UPDATE___________________________________JANUARY 11, 2010 MONDAY
NEWS
Bangladeshi RMG exporters want
a niche in Indian market
The country’s garment exporters have urged the Prime Minister to take up with the Indian authorities the issue of duty-free market access for Bangladeshi garments into Indian market during her current visit to India.
Sources in the government told New Age that leaders of the RMG industry had apprised the Prime Minister of some regulatory and para-tariff barriers that made an Indian gesture of token duty-free access of Bangladeshi garments to their market virtually useless.
After years of discussion under SAFTA, the Indian authorities in 2007 provided a duty-free access for a token quantity of eight million pieces of Bangladeshi garments, but that preferential gesture could not be utilised due to such barriers, sources in the industry said.
Some top leaders of the textile and garment industry associations have been included in the entourage of Prime Minister Sheikh Hasina who left Dhaka on Sunday for a four-day visit to India.
The prime minister’s entourage includes Abdus Salam Murshedy, president of the Bangladesh Garment Manufacturers and Exporters Association, Fazlul Hoque of Knitwear Manufacturers and Exporters Association and Abdul Hai Sarker of Textile Mills Association.
Prior to the prime minister’s visit to India, captains of the industry had briefed her on some specific barriers that stood on the way of RMG and textiles export to India, sources in the industry told New Age.
In a letter to the PM, the BGMEA pointed out some of the specific barriers that were discouraging the potential importers.
‘Several para-tariff and regulatory hassles in India have prevented Bangladeshi exporters to make a foothold in the vast apparel market there,’ the association noted.
The association pointed out that since October 2009, new Indian customs rules obliged 12 per cent countervailing duty on cotton garment category and 19.5 per cent on non-cotton category.
A top garment exporter told your correspondent that the industry was eagerly waiting for an effective free market access to India.
‘If Bangladeshi garments get a functionally free and encouraging market access to India, our exports there would cross at least the threshold of $ one billion within a few years,’ a exporter said.
In the fiscal year 2008-09 that ended in June last year, Bangladesh’s garment exports to the world market amounted $ 12.35 billion but to the Indian market it was a paltry US$ 11 million.
According to industry analysts, Indian retail apparel market is worth more than $ 40 billion dollars, potentially lucrative market that is expanding fast with prospect for shares of imported clothing growing in equal pace.
‘Bangladesh’s export-oriented garment industry imports a huge quantity of raw materials from India, So, rightfully Bangladeshi finished garments should also be welcomed in the Indian market on a recieprocal basis,’ said Fazlul Hoque, president of BKMEA.
Hoque hoped that the industry leaders accompanying the prime minister would be able to convey the eagerness of Bangladesh’s garment export industry for having a share in the fast expanding Indian apparel market.
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Sluggish investment, exports,
imports major challenges
The national economy is faced with a three-pronged challenge of sluggish investment, uncertainty over export earnings and possible rise in import bills, a high level coordination council meeting was told on Sunday.
It, however, observed that other than these three areas, the economic scenario appeared to be promising with gross domestic product expected to
touch 6 per cent growth as targeted in the current budget.
The finance ministry’s coordination council meeting, chaired by the finance minister, underlined the importance of monitoring prices of essential commodities to take measures whenever necessary and expressed the hope that the prices of different varieties of rice would stabilise soon.
Despite rising trends of inflation in recent months, the meeting of the coordination council on monetary policy and exchange rate expressed the confidence that it would not reach double-digit by any means, sources close to the meeting said.
In view of the need for increasing investments, the finance minister, AMA Muhith, asked the Bangladesh Bank to take steps to help increase investments, the sources informed New Age.
‘The economic scenario is good except certain problems with investments, imports and exports. There is no reason to be concerned about the price situation although we need to closely monitor the market,’ said one of the sources.
The finance minister, while briefing newsmen, claimed that the economy was in a better shape now and various indicators showed positive trends for the coming months.
Muhith estimated the rate of implementation of annual development programme to be 28 per cent in six months—better than the 23 per cent in the same period previous year. ‘It is better this year with a bigger size of ADP at 30,500 crore compared to last year’s smaller ADP worth Tk 26,500,’ he added.
The governor of the central bank, Atiur Rahman, pointed out that there was a positive trend in private investment as the imports of capital machinery were increasing after a sluggish trend earlier.
The minister mentioned that the flow of foreign aid was better than the expectation of the government.
Asked about inflation, Muhith stuck to the projection at 6.5 per cent made in the budget and said the government would prepare the next budget based on this assumption.
The government will place a revised budget in parliament next March in line with a new legislation, he said.
The finance minister is also expected to make a statement on quarterly update of the national economy including budget implementation in parliament on January 19.
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Fall of wholesale prices of soy
oil not reflected in retail market
The wholesale price of soya bean oil declined to Tk 2,800 per maund (37.3 kg) on Sunday, the lowest in the last two months.
