Malaysia hopeful of getting Padma project work: Samy Vellu, He says they want to start work by Oct next

AKM Moinuddin, UNB Staff Writer, from Kuala Lumpur Kuala Lumpur, July 15 (UNB) – Although the government has chalked out an ambitious plan to construct Padma Bridge with its own funds, Malaysia is optimistic to implement the dream project and wants to start the preliminary work on it by October this year. “We’ve studied the project …we’ve also taken notes of some engineering factors. With all these, I think it’ll take off by October…we propose to start the preliminary work,” Malaysian Prime Minister’s Special Envoy for Infrastructure to India and South Asia Dato S Samy Vellu told UNB here at Seri Pacific Hotel on Saturday night. He, however, did not elaborate what will be the terms and conditions, and its costing if Malaysia finally goes for implementing the much-talked-about dream project, the largest-ever infrastructure of the country. Vellu said they have submitted ‘intermediate proposals’ and now they will submit the final proposal. Asked why Malaysia is so interested in the project, Vellu said, “We feel that we’re experienced and we’ve the partners who are capable to work with us…it’s one of the factors.” “Secondly”, he added, “We thought, Malaysia, being a very close friend of Bangladesh, we must find our ways as to how we can help Bangladesh as the World Bank didn’t provide the loan…” He said: “Padma Bridge is a very import project and it is not so easy project as so many engineering, technical, and many other aspects have to be considered. It has been a dream for Bangladeshi people and it’ll soon become a reality. If we’re given a job to do, we’ll make sure that the job is done to a more perfection.” He renewed his hope to finalise the negotiations with Bangladesh so that work on the project could start within the next few months. “…not so many months, may be three-four months.” The Malaysian envoy said, “We’ll be proud of doing this bridge project and we feel that we’ve an obligation to complete the bridge and hand it over to them (Bangladesh). It’ll be a bridge which will be used for many purposes… it’ll be a bridge that will unite Bangladesh into one rather than two.” Responding to a question, he said they have already submitted some of the preliminary designs of the project to the Bridge Division and they (Bridge Division) have come back with lot of comments. “We’re working on it…at the same time; we’re getting designs from E-com, the consultant appointed by the Bangladesh government.” On June 28, Malaysia submitted a draft proposal to the Bangladesh government for signing a final deal for implementing the Padma bridge project. According to the proposal, the Malaysian government will invest around $3 billion and complete the construction in three years. It will operate the bridge for 37 years and then hand it over to the Bangladesh government, official sources said. The World Bank had pledged US$1.2 billion for the US$2.9 billion project but cancelled the loan deal citing corruption concerns. Earlier, Vellu attended an event ‘Bangladesh Cultural Night’ and dinner hosted by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) at Seri Pacific Hotel. BMCCI President Syed Nurul Islam and organizing committee chairman of Showcase Bangladesh’12 Syed Moazzem Hossain sought support from Malaysia and special initiative from Vellu to help Bangladesh implement the Padma Bridge project. Commerce Minister GM Quader and exhibition director M Alamgir Jalil also spoke at the function followed by a cultural programme and dinner. Noted singer Sabina Yasmin, among others, performed at the programme. http://unbconnect.com/component/news/task-show/id-82264

Ministers stress Dhaka-Kuala Lumpur’s aggressive role to close trade gap: ‘Dhaka wants to move cautiously on FTA to keep local industry unhurt’

