputation in the Bangladesh market for its quality, longevity and sophistication. Bangladeshi readymade garments have captured a good part of the German market.

During the three days' of the trade show, a series of topic talks on various sectors, presentations and seminars will be organised. Foreign and local experts will look at various sectors of special interest like shipbuilding, IT, leather, financial services, chemicals and power distribution. Going beyond short-term business success, issues of sustainability and social market economy will be raised as well. Thanks to all those who have come from far and near adding immense value to the

The German Trade Show 2008 is mainly targeting the business community. BGCCI wants to establish the trade show as a regular biennial event, being recognized among professionals from Germany and Bangladesh.

NCC Bank launches Data Centre

BUSINESS REPORT

NCC Bank Limited has launched its Data Centre at Motijheel in the city.

Chairman of the bank Tofazzal Hossain inaugurated the centre as the chief guest recently, while sponsor Din M Rana attended the function as special guest.

Managing Director of the bank Mohammed Nurul Amin presided over the function, said a press release.

Among others, deputy managing directors SM Shamsul Alam and Golam Hafiz Ahmed were present at the inaugural function.

The Data Centre is a Tier-I, the best category as per definition of Bangladesh Bank Information and Communication Technology (ICT) Guideline. The Centre is home to the computational power, storage and applications necessary to support an enterprise business, the release added.

Three successful entrepreneurs get DCCI Awards-2008

BUSINESS REPORT

Dhaka Chamber of Commerce and Industry (DCCI) has announced business awards titled 'DCCI Business Awards- 2008' for contributing to the country's business sector.The DCCI Business Awards 2008 were given in three categories are: Best Innovative Entrepreneur, Best Women Entrepreneur and Best Non-resident Bangladeshi Entrepreneur. Nobel laureate and Chairman of Intergovernmental Panel on Climate Change (IPCC) Rajendra Kumar Pachauri last night handed over the Best Innovative Entrepreneur Award-2008 to AKM Fahim Mashroor, Chief Executive Officer of www.bdjobs.com at Radisson Hotel in the capital.

Executive Director of International Trade Centre (ITC) Patricia Francis handed over the Best Women Entrepreneur to Tahera Begum, proprietor of Arju Iron Store.

Besides, Minister for Export Development and International Trade of Sri Lanka handed over the Best Non-resident Bangladeshi Entrepreneur to Ali Ishtiaq, owner of an IT farm.

The DCCI also gave crests to the DCCI late presidents terming them as 'DCCI Legends'.

Besides, 20 business personalities were honoured as DCCI legends and mentor. Eminent historian Prof Sirajul Islam unveiled the cover of a book styled '400 Years of Commercial History of Dhaka'.

The book was published by the DCCI in association with Asiatic Society of Bangladesh focusing on various phases of the commercial and industrial history of the metropolis.

Dhaka Bank's fifth CMS branch in Ctg

BUSINESS REPORT

Dhaka Bank Limited (DBL) opened its fifth branch of Capital Market Services (CMS) in Agrabad Commercial Area in the port city on Thursday, said a press release.

The CMS branch will provide customer-friendly services for the people of Chittagong region to help their share business flourish.

Also present at the inaugural ceremony were CSE Chief Executive Officer Abu Bakar Siddique, DBL former director and sponsor shareholder Tahidul Hossain Chowdhury, Director Jashimuddin, Acting Managing Director Mohammed Abu Musa, Deputy Managing Director Tanveer Rahim, Head of Operations Sirajul Hoque, Company Secretary Arham Masudul Huq, Head of CMS Ashim Chowdhury and Assistant Vice-president Azam Khan.

IIBL Shariah Council meeting held

The 30th meeting of the Shariah Council of lslami Insurance Bangladesh Limited was held recently in the Head Office of the Company at "BIWTA Bhaban" (61h Floor), in the city. The meeting was presided over by the Chairman of the Shariah Council Principal Moulana Kamaluddin Jafri and was attended by other members of the Shariah Council of the Company viz. Moulan-a Mohiuddin-Khan, Shah Abdul Hannan, Mufti Shamsuddin (Zia), Hafez Maulana Abdus Samad, Hafez Maulana Zakaria, Maulana Maulana Mohammad Mansur Al Haq, as well as, the Managing Director (C.C.) Md. Mujibur Rahman. Some members of the Board of Directors of the Company were also present on special invitation.

The meeting had a discussion dwelling upon some important points for conducting business of the Company on the basis of Shariah and also formulated some suggestions in connection with framing Takaful Act. Besides, the council reviewed the Balance Sheet of the Company for the year-2007 and expressed satisfaction after evaluation.

Divisional business confce in Ctg today

Our Correspondent, Chittagong

Chittagong Chamber of Commerce and Industry (CCCI) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) have arranged a grand divisional conference of the businessmen to be held today (Monday) at the Chamber House auditorium in Chittagong.

The meeting aims at chalking out recommendations on behalf of the business community in formulating working plans for ensuring dynamism in the economic activities of the country by the next elected government.

A preparatory meeting was held at CCCI auditorium Wednesday with CCCI President Saifuzzaman Chowdhury in the chair for making the conference a success.

While speaking on main objective of organising the upcoming conference, CCCI president said, business community is set to present different realistic, effective and time befitting proposals to the government with a view to invigorating the overall economic activities of the country through healthy trade, commerce and investment.

With a view to preparing some realistic proposals on behalf of the business community, the divisional of conference has been arranged, he said.

Month-long cottage, handicrafts fair begins at Nilphamari

Our Correspondent, Nilphamari

A month-long cottage and handicrafts fair began at Nilphamari on October 24 at the Nilphamari High school ground. Deputy Commissioner of Nilphamari Rashedul Hasan inaugurated the fair in a ceremony attended by local distinguished persons and people from all sections of the society.

Organised by Nilphamari Press Club and chaired by Fazlur Rahman, president of Nilphamari Press Club, the opening ceremony was attended, among others, by A.D.C (Rev) Moloy Kumar

Roy and outgoing chairman of Nilphamari Chamber of Commerce and Industries Sohel Parvej and others.

The speakers in the ceremony mentioned the necessity to revive and modernise the bell metal and brass industry of Gomnati, which was once very famous in the country and is now on the verse of extinction. Cottage-made articles are on display in different stalls of the fair.

Efficient implementation of Islamic banking to resist global crisis underscored

Southeast Bank Limited Deputy Managing Director Syed Imtiaz Hasib emphasised the need for evolving appropriate steps for efficient implementation of Islamic banking operations and Shariah principles to ensure social welfare, justice and exploitation-free society as per revealed guidance of Islam.

He said this while inaugurating the workshop on 'Islamic banking operation and Shariah principles' organised by the bank's training institute in the city recently, says a press release.

The workshop observed that Islamic financial system and Islamic banking could be followed as a model to resist the economic crisis around the world as dishonesty and disbelief are the main causes of present economic crisis.

SEBL Shariah Council Chairman Mohammad Salah-Uddin and Ex-MD of IBBL Azizul Haque, DMD Mohammad Abdul Mannan, EVP Habibur Rahaman Bhuyian and IBBL EVP Md Nurul Islam delivered speeches at the workshop.

They highlighted Islamic Shariah principles and Islamic banking operation system including mode of instrument, deposit product, treasury operation and its integration with IT.

SVP Mustafizur Rahman coordinated the workshop, which was participated by the bank high officials including divisional heads and head of the branches.