However, retailers in the city remained unresponsive and were depriving the consumers of the benefit of the continuous fall of soya bean oil prices.
The commodity is being retailed at irrationally high prices.
The wholesale price of soya bean crossed Tk 80 per kilogram a month ago but on Sunday it came down to Tk 75.
But on that day the various retail outlets in the city sold non-packed soya bean oil for prices between Tk 88 and Tk 92 per kilogram, while bottled and branded soya bean oil was retailed for Tk 106 to Tk 110 per litre.
‘This is totally unacceptable. The prices of edible oil should not vary by Tk 15 to Tk 30 between the wholesale and retail markets,’ said Emdad Hossain Malek, chief of the Consumers Association of Bangladesh.
Malek termed such market behaviour as ‘anarchy’ and demanded the government’s intervention in this regard.
Market sources told New Age that the wholesale price of soya bean oil closed at Tk 2,800 per maund (37.3 kilogram) as millers were releasing their stocks fast because they fear that by the end of the cold spell the market’s demand will be diverted to palm oil.
In early December the wholesale price of soya bean oil reached Tk 3,000 per maund because a comparatively chillier winter this year cut consumption of palm oil drastically and brought about a surge in the demand for soya bean oil.
The Bangladesh market is dominated by imported palm oil but in the winter the sales of soya bean oil rise as low temperature makes palm oil cloudy.
In the summer unscrupulous retailers of non-packed edible oil pass off palm oil as soya bean oil to consumers since it is difficult to differentiate one from the other.
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WORLD
Mahathir for relocation of
Malaysian labour-intensive
industries to Bangladesh
Malaysia’s former prime minister Mahathir Mohammad on Saturday called upon the Malaysian entrepreneurs to look into the opportunities of relocating their labour-intensive sunset industries to Bangladesh for the mutual benefits of the two countries.
There is an ample scope for enhancing trade and economic ties between the two countries, said Mahathir while addressing a dinner organised on the occasion of exposition ‘Showcase Bangladesh 2010’ in Kuala Lumpur.
Bangladesh Malaysia chamber of commerce and industry and Bangladesh high commission jointly organised the three-day exhibition of Bangladeshi products and services at the Putra World Trade Centre starting from Friday.
The dinner was attended by state minister for environment and forest Hasan Mahmud, and business leaders from the two countries.
Mahathir expressed hope that such initiatives of relocating industries would help expand economic ties between the two countries.
The architect of the modern Malaysia, however, said Bangladesh needs political stability and pursuance of realistic development strategies to achieve economic progress.
He also shared his vision of modernising Malaysia through massive industrialisation which ensured jobs and economic sustainability, and became the springboard for socio-economic progress.
Nearly 60 business houses representing ceramics, leather, jute, energy, food, consumer products, textile and tourism and banking institutions participated in the fair.
___________________________________________
NEWS
Tourism master plans under way
for Cox’s Bazar, Kuakata
Minister for civil aviation and tourism GM Qader Sunday said the government was preparing two separate master plans for Cox’s Bazar and Kuakata to develop the places as highly attractive tourist spots with global standard.
The minister presided over a inter-ministerial meeting to review the progress of preparing master plans for the two locations to build those as global standard tourist destinations.
He asked the concerned authorities to quickly develop the plans.
He said the government has decided to set up Cox’s Bazar Development Authority and upgrade Kuakata into a municipal body as part of its plan to refurbish the locations with all tourist facilities.
Acting secretary of the ministry Shafique Al-Mehdi, secretary of forest and environment ministry Mihir Kanty Majumder, chairman of Bangladesh Parjaran Corporation M Hemayet Uddin Talukder took part in the meeting.
Representatives of the ministry of public works and housing, ministry of land, communications, cultural affairs, urban development authority, district administration of Cox’s Bazar and Patuakhali and project directors of both the plans were present.
The minister asked the authorities that care should be taken in preparing the plans to add new infrastructures and other facilities to both the spots but in doing so the natural beauty and local resources can not be disturbed.
They should add more natural beauty in those areas, promote good communication network, hotels, restaurants and other entertainment facilities, new sports outlets including venues for international cricket.
Modern shopping malls and security arrangements should also stay at the centre of such plans, he said adding the present government is putting top priority to development of tourism and the master plans are being prepared accordingly.
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DSE turnover hits record
The single-day transaction at Dhaka Stock Exchange hit a record on Sunday, the opening day of the second week of 2010.
Total value of the day’s traded 3.95 crore shares reached to Tk 1,324 crore, the highest-ever single-day transaction on DSE.
According to some brokers, the transaction in value increased significantly on the day on buying of big issues.
DSE data shows that the big issues including Bextex, Beximco, Beximcophara, GP and Aims 1st Mutual Fund were traded with a huge volume when prices of most issues increased marginally.