AKM Moinuddin, UNB Staff Writer from Malaysia Kuala Lumpur, July 13 (UNB) – Dhaka and Kuala Lumpur should have an ‘equal aggressive role’ to minimise the chronic trade gap between the two brotherly countries and strengthen business and social ties, ministers of both the countries said here on Friday. They pointed out some structural issues that need to be addressed urgently to boost trade between the two countries and narrow the trade gap that is heavily in favour of Malaysia right now. In 1993-94, Bangladesh exported products worth US$ 5.43 million to Malaysia while imported US$ 56.39 million. In 2010-2011, Bangladesh exported US$ 43.87 million while imported US$ 1759.60 million. “There’re some structural issues that need to be addressed…there’s trade gap and we wish to narrow it…you (Bangladesh) need to produce the products what we need. Be more aggressive to promote your products in Malaysia,” International Trade and Industry Minister, Malaysia Datuk Mustapa Mohamed said at the inaugural session of Showcase Bangladesh’12 here in Merdeka Square. On the proposed FTA (free trade agreement) with Bangladesh, Mohamed said they are working on the matter. “There’ll be some progress over it within next two months.” Bangladesh Commerce Minister GM Quader, Environment and Forests Minister Dr Hasan Mahmud attended the session as special guests held with Bangladesh-Malaysia Chamber of Commerce and industry (BMCCI) President Syed Nurul Islam in the chair. Bangladesh High Commissioner to Malaysia AKM Atiqur Rahman, fair organising committee chairman Syed Moazzem Hossain and BMCCI secretary general architect M Alamgir Jalil also spoke on the occasion. Commerce Minister GM Quader said, “We strongly believe that there are potentials for more Bangladeshi products in the Malaysian market.” He said though the Malaysian market is rather free, there are some non-tariff barriers in the form of import licensing/permit and standardisation requirements for agricultural and food products. “That’s why our exporters are facing difficulties to tap the full potentials. We hope these barriers can be eliminated through negotiations.” The Commerce Minister called upon Malaysian investors to undertake new ventures of investment in Bangladesh’s fast growing manufacturing, services and infrastructure sectors. “Malaysia is one of the largest investors in Bangladesh…though 84 Malaysian companies have already invested in Bangladesh, there’s still enough scope for further investment.” GM Quader said closer cooperation in investment and trade between the two countries would bring immense impact on the development of the two countries. “You’ll huge investment potentials in Bangladesh, even in tourism sector.” On the proposed FTA he said, “We need to negotiate…we’re trying to go step by step…people will be benefited if the FTA is signed but we need to move cautiously so that our local industry doesn’t get hurt.” The Commerce Minister said Bangladesh is keen to strengthen political, economic and commercial ties with Malaysia so that people of both countries benefit out of it. Dr Hasan Mahmud said, “Bangladesh is a fertile place for investment. We’ve created investment-friendly environment and Bangladesh is an ideal place for Malaysia for further investment.” “We’ve trade gap…the gap has to be narrowed down for mutual benefit. We can bring more success together,” the Minister added. He also said strengthening people-to-people contact and business ties is important for mutual benefit. “People-to-people contact and business ties between the two countries are very strong and old. It’s need to be strengthened for mutual benefit.” Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) in collaboration with Bangladesh High Commission in Malaysia, Malaysia South-South Association, Malaysia External Trade Development Corporation has arranged the three-day trade show. Special Envoy for Infrastructure (India and South Asia), Malaysia, Dato Seri S Samy Vellu is expected to present as the chief guest in the ‘Bangladesh Cultural Night,’ the concluding session of the fair. Besides, a cultural show will be arranged to highlight the cultural heritage of Bangladesh. Some 25,000 expatriates Bangladeshis are expected to enjoy the event. http://www.unbconnect.com/component/news/task-show/id-82096

Connectivity main hurdle for business: Indian expert

AKM Moinuddin,UNB Staff Writer from Nepal

Kathmandu, Sept 22 (UNB) – Lack of proper connectivity is the major hurdle in boosting trade and investment in the South Asia region, says a leading Indian businessman.

“This region should emerge as a prosperous region. It’s my personal dream. We’re ready to offer things with an open heart,” Vikramjit Singh Sahney told UNB Staff Correspondent AKM Moinuddin on the sidelines of 4th SAARC Business Leaders’ Conclave at Soaltee Crown Plaza Hotel on Thursday.

Vikramjit is set to take over the charge of Saarc Chamber of Commerce and Industry for the next term.

Many of Saarc business leaders believe that India, being a big player in the region, does not play its due role for the development of the region and they openly came with such allegations in the Conclave.

When asked about it, Vikramjit said, “It’s not true. We want to play a proactive role for the development of trade and investment in the region.”

He said free mobility and free trade will have to be ensured for further development. “But I see an only impediment which is visa problem. It should be resolved. We’re so near to each other. We need to enhance physical and mental connectivity.”

As a big brother of the region, Vikramjit said, it is the responsibility of India to play an active role in all the areas.

Earlier, at a discussion on ‘Trade and Investment Opportunities in South Asia and Challenges’, the experts and business leaders urged India to play an active role for the economic growth as well investment in the region.

Senior specialist of World Bank Amer Z Durrani, head of Pakistan Trade Development Authority Mujeeb Khan, Aligarh Muslim University teacher Prof Dr Badar Alam Iqbal, Nepal Urban Development Forum coordinator Om Rajbandary, Executive Director of IPS Sri Lanka Dr Saman Kelegama and Senior Private Sector Development specialist of IFC Paramita Dasgupta spoke at the session held with Center for Policy Dialogue (CPD) chairman Prof Rehman Sobhan in the chair.

