BATEXPO draws buyers amid crisis
Staff Correspondent
The 20th Bangladesh Apparel and Textile Exposition kicked off in the capital on Thursday, presenting made in Bangladesh clothing to the global importers.
The Prime Minister, Sheikh Hasina, inaugurated the biggest annual exposition of Bangladesh garment industry at Hotel Sonargaon in the morning.
At total of 62 local and foreign companies are showcasing their products and services in 82 stalls in the exhibition.
Manufacturers of woven garments, knitted wear and fabric and accessories suppliers, bankers and other allied service providers said they had put their latest ranges of products on display.
‘Some new categories of denim, successfully developed recently, have been brought here-we want potential customers know about our enhanced capacity,’ said AFM Badrudduzza, executive director of Nassa Group.
He said that Nassa was the one of the top three textile and garment exporting groups in the country, which put more efforts on value addition to denims.
A marketing executive at the Pioneer Sweaters Limited said they were expecting new buyers from USA and Japan.
Europe is the major market destination for Bangladesh’s $1.8 billion export-oriented worth sweater industry.
The fair this year is being attainted by more than a two dozens of fabric and accessories suppliers from China, India, Pakistan and Taiwan.
Tamim Kibria, head of marketing of the Shabab Fabrics Limited, a home-textile manufacturer, said they had some new range of products in the fair.
‘Some foreign visitors have already shown interests in our new collections,’ said Tamim.
Many visitors have also come from USA, Japan, Hong Kong, South Africa and from major European countries.
Officials of the BGMEA said over 200 visitors from overseas, who are in Dhaka for the event only, would visit the exhibition.
However, BATEXPO find several hundred industrial visitors including executives stationed in Dhaka for many apparel retailers and wholesalers and buying agents from across the world.
Earlier, Murshedy told a news conference on Wednesday that exports had fallen in recent months due to the global recession.
But by the period BAREXPO is taking palace, global market situation seems to be improved, said Murshedy.
Alongside the exhibition, two industrial seminars and cultural programmes will be held.
The leader of the opposition in the parliament, Khaleda Zia, will attend the closing ceremony as chief guest on Friday.
Pre-budget discussions for
next fiscal start early
Asif Showkat
The government will start pre-budget consultations on the budget for next fiscal year at least two months ahead of the usually scheduled time to ensure smooth implementation and proper allocation of funds, officials in the finance ministry said.
The ministry issued a circular in this regard on Wednesday to all ministries and divisions in preparation of the budget for fiscal 2010-11 fiscal. The pre-budget consultation meetings which usually started in February will now be held in December.
Finance ministry had started its last fiscal year pre-budget meeting on 12 February, 2008. But this year, the consultations would get underway on December 7, 2009.
Finance minister AMA Muhith asked the authorities concerned to start next fiscal year’s pre-budget meetings two months before the usual time for scrutinizing allocation of funds for different sectors, said a senior official of the finance ministry.
The official also said early consultations on allocation are required to ensure proper utilization of funds or avoid slow implementation of the Annual Development Programme.
Monitoring and Evaluation Division’s latest data showed that the ministries and divisions spent only 10 per cent of their allocations of the ADP in the first quarter of the current fiscal year.
‘The Annual Develop-ment Programme implementation rate has been slow as well as ececution of the public-private partnership,’ Masato Miyazaki, mission chief of International Monetary Fund, recently complained.
The finance minister responded to the IMF official’s observations saying that the measures would be initiated to rein in inflation and expedite timely implementation of development programmes and ensure quality public expenditure.
BB allows banks to open more
branches for SME lending
Bangladesh Sangbad Sangstha . Dhaka
Bangladesh Bank has decided to allow commercial banks to open more branches for lending to the small and medium enterprises and agriculture sectors.
The branches will be additional to the annual limit of the banks’ branches, determined by the central bank, the regulator of the country’s banking sector.
BB Governor Dr Atiur Rahman signed the document today, allowing the banks to open SME and Agro branches beyond their limit of branches for regular operations.
The central bank is likely to issue a circular next week to this effect, official sources said.
Usually, all the commercial banks convey their requirements for new branches to the central bank in November every year. The central bank reviews their applications to give approval to the new branches.