Brokers said the demand on the market was also strong enough thanks to the institutional buying that had been continuing since the beginning of the year.
Some issues with good fundamentals like Lankabangla, Prime Bank and AB Bank decline on profit-taking selling. The day’s major losing issues at close, however, were 2nd ICB, Mithun Kinit, BLTC, Monno Jutex and Standard Insurance.
The most advanced issues at closing included S Alam Cold Rolled Steels, Bata Shoes, Gemeni Sea Foods, Modern Dyeing and Global Insurance.
A total of 127 issues gained Sunday when prices of 113 issues declined.
The price index of DSE also reached to a new high on the day on steady rally that continued for the second week since December 20, 2009.
DGEN, the main index of Dhaka Stock Exchange finished at 4730.74 on Sunday from 4722.09 of last week’s closing on Thursday.
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Poultry leaders demand Indian eggs,
chicks import decision cancellation
Poultry businessmen on Sunday demanded cancellation of a government decision to allow imports of eggs and day-old chicks from India.
Leaders of the Bangladesh Poultry Industries Association at a press conference at Barisal Press Club said country’s growing poultry industry would be affected if the government decision was implemented.
They said allowing imports of day-old chicks and eggs from India would open the way for flooding Bangladesh market with such Indian products at the cost of the country’s poultry industry.
The leaders expressed apprehension that such imports might also heighten the risks of spreading avian influenza or bird flu in view of an outbreak of the disease in India in recent months.
The association’s Barisal divisional branch secretary Aminur Raman read-out the written statement while central secretary Khondokar Md Mohsin, Barisal branch president MS Doha, Khulna divisional branch president SM Sohrab Hossain, Sylhet divisional branch president MD Foyez Raza Chowdhury and Chittagong division branch president MD Foyez Ahmed were present.
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Growth potential for shrimp
exports seen
Bangladesh’s shrimp exports still have potential to capture a major part of the European market and enter Japan by ensuring food safety, solving the problem of contamination, an expert from Thailand has said.
Bangladesh must also maintain foods standards within the country besides paying attention to exports, Paiboon Ponsuwanna, chairman of Food Industry Club in Thailand, told a workshop in the capital on Saturday.
Ponsuwanna said the private sector must come forward faster than the government to ensure quality of shrimps for export.
Citing Thailand as the top Asian country in frozen foods export to the EU, ASEAN, USA and Japan, Paiboon said Bangladesh could also enter the Japanese market, a huge and profitable one, if it follows the example of Thailand.
Thailand in the last 15 years has made a significant development in food exports as it has been strictly maintaining global standards in production and processing, providing traceability, ensuring worker safety and undertaking corporate social responsibilities, said Paiboon, also the chairman of Thai National Shippers Council.
Bangladesh, meanwhile, has been under a self-imposed ban on export of shrimps to the EU, a decision taken on May 2009, after 54 rejections were made from late 2008 to early 2009 due to a ‘Rapid Alert’ notice, which circulates information on food safety problems among European nations.
The alert came for contamination of frozen shrimps by nitrofuran, a toxic antibiotic.
Bangladesh was set to ease the ban after initiatives to eliminate contamination of the toxic element began to take hold. Bangladesh also raised doubts against the examination protocol which was later changed. Officials said observations find that the contamination sometimes occurs naturally too.
The resumption of shrimp exports is still in limbo due to technicalities, however, though a meeting of the National Working Committee decided to lift the ban from Dec 7.
Md Musa Meah, president of Bangladesh Frozen Foods Exporters Association, said, ‘We’re ready for shipments now and for securing contracts.’
Bangladesh earned some $534.07 million, five per cent of the total exports, during 2007-08, which shrunk significantly in the last fiscal year due to the ban.
An EU delegation will visit Bangladesh next week to see the progress in ensuring contamination-free shrimp export.
Mohammed Samsul Kibria, joint secretary of the ministry of fisheries and livestock, in his keynote paper said the farms involved in shrimp processing should be brought under licensing system while the certification system must still be further strengthened.
Fisheries secretary Md Sharful Alam said the current problems could only be resolved in cooperation with the active participation of the stakeholders, not by the government alone.
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ASIA
Indian firms see profit surge
Indian firms are expected to announce a sharp rise in profits when the quarterly reporting season kicks off this week, aided by improving business and a low base from the depths of the financial crisis.
The 30 companies that make up Mumbai’s benchmark Sensex index are forecast to announce a year-on-year increase in net profit of between 15 and 20 per cent for the quarter ending December, analysts told the AFP.
‘We have definitely turned the corner. Earnings will be robust, aided by the low base effect of the December 2008 quarter,’ said Hitesh Agrawal, head of research at Mumbai’s Angel Broking. India’s economy grew by a faster-than-expected 7.9 per cent in the three months to September, picking up pace from the previous quarter when it expanded by 6.1 per cent.
