Rising up A new year comes with many promises. We must work hard to make the best out the upcoming year.
06 From the Editor
Contents TIMES
Interviews
08 State of Affairs 10 Banking Corner 95 Happening
20 28 32 42 45
Columns by
48 64
Word of Mouth
14 Shamsul Huq Zahid
Muhammed Aziz Khan, Chairman, Summit Group Md. Jasimuddin, Vice Chairman, Bengal Group of Industries Mominul Islam, Managing Director and CEO, IPDC Finance Limited Selim Jahan, Director, HDRO, UNDP Kazi Amdadul Hoque, Head of Education, Disaster Management
and Infrastructure Development, Friendship Bangladesh
Nasrin Sultana, Fire Officer, Bangladesh Fire Service and Civil Defense Mohammad Abdul Mannan, Managing Director and CEO, Islami Bank Limited
a global business magazine from bangladesh
Contents TIMES
TIMES
Vol. 7 No. 05 | January 2017
Publisher & Editor Director, International Publications Executive Director Managing Editor Assistant Editor Sub Editor Staff Feature Writer Designer Business Development Finance & Accounts Sales & Distribution
a global business magazine from bangladesh
TIMES
January 2017
: : : : : : : : : : : : :
Abul Khair Zeenat Chowdhury Nawshin Khair Tawhidur Rashid Irad Mustafa Shaikh Ashfaque Zaman Asaduzzaman Sk. Yeahhia Md. Nizam Uddin Forhad Mohammad Imran Md. Abdul Alim Md. Nazrul Islam Md. Rubel Khan
the big question
HOW CAN BANKS EXTEND THEIR REACH THROUGH DIGITAL MARKETING?
TK. 100 | www.ibtbd.net
office insight
FOLLOWERSHIP EXPLAINED:
health technology
GAME-CHAGING TECH SOLUTIONS THAT WILL SHAPE OUR WELLBEING IN THE NEW YEAR
FIVE TYPES OF EMPLOYEES AT EVERY WORKPLACE
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THE SUPPLYSIDE STORY OF BANGLADESH POWER SECTOR: AN ANALYSIS
international
STARTUPS TO KEEP AN EYE OUT FOR
IN 2017
Aziz Khan, Chairman of Summit Group on his aspirations to serve Bangladesh in newer ways
corporate
CLIMBING HIGHER
Why Going Green Matters Plummy Fashions’ success story
HOW NEWSCRED MOLDS UNITY AT CLAY STATION
Expanding The Export Portfolio
Bengal Group of Industries lead the way
This issue’s Photographs by Din M Shibly Kazi Mukul
Editorial & Marketing Queries Solving the puzzle
To unlock the true potential of a nation, there is no alternative to innovation.
tawhidur.rashid@ibtbd.net or send us a note at www.facebook.com/icebusinesstimes www.twitter.com/BusinessTimesBD
Be sure to visit our website www.ibtbd.net
Features 16 24 36 52 58 68 72 76 80 82 86 88 90 98
Telecom Trials and Tribulation Emphasizing on a Better Environment The Future of Progress Power to the People Of Colleagues and Camaraderie Commanding the Ship 15 Fintech Finds for 2017 The Digital Deposit Realizing the Potential of Social Solutions To a Healthier Future Cream of the Crop Beyond the Business AMD: Ryzen Rising Capital Marketing Update
Published by Abul Khair on behalf of ICE Media Limited Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230 and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208 Editorial and Commercial office: 3rd Floor, House: 4, Block: B, Road: 23 A, Banani, Dhaka 1213 Advertising, Sales, Subscription and Distribution: 01812656961, 01715732425, 01759391168, 01850824294, 01881925963, 01881925962, 01611227676 Tel: 02 55035336-8, 09666773313
* Not all the views expressed in the columns and interviews are the views of the magazine.
FROM THE EDITOR From the ancient Chinese concept of 7 as the harmony of all other elements to Shakespeare’s 7 stages of man’s life, the number is omnipresent throughout literature, culture and geography. The time has come for Bangladesh to step into the terms of ‘lucky 7’ with our GDP increasing by 7% ushering in the new year, 2017. The prerequisite towards a progressive Bangladesh in the coming years is undoubtedly fixing our infrastructure and energy situations. Nevertheless, as we look towards a new year, we must also observe matters from an alternative angle; as Muhammed Aziz Khan, Chairman of Summit Group, has expounded upon the idea that we must support the government’s initiative to improve social infrastructure such as education and health. Given that these are the aspects that are imperative in the well-being and future of the nation. The future that Khan envisions will only be possible if we improve upon the availability of necessary resources, primarily energy. With the Chinese premier’s assurance to invest $24 billion, the incentive to advance this sector has become a greater priority. Such investments are required in order to create a thriving business climate and advance the nation towards the middle-income status by 2021. As experts have cited, a number of private sectors such as information technology, pharmaceuticals, leather goods and more have the potential for promising growth. This can only be ensured if the government and people work in unison. Though the GDP has increased at a higher rate than that of the previous years, success is an ever-climbing ladder and just as we have set a target to advance as a nation, striving to become a more economically solvent Bangladesh is a continual process.
