Bangladesh-Malaysia Share Common Interests Time for intensified Trade and Investment Cooperation Md. Rais Hasan Sarower

Transcription

1 Bangladesh-Malaysia Share Common Interests Time for intensified Trade and Investment Cooperation Md. Rais Hasan Sarower Bangladesh and Malaysia enjoy excellent cordial relations. Bilateral cooperation between the two countries is rooted deep in history, culture and religious bonds. The ties are time-tested and are characterized by the common desire to bring the people of the two countries closer through interactions in economic, cultural and other areas. The fraternal relations have been cocemented by exchange of high level visits by the political and business leaders of the two countries. 30

2 Prime Minister Sheikh Hasina receives Malaysian Prime Minister Dato Seri Najib tun Razak at Dhaka, 17 November 2013 Malaysia is very close to the hearts of the people of Bangladesh mainly because of geographical proximity, commonalities in belief, culture, practices, historic trade linkage - spice, rubber and tin trade mainly between ports of Chittagong and Malacca. With a spirit of Islamic Ummah and brotherhood, every year many Malaysians used to visit Bangladesh to attend the Biswa Iztema, the 2 nd largest Islamic congregation after Hajj. On the other hand a sizeable number of Bangladeshis are working in Malaysia towards achieving economic development for both the countries. Over the last forty-three years, Bangladesh-Malaysia have been maintaining momentum of high level exchanges and contacts, deepening our mutual trust. The end of the year 2014 witnessed a visit of the Hon ble Prime Minister Sheikh Hasina inspects Royal Static Guard of Malaysia at KLIA, 02 December 2014 Bilateral Meeting Between Prime Minister Sheikh Hasina and Prime Minister Najib tun Razak at Dhaka, 18 November

3 Tête-à-tête between Prime Minister Sheikh Hasina and Prime Minister Dato Seri Najib tun Razak Prime Minister Sheikh Hasina signs Visitor s Book at Prime Minister s Office at Putra Jaya, 03 December 2014 Prime Minister of Bangladesh, Her Excellency Sheikh Hasina to the Republic of Malaysia on 2-4 December She led a 100-member delegation, which included the Foreign Minister Abul Hassan Mahmood Ali MP, Minister for Expatriates Welfare & Overseas Employment Eng. Khandker Mosharraf Hossain, Civil Aviation and Tourism Minister Rashed Khan Menon, Cultural Affairs Minister Asaduzzaman Noor and State Minister for Home Asaduzzaman Khan and other high officers from different ministries. A business delegation was also included on the entourage. Four instruments including agreements, MoU and protocol were signed. Malaysian Prime Minister Dato Seri Mohd Najib Tun Razak visited Bangladesh with wife, Datin Seri Rosmah Mansor, and a 62-member delegation including Foreign Minister Datuk Seri Anifah Aman in November It is now time to translate these close ties into meaningful economic collaboration benefitting the peoples of both countries. The current volume of trade and the level of investment do not adequately reflect the level of warmth and cordiality between the two brotherly countries. Much more can be achieved in the economic domain of our relations. The business leaders and entrepreneurs of the two countries must seize the opportunity to intensify interaction so that trade and investment cooperation between the two countries can be placed on a higher trajectory. With its huge human and natural resources, Bangladesh is a country of economic possibilities. It is a moderate country with a democratic dispensation. Bangladesh has potentials of becoming an important manufacturing hub in Asia. Despite the challenges posed by natural disasters and a not so conducive international economic environment, Bangladesh economy has performed well with a low rate of inflation and enhanced rate of savings. Investors from the EU, Japan, South Korea and China have increased their investment significantly during the last few years considering the profitability of doing business in Bangladesh and because of the sound economic fundamentals of the country. Bangladesh is an achiever in the social sectors making significant strides in women s empowerment, reducing poverty and improving living standards of the common man. The people of the country are deeply religious but do not support extreme views as they are imbued with the values of tolerance for others opinion and 32