‘Demand across sectors is picking up and business confidence is high. The economy has been boosted by foreign capital inflows and government stimulus packages,’ said Jigar Shah, senior vice president of Kim Eng Securities India.
Infosys Technologies, the Bangalore-based pioneer of India’s flagship software sector, announces its profits Tuesday, the first index heavyweight to report earnings.
TCS, the largest software exporter, announces its earnings on January 15 and rival Bangalore-based Wipro on January 20.
India’s largest oil exploration firm Oil and Natural Gas Corp takes its turn on January 21 and the country’s largest passenger car maker Maruti Suzuki India will be centre stage on January 23.
The improved business sentiment in India is reflected in the Mumbai stock exchange which vaulted by 80 per cent over 2009 — its biggest annual gain in 18 years — after it had declined 52 per cent in full-year 2008.
Such has been the force of the revival that India’s government and central bank now face a tricky balancing act in fighting inflation and keeping economic recovery on track.
Analysts say that any monetary policy action in coming months is likely to be mild to avoid snuffing out the recovery.
‘The RBI could make a ‘calibrated exit’ from the current overtly accommodative monetary policy,’ Edelweiss Securities analyst Siddharth Sanyal said in a latest report to clients.
A hike in rates or the cash reserve ratio — the amount which commercial banks have to keep aside as deposit — would take place during the first quarter of calendar year 2010, the Edelweiss report said.
Finance minister Pranab Mukherjee in December said he expected India to grow between 7.5 and 8.0 per cent for the year to March 2010.
Shah and Agrawal said the recovery would mean Indian companies had to cope with rising input costs from metals, commodities, fuel prices and financing — if the expected tightening of monetary policy materialises.
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WORLD
Commodity markets start
2010 upbeat
Commodities enjoyed a bright start to 2010, with oil bouncing above $83 and sugar striking a 29-year high as traders eyed recovery hopes despite poor US jobs data.
‘We have been highlighting for some time that there is still considerable upside risk to commodity prices in early 2010,’ said Barclays Capital analyst Kevin Norrish in a research note to clients.
‘It is our view that markets have underestimated the strength of the economic growth rebound in the first quarter — and that it is still a little early to exit the recovery trade.’
Markets tailed off somewhat on Friday as traders digested news that the United States — a major consumer of raw materials — shed more jobs than expected in December.
Most commodities rallied in 2009 on keen demand and signs of global economic recovery, with oil soaring about 80 per cent and gold hitting record peaks.
Oil: The market jumped in the first trading week of 2010 largely because of a cold snap across the northern hemisphere which boosted heating fuel demand but players pared gains after a downbeat US jobs report.
New York crude topped $83 on Wednesday for the first time for 14 months before closing lower on Thursday for the first time in 10 sessions as traders banked profits.
Oil begun 2010 with a bang on Monday, soaring by more than two dollars as freezing temperatures spread.
By late Friday, New York’s main futures contract, light sweet crude for delivery in February, rallied to $82.22 a barrel from $79.36 on Thursday of the previous week.
London’s Brent North Sea crude for February advanced to $81.05 from $77.93.
Platinum and palladium prices soared to equal recent highs after the US launch of exchange traded funds for both metals.
Platinum rallied as high as $1,578 per ounce, the best level since August 2008 while palladium hit $434.25 an ounce, the best since July that year.
By Friday on the London Bullion Market, gold rose to $1,126.75 an ounce, from $1,104 the previous Thursday before the New Year holiday break.
Silver soared to $18.12 an ounce from $16.99.
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WORLD
China moves to weather fears
of property bubble
Agence France-Presse . Beijing
China ordered vigilance against foreign ‘hot money’ flows and speculative real estate investment on Sunday in its latest expression of concern over a surging property market.
The order issued by the State Council, or Cabinet, called on authorities nationwide to take a range of measures to ‘promote the stable and healthy development of the real estate market’.
Property prices have soared recently, bolstered by easy bank loans, tax breaks, and lower down-payments introduced by the government last year to support the real estate sector amid an economic slowdown.
The price gains have raised fears of a property bubble.
‘Relevant departments need to strengthen inspection and control of credit and capital flows, cross-border investment and financing activities...to prevent foreign inflows of “hot money” from impacting China’s property market,’ the statement said.
It also called for authorities to prioritise the construction of low-income housing and more closely scrutinise mortgage financing and the market in general.
However, the notice did not otherwise announce the implementation of any specific new government policies, largely echoing earlier calls for stability in the market.
Concerns have risen in recent months that a property bubble was building due to speculative investment amid rumours that a large portion of the government’s $586-billion stimulus package had been channelled into asset markets.
The package was first announced in late 2008 in response to help ward off the effects of the global economic downturn.
