Record FDI in 2018
Bangladesh received net foreign direct investment (FDI) amounting to $3.61 billion in 2018, its highest yet thanks to the one-off payment of $1.47 billion by Japan Tobacco Inc. to purchase Akij Group’s tobacco Business. The inflows are an increase of 67.94 percent from a year earlier, according to the United Nations Conference on Trade and Development (UNCTAD). The power sector attracted the highest amount of FDI of $1.01 billion, followed by food at $729.69 million, textile and weaving at $408.08 million, Banking at $282.54 million, telecommunication at $219.87 million, leather and leather products at $110.55 million and trading at $101.91 million. The other sectors received $748.65 million, according to the Bangladesh Investment Development Authority (BIDA), which unveiled the compiled investment data of the UNCTAD.
Banks’ return on equity, asset falls sharply in 2018
Return on equity and asset of the country’s Banks almost halved at the end of December last year from that of a year ago, showed a Bangladesh Bank report titled ‘Bangladesh Systemic Risk Dashboard’. As per the BB report published on Monday, return on equity (ROE) dropped to 4.4 per cent at the end of December, 2018 while the rate was 10.4 per cent a year ago. Besides, return on asset (ROA) of the banks dropped to around 0.3 per cent at the end of December, 2018 while the rate was around 0.7 per cent in the previous year. ROE is considered a measure of how effectively management is using a company’s assets to create profits while the ROA gives a manager, investor or analyst an idea how efficient a company’s management is at using its assets to generate earnings. Officials of the Central Bank said that growing non-performing loans had become a major burden for the country’s Banking sector.
More large companies to come under LTU
The National Board of Revenue has withdrawn the upper limit on the number of Companies to be brought under its Large Taxpayers Unit (LTU-Value-Added Tax) to bring more eligible Companies across the country under the unit’s jurisdiction for ensuring proper revenue collection from the entities and providing them better services. The revenue board has issued new guidelines on selection of taxpayers for the LTU, expanding the jurisdiction of the unit across the country, scrapping the previous guidelines issued in 2012 which restricted the highest number of Companies to 200 under the unit. The NBR issued the guidelines along with other budgetary measures on June 13 for the next fiscal year of 2019-2020. According to the new guidelines, Businesses which paid on average Tk 10 crore in VAT in last three financial years will come under the purview of the LTU.
Digital shipment platform launched for BD, China markets
An initiative has been launched to deal with “drop shipment” between Bangladesh and China as Bangladeshi businesses see a potential market for drop-shipping business with a big volume of transaction between the two nations. Drop-shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. doorping.com Chief Executive M Sazal Sarkar said the internet-based service being launched to facilitate the businesses that depend on the Chinese market. The agency will bridge between Bangladesh and Chinese markets digitally alongside ensuring faster services using cargo flight and cargo ship.
Move to construct floating solar power station in Mongla
Country’s first floating solar power station with capacity of producing 15 MW electricity would be constructed at Mongla municipality in Bagerhat district. The solar plant would be constructed at a cost of Taka 1.50 billion with financial support of Indian government. A tripartite agreement in this regard was signed at a function at Mongla Port Authority conference room recently. Mongla municipality mayor Zulfikar Ali, Chief Executive Officer (CEO) of Premier Solar Powertech Pvt. Ltd of India Sudir Mola and Chairman of Bangladesh Solar EPC Development Ltd Izaj Al Qudrat-A-Majid signed the agreement.
Cement to be 10pc costlier: Manufacturers
The price of cement will go up by Tk 42 per 50kg bag owing to some tax and VAT measures the finance minister has proposed on the imports of the raw materials used to produce the construction material. Until the current fiscal year, cement manufactures pay 5 percent Advance Income Tax (AIT) to import raw materials and the tax is adjustable. The AIT to be paid by the cement makers to import raw materials will be treated as the minimum tax from the next fiscal year of 2019-20, according to the proposal of the National Board of Revenue (NBR).
Mercantile Bank, Bakhrabad Gas sign deal
Mercantile Bank Limited has recently signed an agreement with Bakhrabad Gas Distribution Co. Ltd (BGDCL). As per the agreement, Mercantile Bank will facilitate the collection of gas bill from BGDCL customers through the Bank’s online banking system and Mobile Financial Service MyCash. The agreement was signed by Adil Raihan, Deputy Managing Director & CSBO of the Bank, and Afroza Begum, Company Secretary of BGDCL, on behalf of their respective organization.
HSBC offers overseas study support
The Hongkong and Shanghai Banking Corporation (HSBC) Bangladesh has recently launched “HSBC SmartStudy”, a new comprehensive proposition to support students in their overseas education journey from start till the end. “HSBC Select” customers will now be able to open a “Student File” account and facilitate payments through HSBC Bangladesh to top education destinations. Francois de Maricourt, Chief Executive Officer of HSBC Bangladesh, attended the launch at Westin Dhaka.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 21,259.87||↓26.12||↓0.12%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)|| $ 57.82||↓0.08||↓0.14%|
|Crude Oil (Brent)||$ 64.87||↑0.01||↑0.02%|
|Gold Spot|| $1,425.81|| ↑6.09||↑0.43%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.6140|
|GBP 1||BDT 105.2420|
|EUR 1||BDT 94.0810|
|INR 1||BDT 1.1883|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<