Speaking at the function, Rehman Sobhan said, “India, being a big economy in the region, will have to play the key role. This region, especially India, has a big market where countries want duty-free access.”

He also said other countries will have to prepare to enter the Indian market. “…we’re trying to enhance the communication and connectivity within the region.”

Rehman Sobhan said it needs to be sure whether Chittgaong and Mongla ports have infrastructural capacities for allowing Nepal and Bhutan to use the seaports. It takes time at the government-level in implementing any decision. Momentum is needed in this regard.”

Om Rajbhandary of Nepal said SAFTA will have to be implemented timely to enhance trade in the region. “Still, the sensitive list is too big. It needs to be cut down.”

The speakers and participants observed that the South Asian region, which is apparently facing slow growth, will be able to attract bulk foreign investment and give a boost to internal trade within the region if SAFTA is implemented.

They find no alternative other than implementation SAFTA to enhance internal trade in the region and attract more foreign investment in the region from the entire globe and suggested using SAFTA as the means of economic development of the region.

The discussants laid emphasis on the removal of tariff and non-tariff barriers, minimising the sensitive lists of products to ensure investment-friendly environment in the region.

Meanwhile, two more session on creating young leadership and Tourism, Cultural Exchange and Role of Media were also held.

Politicians, business leaders, celebrities, media people, cultural activists were present.

Economy under pressure, not in crisis: Atiur ‘Difficult months to give way to a new equilibrium for economy’

Shayan S Khan and AKM Moinuddin; UNB Staff Writers

Dhaka, Feb 6 (UNB) - Bangladesh Bank governor Dr Atiur Rahman on Monday strongly refuted the view expressed in some quarters of the country being mired in a macroeconomic crisis and said there are pressures on the country’s economy but not the crisis.

He invoked Rabindranath Tagore to liken the Bangladesh economy to an autumn sky [shoroter akaash], filled with dark as well as silver clouds.

“Yes, there’re pressures but no crisis of the sort being talked about. We’re taking measures to make sure the silver clouds edge out the dark ones, and they are starting to bear results,” optimistic Dr Rahman told UNB in an interview at his office on Monday.
He revealed that the downward spiral in the exchange rate of the taka against the dollar had been “arrested” in the last two-three days. He and his team expect to see a further easing of the downward trend today.

Styling himself “not your conventional central banker”, the former development economics professor signed off on a note of optimism that a difficult few months would soon give way to “a new equilibrium” for the Bangladesh economy.

“We’ve been going through a correctional phase. This has presented a number of challenges, but we’ve responded with appropriate measures, in conjunction with the government,” he said.

Dr Rahman went on: “As a result, within a couple of months, we can look forward to the exchange rate, the rate of interest, and inflation settling at a new equilibrium.”

The governor attributed the policy of cutting down to non-essential import items (luxury goods) in recent weeks, something he had advised to ease the pressure on the balance of payments while releasing the latest Monetary Policy Statement on Jan 26.

Back in office today after his return on Saturday from a trip to India- where apparently other central bankers and economists from the region all had very positive things to say about the Bangladesh economy, some even branding it the “best-placed” under current circumstances in South Asia- the governor also sounded a positive note on inflation, saying he expects food inflation in particular, to decline during the month of February.

Although that would be offset by an increase in non-food inflation spurred by increased fuel prices and electricity rates, Dr Rahman is confident that the overall inflation rate will start witnessing a slowdown in the coming months.

Dr Rahman also expressed his confidence over securing the US$1 billion Extended Credit Facility (ECF) loan from the Washington-based lender - International Monetary Fund (IMF).

“The IMF mission arrives here tomorrow (Tuesday) to finalise the details …things look positive. If we get the loan, it’ll help a lot cut pressures on the Balance of Payments (BoP),” Atiur said.

He brushed off suggestions that availing of the loan would leave economic policymaking beholden to IMF conditions. “This is essentially a budget support for the government.”

“They don’t advise anything that is outside the purview of our own reform agenda. They only want those to be implemented. Anyway the ECF (extended credit facility, the scheme under which the loan would be disbursed) is different from the IMF’s Structural Adjustment Policies of the past, as it doesn’t attach any conditions,” Dr Rahman said.

The continuous price hike of food, fuel, fertilizer and essentials on the international market, food price hike in the internal market, high growth of money supply against the target and depreciation of the Taka were the reasons behind the rising inflation in 2010-2011 fiscal, Atiur said.

“Given that situation, we’ve taken cautious monetary policy. It’s corrective phase. Situation will improve,” he said.