International clothing retailers express concern over timely shipments from Bangladesh due to recent unrest and internet blackout. They urge BGMEA to ensure Christmas season deliveries and request restoration of high-speed internet. Garment exports have declined, with production disrupted and meetings cancelled. BGMEA assures that buyers won’t seek discounts or cancel orders. The sector suffered significant losses during the shutdown, highlighting its vulnerability to political instability. The daily star
Category: BUSINESS
Steer your business to success. Insights Today delivers trusted, actionable business news under 80 words on markets, leadership, and industry trends. Gain expert insights to inform your strategies and stay ahead of the curve.
June export data release to be delayed
The release of June’s export data for Bangladesh has been delayed due to ongoing corrections to address a data mismatch between the Bangladesh Bank (BB) and Export Promotion Bureau (EPB). This follows the BB’s report that July-April export earnings for fiscal year 2023-24 were approximately $14 billion lower than EPB’s figures. Typically, the EPB releases monthly export data within the first few days of the following month. An EPB official stated that the release date is uncertain due to the ongoing data correction process. Daily Star
Bangladesh faces internet disruptions for 12 hours
Bangladesh will experience partial internet disruption for 12 hours, from 6:01 am to 6:00 pm, due to maintenance of the SEA-ME-WE 4 submarine cable system in Singapore. The Bangladesh Submarine Cables PLC announced that services on circuits connected from Cox’s Bazar to Singapore will be temporarily affected. Bangladesh currently uses about 5,500Gbps of international bandwidth, with over half coming from terrestrial cables via India. The country is set to receive additional 13,200Gbps capacity from a third undersea cable by 2025. Daily Star
DSE stocks rise for fifth straight day
The Dhaka Stock Exchange’s benchmark index DSEX rose for the fifth consecutive day, increasing by 0.10% to 5,564.63. The DSES index also saw a slight gain, while the DS30 index declined by 0.23%. Turnover decreased by 2.22% to Tk 888 crore. Among traded issues, 164 advanced, 197 declined, and 33 remained unchanged. Overall, the market showed mixed performance with a slight upward trend in the main index. Daily Star
Linde Bangladesh sells its welding electrode business to ESAB Group
Linde Bangladesh Ltd has sold its welding electrode business to ESAB Group, an American-Swedish industrial company. The company transferred 13.82 crore shares to ESAB Group Middle East FZE. Electrodes were Linde’s biggest revenue contributor, accounting for 53.3% of income in 2021-22. Linde’s profit decreased by 40% in 2023. Despite the sale, Linde remains a key player in Bangladesh’s industrial gas sector, operating through 18 sales centres. The company recently declared a 1,540% interim dividend. Daily Star
Ctg customs collects highest ever revenue of Tk 68,563 crore in FY24
Customs House, Chattogram (CHC) collected record revenue of Tk 68,562.72 crore in fiscal year 2023-24, a 9.4% increase from the previous year. The rise is attributed to enhanced monitoring and revised customs laws imposing stricter penalties for false declarations. Top revenue-generating imports included energy products, construction materials, and agricultural goods. Officials credit the increase to improved governance, surveillance, and expedited clearance processes, which have deterred irregularities in imports. Daily Star
Satkhira EZ may draw $1b investment: Beza chief
The Bangladesh Economic Zones Authority (BEZA) expects the Satkhira Economic Zone to attract $1 billion in investment and create 6,000 direct jobs. BEZA Executive Chairman Shaikh Yusuf Harun announced this at a workshop in Khulna. BEZA has approved 97 economic zones, with 29 under construction and 13 operational. The authority aims to boost planned industrialization and employment across Bangladesh. Several other economic zone projects are in various stages of development in the country’s southwestern region. Daily Star
Dhaka stocks jump
The Dhaka Stock Exchange saw positive momentum for the second consecutive day. The main DSEX Index rose 1.16% to 5,302 points. The DSES Index for Shariah-compliant companies and the DS30 blue-chip index also increased by 1.42% and 1.38% respectively. Trading turnover improved by 15% to Tk 605 crore. Among traded issues, 251 advanced, 89 declined, and 64 remained unchanged. Overall, investors showed increased interest in buying shares, driving the market upward.Source dsebd.org
Matiur removed from Sonali Bank’s board
The Bangladesh government removed Matiur Rahman from his position as director of Sonali Bank PLC following controversy over his wealth. This action comes after he was transferred from his role at the National Board of Revenue and an Anti-Corruption Commission inquiry was launched into allegations of illegal wealth accumulation. The controversy began when his son claimed to have bought a sacrificial goat for Tk 12 lakh, raising questions about Matiur’s income sources. Mohammad Abu Yusuf has been appointed as the new Daily Star