Word of Mouth S TAT E O F A F FA I R S
Power and Energy Week 2016 was observed to celebrate the country's progress towards the modern and digital era. Prime Minister Sheikh Hasina inaugurated the week. State Minister for Power, Energy and Mineral Resources Nasrul Hamid was also present
The Global Forum on Migration and Development wrapped up in Bangladesh. The three-day meeting in Dhaka focused on the upcoming Global Compact for Safe, Orderly and Regular Migration, scheduled to be finalized in 2018. Honorable Prime Minister Sheikh Hasina spoke at the event along with IOM General William Lacy Swing
The day-long conference ‘New Economic Thinking: Bangladesh 2030 and Beyond’ was held which was to be a gathering of ‘thoughtful and innovative doers’ from around the world who shared their perceptions on practical solutions for sustainable development through global innovative efforts. Honorable Prime Minister Sheikh Hasina inaugurated the summit Rushanara Ali, MP, Trade Envoy of the Prime Minister of United Kingdom met with Honorable Prime Minister Sheikh Hasina at the Ganabhaban
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Word of Mouth
BANKING CORNER
A day-long SAARC FINANCE Seminar on ‘Impacts of Mobile Financial Services in the SAARC Region’ was held. Bangladesh Bank’s SAARCFINANCE Cell of the research department organized the seminar. Bangladesh Bank Governor, Fazle Kabir inaugurated the seminar as the chief guest while Deputy Governor Abu Hena Mohd Razee Hasan presided over the session
BRAC Bank has donated 50,000 pieces of blankets to the Prime Minister’s Relief and Welfare Fund
BRAC Bank Limited and the Agro Input Retailers’ Network (AIRN) – supported by USAID, signed a Cash Management Agreement. Under the arrangement, BRAC Bank will provide Cash Management solutions to AIRN in southern districts of Bangladesh
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Dhaka Bank Limited sponsored the “5th Dhaka Bank Victory Day Golf Tournament 2016� at the Bhatiary Golf & Country Club. The tournament was followed by Prize Giving Ceremony and Cultural Programs
Jamuna Bank opened its 111th branch this December. Gazi Golam Murtoza, Chairman, Jamuna Bank Limited inaugurated the Branch as Chief Guest
Lotus Etang, the latest Pan Asian Cuisine Restaurant in city will offer 20% discount for the credit and debit card holders of Standard Chartered Bank (SCB), the leading international bank in Bangladesh. SCB has recently signed a Memorandum of Understanding (MoU) with Lotus Etang in this regard
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Column
Looking Back at 2016 YEAR END
Despite persistent weaknesses in the global economy, the performance of Bangladesh economy in the year 2016, according to a dispassionate assessment, was impressive. Policy stability, stable political environment, improved energy situation, the sustained growth of exports and remittance earnings (albeit at a slow pace) and a spurt in public investment provided the much-needed boost to the economy. The overall atmosphere, political or otherwise, was peaceful throughout the year 2016 barring the terror incident involving the Holy Artisan restaurant in Gulshan along with a few other terrorist incidents in the countryside. The incidents had cast a negative impact on the economy as well since foreign investors and businesses started avoiding the country. However, things have improved a lot lately because of government’s decisive actions against militants. Business confidence has been largely restored. Bangladesh has been receiving accolades from all around for its impressive economic performance despite the odds. The achievements have not missed the attention of many global and regional economic and political superpowers. China, Japan, Russia, and India have come up to bankroll many large infrastructure and energy projects in the
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Shamsul Huq Zahid
country. Very recently, during the historic visit of Chinese President, Xi Jinping, Bangladesh and China struck deals that might ensure the inflow of Chinese funds worth over $25 billion. The January-June period of 2016 covered the second half of the fiscal year (FY) 2015-16. Most indicators barring private investment and agro-output were quite healthy then. However, the situation in the July-December period was not as rosy as many had expected, particularly in the area of remittance earnings. A much positive vibe was absent in the business community. A stagnant private investment situation prevailing throughout the year is a pointer to that fact. The trend, however, had been persisting for more than a couple of years. The sense of populism which was sweeping in continents across the Atlantic gained further strength in the second half of the year. Brexit and the election of Donald Trump in the USA, during the period, emerged as an ominous sign for economies like Bangladesh. Multilateralism in trade, it is widely feared, could be the first casualty of such a populist stance. The fear might soon prove real when Trump takes over the US presidency. In fact, the country along with the rest of the world enters a very uncertain time, both politically and economically. The GDP growth figure that emerged at the end of the fiscal 2015-16 helped the country break the 6% growth trap. For the first time in the country’s history, as the Bangladesh Bureau of Statistics (BBS) statistics showed, the GDP growth rate reached the 7% mark. The growth rate was actually 7.11% in the last fiscal. However, the estimates done by the multilateral lenders, including the World Bank, the International Monetary Fund, and the Asian Development Bank were below the 7% mark. However, the development partners are
Bangladesh has been receiving accolades from all around for its impressive economic performance despite the odds.
apparently convinced by the economy’s positive growth outlook and they are projecting a growth rate close to 7% for the current fiscal year (2016-17). The government, however, expects to hit the growth target of 7.2%. The stable growth of the Bangladesh economy in recent years has left a welcome impact on the poverty situation. In fact, the pace of poverty reduction has been faster than anticipated earlier. The poverty rate declined to 24.8% in the year 2015 and that of hardcore poor to 6.5%. The rate of decline in poverty level must have continued also in 2016 as the growth rate recorded a further rise during the year under review. Investment, particularly the public side, was on track during the last fiscal period because of the large volume of money being spent by the government on mega infrastructure projects. A total of seven mega public sector development projects, including Padma Bridge, Roopur nuclear power plant, Paira seaport, metro rail, two large coal-fired plants at Rampal and Matarbari, are now underway. However, private investment continues to be a sore point for the economy. The rate of private investment has remained stagnant for the past few years. The situation has to be reversed if the country intends to reach the much-coveted 8% GDP growth rate and achieve the middle-income country status within the stipulated time. Moreover, the foreign investment will continue to elude the country unless local investors demonstrate their eagerness to put their own money in different sectors of the economy. The gap between savings and investment has been persisting for the past few years, indicating that savings generated are not coming into the productive sectors of the economy. A part of the savings is flying out of the country in various forms and a part is preserved clandestinely. The flight of capital in recent years has emerged as a serious problem and the authorities have been failing to contain it. It is suspected some influential people are also involved in the act of sending funds outside the country illegally. The external trade transactions are thought to be a widely used means to take money out of the country by people who are amassing wealth illegally. The rate of inflation in the economy was tolerable because of the central bank’s prudent monetary stance. The low oil and commodity prices in the international market, good rice harvest locally and stable exchange rate, among others, helped the inflation to remain at low level. The credit growth in 2016 gives a mixed picture. The public sector credit growth was less than the target set in the budget for the current fiscal. The government’s large-scale borrowing through savings instruments was responsible for low-level
borrowing by it from the banking system. However, the private sector borrowing improved during the period under review, mainly because of the decline in banks’ lending rate in the domestic market. The demand for credit by the private sector during the year 2017 might grow further, provided external factors remain positive. When it comes to the issue of private sector lending, one can hardly escape yet another important issue - the non-performing loans (NPLs), which has reached a very high level, more than 10.5%. In the case state-owned commercial banks, the NPL rate is well over 20%. A good number the public sector banks are deficient in capital and are now seeking funds from the government for recapitalization. The tax revenue collection by the National Board of Revenue in the last financial year was less than the target which, according to most experts, was highly ambitious. The target set in the current year’s national budget is also high and the government may finally have to collect less than the targeted one. In 2016, businesses and the government had a tough time over the introduction a few VAT-related new measures incorporated in the new VAT and SD law, set to be introduced next July. In the face of strong resistance from the businesses, the government softened its stance, to some extent. The country’s foreign exchange reserve continued to rise steadily throughout 2016 and stood at around $32 billion in the last week of December, 2016. However, the siphoning off $100 million from the BB’s account with Federal Reserve Bank of New York by the hackers in February 2016 came as a great shock to the banking industry both at home and abroad. Remittance inflow, particularly during the second half of the year, turned out to be a source of concern for the policymakers. Despite an increase in the outflow of Bangladeshi migrant workers in recent months, the drop in remittance inflow was not a normal development. However, it is widely believed that because of the mismatch between the kerb market rate and official exchange rate, a section of remitters is taking the services of hundi operators to send their money back home. The year 2016 was satisfactory one for the Bangladesh economy. But it is hard to say what remains in store for it in the year 2017, which is expected to be more eventful. If the Bangladesh economy suffers that would largely because of external factors. Hopefully, that won’t be the case.
