Though an ambitious budget was announced for the current fiscal year, the government is yet to bring both public and private investments out of ‘sluggish mood’, according to a leading trade body of the country.
   In its monthly review of investment scenario for October, Dhaka Chamber of Commerce and Industry has also said, ‘DCCI fully shares concern expressed by the finance minister on the almost stagnant investment scenario.’
   The review cautioned that the GDP growth target of 5.5 per cent would not be achieved should the public and private investments do not increase.
   According to DCCI, the private investment declined sharply during the immediate past caretaker government due mainly to controversial drive of against corruption.
   Investment had been strong before the caretaker rule, but began to decline after March 2007 and has not yet recovered.
   ‘Most of the business community is uncertain about the future. The confidence in the economy is slowly rebuilding, but there is some way to go,’ the DCCI said.
   The DCCI, however, advised that one should look further to understand the decline and stagnation of private investment.
   ‘It is more than a hesitant private sector. There are realistic factors that are leading the business community to repeatedly conclude; it is better to ‘wait and see’ rather than, ‘invest now’.
   Public investment appears to be slow as implementation of the annual development programme is not speedy. At the same time import of capital machinery and industrial raw materials showed negative trend, meaning private investment is yet to pick up, the chamber observed.
   It said that the government’s strategy of increasing public investment to make domestic economy vibrant did not work. As the public investment did not increase, the private investment also did not roll in.
   Like others, the DCCI also said that shortage of power and gas and serious traffic congestion are the other reasons for declining private investment.
   DCCI also criticised the delay in releasing its guidelines on public-private partnership projects: ‘The government’s initiatives such as PPP with an outlay of Tk 2,100 crore for attracting private investment in sectors such as infrastructures, energy and human resources development are yet to get momentum as the authorities are taking time, for reasons best known to them, to put necessary policies in place.’
   Investment offers look bleak in cases of much-needed physical infrastructures like energy, port, road and railway, as these areas need huge money with slow return, it said.
   ‘While power shortages are one serious infrastructure constraints with damaging impact on productivity and investment, the law and order situation has not yet been up to the mark. Administrative complexities for operating businesses are still cumbersome.’
   The chamber suggested steps to remove all the hurdles faced by the entrepreneurs to set up small and medium enterprises.

Internet service provider Grameen Cybernet Limited will introduce ‘GCL IP Telephony’ service all over the country in December with an aim to provide clients with low-cost telephone facility.
   People will be able to talk at a lower cost through using GCL Internet Protocol Telephone once the modern technology is installed across the country. The call rates from IP Phone to IP phone will be free of costs, but it will cost a caller 10 paisa per minute from IP phone to mobile phone and PSTN operators and Tk 2 to Tk 10 for ISD calls.
   The service will also provide various internet services including voicemail, caller ID, call forwarding, call waiting and conference calls.
   ‘We are expected to launch IP telephone service in Bangladesh market from December this year. The GCL has developed the consumer friendly IP phone by its own experts using open source technology,’ Mohammad Masum Billah Riton, GCL admin and HR deputy manager, told reporters at a news conference at Dhaka Reporters’ Unity on Sunday.
   He said the modern service (IP telephony), based on open sources technologies, had been designed and implemented by GCL without any foreign technical assistance.
   The GCL, which was awarded the BTRC licence on August 18, has been providing internet service and other services like software development, corporate network and web solution since 1996.

