Friday, February 27, 2015 BUSINESS

Skip Navigation Links
SUPPLEMENT

Visitor Login










Japanese investors eye on BD as 2nd best destination in the region

Business Report

A survey report released on Sunday last by Japan External Trade Organization (Jetro) said most Japanese firms operating business in China favours Bangladesh as the second best investment destination in the region after India.
The choice has been accredited to lowest production cost from its low labour cost. While the labour cost is US$ 403 in China per month, it is $100 only in Bangladesh and $ 239 in India. Japanese investors have already visited Bangladesh with Prime Minister Shinzo Abe last September making their choice known to the government and business the community here. They are at work to relocate their investment in South Asia focusing on Bangladesh as a good investment destination.
Japanese firms are also relocating business from China to India, Vietnam and Thailand.
AS per the Jetro report some 71.7 percent Japanese-affiliated firms in China as the survey report said want to relocate operations in Bangladesh, with 78.2 percent favouring India, 66 percent Vietnam and 60.9 percent Thailand, official of the trade and investment promotion agency of Japan has been quoted as saying.
Jetro that has been conducting such surveys since 1987 took opinions of 10,078 firms from 20 countries. It also directly interviewed the chief executives of the firms between October and November last year to conduct the survey — A survey of Japanese Affiliated Firms in Asia and Oceania for the Year 2014.
It said Bangladesh is offering the lowest worker wage among its competing countries. Workers’ wages in the manufacturing sector in Bangladesh is $100 a month while it stands at $113 in Cambodia.
Japanese investors also think that Bangladesh has the widest room for cost cutting, According to some 84 percent of the CEOs in the survey. In comparison to Japan, the cost of production in Bangladesh is less than half (48.7 percent), while it is 77 percent in China and 71 percent in Vietnam.
Japanese corporate heads feel better trade opportunities in Bangladesh is awaiting in 2015 as some 71 percent of the CEOs surveyed are expecting profits to rise in the country.
Jetro’s Dhaka office published the highlights on early last week while stressing the need for improving worker efficiency in the country by providing basic education and vocational training.
Bangladesh so far ranked the lowest in quality of employees. The average rate of workers’ productivity in Bangladesh is 31.6 percent, while it is 77.8 percent in Sri Lanka, 68.4 percent in Pakistan, 44.4 percent in China and 42.1 percent in India, the study shows.
It suggested Bangladesh government should focus more on signing free trade agreements (FTA) with countries of the Asia and Oceania region to boost regional trade and its supply chain. The survey portrayed that the highest utilisation of FTA is made by firms engaged in the textiles trade.
“FTA is the means to trade facilitation in the Asia and Oceania region, not only a generalised system of preference but through two way trade. It is high time that Bangladesh should consider FTAs seriously,” it said.
Investment from Japan rose three times to $94.37 million in 2013, compared to the previous year and it is expected to grow steadily over the coming years. Japanese firms may use Bangladesh to enjoy duty free export of garments to EU and such other countries, besides exporting to the home market.

