Stocks
Bangladesh is the Right Destination for Chinese investment: BSEC Chief
Bangladesh is the right destination for Chinese investment, says Professor Shibli Rubayat Ul Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC). He emphasized that the initiatives to attract Chinese investment will yield positive results and significantly contribute to the country’s economic development.
The summit, titled “The Rise of Bengal Tiger: Summit on Trade, Business and Investment Opportunities Between Bangladesh & China,” showcased Bangladesh’s potential to Chinese businesses. Professor Shibli Rubayat Ul Islam highlighted that Chinese businesses are well aware of the opportunities in Bangladesh, noting the presence of 7,000 Chinese companies operating in the country, creating 550,000 jobs, with 25% of investors in Export Processing Zones (EPZ) coming from China.
He further underscored Bangladesh’s impressive GDP growth since 1971, emphasizing that China would benefit from both the local and export markets in Bangladesh. Bangladesh’s Generalized System of Preferences (GSP) facilities in Europe, Canada, and other countries make it an attractive export hub for China, providing access to these markets through Bangladesh.
Incentives for Investment
The chairman detailed the numerous incentives for investment in Bangladesh, including exemptions on import duties, 100% foreign ownership, double taxation treaties with 40 countries, bonded warehouse facilities, and full repatriation of capital and profit. He also mentioned that both China and Bangladesh have signed Memorandums of Understanding (MoUs) for projects worth over $25 billion, inviting Chinese investors to seize the significant opportunities in Bangladesh.
Growing Sectors
The agro-processing industry in Bangladesh is booming, with agricultural exports growing at a compound annual growth rate (CAGR) of 18% over the last five years, particularly in processed snacks. The global demand for agricultural products is expected to grow by 15% between 2019 and 2028, offering substantial opportunities for Bangladesh’s processed food industry to expand its exports.
Other promising sectors include the jute industry, light engineering, electrical and equipment manufacturing, the automobile industry, and the ready-made garment (RMG) sector, which remains the backbone of Bangladesh’s economy.
Advantages of Doing Business with Bangladesh
Bangladesh is the 8th most populous country in the world with a growing purchasing power and rapid economic growth. The country benefits from various trade agreements, a stable political climate, strategic geographical location, and lower production costs due to reasonable wages. These factors make Bangladesh an attractive destination for trade and business.
Benefits from Investment
Investing in Bangladesh promises fast economic growth, resilience against global volatility, favorable monetary and fiscal policies, and an investment-friendly government. The country also offers no pre-approval requirements for repatriating investments with profit, alongside a resourceful blue economy and a green environment conducive to sustainable development.
In summary, Bangladesh is positioning itself as a prime destination for Chinese investment, offering a range of opportunities across various sectors and a supportive investment climate.
The event was attended by Salman Fazlur Rahman, the Prime Minister’s Private Industry and Investment Advisor; Abul Hasan Mahmud, the Finance Minister; Md. Atiqul Islam, the Mayor of Dhaka North City Corporation; Nasrul Hamid, the State Minister for Power, Energy, and Mineral Resources; Zunaid Ahmed Palak, the State Minister for Post, Telecommunications, and Information Technology; Ahasanul Islam Titu, the State Minister for Commerce; Mohammad Tofazzal Hossain Miah, the Principal Secretary to the Prime Minister; ambassadors, various institutional and individual investors, and stakeholders.
Other notable speakers at the event included Lokman Hossain Miah, the Executive Chairman of BIDA; Yao Wen, the Chinese Ambassador to Bangladesh; and investors, industrialists, and businesspeople from China and Bangladesh.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