But this year the banks will be allowed to open branches out of their annual requirement for supporting farmers and small and medium scale entrepreneurs.
Dr Aitur Rahman said the banks would get priority to open branches in Monga-prone areas and at upazila level.
Deputy Governor of the central bank Nazrul Huda said the banks would be allowed to open additional branches for SME and farm lending only in areas outside divisional headquarters.
He said the central bank would review the track records of the banks in farm and SME lending to consider their proposal to open the branches.
He also said the banks would be allowed to change the status of the existing SME booths to branches, facilitating their clients all banking services for farm and SME lending.
At present, SME booths deal with only loan disbursement and recovery process.
Investment remains stagnant
United News of Bangladesh . Dhaka
Investment in the country remained stagnant though business confidence is rising, according to a survey conducted by the Bangladesh Investment Climate Fund.
The summary of the survey was presented at a programme on ‘IFC-BICF Business Confidence Survey Highlights 2009: A Reflection on Business Survey’ at the Dhaka Chamber of Commerce and Industry auditorium Thursday.
It revealed that investment remained stagnant but profit and employment in terms of business confidence index is rising in the current (October-December) quarter.
Some 778 firms representing–small 74%, medium 7% and large 19%–were surveyed of which 27% were from manufacturing sector and 73% from services sector.
Eminent economist Prof Wahiduddin Mahmood said there is stagnation in investment although the foreign reserve is increasing. Confidence is an important factor for business and it has a psychological aspect as well.
‘In terms of performance, there was stagnation in the present and last quarter. The next quarter seems to be psychological turnaround and have better expectations in future,’ he said.
Commerce minister Faruk Khan speaking as chief guest at the function predicted bank interest rate will come down to a single digit by 2014 before they hand over power to the next elected government.
But, he said, the interest on deposits and the level of pension to retired personnel will remain at high.
Khan viewed that things are getting better for the government. It succeeded in protecting country’s economy from the impacts of the global meltdown.
He informed that they are working on infrastructure and also to improve the situation of gas and power supply. ‘We have been pressing hard. Yesterday (Wednesday) a power plant of 150MW was approved.’
About the traffic jam which is causing wastage of lot of time and energy, the minister said the government has taken steps to introduce elevated highway, monorail, tube, deep sea port projects.
He also said that the political commitment of the government is very clear. Extortionists are not part of the government.
The government is absolutely against ‘crossfire’ by the law enforcers, he added.
Aminur Rahman, investment policy officer of BICF, presented the highlights of the survey.
Micro-credit helps reduce
‘missing middle’
Staff Correspondent
Economist Wahiduddin Mahmud on Thursday said the number of ‘missing middle’ people reduced in recent times thanks to the role of the micro-credit programmes of different NGOs across the country.
‘Number of missing people, who are neither poor enough to qualify for getting different government facilities under its safety net programme nor are they well-off enough to access bank loans, are decreasing day by day with the expansion of micro-credit
programmes,’ said Wahiduddin Mahmud at a press conference on the launching of Citi Micro Entrepreneurship Award 2009 in the city.
‘NGOs have expanded their micro credits programmes to the agriculture sector, and thus contributing to the national income,’ said Wahiduddin, also the chairman of Palli Karma Sahayak Foundation, the apex body for micro-finance institutions.
Citi Foundation, philanthropic arm of Citigroup, has launched the Citi Microentrepreneurship Awards 2009 to give recognition and promote leadership, entrepreneurial skills and best practices of individual micro entrepreneurs in Bangladesh.
Citibank NA Bangladesh and Shakti Foundation for disadvantaged Women jointly sponsor the awards.
Members of the advisory council of the awards, partners and stakeholders were present at the launching programme.
Each winner will be awarded Tk 3,50,000. The award presentation ceremony will be held in March, 2010.
UK companies to explore
more business
United News of Bangladesh . Dhaka
A group of British companies eager to do business in Bangladesh, ranging from perfume distributors to property developers and legal service providers, arrives here Saturday on a 4-day visit to explore business prospects.
The visit has been organized by the UK Trade & Investment in cooperation with the British-Bangladesh Chamber of Commerce for the exploration of business opportunities on offer here and for further strengthening the trade and investment relations between the United Kingdom and Bangladesh.