The stable growth of the Bangladesh economy in recent years has left a welcome impact on the poverty situation. In fact, the pace of poverty reduction has been faster than anticipated earlier.
The writer is a senior journalist. He can be reached at zahidmar10@gmail.com
www.ibtbd.net
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Feature
TELECOMMUNICATIONS SECTOR
Telecom Trials and Tribulations By M. Rokonuzzaman, Ph.D
nce Bangladesh’s Telecom sector used to be the state monopoly. In 1980s, The Bangladesh Telegraph and Telephone Board (BTTB) used to be exclusively responsible for providing vertically integrated telecom services starting from international connectivity to end-user level connection. In association with sister organizations like Telephone Shilpa Sangstha, BTTB was also involved in producing telecom equipment such as exchanges, cables, and handsets. Telecommunication is a bit different from all other industries; as the network keeps growing, cost starts falling and perceived utility of the product starts increasing. As a result, both the consumers and producers have the incentive to let a big operator become bigger. Such a characteristic can be identified as a natural tendency of a monopoly.
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Apparently, monopolies appear to be cheapest source for Telecommunication services. In the case of monopolies, how will the price be determined? The common practice is to use the regulation based on cost modeling. Cost modeling based price regulation had been the means of governance of telecommunication across the globe for the better part of the 20th century. By the 1970s, most of the advanced nations had acquired almost 100% teledensity. On the other hand, in developing nations, the teledensity was as low as less than 1%. In
Bangladesh, there were less than 1 million telephone lines serving more than 140 million people by the middle of 1990s. Moreover, the cost of telecommunications in developing countries was also high, primarily due to having a very small network size serving only a small fraction of potential customers. In developing countries, the
capital, primarily provided by the Government, was the limitation for the expansion of the telecom network. On the other hand, in the advanced nations, the cost modeling based price regulation was facing insurmountable barriers. Particularly, the regulators of the United States of America were puzzled about how they could reduce the long distance telecom rates charged by AT&T. As there is no incentive for the operator to reveal actual cost structures to the regulators, there was always an information and trust gap. Due to information www.ibtbd.net
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In the same industry where BTTB used to be the only operator, we now have more than 200 operators operating in different segments of the industry.
asymmetry, the cost modeling based approach was failing to provide the necessary clues to the regulators regarding how to reduce the prices. Moreover, as a monopoly makes healthy and certain profits it forgoes the risk of investing in innovative ways to provide better products at lower prices. Monopolies have another major limitation: the profit maximization strategy. A private monopoly usually pursues the demand led market expansion to maximize profits. As a result, the monopoly will produce far less than the socially optimal quantity. This is because increasing production beyond the point at which profit is maximum will lead to an additional income from the marginal increase in production which will be less than the infra-marginal loss, as price should be reduced to sell marginal output.
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Particularly, such issues have been critical for developing nations as the markets were very price sensitive. To address these three major monopolistic limitations, it was decided to explore the option of introducing competition in the telecom sector. In Bangladesh, to benefit from competition, the telecom industry has been segmented into 7 major sections over the decades, starting from international connectivity to value added service delivery. In the same industry where BTTB used to be the only operator, we now have more than 200 operators operating in different segments of the industry. However, the multi-operator based service delivery runs the risk of increasing costs as due to the fragmentation of the market (and consequentially the network) benefit from both economies of scale and
The writer is an academic, researcher and activist. He currently works as a Professor at the Department of Electrical and Computer Engineering at North South University. He can be reached at zaman.rokon.bd@gmail.com.
scope will be reduced. Due to the redundancy of the network, a significant amount of capacity will remain unused leading to a less than optimal cost structure. In developing nations, the mobilization of private capital was the primary argument for opening the telecommunications market to competition. The policy challenge of benefitting from multi-operator based competitive telecom markets was to decide about the optimum level in diverse dimensions, including the number of operators, the level of segmentation and the boundary of the industry.
With the adoption of policy of market based reform, many international consultancies started proposing the argument to global investors to rack money by investing in the Telecom sector in the developing nations. Particularly, the cellular technology accentuated such proposition of easy profit making. With the interest of international investors, the regulators in these countries got into the frenzy of segmenting the network into as many pieces as conceivable and issuing licenses to maximize the licensing fees. As a result, there has been significant resource underutilization leading to much higher cost of delivery than it should have been. In this craze of supply led market expansion, in most countries only one or two operators reached profitable positions leaving dozens to incur losses. Bangladesh is no exception to this phenomenon. These profit making operators, mostly dominant ones, are setting the price to make healthy profits, while forcing others to take lower prices to keep
incurring losses. Across the world, the proposal of mergers and acquisitions is mounting. In Bangladesh, the mobile segment has already experienced exits or mergers of operators. Regulators appear to be bewildered as the market is moving towards a monopolistic setting once again. Even the European Union has put moratorium on such proposals. On the other hand, international consultancies are proposing to operators to expand their boundaries to encroach in the functionally specialized service market in the name of mobile service such as m-health or m-finance. Such expansion runs the risk of creating serious anomalies in the market structure causing significant losses for the consumers. Nobody appears to have a clue regarding how to decide the optimum level of segmentation, number of operators in each of these segments, and the boundary of the industry. It appears that regulators, operators and international consultancies are all in a race in creating serious disarray in the telecom
market in the name of market led reform. It’s time to rethink and conceptualize the solution to engineer discipline to benefit from sustainable competition to offer better products at lower cost for increasing both consumer and producer surpluses simultaneously. Despite the phenomenal growth of teledensity from less than 1% to more than 70% in less than two decades, there appears to be growing policy challenges to govern the industry in Bangladesh. Here is a list of policy issues that Bangladesh should carefully take into consideration to maximize the consumer benefit by taking the advantage from competition: • The democratization of smartphone ownership and ubiquitous availability of wireless broadband services and many conventional services like financial, health and education who are poised to benefit from digitization. Should Bangladesh adopt the policy for allowing mobile operators to be e-service providers?
