DCCI President Ashraf Ahmed speaks at a seminar titled "Reform for ICT Industry Growth," organised by the Dhaka Chamber of Commerce & Industry (DCCI), on Saturday. Experts at a seminar on Saturday emphasized the need for strategic reforms to enhance upskilling workforce, develop higher-value added IT services and expand manufacturing capabilities in the semiconductor value chain, aiming to broaden Bangladesh's IT market.
They highlighted that the information technology (IT) and internet of things (IoT) sectors had the potential to generate significant employment, particularly for the youth, and attract both domestic and foreign investment, following the success of the ready-made garment (RMG) industry.
These insights were shared at the seminar, titled "Reform for ICT Industry Growth," organized by the Dhaka Chamber of Commerce & Industry (DCCI).
Speaking at the event, DCCI President Ashraf Ahmed said, "While the global IT market, including IT services, software, and devices, is worth nearly $3 trillion, Bangladesh's IT industry, with approximately $2.5 billion in revenue, remains a small player despite its large pool of IT professionals."
He underscored the importance of upskilling the workforce and expanding the semiconductor manufacturing chain to capture a greater market share.
Ahmed advocated for expertise in design, assembly, packaging and testing (APT) subsegments, as well as exploring integrated device manufacturing (IDM) opportunities for emerging IoT markets.
He highlighted the exponential growth in software and services exports, reaching around $1 billion in FY 2024, and stressed the need for targeted education, infrastructure and training to bridge skill gaps.
Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser of the interim government, remarked that the government was prioritizing reforms to streamline business and citizen services in response to a changing environment.
He noted efforts to address inconsistencies in central bank reserves and export data, highlighting that the government has established several reform commissions that invite contributions from citizens and the private sector.
Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of Bangladesh Investment Development Authority (BIDA), said that the IT sector had significant potential for employment generation, particularly for youth, and to drive domestic and foreign investment.
He mentioned that BIDA was working to simplify the permitting process for foreign workers and would appoint a relationship officer in its front office to facilitate investor services.
In his keynote, Mir Shahrukh Islam, Managing Director of Bondtein Technologies Ltd., highlighted that Bangladesh's IT sector comprises over 2,600 companies employing more than 350,000 workers, with a market size exceeding $2.34 billion.
However, he mentioned the absence of device production capacity and pointed out that the United States was the largest export destination, with exports valued at $226.8 million.
Bangladesh Bank's Executive Director for ICT, Muhammad Zakir Hasan, stressed the need for integrated planning to develop the IT sector, calling for private sector investment to address infrastructure gaps.
He observed that many IT graduates lack practical skills due to limited collaboration between industry and academia and proposed forming a steering committee with stakeholder participation to support sector growth.
Syed Almas Kabir, former president of BASIS, recommended tax incentives to foster ICT entrepreneurship, addressing high rural internet access costs and revising telecommunication policies.
He proposed a Sovereign Credit Guarantee Scheme to offer IT entrepreneurs' better access to loans and advocated for a shift to high-value IT production. Kabir also highlighted the need for a data privacy act and incentives for research and development (R&D).
Taimur Rahman, Chief Corporate Affairs Officer of Banglalink Digital Communications Limited, underscored the need for policy reforms, particularly amendments to the Telecommunication Act, to encourage foreign investment.
He suggested that foreign telecom operators in Bangladesh could serve as ambassadors to attract foreign direct investment (FDI).
Highlighting a lack of competitive policies as an obstacle to attract FDI Md. Liakot Ali, Additional Managing Director of Walton Digi Tech Industries Limited, called for reforms in duty and tax structures for the IT and semiconductor sectors.
He recommended joint public-private investment to capitalize on hardware manufacturing opportunities.
The open discussion session, moderated by DCCI Senior Vice President Malik Talha Ismail Bari, identified key obstacles to sector growth, including inadequate infrastructure, limited policy support, complex credit processes, restricted access to finance, skill shortages and an unsupportive tax structure.
DCCI Vice President Md. Junaed Ibna Ali, Former Senior Vice President M S Shekil Chowdhury, ICT Committee Convener Rashad Kabir and DCCI board members were present, among others.
© 2024 - All Rights with The Financial Express