Bangladesh gets $100 million in budget support from Korea
South Korea will provide $100 million in budget support to Bangladesh for the “Second Strengthening Social Resilience Program, Subprogram-1”. The loan has a 1% annual interest rate, 25-year maturity, and 7-year grace period. Signed by officials from Bangladesh’s ERD and Korea Eximbank, the agreement aims to improve social protection systems. This continues the partnership between the two countries, with Korea Eximbank supporting various development projects in Bangladesh since 1993. Daily Star
EU and China open talks over electric car tariffs
The EU and China held talks over planned EU tariffs on Chinese electric cars, which could reach up to 38%. The EU aims to address “injurious subsidisation” by China. The tariffs, set to start in July, vary by manufacturer: 17.4% for BYD, 20% for Geely, and 38.1% for SAIC. This move is part of the EU’s effort to protect its automotive industry from cheaper Chinese imports. Both sides agreed to continue discussions in the coming weeks. Source AFP
Dhaka stocks rise for fifth straight day
The Dhaka Stock Exchange’s main index, DSEX, rose for the fifth consecutive day, closing at 5,247 points, a 0.06% increase. Blue-chip stocks, particularly Renata with a 12.93% gain, drove the surge. The DSES and DS30 indices also saw slight increases. Turnover rose 7.46% to Tk 486 crore. Among traded issues, 232 declined, 111 advanced, and 55 remained unchanged. The market briefly touched the 5,300-point mark during early trading. Source Daily Star
Matiur Rahman removed from NBR post after controversy
Matiur Rahman, president of NBR’s Customs, Excise and VAT Appellate Tribunal, has been transferred to the Internal Resources Division following a wealth controversy. The issue arose after his son posted about an expensive sacrificial goat, leading to questions about Matiur’s income and assets. Matiur initially denied the relationship, claiming conspiracy. Reports later suggested the young man is his second wife’s son. The government issued a circular for Matiur’s immediate transfer amid the ongoing controversy. Daily Star
Trade through Hili land port resumes after 8 days
The Hili land port on the Bangladesh-India border has resumed operations after being closed for a week from June 14 to 21. The port reopened at 11:30am today, with import-export activities resuming. Despite the closure for trade, the immigration check post remained open, allowing passport holders to cross the border. The reopening has brought renewed activity to the port, signaling a return to normal trade operations between the two countries. Daily Star
Bangladesh receives $900 million in World Bank loans for two projects
The World Bank has approved $900 million in loans for Bangladesh across two projects. A $500 million credit will support fiscal and financial sector reforms, while a $400 million project will improve urban infrastructure and management in seven city clusters. The funding aims to strengthen Bangladesh’s resilience to climate change, enhance urban development, and support its vision of achieving upper-middle-income status. The projects will focus on improving financial sector oversight, social protection programs, and climate-resilient urban infrastructure.
EU sanctions target Russian gas for the first time
The European Union has agreed on its 14th package of sanctions against Russia over the Ukraine war, targeting Russian gas for the first time. The measures include banning re-exports of Russian liquefied natural gas (LNG) in EU waters, sanctioning three Russian LNG projects, and allowing Sweden and Finland to cancel Russian LNG contracts. However, it stops short of banning imports of pipeline gas. The package also tightens restrictions on Russia’s shadow fleet moving oil outside the price cap.
Dhaka stocks rise for fourth consecutive day
The Dhaka Stock Exchange (DSE) benchmark index continued its upward momentum on Thursday, with the DSEX, the core index, climbing 82.75 points to close at 5,244.12. The day saw an overall positive sentiment as the DSE extended its gaining streak for the fourth consecutive day. The turnover for the day stood at Tk 452 crores, reflecting increased trading activity. Source Daily Star
Oil hits seven-week high on demand hopes, war jitters
Oil prices hit seven-week highs on Wednesday, buoyed by summer demand optimism and escalating geopolitical tensions despite an industry report showing an unexpected rise in U.S. crude inventories. Brent crude futures rose 20 cents to $85.53 a barrel, while U.S. West Texas Intermediate crude gained 3 cents to $81.60. Concerns over a potential “all-out war” between Israel and Hezbollah in Lebanon added to supply disruption risks in the key oil-producing region.