• Although the wholesale price of Internet bandwidth has fallen from Tk 72,000 in 2006 to Tk 625 in 2014, why are users not benefiting from proportionate decrease in bandwidth price is a policy challenge. • Although the telecom sector has been the source of almost $3 billion revenue, many of the mobile operators and ISPs are struggling to reach profits. How to create possibilities of profitable competition for these operators is a policy challenge. • With the technological progression, voice and video call over the Internet is becoming cheaper. To protect the voice revenue for the operators, should policy makers create barriers forcing consumers to use conventional expensive means for making international calls? • Should the Government increase investment to compete with private operators by laying redundant infrastructure, or focus on investing to address market failure to intensify competition? It’s time for policy makers and the regulator to govern the telecom industry to maximize consumer surplus by creating possibilities of profitable competition to maximize the leverage from innovation, scale and scope advantages. www.ibtbd.net
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Interview
SUMMIT GROUP
Climbing HIGHER Muhammed Aziz Khan Chairman Summit Group
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Summit's story started in 1973. Since his early years, Muhammed Aziz Khan had a dream to become a successful figure in the business arena of Bangladesh. During his university life, he borrowed Tk 30,000 from his father which was to become the seeds for his growing business. During the early years of his foray into business, Aziz used to transport caustic soda from Khulna and sell it in Old Dhaka. Since then, he has gone on to establish the globally recognized conglomerate giant, Summit Corporation Limited (formerly known as Summit Industrial and Mercantile Corporation Private Limited). Summit Group is now recognized as the largest infrastructure group in Bangladesh employing over 7,000 people with investments in the energy sector, ports, shipping, hospitality sector and information technology. Under Aziz's leadership, Summit set up the first Independent Power Plant of the country in 1998 - the Khulna Power Company Limited, a joint venture with Wartsila Corporation of Finland. Currently, Summit generates around 1,500 megawatts of electricity and is by far the largest independent power producer in Bangladesh. Summit has also set up the country’s first private off-dock facility, Ocean Containers Limited, now known as Summit Alliance Ports Limited which is currently handling about 20% of the country’s export and about 10% of the country’s import volumes. Summit Power Limited, Summit Alliance Ports Limited, and Khulna Power Company Ltd. are subsidiaries of Summit Corporation and are currently listed in the Dhaka and Chittagong Stock Exchanges with a combined market capitalization of about Tk. 100 billion. Muhammed Aziz Khan was born in 1955. He has an MBA from the Institute of Business Administration (IBA), University of Dhaka. He is also the Chairman of Siraj Khaleda Trust and was the founder past President of Bangladesh Scouts Foundation, Bangladesh Energy Companies Association, and Prothom Alo Trust. Aziz is currently the President of Bangladesh Association of Publicly Listed Companies (BAPLC) and the Honorary Consul General of Finland to Bangladesh.
Q
Would you please give us an account of how you entered the entrepreneurial arena?
I have been an entrepreneur for around 45 years and established Summit in 1985. Initially, I was involved in the trade of chemicals. You can still find this trade taking place in Chawk Bazar and Urdu Road in Old Dhaka. Later on, I grew my business through the assistance of other renowned businessmen such as Anwar Hossain of Anwar Group and Din Mohammad of Phoenix Group. I also received helping hands from Pubali Bank and Rupali Bank. I received this assistance as they all saw the positive impact my business would generate in the future. Through this, I discovered the importance of establishing goodwill. If you can establish it, then financial mobilization will not be a problem for a business.
There have been tax anomalies in Bangladesh and now the tax administration is trying to make it business friendly. What are your thoughts on this?
Bangladesh is such a country where filing the correct returns may mean that you might have to pay exorbitant amounts to the government. Lots of organizations try to show lower profits so they can pay fewer taxes. However, this has the adverse effect of impacting their image for the banks who provide them with the necessary funding. So there's a confusing problem where taxes will reduce their profits but if they try to evade taxes, they may not receive the required funding from banks. This dishonesty and tax avoidance occur due to the higher tax rates. Not only has this lead to irregularities in how a business should be conducted, but many young businesses have failed to flourish because of it. If businesses cannot run smoothly, how do you expect the economy to maintain
its growth? A balanced tax rate is required in order to eradicate this problem.
What would you say is the highlight of your career as an entrepreneur?
My entire career is my highlight. There are two aspects of this. One is the journey, the other is reaching your destination. After conquering the Everest, people often stay there for a short time to absorb the enormity of their accomplishment. This is a time when people can sit back and think about the trials and tribulations after starting the journey. After reaching the destination, your joy is compressed into something new. This is similar to my experience as an entrepreneur. However, I feel, with this business, I can still climb higher. I am learning new things every day, especially from my daughters and grandchildren. If they fail at a task, they try again and again. Their persistence and perseverance have inspired me to think of how I can expand my business and go the extra mile, to find newer ways to serve Bangladesh.
What is the future vision of Summit Group?
Every business has an obligation to support Bangladesh's development. Likewise, Summit Group also adheres to this in its efforts to remove poverty and create a sustainable, happy society. Towards this, we shall provide the physical infrastructures necessary for development. By 2021, we intend to provide 3,000 MW of electricity to cover the entirity of Bangladesh with 4G fiber optic networks and build our own international container port and river ports. We love Bangladesh and the system of free market economy. Thus, we intend to work with merit to create infrastructures, electricity, information technology and ports, so that our companies are profitable while supporting the growth and development of Bangladesh. We are working for the generation of low-cost, environmentally friendly electricity, efficient and world-class fiber optic infrastructure and international standard ports.
How would you assess the current economic landscape in Bangladesh? Bangladesh is currently in a very prosperous period. The prices of www.ibtbd.net
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petroleum products have dropped by 70% and the prices of metal and other raw materials have come down by almost 50%. Around 80 million people from our 160 million population do not have access to electricity. We have a $1,300 per-capita income, so we have a long way to go, developmentally speaking. If we can ride this wave of low-cost energy and commodities, it would lead us to a fundamental positive advantage. Adding to that advantage is the fact that we are undergoing a digital internet revolution. Thanks to inexpensive and ubiquitous smartphones, our population can now access information, which was previously available only to the elites, whether they be the wealthy or certain religious groups. This combination can allow us the means to implement new infrastructure development projects which will enable our 160 million people to develop and grow in such a manner, unlike any other time in the past. We believe that we can break through the barrier of double-digit growth because of the times that we are living in and our hard working resilient people. China had to perform its economic development on an average of $80 or $90 a barrel of oil. Today, we are at $30 per barrel. China had to develop using LNG at $8 per MMBtu. We are currently working with $3 per MMBtu. Coal has almost no value. These signs point towards the massive opportunity in front of us. The efforts of the Bangladesh government deserve appreciation and encouragement. They have expanded all the infrastructures including social infrastructures such as education and health. Yes, much more needs to be done and at a faster pace, but, to me, it seems the hindrances
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Every business has an obligation to support Bangladesh's development. Likewise, Summit Group also adheres to this in its efforts to remove poverty and create a sustainable, happy society.
arise from laws and regulations, created during the colonial era and an era without information technology. The best initiative of the government is "Digital Bangladesh", perhaps a law and regulation reform is another necessity.
There is still a gap between electricity production and demand due to the lack of proper transmission lines. What is the requirement in this regard?
Transmission and distribution of electricity, as well as energy, oil and gas, are solely in the hands of government-owned entities. This deprives them of the efficiencies of a free market economy. I firmly believe the government should privatize part of these as they have done for power generation. Increased investment and faster decision making are necessary for these infrastructures to develop and meet the requirements of the people.
