MCCI seeks banking, fiscal, tariff measures to offset meltdown effects
Thursday, 2 April 2009
FE Report
The Metropolitan Chamber of Commerce and Industry (MCCI) Wednesday sought supportive government strategy to ensure easy access to credit, increase public spending and lower cost of doing business to face the challenges of the global financial crisis.
The MCCI, one of the country's leading chambers, also sought necessary actions to tackle law and order situation including labour unrest, enhance efficiency of Chittagong Port, and amend the decades old Companies Act.
The chamber drew the attention of the government to address these issues during its meeting with Commerce Minister Muhammad Faruk Khan at the chamber building on the day.
The MCCI President Abdul Hafiz Chowdhury delivered the welcome speech at the function addressed, among others, by President of the International Chamber of Commerce, Bangladesh (ICC-B) Mahbubur Rahman, former MCCI Presidents Samson H Chowdhury and Latifur Rahman, Barrister Rafiqul Haq and Amzad Khan Chowdhury.
In his speech, the MCCI president said that the business community is very worried about the possible impact of the global meltdown on the Bangladesh economy.
"There is no scope to be complacent that Bangladesh economy is not directly linked to the global financial crisis. The overall global demand for goods and services has shrunk to a great extent. Hence, we are feeling the adverse impact of the global crisis," said the president of the country's oldest and premier chamber.
The country's export, which marked 18.16 percent growth from July to January, fell to 15.38 per cent in July to February period in the current fiscal year. The overall exports declined by over 2.5 per cent until February although other Asian countries like India, China and Pakistan are facing sharper downturn in their exports.
The MCCI has been very specific and altruistic in its views on addressing the immediate crisis, its residual effects and support packages as well as other economic activities connected to poverty alleviation, job creation, investment and industrialisation keeping vision 2021 at the forefront, said Mr Hafiz.
"We reiterate our earlier submission to the Hon'ble Prime Minister as to how the situation should be tackled. In our view, any adverse impact should be tackled by banking, fiscal and tariff measures. The question of financial assistance should be considered on a case by case basis only when the aforesaid measures prove to be inadequate," the MCCI president
The government should ensure continuous credit flow at a low rate of interest to the private sector and especially to small and medium enterprises to prevent any shut downs, he suggested.
"Domestic demand growth should be treated as a major component of any contingency plan. Public spending on infrastructure development, poverty alleviation, human resource development, rural infrastructures and rural non-farm support activities should be increased," the MCCI president said.
Consideration should be given for maintaining bank interest rate at least for export financing at 8 to 9 per cent, he said.
"We strongly recommend that the Ministry of Commerce in consultation with the Ministry of Shipping may constitute a committee where MCCI will volunteer to render service to identify the pros and cons of lowering port charges and other associated business cost," he said.
The government should show zero tolerance to illegal toll collection and extortion, the MCCI president said.
The miscreants in the name of political activists must not be allowed to be active. All should be careful in giving statements to the media concerning militant activities, he added.
"We must not create a situation where labour unrest can get further boost. All the sincere efforts of the government will go in vain, if labour unrest and militant activities are not kept at zero level," the MCCI president added.
He also said all efforts must be taken so that the situation at Chittagong remains under control and the operation of the port must not be hampered.
"We are concerned over the attempts to reactivate the 32 trade unions at the Chittagong port, which were cancelled by the caretaker government. The Ministry of Commerce should move quickly in association with the Ministry of Labour and Employment for not allowing more than three unions to function, which is the maximum number permissible under the Bangladesh Labour Act, 2006," said Mr Hafiz.
Import containers must be allowed to be taken to the approved off-dock warehouse for stuffing to avoid congestion at the port yards, importers must clear their consignments within seven days of customs clearance and more scanning machines should be installed at each yard to check smuggling and corrupt practices, to ensure efficient use of the Chittagong port.
Speaking on the occasion, the commerce minister said the government is sincerely thinking of slashing bank interest rate to some extent to ensure uninterrupted credit flow to the growing sectors including small and medium enterprises to prevent any shutdown in any sector.