Govt trims food distribution plan for FY25 amid high inflation
The Bangladesh government has cut the food grain distribution target for the upcoming fiscal year 2024-25, reducing it by 10 percent compared to the current year’s revised target. Economists have criticized the decision as illogical, given the high food inflation rate above 10 percent and the need to provide aid to the poor. The government plans to distribute 30.3 million tonnes of rice and wheat among the low-income population, down from the current year’s revised target.
Almost all garment factories clear salary, bonus
Almost all garment and textile factories in Bangladesh have cleared salary payments and provided festival bonuses to their workers ahead of Eid-ul-Azha, according to Industrial Police and worker leaders. The factories followed government rules for allocating holidays, allowing workers to leave for their village homes. Worker leaders confirmed that salaries were paid on time, with only a few factories making partial payments, and no reports of layoffs before the Eid festival.
Demand for air ambulances on the rise
The demand for air ambulances in Bangladesh has risen steadily due to increasing affordability and more operators entering the market. Six local companies currently provide domestic helicopter services, with service providers noting a significant increase in flights carrying patients from distant districts like Dinajpur, Cox’s Bazar, and Rangpur to Dhaka. However, some passengers allege overcharging by companies, highlighting the need for government oversight on fare-related issues in this growing industry.
Musk says Tesla investors voting yes for pay deal
Tesla shareholders are voting on a record $56 billion pay package for CEO Elon Musk and a plan to move the company’s legal headquarters to Texas. Musk claims the votes are “currently passing by wide margins,” but a court previously blocked the pay deal, ruling it was unfair. The non-binding revote faces legal uncertainties. Business reporter.
Berger Paints Bangladesh inks deal with Edison Real Estate
Berger Paints Bangladesh Ltd has signed an agreement with Edison Real Estate Ltd, a subsidiary of Edison Group. Under the deal, Edison Real Estate will integrate Berger Paints’ products in its residential and commercial projects. Berger will provide a comprehensive range of paint and coating solutions for Edison’s initiatives. The partnership aims to enhance the aesthetic and functional value of Edison’s developments while utilizing Berger’s advanced and environment-friendly paint technologies.
Drive against VoIP: BTRC seized 17,354 SIMs
Bangladesh’s telecom regulator conducted drives against illegal VoIP operators in Dhaka’s Nayapaltan and Khilgaon areas today. The enforcement team seized over 17,354 SIMs, 56 SIM boxes, routers, modems, and other VoIP equipment. Two individuals involved in the illegal VoIP business were arrested. Cases are being filed against the detainees under the Bangladesh Telecommunication Regulation Act for operating unauthorized VoIP services that bypass regular telephone networks.
Walton launches self-made ‘AI Doctor’ feature for smart fridges
Walton has launched an AI-based “AI Doctor” feature for its Smart fridges, developed by its Research and Innovation Centre. The AI system can automatically analyze fridge performance, detect issues, predict component failures, and notify the nearest service center for faster after-sales service. It was inaugurated by Walton officials at the company’s corporate office in Dhaka. Photo: Walton
Dhaka bourse’s major index hits 38-month low
The major index of the Dhaka Stock Exchange (DSE) fell significantly today, the first trading day after the national budget proposal, reflecting investors’ disappointment. The DSEX plunged 65 points or 1.25% to 5,171, the lowest in 38 months. The DSES and DS30 indices also dropped. Analysts cited the absence of positive measures in the budget and the proposed 15% capital gains tax above Tk 50 lakh as reasons behind the bearish trend. Turnover plunged 34% as buyers remained scarce amid the sell-off. File photo
Five reasons financial disasters are hard to avoid
An analysis by regulators, academics, and investors at the London School of Economics identified five key reasons why financial disasters are hard to avoid: 1) Riskier activities shifting to less regulated areas like investment funds; 2) Increased similarity among major banks; 3) Evolving business models challenging regulatory assumptions; 4) Fundamental weaknesses like debt bias and limited liability structures; 5) Political pressure for bailouts despite post-crisis reforms. The group concluded that old problems and new dangers create conditions ripe for future turbulence in the financial system.Photo: REUTERS
Textile, garment makers urge govt to reconsider their demands
Textile and garment makers in Bangladesh have urged the government to reconsider some of their demands in the new national budget. Key demands include reducing source tax on exports, continuing cash incentives till 2032, withdrawing VAT on garment waste and yarn sales, introducing food rationing for garment workers, and addressing gas crisis affecting production. They welcomed proposed rebates on textile imports but sought lower duty on chillers. The demands aim to improve business conditions for the crucial export sectors.