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NEWS
Bangladeshi RMG exporters want
a niche in Indian market
The country’s garment exporters have urged the Prime Minister to take up with the Indian authorities the issue of duty-free market access for Bangladeshi garments into Indian market during her current visit to India.
Sources in the government told New Age that leaders of the RMG industry had apprised the Prime Minister of some regulatory and para-tariff barriers that made an Indian gesture of token duty-free access of Bangladeshi garments to their market virtually useless.
After years of discussion under SAFTA, the Indian authorities in 2007 provided a duty-free access for a token quantity of eight million pieces of Bangladeshi garments, but that preferential gesture could not be utilised due to such barriers, sources in the industry said.
Some top leaders of the textile and garment industry associations have been included in the entourage of Prime Minister Sheikh Hasina who left Dhaka on Sunday for a four-day visit to India.
The prime minister’s entourage includes Abdus Salam Murshedy, president of the Bangladesh Garment Manufacturers and Exporters Association, Fazlul Hoque of Knitwear Manufacturers and Exporters Association and Abdul Hai Sarker of Textile Mills Association.
Prior to the prime minister’s visit to India, captains of the industry had briefed her on some specific barriers that stood on the way of RMG and textiles export to India, sources in the industry told New Age.
In a letter to the PM, the BGMEA pointed out some of the specific barriers that were discouraging the potential importers.
‘Several para-tariff and regulatory hassles in India have prevented Bangladeshi exporters to make a foothold in the vast apparel market there,’ the association noted.
The association pointed out that since October 2009, new Indian customs rules obliged 12 per cent countervailing duty on cotton garment category and 19.5 per cent on non-cotton category.
A top garment exporter told your correspondent that the industry was eagerly waiting for an effective free market access to India.
‘If Bangladeshi garments get a functionally free and encouraging market access to India, our exports there would cross at least the threshold of $ one billion within a few years,’ a exporter said.
In the fiscal year 2008-09 that ended in June last year, Bangladesh’s garment exports to the world market amounted $ 12.35 billion but to the Indian market it was a paltry US$ 11 million.
According to industry analysts, Indian retail apparel market is worth more than $ 40 billion dollars, potentially lucrative market that is expanding fast with prospect for shares of imported clothing growing in equal pace.
‘Bangladesh’s export-oriented garment industry imports a huge quantity of raw materials from India, So, rightfully Bangladeshi finished garments should also be welcomed in the Indian market on a recieprocal basis,’ said Fazlul Hoque, president of BKMEA.
Hoque hoped that the industry leaders accompanying the prime minister would be able to convey the eagerness of Bangladesh’s garment export industry for having a share in the fast expanding Indian apparel market.
________________________________________________
Sluggish investment, exports,
imports major challenges
The national economy is faced with a three-pronged challenge of sluggish investment, uncertainty over export earnings and possible rise in import bills, a high level coordination council meeting was told on Sunday.
It, however, observed that other than these three areas, the economic scenario appeared to be promising with gross domestic product expected to
touch 6 per cent growth as targeted in the current budget.
The finance ministry’s coordination council meeting, chaired by the finance minister, underlined the importance of monitoring prices of essential commodities to take measures whenever necessary and expressed the hope that the prices of different varieties of rice would stabilise soon.
Despite rising trends of inflation in recent months, the meeting of the coordination council on monetary policy and exchange rate expressed the confidence that it would not reach double-digit by any means, sources close to the meeting said.
In view of the need for increasing investments, the finance minister, AMA Muhith, asked the Bangladesh Bank to take steps to help increase investments, the sources informed New Age.
‘The economic scenario is good except certain problems with investments, imports and exports. There is no reason to be concerned about the price situation although we need to closely monitor the market,’ said one of the sources.
The finance minister, while briefing newsmen, claimed that the economy was in a better shape now and various indicators showed positive trends for the coming months.
Muhith estimated the rate of implementation of annual development programme to be 28 per cent in six months—better than the 23 per cent in the same period previous year. ‘It is better this year with a bigger size of ADP at 30,500 crore compared to last year’s smaller ADP worth Tk 26,500,’ he added.
The governor of the central bank, Atiur Rahman, pointed out that there was a positive trend in private investment as the imports of capital machinery were increasing after a sluggish trend earlier.
The minister mentioned that the flow of foreign aid was better than the expectation of the government.
Asked about inflation, Muhith stuck to the projection at 6.5 per cent made in the budget and said the government would prepare the next budget based on this assumption.
The government will place a revised budget in parliament next March in line with a new legislation, he said.
The finance minister is also expected to make a statement on quarterly update of the national economy including budget implementation in parliament on January 19.
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Fall of wholesale prices of soy
oil not reflected in retail market
The wholesale price of soya bean oil declined to Tk 2,800 per maund (37.3 kg) on Sunday, the lowest in the last two months.