During the tour, the members of the BBCC team comprising UK entrepreneurs and investors will meet officials at the British High Commission as well as discuss commercial issues of mutual interest with ministers and business leaders of Bangladesh.
‘The delegation will also hold several meetings and conference to further illustrate the opportunities they bring along with them,’ said an announcement Thursday.
CSE gets new CEO
Business Desk
Moha-mmed Abdullah Mamun joined the Chittagong Stock Exchange as chief executive officer on Thursday.
Before joining the CSE, Mamun worked as faculty of business school in International Islamic University, Malaysia and Curtain University of Technology, Australia (offshore campus in Malaysia). He also worked as faculty at the department of management, University of Chittagong for 18 years.
Mamun completed his studies from the department of management, University of Chittagong. He completed his MBA from Vrije Universiteit Brussels, Belgium. Later he received his PhD in 2005 in corporate social responsibility from the University of Chittagong.
Virtual business meet
becomes handy
Agence France-Presse . San Francisco
Linden Lab on Wednesday announced it is adding a new dimension to Second Life online world to give businesses private places for virtual meetings.
Linden launched a beta, or test, version of Second Life Enterprise ‘behind-the-firewall product’ with a price starting at $55,000 dollars.
Companies dabbling with Second Life Enterprise behind the safety of their computer fire walls include IBM, Northrop Grumman and the US Naval Undersea Warfare Center, according to Linden.
‘Second Life Enterprise version offers a great combination of collaboration, content creation and communications tools and resources,’ said IBM vice president of innovation initiatives Francoise Legoues.
‘We were one of the early adopters of the Second Life platform, and having that technology behind the firewall gives us the opportunity to expand our use of the platform enterprise-wide.’
More than 1,400 businesses, schools, government agencies and other organizations around the world reportedly use Second Life for meetings, training and other work gatherings that typically involve employees traveling.
Asia stocks drop
Associated Press . Singapore
Asian stocks markets dropped Thursday as the U.S. Federal Reserve failed to reassure investors that a lasting recovery in the global economy was taking hold.
The U.S. central bank decided Wednesday to keep a key interest rate at a record low and said cheap credit would continue for an ‘extended period’ as the world’s largest economy struggles to regain its footing after its worst downturn in decades.
For many investors, the news raised doubts about whether the turnaround under way in many economies was strong enough to extend a powerful eight-month rally in global markets. A key U.S. unemployment report due Friday, which could yield clues about the ailing U.S. consumer and demand for Asian exports, also kept traders on edge.
‘Around these levels, it’s hard to have conviction positions,’ said Jan Lambregts, head of research of Rabobank in Hong Kong. ‘There’s a big question on investor confidence given issues about the sustainability of the global recovery once stimulus policies fade.’
Japanese shares helped lead Asian stocks lower, with the Nikkei 225 stock average falling 95.16 points, or about 1 per cent, to 9,749.15, as the strengthening yen undermined the competitiveness of the country’s exports.
CORPORATE DISCLOSURES
PGCB recommends 27pc
dividend
Business Desk
The board of directors of Power Grid Company of Bangladesh has recommended 27 per cent cash dividend for the year 2008-2009. Date of AGM: 24.01.10, Time: 11:00am.Venue: Bashundhara convention center, Block-G, Umme Kulsum Road, Bashundhara R/A., Baridhara, Dhaka-1229. Record Date: 24.11.09.
Green Delta Insurance
The company has informed that the board of directors of the company has increased the fund size of the proposed ‘Green Delta Mutual Fund’ from Tk 100 crore to Tk 150 crore.
NCC Bank
The bank has informed that the board of directors of the bank has decided that funding structure of NCCBL mutual fund - 1 (proposed) has been modified. Total fund size will be Tk 100 crore, NCC Bank as sponsor will subscribe 15 per cent i.e. Tk 15 crore, Pre-IPO placement 35 per cent i.e. Tk 35 crore, and IPO 50 per cent i.e. Tk 50 crore. The matter is subject to approval of SEC.