Comment

Business Report

A survey report released on Sunday last by Japan External Trade Organization (Jetro) said most Japanese firms operating business in China favours Bangladesh as the second best investment destination in the region after India.
The choice has been accredited to lowest production cost from its low labour cost. While the labour cost is US$ 403 in China per month, it is $100 only in Bangladesh and $ 239 in India. Japanese investors have already visited Bangladesh with Prime Minister Shinzo Abe last September making their choice known to the government and business the community here. They are at work to relocate their investment in South Asia focusing on Bangladesh as a good investment destination.
Japanese firms are also relocating business from China to India, Vietnam and Thailand.
AS per the Jetro report some 71.7 percent Japanese-affiliated firms in China as the survey report said want to relocate operations in Bangladesh, with 78.2 percent favouring India, 66 percent Vietnam and 60.9 percent Thailand, official of the trade and investment promotion agency of Japan has been quoted as saying.
Jetro that has been conducting such surveys since 1987 took opinions of 10,078 firms from 20 countries. It also directly interviewed the chief executives of the firms between October and November last year to conduct the survey — A survey of Japanese Affiliated Firms in Asia and Oceania for the Year 2014.
It said Bangladesh is offering the lowest worker wage among its competing countries. Workers’ wages in the manufacturing sector in Bangladesh is $100 a month while it stands at $113 in Cambodia.
Japanese investors also think that Bangladesh has the widest room for cost cutting, According to some 84 percent of the CEOs in the survey. In comparison to Japan, the cost of production in Bangladesh is less than half (48.7 percent), while it is 77 percent in China and 71 percent in Vietnam.
Japanese corporate heads feel better trade opportunities in Bangladesh is awaiting in 2015 as some 71 percent of the CEOs surveyed are expecting profits to rise in the country.
Jetro’s Dhaka office published the highlights on early last week while stressing the need for improving worker efficiency in the country by providing basic education and vocational training.
Bangladesh so far ranked the lowest in quality of employees. The average rate of workers’ productivity in Bangladesh is 31.6 percent, while it is 77.8 percent in Sri Lanka, 68.4 percent in Pakistan, 44.4 percent in China and 42.1 percent in India, the study shows.
It suggested Bangladesh government should focus more on signing free trade agreements (FTA) with countries of the Asia and Oceania region to boost regional trade and its supply chain. The survey portrayed that the highest utilisation of FTA is made by firms engaged in the textiles trade.
“FTA is the means to trade facilitation in the Asia and Oceania region, not only a generalised system of preference but through two way trade. It is high time that Bangladesh should consider FTAs seriously,” it said.
Investment from Japan rose three times to $94.37 million in 2013, compared to the previous year and it is expected to grow steadily over the coming years. Japanese firms may use Bangladesh to enjoy duty free export of garments to EU and such other countries, besides exporting to the home market.


Login to post comments


(0)



HSBC faces extra $1bn in fines, US compensation costs

Reuters

HSBC Holdings Plc has set aside $550 million more to cover potential fines for alleged manipulation of foreign exchange markets and warned it could face a $500 million bill to compensate US customers sold debt protection products.
HSBC said in its annual report on Monday it had paid restitution to some US customers in connection to debt protection and other products offered before May 2012.
It said additional remediation for this issue "may lie in a range from zero to an amount up to $500 million."
HSBC paid $611 million to US and UK authorities in November when it was one of six banks fined for alleged manipulation of FX markets.
US, UK and other authorities are still investigating the issue and the bank had $550 million provisioned at the end of December, its annual report said.
Earlier Reuters carried a news item on February 16 which follows as such:
HSBC apologised for irregularities at its Swiss private bank
Europe's largest bank said in full-page advertisements in British newspapers that recent media coverage that focused on the Swiss operation and financial affairs of some of its clients had been a painful experience and that standards in place today "were not universally in place" in the past.
"We therefore offer our sincerest apologies," the advertisement said. It is addressed to customers, shareholders and colleagues and is signed by Chief Executive Stuart Gulliver.
Most of the message echoes an email sent to staff on Friday, when Gulliver said that the bank had sometimes failed to live up to the standards expected of it. HSBC has admitted failings in compliance and controls in its Swiss private bank after the media allegations that it may have enabled clients to conceal millions of dollars of assets, though Gulliver said that many people alleged to have been customers had long since left and some never were clients.
The disclosures have sparked a political row in Britain over practices at HSBC and whether tax authorities had done enough to pursue possible wrongdoers.
Britain's Treasury Committee has called the bank's chairman and chief executive to give evidence on the matter on Feb. 25, according to a memo seen by Reuters on Friday.

'Explanation needed'
Business minister Vince Cable said that he is seeking reassurance that such practices have been consigned to history. "It's one thing to say that these things happened 10 years ago, and we do need a proper explanation of that, but what is absolutely essential is that the practices are not continuing," Cable told the Murnaghan show on Sky News, adding that he had written to HSBC. Cable also said that the tax authorities need to take a firmer approach.
"The treatment of small people and poor people is very severe, but the big fish-the companies and rich individuals-are not being treated as seriously," Cable said. "That is wrong and it must change."
The revelations have proved embarrassing for a government that included HSBC's former boss Stephen Green as minister for trade from 2011 to 2013. "(Green) hasn't yet spoken on his role in the matter and I would certainly like him to do so," Cable said on Sunday. Green stepped down as chairman of financial services lobby group TheCityUK on Saturday.
The bank said that the vast majority of the 140 people named in reports as customers of its Swiss bank had left and that it has since established much tighter controls on who it accepts as customers.
"We have absolutely no appetite to do business with clients who are evading their taxes or who fail to meet our financial crime compliance standards," Gulliver said.
Opposition Labour leader Ed Miliband said on Saturday that he would implement a "root and branch reform" of tax authorities' approach to avoidance if Labour wins the next election.