However, retailers in the city remained unresponsive and were depriving the consumers of the benefit of the continuous fall of soya bean oil prices.
The commodity is being retailed at irrationally high prices.
The wholesale price of soya bean crossed Tk 80 per kilogram a month ago but on Sunday it came down to Tk 75.
But on that day the various retail outlets in the city sold non-packed soya bean oil for prices between Tk 88 and Tk 92 per kilogram, while bottled and branded soya bean oil was retailed for Tk 106 to Tk 110 per litre.
‘This is totally unacceptable. The prices of edible oil should not vary by Tk 15 to Tk 30 between the wholesale and retail markets,’ said Emdad Hossain Malek, chief of the Consumers Association of Bangladesh.
Malek termed such market behaviour as ‘anarchy’ and demanded the government’s intervention in this regard.
Market sources told New Age that the wholesale price of soya bean oil closed at Tk 2,800 per maund (37.3 kilogram) as millers were releasing their stocks fast because they fear that by the end of the cold spell the market’s demand will be diverted to palm oil.
In early December the wholesale price of soya bean oil reached Tk 3,000 per maund because a comparatively chillier winter this year cut consumption of palm oil drastically and brought about a surge in the demand for soya bean oil.
The Bangladesh market is dominated by imported palm oil but in the winter the sales of soya bean oil rise as low temperature makes palm oil cloudy.
In the summer unscrupulous retailers of non-packed edible oil pass off palm oil as soya bean oil to consumers since it is difficult to differentiate one from the other.
___________________________________________________
WORLD
Mahathir for relocation of
Malaysian labour-intensive
industries to Bangladesh
Malaysia’s former prime minister Mahathir Mohammad on Saturday called upon the Malaysian entrepreneurs to look into the opportunities of relocating their labour-intensive sunset industries to Bangladesh for the mutual benefits of the two countries.
There is an ample scope for enhancing trade and economic ties between the two countries, said Mahathir while addressing a dinner organised on the occasion of exposition ‘Showcase Bangladesh 2010’ in Kuala Lumpur.
Bangladesh Malaysia chamber of commerce and industry and Bangladesh high commission jointly organised the three-day exhibition of Bangladeshi products and services at the Putra World Trade Centre starting from Friday.
The dinner was attended by state minister for environment and forest Hasan Mahmud, and business leaders from the two countries.
Mahathir expressed hope that such initiatives of relocating industries would help expand economic ties between the two countries.
The architect of the modern Malaysia, however, said Bangladesh needs political stability and pursuance of realistic development strategies to achieve economic progress.
He also shared his vision of modernising Malaysia through massive industrialisation which ensured jobs and economic sustainability, and became the springboard for socio-economic progress.
Nearly 60 business houses representing ceramics, leather, jute, energy, food, consumer products, textile and tourism and banking institutions participated in the fair.
___________________________________________
NEWS
Tourism master plans under way
for Cox’s Bazar, Kuakata
Minister for civil aviation and tourism GM Qader Sunday said the government was preparing two separate master plans for Cox’s Bazar and Kuakata to develop the places as highly attractive tourist spots with global standard.
The minister presided over a inter-ministerial meeting to review the progress of preparing master plans for the two locations to build those as global standard tourist destinations.
He asked the concerned authorities to quickly develop the plans.
He said the government has decided to set up Cox’s Bazar Development Authority and upgrade Kuakata into a municipal body as part of its plan to refurbish the locations with all tourist facilities.
Acting secretary of the ministry Shafique Al-Mehdi, secretary of forest and environment ministry Mihir Kanty Majumder, chairman of Bangladesh Parjaran Corporation M Hemayet Uddin Talukder took part in the meeting.
Representatives of the ministry of public works and housing, ministry of land, communications, cultural affairs, urban development authority, district administration of Cox’s Bazar and Patuakhali and project directors of both the plans were present.
The minister asked the authorities that care should be taken in preparing the plans to add new infrastructures and other facilities to both the spots but in doing so the natural beauty and local resources can not be disturbed.
They should add more natural beauty in those areas, promote good communication network, hotels, restaurants and other entertainment facilities, new sports outlets including venues for international cricket.
Modern shopping malls and security arrangements should also stay at the centre of such plans, he said adding the present government is putting top priority to development of tourism and the master plans are being prepared accordingly.
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DSE turnover hits record
The single-day transaction at Dhaka Stock Exchange hit a record on Sunday, the opening day of the second week of 2010.
Total value of the day’s traded 3.95 crore shares reached to Tk 1,324 crore, the highest-ever single-day transaction on DSE.
According to some brokers, the transaction in value increased significantly on the day on buying of big issues.
DSE data shows that the big issues including Bextex, Beximco, Beximcophara, GP and Aims 1st Mutual Fund were traded with a huge volume when prices of most issues increased marginally.