Renwick Jajneswar
The board of directors has recommended 10 per cent cash dividend for the year 2008- 2009. Date of AGM: 05.12.09, Time: 10:00am, Venue: Mills Premises, Renwick Road, Kushtia. Book Closure: 26.11.09 to 05.12.09. There will be no price limit on the trading of the shares of the company on 08.11.09 following its corporate declaration.
Fine Foods
The board of directors has recommended 15 per cent stock dividend for the year 2008-2009. Date of AGM: 14.12.09. Time: 11.00am, Venue: White House, 155, Shantinagar, Dhaka. Book closure: 30.11.09 to 14.12.09. There will be no price limit on the trading of the shares of the company on 08.11.09 following its corporate declaration.
National Tubes
The board of directors has recommended 30 per cent cash dividend and 10 per cent stock dividend for the year 2008-2009. Date of AGM: 26.12.09. Time: 11:00am, Venue: Factory premises of the company, Tongi, Gazipur. Record Date: 22.11.09.
Quasem Drycells
The board of directors has recommended 15 per cent cash dividend for the year 2008- 2009. Date of AGM: 29.12.09, Time: 11:00am, Venue: Factory premises of the company, Unit-3 Baimail, Gazipur. Record Date: 26.11.09. The company has also informed that the board of directors has decided to invest Tk 1.50 crore in equity shares of Quasem Food Products Ltd, a company that has already gone into trial production. The matter is subject to the approval of the shareholders at the upcoming 28th AGM of the company.
Source: DSE
Booming shares boost
China’s super-rich
Agence France-Presse . Shanghai
The sharp rebound in Chinese stocks has seen the total fortune of the nation’s ultra-wealthy balloon by 141 billion dollars, Forbes magazine said Thursday as it released its annual China rich list.
The net worth of the country’s 400 richest people rose to a record 314 billion dollars in the year to November from 173 billion dollars a year ago, Forbes said in a report.
The list consists of a record 79 dollar billionaires, as opposed to just 24 last year, after the Hong Kong and Shanghai bourses soared 56 per cent and 69 per cent respectively, the magazine said.
‘Chinese entrepreneurs went through lots of difficulties last year. Now wealth is coming back,’ Forbes senior editor Russell Flannery told a news conference.
‘The gains in their personal fortunes were a sharp reversal to the losses sustained by billionaires in other parts of the world, (and) reflected the rise of China,’ he said.
Flannery said the entry level for the list had increased from 200 to 300 million dollars.
BYD car battery tycoon Wang Chuanfu came out on top with a fortune of 5.8 billion dollars. Wang also topped the recently released Hurun Rich List for China.
The rankings illustrate how fortunes have recovered from last year when China’s super-wealthy were hit hard by the global credit crunch and financial crisis.
There were fewer billionaires in China than in the United States—where the number fell to 391 from 487 last year—but the Asian giant was catching up fast, Flannery said.
‘Chinese people have less money than Americans. But the wealth accumulated by successful Chinese businesspeople is on the rise while that of US businesspeople is on the decline, indicating the wealth is migrating,’ he said.
Last year’s number one, Liu Yongxing, slipped to second spot despite increasing his fortune to 5.5 billion dollars—up 2.5 billion dollars on 2008.
Liu made his money through privately held agricultural company East Hope and stakes in China Minsheng Bank, Minsheng Insurance and Bright Dairy.
Yang Huiyan, the wealthiest woman on the list, ranked fifth after seeing her fortune increase by 75 per cent to 3.9 billion dollars—but she is still well below her 2007 net worth of 16.2 billion dollars.
The 28-year-old’s fortune was tied up in Guangdong developer Country Gardens, run by her father Yeung Kwok Keung, who transferred shares to her, Forbes said.
The highest ranking newcomer to the list was Liu Zhongtian, in eighth spot, whose aluminium products maker China Zhongwang raised 1.3 billion dollars in an initial public offering in April.
Shanghai, the financial hub of China, was home to more super-rich people than any other city in the country, with 45.
Beijing has 38 ultra-wealthy people and the southern boomtown of Shenzhen has 35.
‘China’s wealth boom, after last year’s bust, is still very much tied to its own robust growth,’ Flannery said in a report on the magazine’s website.
‘But the best may still be yet to come. More than ever, there are new opportunities for Chinese entrepreneurs willing to seize them, and along with those opportunities, still more fortunes to be made.’