The Metropolitan Chamber of Commerce and Industry (MCCI) Wednesday sought supportive government strategy to ensure easy access to credit, increase public spending and lower cost of doing business to face the challenges of the global financial crisis.
The MCCI, one of the country's leading chambers, also sought necessary actions to tackle law and order situation including labour unrest, enhance efficiency of Chittagong Port, and amend the decades old Companies Act.
The chamber drew the attention of the government to address these issues during its meeting with Commerce Minister Muhammad Faruk Khan at the chamber building on the day.
The MCCI President Abdul Hafiz Chowdhury delivered the welcome speech at the function addressed, among others, by President of the International Chamber of Commerce, Bangladesh (ICC-B) Mahbubur Rahman, former MCCI Presidents Samson H Chowdhury and Latifur Rahman, Barrister Rafiqul Haq and Amzad Khan Chowdhury.
In his speech, the MCCI president said that the business community is very worried about the possible impact of the global meltdown on the Bangladesh economy.
"There is no scope to be complacent that Bangladesh economy is not directly linked to the global financial crisis. The overall global demand for goods and services has shrunk to a great extent. Hence, we are feeling the adverse impact of the global crisis," said the president of the country's oldest and premier chamber.
The country's export, which marked 18.16 percent growth from July to January, fell to 15.38 per cent in July to February period in the current fiscal year. The overall exports declined by over 2.5 per cent until February although other Asian countries like India, China and Pakistan are facing sharper downturn in their exports.
The MCCI has been very specific and altruistic in its views on addressing the immediate crisis, its residual effects and support packages as well as other economic activities connected to poverty alleviation, job creation, investment and industrialisation keeping vision 2021 at the forefront, said Mr Hafiz.
"We reiterate our earlier submission to the Hon'ble Prime Minister as to how the situation should be tackled. In our view, any adverse impact should be tackled by banking, fiscal and tariff measures. The question of financial assistance should be considered on a case by case basis only when the aforesaid measures prove to be inadequate," the MCCI president
The government should ensure continuous credit flow at a low rate of interest to the private sector and especially to small and medium enterprises to prevent any shut downs, he suggested.
"Domestic demand growth should be treated as a major component of any contingency plan. Public spending on infrastructure development, poverty alleviation, human resource development, rural infrastructures and rural non-farm support activities should be increased," the MCCI president said.
Consideration should be given for maintaining bank interest rate at least for export financing at 8 to 9 per cent, he said.
"We strongly recommend that the Ministry of Commerce in consultation with the Ministry of Shipping may constitute a committee where MCCI will volunteer to render service to identify the pros and cons of lowering port charges and other associated business cost," he said.
The government should show zero tolerance to illegal toll collection and extortion, the MCCI president said.
The miscreants in the name of political activists must not be allowed to be active. All should be careful in giving statements to the media concerning militant activities, he added.
"We must not create a situation where labour unrest can get further boost. All the sincere efforts of the government will go in vain, if labour unrest and militant activities are not kept at zero level," the MCCI president added.
He also said all efforts must be taken so that the situation at Chittagong remains under control and the operation of the port must not be hampered.
"We are concerned over the attempts to reactivate the 32 trade unions at the Chittagong port, which were cancelled by the caretaker government. The Ministry of Commerce should move quickly in association with the Ministry of Labour and Employment for not allowing more than three unions to function, which is the maximum number permissible under the Bangladesh Labour Act, 2006," said Mr Hafiz.
Import containers must be allowed to be taken to the approved off-dock warehouse for stuffing to avoid congestion at the port yards, importers must clear their consignments within seven days of customs clearance and more scanning machines should be installed at each yard to check smuggling and corrupt practices, to ensure efficient use of the Chittagong port.
Speaking on the occasion, the commerce minister said the government is sincerely thinking of slashing bank interest rate to some extent to ensure uninterrupted credit flow to the growing sectors including small and medium enterprises to prevent any shutdown in any sector.