What scope do you see for a shift towards solar power?
What we need is electricity. And we need it to be cost-effective, in order for it to benefit the Bangladeshi people. The generation of electricity is becoming cheaper day by day because of the low cost of primary energy. The rationale, therefore, for green electricity is now a comparative financial analysis. Summit bases its businesses formally on social development with economic value. People invest to make money, and so does Summit. The evaluation criteria have changed with the low cost of primary energy while solar and wind energy has not had the same decrease in cost. In a free market economy, which Bangladesh is progressing towards, choices are made based on economic
parameters. While businesses are based firmly on economic and social values, we, of course, analyze the larger global goals of the environment and the social good.
What can you tell us about your plans to increase river transport?
Bangladesh is the world’s largest delta. It is endowed with three excellent rivers - Padma, Meghna, and Jamuna, and the confluence of these rivers that come from the Himalayas has created natural channels. We want to take advantage of this delta, and we are doing so by setting up a river terminal. The river terminal, which is 100% ready, is yet to receive some licenses from the government, but once it is operational it will enhance the capacity of the exports of the country, decrease the cost of exporting, improve the competitiveness of exporters, as well as reduce the carbon footprint, as each ship will carry about 40 trucks’ equivalent in containers from Dhaka to Chittagong.
You have rolled out fiber-optic networks throughout the country. What contribution do you expect this to make to the Bangladesh’s development?
Information technology provides a huge opportunity for the development of the country. We have established about 30,000 km of fiber optic lines, but we are not alone. There are several other companies working in this area. We believe that this infrastructure would have a similar impact on the economy as the highways of the 1930s and 1940s did in the United States, and at a fraction of the cost.
Feature P L U M M Y FA S H I O N S LT D .
Emphasizing on a Better Environment By Monira Munni
lummy Fashions Ltd. has a USGBC LEED certified factory where more than half of the factory premise is open to providing a sense of comfort for its workers. The factory includes six buildings within 22 bighas of land with gardens and natural lakes creating balanced eco-system for a feeling of relaxation and tranquility for the workers. “A unique feature of the factory is its open space that is nearly 60% of its total area. Such open spaces are not required for green factories but we still provided it to create a natural feeling,” stated Fazlul Hoque, the Managing Director of Plummy. He expands upon the organization of the area, focusing on the division of the buildings, “Each of the buildings specifically caters to a specific part of the preparation of fabrics and clothing. There are separate buildings for cutting and sewing, administration and knitting, and one for dying.” The main production section where workers’ occupancy is highest is the cutting and sewing floors. The steel structured building has a lawn surrounding the floors with a total of 11 exits and five stairs. Fazlul explains that this is to facilitate evacuation within 30 seconds of an emergency.
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Fazlul Hoque
Managing Director Plummy Fashions Ltd.
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Each of the buildings specifically caters to a specific part of the preparation of fabrics and clothing. There are separate buildings for cutting and sewing, administration and knitting, and one for dying.”
This Knit products manufacturing unit is located in Narayanganj, 20 kilometers South of Dhaka city. It was awarded a LEED Platinum certificate from the US Green Building Council (USGBC) for its environmentally-sound production process in September last year. The Leadership in Energy and Environmental Design (LEED) rating is a points-based system where a rating level is achieved once a project meets all the prerequisites and a minimum number of points. Depending on the number of points earned, a project may be labeled as LEED Certified, LEED Silver, LEED Gold or LEED Platinum. In this context, Plummy Fashions Ltd. earned 92 points out of 110 which is the highest for the knit garment industry amongst all apparel producing industries. Plummy achieved 25 points out of 26 in sustainable sites, 10 out
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of 10 points in water efficiency, and the unit received 31 points out of 35 in terms of energy and atmosphere, according to the USGBC website. The RMG factory attained 7 points out of 14 in material and resources category, 10 out of 1 for indoor environmental quality, 5 out of 6 in innovations and is 4 out of 4 in regional priority credits as indicated on the website. The site also provides secure bicycle parking facilities and encourages the use of non-fossil fuel transport. Not only is the facility environmentally friendly and using optimal space for innovation and efficiency, it features an optimal space for workers and their everyday needs. Fazlul elaborates, “One of the buildings is dedicated to the numerous needs of the employees. It has space for the training, prayer room, child care and health care of workers.
Additionally, the dining space allows for 500 workers to eat at any time; it is situated near the lake to provide an open space. The management would also like to set up high-rise buildings to reduce risk factors.” The factory is 40% energy efficient, 41% water efficient and 35% efficient in terms of carbon emission. “The 21 line units have a total of 44 skylights for optimal use of daylight, moreover, there are 66 air coolers to keep the inside atmosphere cool and save energy”, Fazlul added. The factory has a rainwater harvest system that ensures that 6 million liters of water can be preserved. A 65 KW capacity solar power plant with highly efficient mono-crystalline panels is a key component of the factory’s green strategy. The facility produces at least 110 MWh energy every year, which is 13% of the total power required.
“Our solar plant is the largest solar energy plant in Bangladesh and the factory has utilized a state of the art skylight system to trap natural sunlight for lighting its facilities,” postulated Fazlul. Plummy Fashions Ltd. has also installed a class leading natural water management system which is recycling and reusing both rainwater and surface water. In order to comply with USGBC core standards and guidelines for building and management, the factory follows LEED strict manufacturing standards. Fazlul further elaborates, “An effluent treatment plant has also been set up and the treated water is reused in the factory’s dyeing section.” The factory has installed digitally calibrated machines essential for utilizing solar energy, CFC free cooling systems, efficient water fixtures, LED lighting, low energy plants minimizing the company’s carbon footprint. With an environmentally friendly factory, Fazlul prioritizes employees,
“Despite a strong emphasis on the environment, people remain at the core of all initiatives. The company’s ethos is geared towards the well-being of workers and employees.” To assure that safety measures are taken if a disaster were to occur, there are teams of trained firefighters among the workers for any emergency. Terming the factory the ‘greenest’ in the knit category, Fazlul plans to expand the unit to 50 lines from the existing 21 line capacity. The factory mainly produces knit items for the European Union while it has entered to Brazil, Chile, and some other potential markets. Fazlul is hopeful for a future where investors are more environmentally conscious, “The green factory initially requires a substantial amount of investment but yield long-term dividends. Many more entrepreneurs are coming up with such green factories in the country that will help build the image of our nation.”
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Interview
Making of a Dream
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BENGAL GROUP
Bengal Plastics currently have eight plastic producing units and employ more than seven thousand people.