Airbus to fly new freighter
Reuters/Bdnews24.com . Paris
European planemaker Airbus is preparing the maiden test flight of a new model of freighter plane, but doubts have emerged over the identity of its first operator as global trade remains in the grip of recession.
The EADS unit said on Wednesday it would fly the first cargo version of its mid-sized A330-200 passenger plane at its Toulouse headquarters on Thursday, barring poor weather.
Air freight accounts for almost half of world trade by value, according to airline industry figures.
Airbus launched development of the plane at the height of aircraft demand and a booming global economy in 2007, aiming to challenge Boeing’s recent dominance of airborne trade.
The first buyer was Flyington Freighters, an Indian start-up promoted by the publisher of the Deccan Chronicle, which placed an order for 12 planes now worth $2.2 billion at list prices.
But industry sources told Reuters the Hyderabad-based firm, touted as India’s first international all-freighter airline, would not now take the first delivery, which has been pushed back from the second-half of 2009 to spring and now summer 2010.
Airbus declined to say which company would first put the plane into service but a spokesman said it had ‘agreed with Flyington to reschedule deliveries,’ without elaborating.
Flyington was not available for comment.
Airbus has so far sold 67 of A300-200Fs to 9 customers.
Built to carry 69 tonnes, the aircraft starts its flight tests 9 months after its nearest rival, the freight version of the Boeing 777, entered operations with Air France.
Both twin-engined models were initially designed to tap into forecasts of seemingly relentless growth in world trade and a wave of replacements of older jets like the Boeing 747, a backbone of international air freight transport.
But the cargo sector has taken an even more dramatic hit than passenger travel from the global economic crisis and conditions have been made worse by scarce trade financing.
Some operators have been forced to park loss-making freight planes in the desert, where airlines often store idle capacity.
Adding to the line-up of new freighter models vying to enter a jittery cargo market, Boeing is producing an updated, sleeker version of its iconic Boeing 747, known as the 747-8.
The new jumbo’s freight version has proved more popular than the passenger equivalent but a maiden flight will not now happen before next year due to production problems.
Airbus is the world’s largest producer of passenger jets ahead of Boeing but does not currently have a freight plane in production after customers cancelled a planned freight version of its A380 superjumbo because of marketing differences.
Airbus says the A380 superfreighter is still technically part of its product portfolio and could be produced later.
Panasonic to take over Sanyo
Associated Press . Tokyo
Panasonic Corp. said Thursday it has begun a tender offer to take over smaller rival Sanyo Electric Co. for an estimated 402 billion yen ($4.4 billion), moving closer to create one of the world’s biggest electronics makers.
Panasonic, the world’s biggest plasma TV maker, is expected to purchase more than 50 per cent of Sanyo shares, hoping to take advantage of the smaller rival’s green businesses in solar panels and rechargeable batteries.
Panasonic spokesman Akira Kadota said the tender offer is planned for Nov. 5 through Dec. 7 at the price of 131 yen ($1.4) per share.
Sanyo’s three major shareholders — Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Banking Corp. — have agreed to sell at least a combined 3.07 billion shares to Panasonic at that per-share price, which guarantees the Osaka-based company to take majority stake in Sanyo. The three shareholders together control about 70 per cent of Sanyo’s total outstanding shares.
Panasonic has said earlier it hoped to purchase up to all of Sanyo’s shares, but the company is largely expected to have to settle with the minimum controlling stake, as other shareholders are unlikely to want to sell theirs, with the tender offer price is now nearly half of the market level. Sanyo shares closed Wednesday at 216 yen ($2.30).
Kadota said that Sanyo is expected to become Panasonic’s subsidiary by mid-December, a year after the two companies announced the buyout deal.
The tender offer had been delayed by several months as Panasonic had to wait for clearance from anti-monopoly authorities in the U.S., China and the European Union to go ahead with the takeover.
Panasonic barely managed to creep back into the black with July-September quarterly net income of 6.1 billion yen ($67 million), its first profit in a year. That was down 90 per cent from the previous year, despite recovering demand for refrigerators and washing machines.