Eighteen mutual funds have declared their net asset values on the basis of current market price and cost price, according to the website of Dhaka Stock Exchange.
   On the close of operation on November 17, ICB AMCL Islamic Mutual Fund reported NAV of Tk270.95 per unit on the basis of current market price and Tk212.86 on the basis of cost price against face value of Tk100.
   ICB AMCL Second MF reported NAV of Tk104.28 per unit on the basis of current market price and Tk100.01 on the basis of cost price against face value of Tk100.
   ICB AMCL 1st MF reported NAV of Tk449.03 per unit on the basis of current market price and Tk289.49 on the basis of cost price against face value of Tk 100.
   ICB AMCL 2nd NRB MF reported NAV of Tk153.42 per unit on the basis of current market price and Tk130.69 on the basis of cost price against face value of Tk100.
   ICB AMCL 1st NRB MF reported NAV of Tk320.31 per unit on the basis of current market price and Tk228.54 on the basis of cost price against face value of Tk100.
   Prime Finance First MF reported NAV of Tk14.94 per unit at current market price basis and Tk11.95 at cost price basis against face value of Tk10.
   On the close of operation on November 18, the ICB mutual funds reported NAV for First ICB MF of Tk7,951.36, Second ICB MF of Tk2,244.97, Third ICB MF of Tk1,616.95, Fourth ICB MF of Tk1,753.62, Fifth ICB MF of Tk1,460.71, Sixth ICB MF of Tk562.60, Seventh ICB MF of Tk919.37 and Eighth ICB MF of Tk644.74 per unit on current market price basis against face value of Tk100 each.
   On the close of operation on November 19, Grameen Mutual Fund One reported NAV of Tk43.93 per unit at current market price basis and Tk22.83 at cost price basis against face value of Tk10.
   Grameen One: Scheme Two reported NAV of Tk15.60 per unit at current market price basis and Tk11.80 at cost price basis against face value of Tk10.
   Aims 1st MF reported NAV of Tk4.12 per unit at current market price basis and Tk2.21 at cost price basis against face value of Tk1.
   EBL First MF reported NAV of Tk11.47 per unit at market price basis and Tk10.68 per unit at cost price basis against face value of Tk10.

Dhaka stocks opened the week upbeat with the DSE general index set new high on Sunday, on the back of a rise in share prices of financial sector securities.
   The general index of Dhaka Stock Exchange gained 58.34 points, or 1.41 per cent, to close at 4,203.08, while its blue chips index, DSE20, advanced by 38.04 points, or 1.61 per cent, to finish at 2,402.60.
   Market operators said financial institution securities pulled up the market for the second consecutive trading day.
   The previous high of the DSE general index was 4,149.82 points on November 17. The key index of the bourse crossed 4,000-points mark for the first time on November 16 on which day Grameenphone Ltd made its debut on the bourses.
   On Sunday, share prices of Grameenphone gained 1.03 per cent to close at Tk 165.70 each.
   Of the total 236 issues traded, 178 advanced, 53 declined, and five remained unchanged.
   Turnover at the DSE increased to Tk 943.76 crore from the Thursday’s Tk 861.97 crore. Social Islami Bank topped the turnover leaders with a total transaction of Tk 40.64 crore.
   Power Grid Company Bangladesh, AB Bank, Titas Gas, Beximco, NCC Bank, Jamuna Oil, Islamic Finance and Investment, BRAC Bank, and LankaBangla Finance were the rest of the top 10 turnover leaders on the day.

Private carrier GMG Airlines will operate extra flights to Kathmandu, Bangkok and Kuala Lumpur on the occasion of Eid-ul-Azha, a press release said.
   The decision to operate additional flights to these destinations has been taken ‘due to demand of the customers’.
   Effective from November 29, the airline plans to operate four additional flights to Kathmandu and three flights each to Bangkok and Kuala Lumpur.

UK based company Talisman Limited will set up a high fashion garment industry in Dhaka Export Processing Zone soon.
   The company will invest $5 million in setting up their unit and will produce garment items that will create employment opportunity for 1,800 Bangladeshi nationals.
   An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Talisman Limited at BEPZA Complex in Dhaka.
   BEPZA member (investment promotion) Moyjuddin Ahmed and Talisman Limited chairman and managing director MA Matin signed the agreement on behalf of their respective sides.
   BEPZA executive chairman Brigadier General Jamil Ahmed Khan and senior officials were present.

