Invest in SEZs of Bangladesh

Malaysian entrepreneurs have been urged to invest in the special economic zones (SEZs) of Bangladesh as those are expected to be a game changer for attracting foreign direct investment (FDI) in the country.

The investors of the South East Asian nation have also been advised to invest more in different sectors like agriculture and information and communication technology (ICT) for enjoying a number of fiscal incentives including five to seven years of tax holidays for the foreign investors.

The call was made at three business sessions of a programme styled 'Showcase Bangladesh-Go Global' held in Kuala Lumpur on Thursday last.

Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) hosted the day-long event in collaboration with Bangladesh High Commission there.

It was supported by Malaysia South-South Association, Malaysia External Trade Development Corporation and Bangladesh Economic Zones Authority (BEZA).

"The ongoing SEZs will prove to be a game changer for FDI inflows into Bangladesh," Dr. Atiur Rahman, former governor of Bangladesh Bank (BB), said while addressing a business session of the event.

Dr. Rahman also said that the brand and tech savvy growing middle class could be an additional attraction for the foreign investors.

Bangladesh is one of the fastest growing economies in Asia with considerable infrastructure deficit, he added.

He said the country's demographic density and sensitivity to quality education, skills development and entrepreneurship are positive factors for attracting the FDI.

"Its regulatory regime for easy repatriation of profits by the foreign entrepreneurs and salaries earned by foreign employees are added advantage," Dr. Rahman explained.

The Bangladesh government earlier announced to construct 100 new SEZs across the country within the next 15 years.

Thirty nine of them are already at different stages of operation according to UNCTAD, which puts Bangladesh in the league of high-flying investment destination in the world, Ahsan H Mansur, executive director of the Policy Research Institute (PRI) of Bangladesh, pointed out while presenting his keynote paper titled 'Bangladesh in a Globalized World'.

With the completion of these upcoming /under construction SEZs, Bangladesh will be able to create about 10 million new quality jobs along with tens of billions of dollars of exports and domestic production, he added.

"Bangladesh's large population and high density of population always ensures that return on capital is high and will continue to remain high in the years to come," said the senior economist.

In another business session, Asif Ibrahim, former president of the Dhaka Chamber of Commerce and Industry (DCCI), said that Malaysia is considered as the third largest investment partner in Bangladesh after India and Pakistan with the Malaysian companies' investment worth around MYR 558.86 million in the telecommunications, power generation, textile and financial sectors.

Despite a declining trend in total global FDI flow, he said, the FDI inflow into Bangladesh in 2018 was US$ 3.61 billion, which was 67.9 per cent higher compared to the previous calendar year, across diversified sub-sectors.

"We're pursuing different Malaysian companies continuously to invest more through setting up a SEZ in Bangladesh," Syed Moazzam Hossain, president of the BMCCI, told the FE while replying to a query.

The BMCCI has already proposed the Malaysian government to take a SEZ to set up their factories in Bangladesh, he added.

The Malaysian entrepreneurs have expressed interest to invest in various sectors including power, township development, food processing, waste management particularly for plastic and Halal products, according to the BMCCI chief.

"We expect that Malaysian investment would increase in Bangladesh in the near future," he noted.

Talking to the FE, BEZA executive chairman Paban Chowdhury said, "We're working to develop 100 SEZs across the country within the deadline."

The SEZs will help boost investment both foreign and local, employment opportunities and export earnings, according to Mr. Chowdhury.

Among others, AFM Fakhrul Islam Munshi, president of Bangladesh Agro-Processors Association (BAPA), Salahuddin Kasem Khan, chairman of the executive committee of AK Khan & Company Limited, Abrar A Anwar, managing director (MD) and chief executive officer (CEO) of Standard Chartered Bank Malaysia Berhad, Mahtab Uddin Ahmed, MD and CEO of Robi Axiata Limited, Benjir Ahmed MP, president of Bangladesh Association of International Recruiting Agencies (BAIRA) and Syed Almas Kabir, vice-president of the BMCCI, also spoke on the occasion.

[email protected]