Brokers said the demand on the market was also strong enough thanks to the institutional buying that had been continuing since the beginning of the year.
Some issues with good fundamentals like Lankabangla, Prime Bank and AB Bank decline on profit-taking selling. The day’s major losing issues at close, however, were 2nd ICB, Mithun Kinit, BLTC, Monno Jutex and Standard Insurance.
The most advanced issues at closing included S Alam Cold Rolled Steels, Bata Shoes, Gemeni Sea Foods, Modern Dyeing and Global Insurance.
A total of 127 issues gained Sunday when prices of 113 issues declined.
The price index of DSE also reached to a new high on the day on steady rally that continued for the second week since December 20, 2009.
DGEN, the main index of Dhaka Stock Exchange finished at 4730.74 on Sunday from 4722.09 of last week’s closing on Thursday.
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Poultry leaders demand Indian eggs,
chicks import decision cancellation
Poultry businessmen on Sunday demanded cancellation of a government decision to allow imports of eggs and day-old chicks from India.
Leaders of the Bangladesh Poultry Industries Association at a press conference at Barisal Press Club said country’s growing poultry industry would be affected if the government decision was implemented.
They said allowing imports of day-old chicks and eggs from India would open the way for flooding Bangladesh market with such Indian products at the cost of the country’s poultry industry.
The leaders expressed apprehension that such imports might also heighten the risks of spreading avian influenza or bird flu in view of an outbreak of the disease in India in recent months.
The association’s Barisal divisional branch secretary Aminur Raman read-out the written statement while central secretary Khondokar Md Mohsin, Barisal branch president MS Doha, Khulna divisional branch president SM Sohrab Hossain, Sylhet divisional branch president MD Foyez Raza Chowdhury and Chittagong division branch president MD Foyez Ahmed were present.
______________________________________________
Growth potential for shrimp
exports seen
Bangladesh’s shrimp exports still have potential to capture a major part of the European market and enter Japan by ensuring food safety, solving the problem of contamination, an expert from Thailand has said.
Bangladesh must also maintain foods standards within the country besides paying attention to exports, Paiboon Ponsuwanna, chairman of Food Industry Club in Thailand, told a workshop in the capital on Saturday.
Ponsuwanna said the private sector must come forward faster than the government to ensure quality of shrimps for export.
Citing Thailand as the top Asian country in frozen foods export to the EU, ASEAN, USA and Japan, Paiboon said Bangladesh could also enter the Japanese market, a huge and profitable one, if it follows the example of Thailand.
Thailand in the last 15 years has made a significant development in food exports as it has been strictly maintaining global standards in production and processing, providing traceability, ensuring worker safety and undertaking corporate social responsibilities, said Paiboon, also the chairman of Thai National Shippers Council.
Bangladesh, meanwhile, has been under a self-imposed ban on export of shrimps to the EU, a decision taken on May 2009, after 54 rejections were made from late 2008 to early 2009 due to a ‘Rapid Alert’ notice, which circulates information on food safety problems among European nations.
The alert came for contamination of frozen shrimps by nitrofuran, a toxic antibiotic.
Bangladesh was set to ease the ban after initiatives to eliminate contamination of the toxic element began to take hold. Bangladesh also raised doubts against the examination protocol which was later changed. Officials said observations find that the contamination sometimes occurs naturally too.
The resumption of shrimp exports is still in limbo due to technicalities, however, though a meeting of the National Working Committee decided to lift the ban from Dec 7.
Md Musa Meah, president of Bangladesh Frozen Foods Exporters Association, said, ‘We’re ready for shipments now and for securing contracts.’
Bangladesh earned some $534.07 million, five per cent of the total exports, during 2007-08, which shrunk significantly in the last fiscal year due to the ban.
An EU delegation will visit Bangladesh next week to see the progress in ensuring contamination-free shrimp export.
Mohammed Samsul Kibria, joint secretary of the ministry of fisheries and livestock, in his keynote paper said the farms involved in shrimp processing should be brought under licensing system while the certification system must still be further strengthened.
Fisheries secretary Md Sharful Alam said the current problems could only be resolved in cooperation with the active participation of the stakeholders, not by the government alone.
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ASIA
Indian firms see profit surge
Indian firms are expected to announce a sharp rise in profits when the quarterly reporting season kicks off this week, aided by improving business and a low base from the depths of the financial crisis.
The 30 companies that make up Mumbai’s benchmark Sensex index are forecast to announce a year-on-year increase in net profit of between 15 and 20 per cent for the quarter ending December, analysts told the AFP.
‘We have definitely turned the corner. Earnings will be robust, aided by the low base effect of the December 2008 quarter,’ said Hitesh Agrawal, head of research at Mumbai’s Angel Broking. India’s economy grew by a faster-than-expected 7.9 per cent in the three months to September, picking up pace from the previous quarter when it expanded by 6.1 per cent.