Comment

Reuters

HSBC Holdings Plc has set aside $550 million more to cover potential fines for alleged manipulation of foreign exchange markets and warned it could face a $500 million bill to compensate US customers sold debt protection products.
HSBC said in its annual report on Monday it had paid restitution to some US customers in connection to debt protection and other products offered before May 2012.
It said additional remediation for this issue "may lie in a range from zero to an amount up to $500 million."
HSBC paid $611 million to US and UK authorities in November when it was one of six banks fined for alleged manipulation of FX markets.
US, UK and other authorities are still investigating the issue and the bank had $550 million provisioned at the end of December, its annual report said.
Earlier Reuters carried a news item on February 16 which follows as such:
HSBC apologised for irregularities at its Swiss private bank
Europe's largest bank said in full-page advertisements in British newspapers that recent media coverage that focused on the Swiss operation and financial affairs of some of its clients had been a painful experience and that standards in place today "were not universally in place" in the past.
"We therefore offer our sincerest apologies," the advertisement said. It is addressed to customers, shareholders and colleagues and is signed by Chief Executive Stuart Gulliver.
Most of the message echoes an email sent to staff on Friday, when Gulliver said that the bank had sometimes failed to live up to the standards expected of it. HSBC has admitted failings in compliance and controls in its Swiss private bank after the media allegations that it may have enabled clients to conceal millions of dollars of assets, though Gulliver said that many people alleged to have been customers had long since left and some never were clients.
The disclosures have sparked a political row in Britain over practices at HSBC and whether tax authorities had done enough to pursue possible wrongdoers.
Britain's Treasury Committee has called the bank's chairman and chief executive to give evidence on the matter on Feb. 25, according to a memo seen by Reuters on Friday.

'Explanation needed'
Business minister Vince Cable said that he is seeking reassurance that such practices have been consigned to history. "It's one thing to say that these things happened 10 years ago, and we do need a proper explanation of that, but what is absolutely essential is that the practices are not continuing," Cable told the Murnaghan show on Sky News, adding that he had written to HSBC. Cable also said that the tax authorities need to take a firmer approach.
"The treatment of small people and poor people is very severe, but the big fish-the companies and rich individuals-are not being treated as seriously," Cable said. "That is wrong and it must change."
The revelations have proved embarrassing for a government that included HSBC's former boss Stephen Green as minister for trade from 2011 to 2013. "(Green) hasn't yet spoken on his role in the matter and I would certainly like him to do so," Cable said on Sunday. Green stepped down as chairman of financial services lobby group TheCityUK on Saturday.
The bank said that the vast majority of the 140 people named in reports as customers of its Swiss bank had left and that it has since established much tighter controls on who it accepts as customers.
"We have absolutely no appetite to do business with clients who are evading their taxes or who fail to meet our financial crime compliance standards," Gulliver said.
Opposition Labour leader Ed Miliband said on Saturday that he would implement a "root and branch reform" of tax authorities' approach to avoidance if Labour wins the next election.


Login to post comments


(0)