Citibank, NA Bangladesh recently completed the first round of testing of cheque processing through Bangladesh Automated Clearing House.
   The bank also recently organised a seminar for its clients highlighting the key features and benefits of BACH, said a news release.
   On the occasion, Mamun Rashid, managing director and Citi Country Officer – Bangladesh, said ‘We highly appreciate the bold reforms initiated by Bangladesh Bank in the country’s banking sector. We believe that the imminent implementation of an automated clearing house is likely to change the banking landscape of the country in the years to come in a very positive way and Citibank’s technological edge will help its clients to take full benefits through the BACH’.

Investment Corporation of Bangladesh approved 100 per cent stock dividend and 5 per cent cash dividend for the year 2008-09 at its 33rd annual general meeting in Dhaka on Saturday.
   Chairman of the board of directors of the corporation M Khairul Hossain presided over the meeting, said a news release.
   ICB managing director Md Humayun Kabir and directors of the corporation were present in the AGM. A good number of shareholders attended the meeting.
   In the year 2008-09, the ICB earned a net profit of Tk 111.63 crore, which was 10.32 per cent higher than that of the previous year. The corporation also declared dividend for its unit fund.

City Bank
   Hosne Ara Aziz and Marina Sultana, sponsors of the bank, have reported their intention to sell 2,500 and 10,000 shares out of their total holdings of 1,35,869 and 48,941 shares respectively at prevailing market price through the stock exchange within next 30 working days.
   
   BLTC
   Normal trading of the shares of the company will resume today following the starting date of book closure.
   
   Gemini Sea Food
   Trading of the shares of the company will be allowed only in the spot market and block/odd lot transactions will also be settled as per spot settlement cycle with cum benefit from today to tomorrow. Trading of the shares of the company will remain suspended on 25.11.09 as book closure will start from 26.11.09.
   
   LankaBangla Finance
   One Bank Limited, one of the corporate sponsors/directors of the company, has reported its intention to sell 50,000 shares (bonus share) out of its total holdings of 44,30,000 shares of the company and SSC Holdings Limited, one of the corporate sponsors/directors of the company, has reported its intention to sell 1,00,000 shares out of its total holdings of 8,30,000 shares of the company at prevailing market price through the stock exchange within next 30 working days.
   Source: DSE

Southeast Asia’s biggest budget carrier AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid to tap the region’s capital markets despite a turbulent year for airlines.
   AirAsia has the most extensive network in Southeast Asia, with more than 70 destinations across 20 countries — and has grown dramatically from just two planes to its current fleet of 85 in just seven years.
   Now the company, currently listed only in Malaysia, wants to list itself and its Thai affiliate in Thailand. It also wants to list its Indonesian affiliate in Indonesia.
   Group chief executive Tony Fernandes said the moves would give it more of a Southeast Asian identity.
    ‘We are an ASEAN company. We want many ASEAN investors to buy our shares,’ he told AFP over the weekend in Kuala Lumpur.
   AirAsia is a big capital stock on the Malaysian bourse. ‘By listing on the three stock exchanges, it will boost AirAsia’s ASEAN identity,’ he said.
   Indonesia is Southeast Asia’s most-populated nation while Thailand and Malaysia are key members of regional bloc the Association of Southeast Asian Nations (ASEAN).
   Fernandes said he was unable to say when the listings would take place as the plan was still in its infancy, but was confident there would be demand for the shares, despite the industry’s problems during the global economic downturn.
   ‘The timing is great in Asia. And Southeast Asia is a huge market,’ he said of the region’s 550 million people.
   Yeah Kim Leng, chief economist with ratings agency RAM Holdings, in Malaysia, told AFP that the listing of AirAsia on the Thai bourse would allow Fernandes to ‘raise capital and to reduce overall gearing.’
   Listing the affiliates, Thai AirAsia and Indonesia AirAsia, would also add fresh dynamism to the capital markets in Thailand and Indonesia and ‘will enable local investors to participate in the growth potential of the company,’ he said.
   Fernandes said AirAsia had picked CIMB Investment Bank Bhd, a unit of Malaysia’s second largest bank CIMB Group Holdings, as lead arranger for the stock listings.
   AirAsia’s listing plans come just days after CIMB Group Holdings announced it plans to list on the Thai stock exchange in the first half of 2010.
   On the outlook for the aviation industry, Fernandes said AirAsia was in better shape than many of its competitors.
    ‘We will press ahead with our route expansion. For instance, we will continue to expand into India. The whole Indian subcontinent is an exciting region for AirAsia,’ he said.
   AirAsia, which services more than 130 routes, already flies to Kolkata, Trichy, Kochi and Trivandrum.
   While premium carriers have suffered, Fernandes said low-cost carriers have been more resilient in weathering the economic downturn.
   ‘Passenger demand for AirAsia seats remained strong. We will weather the storm very well. Our demand for fourth quarter is good,’ he said.
   AirAsia’s net profit in the three months to September climbed to 130.07 million ringgit (38.4 million dollars) from a loss of 465.53 million ringgit a year ago.
   Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA), said the first 10 months of 2009 ‘has been one of the most difficult and challenging for airlines in the history of aviation.’
   During the period, AAPA international passenger numbers were down by 8.2 per cent, while air cargo experienced a 16.5 per cent decline.
   Herdman said the industry has to steer a difficult course over the next year.

