Problems SMEs face in Bangladesh
Small and medium enterprises (SMEs) are the backbone of the Bangladesh economy: they make up more than 90 percent of all Businesses that provide two out of three private sector jobs in the country. So, it is very important to help the sector grow for the sake of the country’s economic success and sustainability. Yet, SMEs face various challenges from marketing of products to access to finance, lack of capital and skilled manpower, poor training facility, undeveloped sales channels and low level of financial inclusion, which, according to a quick survey conducted by The Daily Star, are some of the reasons that hamper the growth of SMEs. Fifty SMEs, who took part in a fair in Dhaka recently, responded to the survey. Most of the respondents urged for a common marketing platform for micro and SMEs along with easy access to funds. A sales centre system can be formed all over the country to display the products of SMEs to the consumers, said Jahida Parvin, proprietors of Nakshi Hastashilpa (handicrafts).
Govt to allow rice export amid supply glut
The government will soon start allowing export of rice to create a balance in supply and demand and ensure fair prices of the staple in the domestic market, according to Commerce Secretary Md Mofizul Islam. “We have decided to allow the export of rice. The millers have also agreed as the growers are not getting proper prices due to oversupply,” he told. The government wants to export the coarse variety of rice as its production and supply is higher than that of the finer ones, he said. Moreover, the finer varieties are higher in demand among the middle class and allowing its export might lead to shortages in the domestic market, Mr. Islam said. Following bumper production in the boro season, growers have been complaining of not getting fair prices, prompting the government to give go-ahead to rice export, he said.
Use of certified software a must from Sep 1: NBR
The National Board of Revenue (NBR) has made the use of its prescribed software mandatory for firms with annual turnover of Tk 5 crore and above for maintaining records and accounts from September 1. The revenue collector imposed the condition as part of its scheme to implement the VAT and Supplementary Duty Act 2012 through automation of the VAT system. Companies that already use the software will have to apply to the NBR for approval to use the system, according to the order issued on June 30. This is the second time the NBR has set a deadline for firms to use its prescribed software to keep records of transactions and accounts with a view to ensuring that the actual amount of the indirect tax is coming to the state coffer. The NBR had earlier fixed the deadline of January 2019. However, it did not enforce the rule for its delay in finalising the names of eligible firms to make the system.
Stocks slump on new Tax measures, GP woes
Dhaka stocks slumped on Sunday as investors resumed share selling amid worries over the new budgetary measures on listed Companies and a hike in gas price by the government. Besides, the Bangladesh Telecommunication Regulatory Commission’s move to reduce bandwidth of Grameenphone, one of the listed Companies, over unpaid audit claim also dampened investors’ mood on the day, said market operators. The DSEX, key index of Dhaka Stock Exchange, fell by 0.88 per cent, or 47.70 points, to close at 5,333.08 points on Sunday. The index had only inched up by 8.58 points in the previous session on Thursday on bargain hunting following a three-day fall because of the new tax measures on the listed Companies and gas price hike.
School Banking deposits increase to Tk 15.46b
Deposits with the school Banking accounts at 55 scheduled Banks increased to around Tk 15.46 billion at the end of March 2019. The Central Bank’s latest quarterly report on financial inclusion shows that around Tk 15.46 billion was deposited with 19,54,231 school Banking accounts till March 31 this year, reports BSS. According to the report, the school Banking service is more popular in the cities than in the rural areas as 12,37,458 school Banking accounts were opened in the cities against 7,16,773 accounts in the rural areas. The Banking is also more popular among the male students than the female as 11,44,775 school banking accounts were opened by male students against 8,09,456 by female.
IPDC to issue rights shares from July 10
IPDC Finance will make subscription rights offerings from July 10 to 31. The non-bank financial institution will issue an ordinary share against existing two as part of an effort to raise around Tk 141 crore from the stockmarket to strengthen its capital base.
Akram, Selim become Mercantile Bank Vice-Chairman
Akram Hossain (Humayun) and Mohd Selim have been elected as Vice-Chairmen and Shahidul Ahsan as the executive committee Chairman of Mercantile Bank recently. The announcement came at the Bank’s 345th board meeting held at its head office recently. Mr. Akram is the Chairman and Managing Director of FARS group. He is also engaged with real estate Business. Selim is the Chairman of Synthia Securities. He is also involved with cloth and fabric Business.
Eastern Lubricants to sell bitumen to BPC
Eastern Lubricants, a state-owned listed company, will sell 300 tonnes of bitumen to Bangladesh Petroleum Corporation every month in an effort to diversify operations and generate an estimated Tk 7 lakh in profits every year.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 21,577.06||↓169.32||↓0.78%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 57.66||↑0.15||↑0.26%|
|Crude Oil (Brent)||$ 64.28||↑0.05||↑0.08%|
|Gold Spot|| $1,398.52|| ↓0.93|| ↓0.07%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9030|
|GBP 1||BDT 103.7980|
|EUR 1||BDT 93.0546|
|INR 1||BDT 1.2103|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<