Still, it projected a loss for the year, though narrower than initially forecast at 140 billion yen ($1.5 billion) compared to 195 billion yen.
Sanyo, founded by a brother-in-law of Panasonic founder Konosuke Matsushita, is a popular brand but in recent years has been seen as a relative loser in Japan’s competitive electronics sector.
The company was forced to reshuffle top management after a 2007 accounting scandal about falsifying past earnings and reporting a profit when it was in the red. It also suffered from a 2004 earthquake that crippled its chip-making plant.
Toyota to build research
centre in China
Agence France-Presse . Tokyo
Toyota Motor Corp. will spend hundreds of millions of dollars to build a research centre in China to develop vehicles for the fast growing market there, a newspaper said Thursday.
The world’s largest automaker will build a new centre with a full-scale test course near Shanghai, the Nikkei business daily said, adding construction was likely to begin as early as next year.
Total investment would reach 30-40 billion yen (330-440 million dollars), it said without naming its sources.
If it gets Chinese approval, Toyota would become the first Japanese automaker to establish a Chinese research and development centre
funded solely by itself, it said.
The new facility would employ several hundreds of people, including local engineers, to enable the company to pick up on local trends, it said.
Toyota has dropped its business strategy of selling the same models worldwide, deciding instead to customise its vehicle offerings to the characteristics of each region, it noted.
China is expected to overtake the United States this year as the world’s biggest automobile market but Toyota’s share in new car sales there is only six per cent, it said.
No immediate comment on the report was available from Toyota.
The Japanese company, which was due to announce its interim financial results later Thursday, fell into the red for the first time in the year to March 2009 and has forecast another loss this year.
CORPORATE NEWS
Bdnews24.com signs deal with
Citycell on internet service
Business Desk
Bdnews24.com, web-based news service provider and news agency, recently signed a memorandum of understanding with mobile phone operator Citycell.
Under the MoU, the two organisations will work together to improve the news agency’s communication infrastructure.
Toufique Imrose Khalidi, chief editor and managing director of bdnews24.com, and Michael Seymour, chief executive officer of Citycell, signed the MoU at a ceremony at Citycell’s headquarters in Dhaka, said a news release.
Reporters from across the country will now be able to file directly to bdnews24.com’s newsroom in almost real time, facilitated by Citycell’s Zoom mobile internet service.
GP signs agreement
with Microsoft
Business Desk
Grameenphone Ltd has signed an agreement with Microsoft to use Microsoft Digital Literacy Curriculum in order to increase IT literacy among the rural people.
The agreement was signed at the Grameenphone’s head office at Gulshan in Dhaka on Wednesday, said a news release.
Sandi Thomas, general manager of Microsoft Asia Pacific, and Feroz Mahmud, country manager of Microsoft Bangladesh, Oddvar Hesjedal, chief executive officer of Grameenphone, and Arild Kaale, chief marketing officer of Grameenphone, among others, were present on the occasion. The Microsoft Digital Literacy Curriculum is an e-learning module which will educate people on relevant IT skills such as basic computer skills, accessing the internet, using productivity applications, and understanding computer security and privacy.
AB Bank training
programme ends
Business Desk
AB Bank Limited organised a five-day training programme on financing of international trade and foreign exchange at the bank’s training institute at Dhanmondi in Dhaka recently.
President and managing director of the bank Kaiser A Chowdhury distributed certificates among the participating officers at the closing ceremony, said a news release.
Twenty-six officers from different branches of the bank participated in the training programme. Abu Hena Mustafa Kamal, executive vice-president and head of financial institution and treasury, among others, was also present at the ceremony.
NCCB signs deal with
BB on low-rate credit
Business Desk
NCC Bank recently signed an agreement with the Bangladesh Bank to avail the refinance facility of the central bank to provide low-rate credit in green investment.
Bangladesh Bank general manager SM Moniruzzaman and NCC Bank managing director Mohammed Nurul Amin signed the agreement at the Bangladesh Bank conference room, said a news release.
Governor of Bangladesh Bank Atiur Rahman, deputy governors Md Nazrul Huda and Ziaul Hasan Siddique, deputy managing directors of NCC Bank SM Shamsul Alam and Golam Hafiz Ahmed, among others, were present on the occasion.
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