MCCI President Md Saiful Islam greets World Bank's Country Director for Bangladesh and Bhutan Abdoulaye Seck with a bouquet at the Third Quarterly Luncheon Meeting of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) at its office in the capital on Monday. 
World Bank's Country Director for Bangladesh and Bhutan Abdoulaye Seck underscored the need for taking up technology-focused education and increasing women's participation in the formal job sector through enhanced job creation.
He highlighted the necessity of adopting the latest technologies amid the changing global landscape.
"Cheap labour may be an asset but not for way long period (for Bangladesh)," Mr Seck said on Monday at the Third Quarterly Luncheon Meeting of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), at its office in the capital.
He said higher education holds significant importance and technology must be prioritised - whether related to artificial intelligence or any other aspect.
"I think the world is changing and Bangladesh will have to adjust with that and prepare for that," he said.
"And, this is possible here in Bangladesh," Mr Seck said with an optimistic note, adding that Bangladesh has achieved gender parity in elementary, secondary, and high schools.
On Sunday, the World Bank signed a $300-million financing agreement to empower around 900,000 economically disengaged rural youth with skills and alternative education essential for employment and entrepreneurship. About 60 per cent of the beneficiaries will be female.
Mr Seck said as the world faces overlapping crises, Bangladesh will need to navigate through a new set of challenges. A fast pace of economic growth is imperative to create opportunities for the growing workforce as over two million youths enter the job market annually.
"Growth will also need to be more resilient to an unpredictable world - geopolitical conditions are changing rapidly, while the effects of climate change are accelerating," he said.
The World Bank country chief shared two related issues - 'LDC graduation' and 'opportunities for economic diversification' - providing suggestions on how Bangladesh can adapt its economic model to prepare for these transformations.
He said the LDC graduation, which is an "incredible accomplishment", will bring forth new challenges and opportunities.
He added that the LDC trade preferences will cease three years after graduation, in 2029, potentially causing a projected decline of about 14 per cent in Bangladesh's export competitiveness, accompanied by a 9.0 per cent increase in tariffs on its exports.
"Competitor countries like Vietnam will begin benefiting from free trade agreements in key export markets around the same time (thus), Bangladesh will also need to negotiate trade agreements and join trade blocs," he noted.
He said joining trade agreements will require transitioning from protective tariffs to a more open, externally oriented, and competitive economic model for both goods and services. The cost of external financing will also begin to rise, requiring new revenue mobilisation tools to support public investment projects, said Mr Seck.
He further said the LDC graduation will be a catalyst for growth and Bangladeshi firms are well prepared for competition.
He pointed out that the government has already started planning for graduation and the cabinet has adopted a new National Tariff Policy to prepare for the transition from trade taxes to income and consumption taxes.
"Moving forward with this visionary agenda is likely to increase economic efficiency, and support integration into global value chains," he noted.
He said Bangladesh is the second-largest exporter of RMG, with growing manufacturing expertise and a sizable workforce that can adapt to new sectors if market access expands.
Also, he pointed out that Bangladesh has a green advantage and firms in the apparel sector are trend-setters in adopting green manufacturing practices, with an emerging track record that's being noticed by foreign buyers. "This expertise is likely to be a competitive advantage over the coming decade."
He said successfully navigating LDC graduation will require the intensive engagement of the private sector, including chambers of commerce. "Setting out the timeline to enhance the competitiveness of domestic firms while transitioning away from trade protections will require an economy-wide effort."
Regarding economic diversification, Mr Seck said Bangladesh has developed into a market leader in the apparel sector and is now winning market share from China in key export markets.
However, production remains highly concentrated in this single sector and exports also remain relatively modest in Bangladesh, accounting for roughly 13 per cent of GDP - much lower than in East Asia.
"Within the RMG sector, Bangladesh has opportunities to expand in non-traditional markets, beyond the US and EU," he suggested.
Furthermore, expanding the production of higher-value synthetic fibres and manufacturing more complex products may lead to an increase in the unit value of exports, he noted.
"Bangladesh also has a substantial opportunity to expand into new markets. Key opportunities include leather, footwear, plastics, and light engineering sectors, as well as pharmaceuticals and e-commerce," said Mr Seck.
He said as Bangladesh continues on its path to becoming an upper-middle-income country, job creation will be essential, particularly in the formal sector.
Mr Seck said the World Bank is working on its 'Business Ready' project, which is replacing its earlier 'Doing Business' initiative. Bangladesh is among the countries in the initial batch that are currently under assessment regarding the business climate.
In his welcome remarks, MCCI President Md Saiful Islam expressed hope for exploring collaboration opportunities with the World Bank in the areas of developing a business climate index and addressing climate change.
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