Singapore raises tax on the rich to help the poor

Afp, Singapore

Singapore on Monday announced income tax rises for the top five per cent of the population for funding the rising social spending on the poor and elderly in the rapidly ageing city-state.
The marginal personal income tax rate for those earning above Sg$320,000 ($256,000) a year will rise to 22 percent next year from the current 20 percent, Finance Minister Tharman Shanmugaratnam told parliament as he unveiled the 2015 budget.
The increase is expected to raise an additional Singapore dollar 400 million to the government’s current revenues of $61.35 billion.
“While everyone contributes something for a better Singapore, those who are better off should contribute more,” said Tharman.
In 2007 the government introduced a form of negative income tax for low wage earners, and in his speech Monday Tharman announced a new aid package for poor elderly citizens worth Sg$350 million annually.
“It is fair that this enhanced support for those with low incomes should come chiefly from revenues contributed by the high-income group,” Tharman said.
“Those with higher incomes have also been seeing stronger growth in incomes than the average Singaporean in recent years,” he added.
Political observers said the move aims to address rising discontent among Singaporeans at a widening income gap. The top ten percent of households had an average monthly income of Sg $31,142 in 2014 compared with Sg$1,775 for the bottom 10 percent, according to government data.
“It is very clear that this is a concrete step by the government to address the issues of income inequality and the wealth gap which have constituted a significant political issue,” political analyst Derek da Cunha told AFP.
Eugene Tan, an associate law professor at Singapore Management University, said the tax rise was a “targeted response” to growing calls for increased redistribution of wealth.
Tan said Sg$320,000 “is certainly a high threshold, and this high-income group would have benefited tremendously over the years from Singapore’s advanced infrastructure and stable system”.

Comment

Afp, Singapore

Singapore on Monday announced income tax rises for the top five per cent of the population for funding the rising social spending on the poor and elderly in the rapidly ageing city-state.
The marginal personal income tax rate for those earning above Sg$320,000 ($256,000) a year will rise to 22 percent next year from the current 20 percent, Finance Minister Tharman Shanmugaratnam told parliament as he unveiled the 2015 budget.
The increase is expected to raise an additional Singapore dollar 400 million to the government’s current revenues of $61.35 billion.
“While everyone contributes something for a better Singapore, those who are better off should contribute more,” said Tharman.
In 2007 the government introduced a form of negative income tax for low wage earners, and in his speech Monday Tharman announced a new aid package for poor elderly citizens worth Sg$350 million annually.
“It is fair that this enhanced support for those with low incomes should come chiefly from revenues contributed by the high-income group,” Tharman said.
“Those with higher incomes have also been seeing stronger growth in incomes than the average Singaporean in recent years,” he added.
Political observers said the move aims to address rising discontent among Singaporeans at a widening income gap. The top ten percent of households had an average monthly income of Sg $31,142 in 2014 compared with Sg$1,775 for the bottom 10 percent, according to government data.
“It is very clear that this is a concrete step by the government to address the issues of income inequality and the wealth gap which have constituted a significant political issue,” political analyst Derek da Cunha told AFP.
Eugene Tan, an associate law professor at Singapore Management University, said the tax rise was a “targeted response” to growing calls for increased redistribution of wealth.
Tan said Sg$320,000 “is certainly a high threshold, and this high-income group would have benefited tremendously over the years from Singapore’s advanced infrastructure and stable system”.


Login to post comments


(0)



Islami Bank Bangladesh pioneering SMEs development

Business Report

The development of Small and Medium Enterprises (SMEs) is gaining popularity across the world for its role to ensure greater resource-use efficiency, employment generation and technological innovation, promoting inter-sectoral linkages, raising exports and developing entrepreneurial skills.
Islami Bank Bangladesh Ltd is playing a pioneering role in Bangladesh to make the SME sector more vibrant contributing to national economic growth. Bangladesh Bank has also taken many steps such as setting up separate SME Department, SME disbursement targets for all banks, SME refinance scheme, , especial women entrepreneurship development scheme to name a few.
Asian Business Review shows in Bangladesh the SMEs contributions stand at 80 percent in enterprises development, 25 percent in GDP and 40 percent in job creation.  This is 97.6 percent and 80 percent GDP in India in the first two cases. 
In China contribution of SMEs is 99 percent in enterprises, 60 percent in GDP and 92 percent in employment creation.
Islami Bank Bangladesh Ltd is making systematic effort to promote the SME sector in Bangladesh. Its investment in this sector alone covers 24 percent of total investment of all banks and financial institutions. 
Presently 0.13 million small and medium entrepreneurs are banking with IBBL that include 77 percent male and 23 percent female clients. A total of Tk. 249.81 billion was disbursed during 2014 which covers 27 percent of disbursement by all banks at national level.  IBBL is implementing various schemes to achieve its target and expand the leadership role in this sector.
In recognition of its role in SME development IBBL achieved 'Small Entrepreneur Friendly Bank of the Year' award from SME Foundation and Bangladesh Bank for the year 2013, a pres release said.