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Md. Jasimuddin
Vice Chairman Bengal Group of Industries
engal Group of Industries started its journey through their Chairman, Morshed Alam in 1969 when he established a light engineering unit which was based in a rented area in Old Dhaka. Since then the company has become renowned for its quality products across the globe, receiving export trophies and being recognized as a leader in plastic goods. Md. Jashimuddin joined the Board of Bengal Group of Industries as a Director in 1983. He is currently their Vice Chairman. He holds a Graduate Degree in Business Studies. He is experienced in trade negotiations, sales and procurement. Being responsible for the operation and marketing division of the Group, he has been awarded the ‘Commercially Important Person’ (CIP) status by the Government of Bangladesh for his contributions to the country’s economy. When asked about the company’s journey over the years he elaborates, "During the start of this journey, we made spare parts for the Jute and Textile mills which were flourishing at the time. They used to import these parts from England, Japan, and Pakistan but we offered a cheaper alternative. The success of this industry wasn't the same after Bangladesh's liberation so we had to diversify. We started to produce various plastic items for institutes like Bangladesh Railway. Later we moved into producing plastic household products. During the 90s, the garments industry started to blossom so we decided to help it by producing plastic garment accessories. This is when we also decided to get into the export business. This marks a significant turning point in our Group's timeline as now we are exporting approximately $45 million worth of plastic garments products every year." Bengal Plastics currently have eight plastic producing units and employ more than seven thousand people. After establishing themselves as the top garments plastic product producer, they started diversifying further by adding plastic crates, containers, and other items to their production line up. "We started supplying items and bottle crates for Cocoloa and Pepsico International. As for consumer plastic products, we are mainly producing them for the export market and corporate clients such as Nestle and Lever. In the meantime, we are becoming the licensees for hangers for Cartoon Network and two other American companies. www.ibtbd.net
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Now we have numerous other concerns, including projects in real estate, the plastic pipe industry, the cement and food industry and so on. We are number one in terms of international sales and we are controlling 20% of the market share in the plastic market." As a company of such a large stature, long-term planning is obviously a top priority. Accordingly, the leading figures at Bengal Group already have a vision for how they must proceed over the next fifteen-twenty years. Jasim explains, "We are creating a roadmap which we will follow till 2030. The plastics being produced today will eventually become obsolete so we will have to come up with newer products. The bulk of the global plastic consumption occurs in the automobile industry where one car requires around 300-400 kgs of plastic. The vision of our government is to become a middle-income country by 2021 but to achieve this all the relevant industries must grow accordingly. Currently, we have a per capita consumption of plastic of 4-5 kgs. However, if we look at developed nations like the USA and Singapore, plastic consumption is around 100 kg and 130 kg per capita respectively. Thus, according to these indicators, our plastic consumption will also increase drastically as the country progresses along its development trajectory." Due to this reason, it is imperative for the company to trace the areas where plastic consumption in Bangladesh will experience booms. Knowing which sectors to focus on, beforehand, will give them an advantage. "Whatever sector we are working with, we have to think about value added items and keep one eye fixed on what might happen in the future. We have to try to consider what kind of innovations can spring up in the future that might change the way our industry works. Currently, we are exporting household commodities whereas
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We are creating a roadmap which we will follow till 2030. The plastics being produced today will eventually become obsolete so we will have to come up with newer products.
in the past we had never thought we'd be engaged in this particular trade. In the past, we were making import substitution products but now we're producing items which not only meet the local demand but are also being sold abroad." However, they won't draw the line just there. There are still numerous opportunities left to explore for Bengal Group. "Almost 95% of a cell phone is made of plastic so there's a huge possibility in that area. Our country has a huge population with its small land mass, large population and rising consumption. Cement is now in demand in rural areas, steel companies are also expanding. The government development activities are expanding and there are vibrating trends in the rural areas." When discussing problems in the industry, Jasim added that the curtailing of the GSP facilities has put up a considerable roadblock. He also mentions that all their raw materials are imported so the rise and fall of oil prices may affect the raw material prices adversely, plastic items may take up more space when being transported so transportations costs are higher when compared to other products and their shipping costs are than that in China. "What we're trying to do is invoke the Free Trade Agreement (FTA) with neighboring countries and expand exports there. The government already agreed to give 10% cash incentives to the plastic sector. However, we are still facing some bureaucratic complications. These two issues are essential for our expansion." Moving on with the topic, Jasim
then focused on the main piece of the puzzle - the gas and power. He elaborates, "Many locations lack gas connections. On top of that, our industries are segregated and they receive power connections through the Rural Electrification Board (REB) whose transmission lines need to be of better quality. On average, many industrial areas lose power for around 3-4 hours. These problems need to be addressed immediately. The government has to prioritize what kind of power will be given where and how. They have mentioned that they will provide it in the Specialized Economic Zones (SEZs) but they have to be clearer on the matter. Based on this information, I will have to prioritize the establishment of our factories there." Industrialization cannot move forward smoothly without the right planning and programming. "Our power generation capacity has increased but transmission and distribution are also important areas which require our focus. For an industry I have to invest in numerous areas related to this field - gas generators, transmission of gas lines, fixing substations, CNG plant for standby facilities and procuring diesel facilities. If the requirement for a project is Tk 1 crore, we end up investing Tk 4 crore due to these issues. These problems need to be eradicated and only the government can help is in this regard. We have to make spaces for the Foreign Direct Investment. If our local investments are scared off, how will we attract FDI? So there is a positive trend but we have to be realistic regarding planning and implementation."
I P D C F I N A N C E LT D .
Interview
Financial Fair Play Mominul Islam
Managing Director and CEO IPDC Finance Limited
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Mominul Islam is the Managing Director & CEO of IPDC Finance Limited. Prior to that, he was the Deputy Managing Director of the Company from 2008 to 2011. He had joined IPDC in 2006 as Head of Operations. During his tenure at IPDC, he has played pivotal role in reshaping the organization through strategic planning, organizational restructuring and automation, process re-engineering, control and compliance, and service quality, and so on.
Q
You have obtained the Six Sigma Black Belt training and worked on several Six Sigma projects. What have you learned from your time there? How have you incorporated it into your working methodology?
During my time in the Six Sigma training, I realized that organizations need to determine an appropriate sigma level for each of their most important processes and strive to achieve them. As a result of this goal, it is obligatory on the management of the organization to prioritize areas of improvement. The term "Six Sigma" comes from statistics and is used in statistical quality control, which evaluates process capability. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within its specifications. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.