India will be the third largest economy in the world after China and United States by 2050, a US-based internationally recognised foreign-policy think tank has said.
   An article ‘The G20 in 2050’, carried in November bulletin of the Carnegie Endowment for International Peace said, ‘China, India, and the United States will emerge as the world’s three largest economies in 2050. Their total GDP, in real US dollar terms, will be over 70 per cent more than that of the other G20 countries combined.’
   Other main findings include:
   China will become the world’s largest economy in 2032, and grow to be 20 per cent larger than the United States by 2050
   Over the next 40 years, nearly 60 per cent of G20 economic growth will come from Brazil, China, India, Russia, and Mexico alone.
   The article was written by Uri Dadush and Bennett Stancil. A Frenchman and former director of World Bank, Dadush is the director of the International Economics Programme at the Foundation, and Stancil is a Fellow at the Programme.
   ‘In China and India alone, GDP is predicted to increase by nearly US $60 trillion the current world GDP but the wide disparity in per capita GDP among these three will persist,’ they noted.
   India’s annual average GDP growth between 2009-2050 is predicted to 6.19 per cent, and these emerging markets will not rise among the world’s richest countries in per capita terms- their average income in 2050 will still be 40 per cent below that of the G7 nations presently.
   Stressing that the world’s economic powers are shifting dramatically, the economists noted that the ‘G20’s recent transformation into the world’s principal economic forum highlights the beginning of a more integrated and complex economic era.’
   Over the next 40 years, the G20 GDP is expected to grow at an average annual rate of 3.6 per cent, rising from US $38.3 trillion in 2009 to US $161.5 trillion in 2050, in real US dollar terms.
   Nearly 60 per cent of this US $123 trillion dollar expansion will come from Brazil, Russia, India, China and Mexico (BRIC+M).
   The experts also find that out of the G20 countries, ‘India is predicted to grow most rapidly, but its current modest size will prevent it from surpassing either China or the United States in real US dollar terms.’
   The authors observe that the growth could be even faster, but the low quality of education, infrastructure, governance, and business climate will hold back progress in developing countries.
   Technological convergence is expected to be lower in India and Indonesia than in China and Russia. India’s Purchasing Power Parity will be 97 per cent as large as that of the United States by 2050.
   India is expected to become the world’s most populous nation in 2031and an average exchange rate appreciation of 0.9 per cent per year will push annual GDP growth to an average of 6.2 per cent, according to the study.