Comment

Business Report

The development of Small and Medium Enterprises (SMEs) is gaining popularity across the world for its role to ensure greater resource-use efficiency, employment generation and technological innovation, promoting inter-sectoral linkages, raising exports and developing entrepreneurial skills.
Islami Bank Bangladesh Ltd is playing a pioneering role in Bangladesh to make the SME sector more vibrant contributing to national economic growth. Bangladesh Bank has also taken many steps such as setting up separate SME Department, SME disbursement targets for all banks, SME refinance scheme, , especial women entrepreneurship development scheme to name a few.
Asian Business Review shows in Bangladesh the SMEs contributions stand at 80 percent in enterprises development, 25 percent in GDP and 40 percent in job creation.  This is 97.6 percent and 80 percent GDP in India in the first two cases. 
In China contribution of SMEs is 99 percent in enterprises, 60 percent in GDP and 92 percent in employment creation.
Islami Bank Bangladesh Ltd is making systematic effort to promote the SME sector in Bangladesh. Its investment in this sector alone covers 24 percent of total investment of all banks and financial institutions. 
Presently 0.13 million small and medium entrepreneurs are banking with IBBL that include 77 percent male and 23 percent female clients. A total of Tk. 249.81 billion was disbursed during 2014 which covers 27 percent of disbursement by all banks at national level.  IBBL is implementing various schemes to achieve its target and expand the leadership role in this sector.
In recognition of its role in SME development IBBL achieved 'Small Entrepreneur Friendly Bank of the Year' award from SME Foundation and Bangladesh Bank for the year 2013, a pres release said.


Login to post comments


(0)



Halim made new MD of Pubali Bank

Business Report

Md Abdul Halim Chowdhury has recently been appointed as the managing director of Pubali Bank, said a press release.
Chowdhury has been serving the bank as managing director on current charge since December 7, 2014 and this time his appointment was made formal by the board
He joined the bank in 1988 and served it as additional managing director and deputy managing director.

Comment

Business Report

Md Abdul Halim Chowdhury has recently been appointed as the managing director of Pubali Bank, said a press release.
Chowdhury has been serving the bank as managing director on current charge since December 7, 2014 and this time his appointment was made formal by the board
He joined the bank in 1988 and served it as additional managing director and deputy managing director.


Login to post comments


(0)



UCB profits up by 20pc

Business Report

Net profit of United Commercial Bank grew by 19.66 percent on year-on-year basis  for 2014 led by the fourth quarter’s healthy earnings following simplification of the loan provisioning rules by the central bank.
The first generation bank’s net profit stood at Tk 367.27 crore at the end of 2014, up from Tk 306.93 crore in the previous year.
In a meeting on Sunday, the bank also announced higher dividends—10 percent cash and 20 percent bonus— in 2014, up from 20 percent dividend in 2013.
The bank’s earnings per share in the last quarter were significantly higher than expectations, said BRAC-EPL, a securities analyst firm. UCB announced EPS of Tk 4.39 for last year.

Comment

Business Report

Net profit of United Commercial Bank grew by 19.66 percent on year-on-year basis  for 2014 led by the fourth quarter’s healthy earnings following simplification of the loan provisioning rules by the central bank.
The first generation bank’s net profit stood at Tk 367.27 crore at the end of 2014, up from Tk 306.93 crore in the previous year.
In a meeting on Sunday, the bank also announced higher dividends—10 percent cash and 20 percent bonus— in 2014, up from 20 percent dividend in 2013.
The bank’s earnings per share in the last quarter were significantly higher than expectations, said BRAC-EPL, a securities analyst firm. UCB announced EPS of Tk 4.39 for last year.


