Investors still observing country\\\'s political developments for fresh or reinvestment

FE Team | Published: February 14, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Shah Alam Nur

A good number of investors both local and joint venture companies are still observing the political developments in the country for fresh or reinvestment.
Insiders said they are not coming forward with new or reinvestment plans fearing recurrence of political violence following a row over the general elections that held last month.
"The confidence of the investors, both local and join venture ones, hasn't yet been restored", Kazi Akram Uddin Ahmed, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told the FE.
He said after the general elections all the investors are now seriously observing the political developments in the country.
An official of the Board of Investment (BoI) told the FE that a good number of companies including agro- based industries, food and allied sectors, textiles, printing and publishing and packaging sectors, tannery, rubber products, chemical, glass and ceramics, engineering and service sector are very much interested to invest in the country but political uncertainty is dampening their spirit.
He said, "A number of foreign business delegates from India, France, Turkey, Malaysia, Taiwan, China and Korea have visited Bangladesh to explore trade and investment opportunities in the country but they are now showing 'wait and see policy'.
"Earlier, the country had a shortage of electricity which has now been improved, but political uncertainty is taking its toll on investment", he added.
According to the BoI, investment proposals from abroad in January, 2014 fell by more than 29 per cent compared to the corresponding period of last year (2013).
Proposals from local sources during the first month of the current calendar year increased by only 8.67 per cent compared to the same period of last year.
The BoI data also showed potential local investors submitted proposals for setting up 149 industrial units involving an aggregate investment amounting to $ 553 million in January 2014 as against 152 proposals involving $ 505 million registered in January, 2013.
Besides, the BoI office also registered 16 proposals worth US$ 104 million from foreign investors during the period against 21 proposals that involved $73 million in the corresponding period of previous year.
Toufiq M Seraj, managing director of Sheltech, a leading real estate company told the FE, "The sector has no new project because of the fears among the businesses about political turmoil".
He said economic activities improved after the election, but the country's real estate companies are passing hard times due to the drop in sales of plots and flats by 60 per cent in 2013 compared to that of 2012.
President of the Exporters' Association of Bangladesh (EAB) Abdus Salam Murshedy told the FE, "New investments in the country's readymade garment (RMG) sector dropped by more than 70 per cent in 2013 compared to that of 2012".
"Restoration of confidence among the businesses is the biggest challenge for the country now to boost business activities," he added.