IPDC is the first private company in the nation to provide financial services and products for various sectors. Could you elaborate upon the company’s journey? Why are these services essential in the progress of the nation? IPDC Finance Limited is the first financial institution of Bangladesh, which was established in 1981. Since then, the company has played a
pivotal role in financing several major industrial projects in Bangladesh. It has continuously been the major driving force behind the industrial development of Bangladesh in the private sector. The economy of our country has undergone numerous changes in recent times. In its effort to revamp its operation in Bangladesh and in alignment with its key vision to be an active partner in the development of our economy, IPDC has changed its name from ‘Industrial Promotion and Development Company of Bangladesh Limited’ to IPDC Finance Limited. It has made some major changes to ensure efficient organizational management and maximum risk management in its operations. Modern day investors can now build their business upon a more solid foundation. With a broad plan and futuristic approach towards these challenges, IPDC Finance Limited has plans to become one of the key aggregators in the financial industry of this country. Due to the rapid socio-economic development, there is an increased demand for housing solutions amongst the people in our country. Yet there is little to no investment in this sector outside of Dhaka and Chittagong. Most of the people from our country can only afford to build a house during the final stages of their lives. Now IPDC Finance Limited has emphasized on home loans to help ensure affordable housing solutions for the middle and low-income families of the country. We have brought some specialties in our loan schemes. If our lessee departs, becomes permanently handicapped or becomes terminally ill, the person will not have to bear the responsibility to repay the debt. Special insurance will cover the debt expenses. The insurance premium will be covered by IPDC. IPDC Finance Limited will cover these expenses under its corporate social responsibility. Our primary target is to cover from a minimum of Tk 5 lacs to Tk 25 lacs of loans to our clients. We will also give Tk 50 lacs or more loans if necessary. People who are interested in building their own house or apartments can take loans under this scheme. The interest rate on these loans will be decided according to the market situation. The monthly installments will be decided as per negotiations with the client. IPDC has www.ibtbd.net
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also emphasized its plan on the empowerment of the women in its efforts to mark a positive impact as the working-class women are a major driving force of the economy of this country
Your company’s profile has a very diverse clientele. What are the challenges in maintaining such an eclectic portfolio?
Since its inception, IPDC Finance Limited has played a pivotal role in developing country's industrial landscape. IPDC has been a partner in several milestone projects that were the first of its kind in Bangladesh. For this reason, we have a strong and diverse base of corporate clientele amongst the financial institutes which are in operation at the moment. Some of our long-term clients are IDLC Finance Limited, Fantasy Kingdom Theme Park, Holcim, Summit, DBH, Apollo Hospitals Dhaka, Westin, National Housing, Ekushey TV, Scholastica and much more. The major challenge to become a successful financial institute is to provide customized solutions to meet the needs of these varied ranges of clients. To continue financing the growing demands for both the Corporate and SME clients we are determined to bring more customizable financial solutions and for that reason, we have shared our stakes with some of the major bodies in the context of Bangladesh. BRAC, Ayesha Abed Foundation, RSA Capital, Aga Khan Fund for Economic Development, RSA Capital Limited, the general public and the Government of the People’s Republic of Bangladesh are now the shareholders of this institution. These activities mark our promise and commitment towards our eclectic base of clients to provide one-stop financial solutions right to their doorsteps.
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In its effort to revamp its operation in Bangladesh and in alignment with its key vision to be an active partner in the development of our economy, IPDC has changed its name from ‘Industrial Promotion and Development Company of Bangladesh Limited’ to IPDC Finance Limited.
Why has the company particularly focused on private sectors? What contributions do you believe these firms can make in progressing the nation? In the context of the transformation of our industry, it is important to affirm our purpose, what we stand for, and what we aspire to be. We believe that to become the most passionate financial brand in the country we need to eye our focus on youth, women, and underserved areas. Investing in the private sectors will help generate more jobs and opportunities for the hardworking people of our country. IPDC Finance Limited is planning to work on youth unemployment which is one of the major challenges at the moment in Bangladesh. Focusing on the private sector will help create more sustainable opportunities and jobs for the youth of our country. All these activities will help IPDC create a positive impact on the development of Bangladesh. We believe our vision and goals are in clear alignment with the mandate of our current government. In 2017, we have plans to open nine more branch offices across the country to bring 70% of the total population under our financial wing. Apart from our own offices, we have started giving out home loan solutions from ten BRAC offices. To expedite this scheme we are looking forward to signing an MOU with one of our major shareholders, BRAC. We are
planning to bring people from remote regions in Bangladesh under our loan schemes.
IPDC has created a loan for Green Financing that will allow companies to upgrade their machinery to be more environmentally friendly. Why is the green initiative so paramount to the company?
Green finance is a broad term that refers to capital raising and financial investments flowing into projects, products, and companies that support the development of a more sustainable, low-carbon and climate resilient economy. Green financing is a standing commitment at IPDC and forms an integral part of the Company’s activities. IPDC’s contribution to social sector development includes several pioneering interventions to pro-actively support meaningful socio-economic development in Bangladesh and enable a larger number of people to participate in and benefit from the country’s economic progress. We are currently in the process of activating our green financing operations with some local companies especially in the disaster prone areas of Bangladesh. We have more plans to initiate more actionable green financing activities in the near future.
Special Report
INVESTMENT
The Future of Progress By Zahedul Amin and Mahir Abrar Nikhat
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angladesh’s economy has achieved remarkable growth on the back of rising RMG exports, steadily increasing remittance flows, and growing domestic demand for goods and services. Bangladesh’s average growth of 6.2%, over last one decade, has been remarkable considering the series of internal and external shocks impacting the economy. From the global financial crisis in 2008 to a series of political uproars in 2013-15, the economy has successfully weathered the storm and is well on course to achieve the middle-income status. Due its growing nature, the impact is already being felt in terms of declining levels of absolute poverty level (31%), with Bangladesh successfully attaining the lower middle-income status in 2014.
GDP Growth Comparison with Regional Peers 7.3 (2015)
8
GDP Growth Rate (%)
7
6
6
WB
6.1
4.7
5
Bangladesh GDP Growth Comparison
4.5
4
7.5 7
7.1 6.5
6.3
6.5
3
IMF
6.5 6.03
6.29 6
2013
2014
6.51 6.1
6.8 6.3
6
2
5.5
1
5
0 Pakistan
Vietnam
Bangladesh
India
Sri Lanka
2011
2012
2015
2016
Bangladesh’s geo-strategic location in the vicinity of India and China also puts further credence on the argument that the country’s economy will thrive in the future. With the recent visit of the Chinese premier, and promises of up to $24 billion in investment, Bangladesh’s private sector and policymakers have reasons to be optimistic about what lies ahead. The country is also part of the much talked about ‘silk route’ initiative, which looks to maximize regional trade and investments. Bangladesh’s immediate neighbor India, has also invested in the country’s future, through its $2 billion loan lines and joint venture infrastructure deals.
Population a Boon for Progress
Bangladesh’s population has long been viewed as a liability. But with a growing population, the average age of the population has tilted to 23.4 years, with 60% of population below the age of 30, and 2.2 million people entering the job market each year. Utilizing this population segment is of paramount importance for the country to reach its 8% growth target in the coming years. In order to put these resources to use, the country needs to inject more investment, both from local investors and foreign investors. These large scale investments, preferably in the secondary sector, will boost employment. As a result, the idle resources will help accelerate growth. According to the World Bank and Bangladesh Bank statistics, a country’s GDP to investment ratio should ideally be around 32%. Bangladesh’s GDP to investment ratio has historically hovered around 27-28%, mainly due to large savings-investment gap, overall lack of business confidence, and scarcity of land and utility connections. The country’s FDI level has also remained stagnant.