Login to post comments


(0)



METROPOLITAN
EDITORIAL
COMMENTS
INTERNATIONAL
BUSINESS
INFOTECH
CULTURE
MISCELLANY
AVIATOUR
LETTERS
LAST WORD
Organisation of Islamic Cooperation
Double Blow for the Islamic Ummah SUDDEN DEMISE OF KING ABDULLAH World leaders gather in Riyadh
Double Blow for the Islamic Ummah CHARLIE HEBDO MASSACRE IN PARIS Islamophobia shakes Europe all over
 OIC Diary, January 2015 Projected to be a critical year in the evolving word order, fifteen winters into the new millennium Trapped Peuhl (Fulani) Muslims in C.A.R.
 OIC Diary, January 2015 Photo gallery inauguration in Ramallah
 OIC Diary, January 2015 OIC Secretary General’s visit to Al-Aqsa and Al-Quds
 OIC Diary, January 2015 Preservation of holy sites in Al-Quds As-Shareef OIC Secretary General meets the Foreign Minister of Jordan
OIC condemns terrorist attack on Saudi Arab borders
 OIC Diary, January 2015 OIC Strongly Condemns Terrorist Attack on Charlie Hebdo, France
 OIC Diary, January 2015 OIC letter to France denouncing Hebdo massacre
OIC Diary, January 2015 OIC Call on Member States to help Weather Change Victims
OIC Diary, January 2015 IPHRC condemnation of Charlie Hebdo massacre
 OIC Diary, January 2015 CHARLIE HEBDO MASSACRE Offer of healing advocacy services by former Muslim diplomats
 OIC Diary, January 2015 CHARLIE HEBDO MASSACRE Statement by Muslim Council of Britain
 OIC Diary, January 2015 OIC Review of IOFS Developments
 OIC Diary, January 2015 OIC condemns the carnage in the northeastern Nigeria
 OIC Diary, January 2015 OIC ISLAMOPHOBIA OBSERVATORY FINDINGS Hate incidents targeting Muslims in Europe & America
OIC Diary, January 2015 AGREEMENT SIGNED TO OPEN OIC OFFICE IN BANGUI, C.A.R.
OIC Diary, January 2015 IRAQ VISIT OF OIC SECRETARY GENERAL
OIC Diary, January 2015 OIC Secretary General meets Chaldean Catholic Patriarchate of Babylon
OIC Diary, January 2015 Chairmen of the Sunni and Shiite Endowments, and UN Special Representative in Iraq meet Madani
 OIC Diary, January 2015 MADANI SISTANI MEET IN NAJAF
OIC Diary, January 2015 OIC MEETING WITH IRAQI KURDISTAN’S LEADERS MADANI CONDEMNS OPPRESSION AND DISPLACEMENT OF YAZIZDIS
 OIC Diary, January 2015 IRAQI PRESIDENT RECEIVES MADANI Welcomes OIC Proposal for Action on Makkah-2 Document
OIC Diary, January 2015 LIBYAN POLITICAL DIALOGUE OIC follows welcome progress
 OIC Diary, January 2015 MID-JANUARY REPORT OF THE INDEPENDENT Charlie Hebdo co-founder denounces provocative cartoons
OIC Diary, January 2015 Charlie Hebdo: The first edition since the Paris massacre Ghost of “charb” does it again
OIC Diary, January 2015 ABUSE OF LIBERTY Protesters come out burn Charlie Hebdo poster
OIC Diary, January 2015 Pope Francis reacts to Charlie Hebdo repeat blasphemy
OIC Diary, January 2015 OIC apalled by repeat of Charlie Hebdo blasphemy
OIC Diary, January 2015 Christian protests against Hebdo blasphemous cartoons
OIC Diary, January 2015 OIC contemplating ‘legal action against Charlie Hebdo'
 OIC Diary, January 2015 OIC Secretary General discusses with OIC-CERT Chairman ways of enhancing bilateral cooperation
OIC Diary, January 2015 Saudi Monarch breathed his last
 OIC Diary, January 2015 OIC Secretary General's official visit to Afghanistan
OIC Diary, January 2015 Denounces Terrorist Attack in Sinai Peninsula
FOUNDING EDITOR: ENAYETULLAH KHAN; EDITOR: SAYED KAMALUDDIN
Contents Copyrighted © by Holiday Publication Limited
Mailing address 30, Tejgaon Industrial Area, Dhaka-1208, Bangladesh.
Phone 880-2-8170462, 8170463, 8170464 Fax 880-2-9127927 Email holiday@bangla.net
Site Managed By: Southtech Limited
Southtech Limited does not take any responsibility for any news content of this site