‘Demand across sectors is picking up and business confidence is high. The economy has been boosted by foreign capital inflows and government stimulus packages,’ said Jigar Shah, senior vice president of Kim Eng Securities India.
Infosys Technologies, the Bangalore-based pioneer of India’s flagship software sector, announces its profits Tuesday, the first index heavyweight to report earnings.
TCS, the largest software exporter, announces its earnings on January 15 and rival Bangalore-based Wipro on January 20.
India’s largest oil exploration firm Oil and Natural Gas Corp takes its turn on January 21 and the country’s largest passenger car maker Maruti Suzuki India will be centre stage on January 23.
The improved business sentiment in India is reflected in the Mumbai stock exchange which vaulted by 80 per cent over 2009 — its biggest annual gain in 18 years — after it had declined 52 per cent in full-year 2008.
Such has been the force of the revival that India’s government and central bank now face a tricky balancing act in fighting inflation and keeping economic recovery on track.
Analysts say that any monetary policy action in coming months is likely to be mild to avoid snuffing out the recovery.
‘The RBI could make a ‘calibrated exit’ from the current overtly accommodative monetary policy,’ Edelweiss Securities analyst Siddharth Sanyal said in a latest report to clients.
A hike in rates or the cash reserve ratio — the amount which commercial banks have to keep aside as deposit — would take place during the first quarter of calendar year 2010, the Edelweiss report said.
Finance minister Pranab Mukherjee in December said he expected India to grow between 7.5 and 8.0 per cent for the year to March 2010.
Shah and Agrawal said the recovery would mean Indian companies had to cope with rising input costs from metals, commodities, fuel prices and financing — if the expected tightening of monetary policy materialises.
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WORLD
Commodity markets start
2010 upbeat
Commodities enjoyed a bright start to 2010, with oil bouncing above $83 and sugar striking a 29-year high as traders eyed recovery hopes despite poor US jobs data.
‘We have been highlighting for some time that there is still considerable upside risk to commodity prices in early 2010,’ said Barclays Capital analyst Kevin Norrish in a research note to clients.
‘It is our view that markets have underestimated the strength of the economic growth rebound in the first quarter — and that it is still a little early to exit the recovery trade.’
Markets tailed off somewhat on Friday as traders digested news that the United States — a major consumer of raw materials — shed more jobs than expected in December.
Most commodities rallied in 2009 on keen demand and signs of global economic recovery, with oil soaring about 80 per cent and gold hitting record peaks.
Oil: The market jumped in the first trading week of 2010 largely because of a cold snap across the northern hemisphere which boosted heating fuel demand but players pared gains after a downbeat US jobs report.
New York crude topped $83 on Wednesday for the first time for 14 months before closing lower on Thursday for the first time in 10 sessions as traders banked profits.
Oil begun 2010 with a bang on Monday, soaring by more than two dollars as freezing temperatures spread.
By late Friday, New York’s main futures contract, light sweet crude for delivery in February, rallied to $82.22 a barrel from $79.36 on Thursday of the previous week.
London’s Brent North Sea crude for February advanced to $81.05 from $77.93.
Platinum and palladium prices soared to equal recent highs after the US launch of exchange traded funds for both metals.
Platinum rallied as high as $1,578 per ounce, the best level since August 2008 while palladium hit $434.25 an ounce, the best since July that year.
By Friday on the London Bullion Market, gold rose to $1,126.75 an ounce, from $1,104 the previous Thursday before the New Year holiday break.
Silver soared to $18.12 an ounce from $16.99.
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WORLD
China moves to weather fears
of property bubble
Agence France-Presse . Beijing
China ordered vigilance against foreign ‘hot money’ flows and speculative real estate investment on Sunday in its latest expression of concern over a surging property market.
The order issued by the State Council, or Cabinet, called on authorities nationwide to take a range of measures to ‘promote the stable and healthy development of the real estate market’.
Property prices have soared recently, bolstered by easy bank loans, tax breaks, and lower down-payments introduced by the government last year to support the real estate sector amid an economic slowdown.
The price gains have raised fears of a property bubble.
‘Relevant departments need to strengthen inspection and control of credit and capital flows, cross-border investment and financing activities...to prevent foreign inflows of “hot money” from impacting China’s property market,’ the statement said.
It also called for authorities to prioritise the construction of low-income housing and more closely scrutinise mortgage financing and the market in general.
However, the notice did not otherwise announce the implementation of any specific new government policies, largely echoing earlier calls for stability in the market.
Concerns have risen in recent months that a property bubble was building due to speculative investment amid rumours that a large portion of the government’s $586-billion stimulus package had been channelled into asset markets.
The package was first announced in late 2008 in response to help ward off the effects of the global economic downturn.
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