4 Prime Minister Sheikh Hasina addresses Seminar on Trade and Investment Opportunities in Bangladesh during her official visit to Malaysia on 03 December 2014 the values of tolerance for others opinion and respect for the beliefs of others. Endowed with important natural resources, Malaysia has attained an admirable level of economic development. As it is in the process of implementing a number of mega development projects (under-construction MRT, high speed trainline between Singapore and Kuala Lumpur etc), its important needs are increasing immensely. Malaysia also invests in many countries in various sectors. Bangladesh can be a major source of import of many items into Malaysia and a profitable destination of for its investment. Trade with Malaysia There is huge potential of expansion of trade relations between the two countries. Bilateral trade between the two countries amounts to USD 2409 million. There is ample scope to significantly enhance these figures. Bangladesh today exports a whole range of products to countries around the globe. These include ready-made garments, leather and leather products, jute and jute goods, fish, agricultural products, jewelry, handicrafts and electronics and other consumer items. Bangladeshi products entered Asian, African, European and North American markets because of their uncompromising quality. Bangladesh ceramic products have been highly appreciated in Europe and North America. Medicine of Bangladesh is exported to more than 77 countries in the world. Malaysian businessmen can also take the advantage and import the above products at competitive price. Malaysian Investment in Bangladesh The Board of Investment Authority of Bangladesh (BOI), till June 2014, have registered an investment of USD million from various Malaysian companies 33

5 Signing of Protocol amending the MOU on employment of workers, 03 December 2014 Signing of MOU on cooperation in the field of tourism, 03 December 2014 principally in the sectors of service, textile, food and allied, chemical tele-communication, engineering, power, printing-publishingpackaging, and agro-based sectors. Eighty four of the total 103 investment units are joint ventures, rest of the units enjoys 100% Malaysian equity. Investment opportunities in Power Generation, Oil, Gas & Mineral Exploration, Computer Software & Software application, data entry & processing, Telecommunication & IT, Textiles, Agro-based industries, Private EPZ and business houses etc. would be particularly lucrative for Malaysian investors. In recent times, a number of Malaysian entrepreneurs have evinced keen interest to invest in power, real-estate and railways sectors in Bangladesh. In order to promote and protect investment in Bangladesh and Malaysia, the governments of the two countries have signed the agreements (i) on Avoidance of Double Taxation and (ii) on Reciprocal Promotion and Protection of Agreement. Signing of these agreements have provided significant potential in promoting Malaysian investment in Bangladesh. An MOU was signed on 09 October 2013 between Bangladesh and Malaysia to supply 400 railway coaches to Bangladesh. Malaysia is also going to build 100 buildings in government s real-estate project (Uttara Model Town- 3 rd Phase) of USD 30 billion. Malaysia has also invested in three power plants in Bangladesh: (a) Haripur NEPC 110 MW HFO plant (b) Haripur power 360 MW gas based CCPP and (c) Meghnaghat 450 MW gas based CCPP. On 22 September 2014, an MoU between the government entities of the two countries i.e; Bangladesh Power Development Board (BPDB) and the consortium of Tenaga Nasional Berhad (TNB) and Powertek Berhad (PB), Malaysia was also signed to implement the above coal based power generation project. Investment Opportunities in Bangladesh Foreign investors are offered a good number of incentives and facilities, including: tax holiday for five to seven years, (ii) no import duty on import of raw materials for export oriented industries, (iii) full repatriation of invested capital, profit and dividend, (iv) concessionary duty on imported machinery, (v) 100% foreign equity allowed, (vi) unrestricted exit policy, (vii) most Bangladeshi products 34

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7 ware and insulator items produced in Bangladesh have both domestic and international market demand. Global ceramic industry is undergoing a phase of acquisition and consolidation as the industries in the developed countries are increasingly becoming uncompetitive. Investment interests in this sector are encouraged. Energy A good number of US and European companies are involved in exploration of natural gas and oil in Bangladesh. Bangladesh has a net recoverable gas reserve of approximately 28.4 TCF. A number of incentives are provided in energy and power sectors like tax holiday for 15 years, tax exemption from interest payable on foreign loans, tax exemption from profit arising from transfer of shares, etc. As the demand for electricity is increasingly exponentially with the growing industrialization of the country, there is ample opportunity for foreign investment in power general projects. Information Technology IT has been declared as one of the thrust sectors of the economy and tax holiday is available for software and IT services companies. The country has a well-educated, skilled, dedicated and growing IT workforce. Formalization of VOIP and deregulation of the telephone sector have spurred huge growth in this area. The government is keen on establishing IT related infrastructure for the development of the industry. Malaysian entrepreneurs can seize the opportunity and invest in this very lucrative sector. Md. Rais Hasan Sarower is Counsellor and HOC, Bangladesh High Commission, Kuala Lumpur. 36