RMG export to USA falls 14% in Jan-Apr
Bangladesh’s garment exports to the USA, its largest export destination, declined by 14.44% year-on-year to $2.3 billion in the January-April period of 2023. The combined export of textile and garment to the USA also fell by 14.15% to $2.38 billion, as American buyers slowed down apparel imports amid high inflationary pressures on consumers. PHOTO COLLECTED
Forex reserves reduce by $51 million in a week
Bangladesh’s foreign currency reserves dropped by $50.78 million to $18.67 billion on June 5, raising concerns about reaching the government’s estimate of $32 billion by the end of 2024-25 fiscal year. Experts cite external factors, mismanagement, policy changes, and exchange rate disparities as reasons for the forex market volatility and the $24 billion decline since August 2021.
Exports fall 16% in May
Bangladesh’s merchandise exports fell 16.06% year-on-year to $4.07 billion in May 2024, according to the Export Promotion Bureau. This was 23.75% below the monthly export target. In the July-May period, exports grew a marginal 2.01% to $51.54 billion. Garment exports, contributing over 84% of total exports, grew only 2.86% year-on-year to $43.85 billion in the first 11 months of the fiscal year, indicating challenges in economic recovery despite robust remittance growth.File photo/Star
Turkish inflation exceeds 75%
Turkey’s annual inflation jumped above 75% in May, but officials expect it to have peaked and begin declining from June. The central bank raised interest rates to 50% to combat soaring prices. Finance Minister Simsek predicted inflation will likely fall below 50% by end of Q3 as the government implements austerity measures, after high prices contributed to electoral setbacks for President Erdogan’s party in March municipal elections.
Inflation rises to 9.89% in May
Inflation in Bangladesh rose to 9.89 percent in May, driven by higher food prices, according to the latest figures from the Bangladesh Bureau of Statistics. Food inflation surged to 10.76 percent, up 54 basis points from April, while non-food inflation slipped to 9.19 percent. The average inflation rate in the 2022-23 fiscal year stood at 9.02 percent, significantly higher than the recent yearly average of 6 percent, reflecting the persistent inflationary pressures in the economy. Star file photo
Bangladesh wants to start negotiations with China for FTA: Titu
The Bangladeshi government aims to initiate formal negotiations for signing a free trade agreement (FTA) with China, its largest trading partner, as the joint feasibility study is complete. Experts believe an FTA with China, complemented by investment, will greatly benefit Bangladesh. The Chinese ambassador highlighted that Bangladesh’s trade deficit with China is not concerning, and Chinese investment will create more job opportunities in the country. Photo: Facebook
Mansur Mustafa appointed managing director of IFIC Bank
Syed Mansur Mustafa has been appointed as the Managing Director of IFIC Bank. He was previously serving the bank concurrently as Deputy Managing Director and head of several key divisions. Mustafa joined IFIC Bank in 2015 after working at AB Bank and Trust Bank in various capacities. With 28 years of experience in banking, he has expertise in areas like branch management, credit risk, foreign trade, and treasury operations.
Stocks fall for third straight day
Shares at the Dhaka Stock Exchange (DSE) continued their downward trend for the third consecutive day on Sunday. Despite starting higher, the benchmark DSEX index fell 0.35% to close at 5,233.67. The Shariah-based DSES and blue-chip DS30 indices also declined. Turnover decreased by 6.67% to Tk 349 crore, with 219 issues losing ground, 124 advancing, and 48 remaining unchanged.