Govt urged to support SMEs, prioritise skill-based education

The government should take effective policy measures to support small and medium enterprises (SMEs) to help them address the possible challenges after Bangladesh graduates from a least-developed country to a developing one in 2026, according to economists and stakeholders.
They said skill-based education, according to market demand and decent employment, would be imperative for the inclusive development of Bangladesh in the future.
They recommended that the government restructure the incentive packages for the private sector based on their compliance with wages, workplace safety, and other related issues.
These observations and recommendations were made at a programme in Dhaka on Sunday, marking the 10th anniversary of the FES (Friedrich Ebert Stiftung) Bangladesh Office in the city. FES Bangladesh Resident Representative Felix Kolbitz made the opening remarks.
Speaking at the session on the 'Economy of Tomorrow', Mofizur Rahman, managing director of SME Foundation, said that after 2026, SMEs would face a number of challenges as duty-free market access to major markets would curtail, which would raise production costs with a possible shrinking of profits, while many SMEs might wind down due to failure to compete.
The session was moderated by Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD). Mr Mofizur said access to finance is one of the major problems for SMEs.
To offset the impact of Covid, they received only 47 per cent of the financial support mainly due to the reluctance of banks to distribute the fund among SMEs for fear of timely repayment, he noted.
He suggested that the government should take policy measures to support SMEs, develop skilled manpower with technical knowledge, and provide technical education.
He also recommended that SMEs should prepare for the post-graduation challenges.
Sayema Haque Bidisha, a professor of the Department of Economics at Dhaka University, suggested upskilling and reskilling the existing workers.
She said the government should encourage the private sector to upskill their existing workforce by providing incentives or strategic policies based on compliance with wages, workplace safety, and training to ensure decent employment and workplace.
At the session on the future of the labour movement in Bangladesh, Nazrul Islam Khan, executive director of the Bangladesh Institute of Labour Studies (BILS), alleged that more than 80 per cent of workers do not have the right to organise, though Bangladesh signed the International Labour Organization (ILO) conventions related to this.
According to him, there is a convention related to daily working hours, which is eight hours a day, but this is not fully implemented here as informal sector workers have to work more than that.
He also criticised the current situation, saying that it has overshadowed the trade unions' capability and unity, preventing them from performing better and realising their just demands.
Sanzida Sultana, additional executive director of the non-government organisation Karmojibi Nari, explained how the platform works in making workers aware of their rights and responsibilities.
Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said that Bangladesh needs investment to grow, and the country is in a favourable position to take advantage of China and India due to its geopolitical position.
Speaking at the session on geopolitics and geo-economics, he said global experts are divided into two groups over the China-US trade war. One group says the war will begin in 2026, while the other is of the opinion that it will begin in 2027.
Among others, German Ambassador to Bangladesh Achim Troster and FES Vice-Chairwoman Daniela Kolbe were present at the programme.

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