Russian president Dmitry Medvedev on Thursday called on world powers to battle a rising tide of road accidents which he said killed the equivalent of a major city each year and drained the global economy of $500 billion.
   Medvedev, speaking
   at the first ministerial conference devoted to road safety, called for tougher action to clamp down on speeding, though he admitted Russian roads were haunted by dangerous drivers.
   ‘Every year, a large city, a megapolis, is wiped off the map of the world,’ Medvedev told the conference, adding that 3,500 people were killed each day in road traffic accidents.
   ‘The price of human tragedy is impossible to measure but the damage to national economies from road accidents is possible to measure — this damage is more than $500 billion,’ he said.
   Road accidents kill more people worldwide than many wars, though campaigners say the issue has so far been largely ignored by the international community and most charities.
   ‘If this were not happening on the world’s roads but in a conflict there would be urgent calls for intervention,’ said road safety expert Kevin Watkins.
   Without action, road deaths would probably rise to just under 3 million by 2030, the Oxford University academic said.
   Medvedev, acknowledged that thousands still died needlessly in traffic accidents. Speeding and overtaking into oncoming traffic is common on Russia’s congested roads, which officials concede are some of the most dangerous in Europe.
   So far this year, there have been 1,68,000 traffic accidents in Russia, killing 21,300 and injuring 212,500 people, according to government statistics.
   ‘Last year, 30,000 people died on Russia’s roads and though the headline figure is improving it has not changed as much as we would have liked,’ Medvedev said.
   Russia’s chief traffic policeman, Vitaly Kiryanov, said that the number of deaths on the country’s roads had been reduced by focusing on simple measures such as discouraging drink driving.
   He said the poor state of many of the country’s roads — which have been congested by a massive rise in car ownership over the past decade — contributed to the high death rate.

Britain’s business leaders gather here on Monday for an annual conference expected to focus on how companies can recover from the country’s longest recession on record.
   The Confederation of British Industry (CBI), the nation’s biggest employers’ body, has billed its one-day gathering ‘Routes to Recovery’.
   The worst global crisis since the 1930s has hammered consumer demand, ramped up unemployment and ravaged manufacturing in Britain.
   Businesses have also been blighted by the credit crunch as the struggling banking sector has tightened lending criteria, despite record low interest rates from the Bank of England.
   Britain faces a general election by next June and ahead of the polls, one of the biggest headaches facing the government is how best to fix the dire state of the nation’s public finances.
   British Prime Minster Gordon Brown’s Labour party is tipped to lose at the hands of David Cameron’s Conservatives, the country’s main opposition.
   The CBI meanwhile, the biggest lobbying organisation for Britain’s business sector, is calling on the government to sort out ballooning debt and extend its car scrappage scheme to safeguard valuable automaking jobs.
   ‘This time last year, the world was absolutely in the eye of the storm, unimaginable things were going on after the collapse of (US investment bank) Lehman,’ CBI Director-General Richard Lambert told AFP ahead of the conference.
   ‘Just about everywhere in the world, demand for just about everything fell by about 30 per cent.

Pubali Bank Limited inaugurated its 374th branch at Chengarchar in Chandpur recently.
   Director of the bank Giashuddin Ahmed inaugurated the branch as chief guest, said a news release.
   Managing director of the bank Helal Ahmed Chowdhury presided over the inaugural function.
   General manager of general services and development division of the bank Shafiul Alam Khan Chowdhury, regional head of Comilla Region Dilip Kumar Roy, and local elites also attended the programme.

Eastern Bank Limited opened its 35th branch at Banasree in Dhaka recently.
   EBL managing director and chief executive officer Ali Reza Iftekhar inaugurated the branch, said a news release.
   EBL deputy managing director Mamoon Mahmood Shah, consumer banking area head Mohammad Musa, head of strategy Kamruzzaman Mamun, head of marketing Nazim Anwar Choudhury, were also present on the occasion.
   Besides general banking the new branch will offer on-line banking, locker service, ATM and other modern facilities.