1,726
1,000
1,700
1,191 775
500 2011
2012
FDI (USD M)
2013
2014
Problem Areas cited by Industry Leaders 10.40%
1,432
1,500
Entrepreneurs and top level executives from different organizations cutting across different sectors, play important roles in channeling investments. Their views are crucial in gauging the current business climate and future investment and growth prospects. In order to understand the pulse of the private sector, LightCastle Partners recently launched the Bangladesh Confidence Index 2016. According to survey, infrastructure development has been identified as a major problem, which includes inadequate roads and highways along with insufficient power generation. There is also a gap in the quality of human resources and skill-sets required by employers. Alongside these issues, the lack of transparent rules and regulations has been creating problems for many industries e.g. FMCG.
21.8%
Weak Demand
FDI & Capital Formation 2,000
Views from the Private Sector
2015
30 30 29 29 28 28 27 27 26 26
Travel and Logistics
13.9%
Financial Constraints
10.4%
Raw Materials costs
19.3%
Open-ended regulations
24.3%
Employee Incompetency
Gross Capital Formation (% of GDP)
Source: LightCastle Business Confidence Index 2016
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Opportunity Landscaping Despite a number of complaints, representatives of the private sector are not totally bearish about the country’s economic prospects. They have identified a number of sectors which have the potential for growth.
Agro – Processing • Technological advances to disrupt inefficient status quo • Opportunities to vertically integrate • Research & development in the sector has proven ability to innovate
0.63
Leather Goods (Footwear)
Pharmaceuticals
• Vertical integration opportunity • High labor arbitrage relative to China • Export opportunities in growing Asian markets in close geographical proximity
0.75
0.82
Readymade Garments
Information Technology
• Existing workforce and expertise • Move to value-added goods and high-end products • Improved road-networks, political stability, efficient export processes and cost-shocks reduction
• Government initiatives such as high-tech parks and tax-breaks • Expected increase in Computer Science graduates • Internet penetration (3G and technology adoption growing at a rapid pace)
0.87
0.94
• Huge potential in the US export markets • Domestic demand set to grow at a rapid pace • Costs to Quality ratio is favorable in global markets.
Power & Gas • Politics to support electricity generation • Gas exploration in the Bay of Bengal has a scope for huge investment • Huge gap to be filled if domestic demands are to be met. Source: LightCastle Business Confidence Index 2016
1.00
Source: LightCastle Business Confidence Index 2016
How to Move Forward? In order to achieve the middle-income status by 2021, the Government needs to create a business climate conducive to investment. Views of the private sector players should play an integral role in shaping the Government’s economic policies. The newly formed BIDA must play an active role in weeding out red tape at all levels. Following Government’s Digital Bangladesh Vision, foreign investment process must be made transparent through digitization. Company formation procedures must be made hassle-free, especially for joint ventures and fully foreign owned initiatives. By placing maximum emphasis on
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secondary sector based investments, dedicated investment managers, appointed by BIDA, must be appointed to maintain close collaboration with potential investors. Another means would be to provide formal licenses to private sector firms, which would provide end-to-end solutions to foreign investors. Private economic zones must be promoted and local private sector conglomerates must be encouraged for setting up private economic zones for foreign investors. Local investors must also be provided necessary utility connections for their factories on a preferential basis. Investments must be channeled where it is most needed. Investments coming from Indian and Chinese Governments must be fully utilized for infrastructure development, as well as for government financed or PPP based power plants. The LNG terminal and coal based power plants would provide necessary wherewithal for the energy hungry economy and support future growth. Economic activities should be disseminated across the country instead of focusing on solely the Dhaka and Chittagong regions. Local conglomerates must be incentivized to open up new factories in the less developed regions. This would not only increase development in those areas, but will help decrease regional unemployment rates and discourage migration to larger cities. Bangladesh is at the crux of attaining middle-income status, and is already garnering attention from the World community. The World Bank has identified Bangladesh as an economic success. Regional economies are giving the vote of confidence by channeling investments within the country. As Bangladesh stands at this crucial juncture, it is imperative that the country gets its house in order by improving the overall business climate. The time is ripe for Bangladesh to assert itself as a new emerging economic tiger. Coauthored by Mahir Abrar Nikhat (Business Consultant) and Zahedul Amin (Co-Founder) from LightCastle Partners. They can be reached at info@lightcastlebd.com
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Interview
HUMAN DEVELOPMENT
Promoting Progress Selim Jahan
Director, HDRO UNDP
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Q
Selim Jahan is the Director of the Human Development Report Office at the United Nation Development Program (UNDP). He has previously served as the Deputy Director of the Human Development Report Office, Professor of Economics and Director of the Economic Research Unit of the University of Dhaka, an Economic Adviser to the Planning Commission of the Government of Bangladesh, and a Lecturer of the Department of Economics at McGill University, Montreal, Canada. Selim is the author of 10 books and more than 150 articles in various national and international academic journals.
estimated to be the largest economy in the world. However, let us also recognize that China and India will not be the only nations that develop notably, countries like Bangladesh and Vietnam will also have a major part in that transformative change.
You are publishing the Human Development Report (HDR) with the notion of empowering lives in our resilient nation. Could you elaborate upon what the report highlights?
Let me clarify first that I have been trained as an economist; therefore, I believe in human development. As someone who has extensively worked in the area of human development, I am a great advocate of human connections, social cohesion, inclusion, and diversity. On the first issue, I differentiate between human connectivity and human connection. With the digital revolution, human connectivity through a machine or instrument has immensely increased and new non-face-to-face communities have developed through mediums such as Twitter, Instagram, and Facebook. But I strongly believe that these cannot be substitutes for direct face-to-face human interactions and in that respect, we have lost touch with our neighbors and with the communities we live in. In my view, this shift is weakening the social fabric of humanity and should be a cause for concern. If we look at the dynamic of an average family today, upon coming home after dusk, each member spends greater amounts of time on their devices and social media as opposed to spending quality time with one another. This very dynamic starts within the household and extends itself to becoming acceptable behavior in various social settings.
Let us remind ourselves that the notion of empowering lives involves dynamic concepts. These are aspirations that move our country towards becoming a more progressive entity. The idea is not realizing them perfectly; we should understand that they represent a process and a nation or a society should be on the trajectory towards making these ideas a reality within the nation. In that context, first, the notion of human development is all about the empowerment of people and making nations resilient. Human development is the process of enlarging human freedoms so that every human being realizes the epitome of their individual potential in life. It is all about the empowerment of people through the development of the people, for the people and by the people. Secondly, human development achieved does not equate to human development sustained. There are shocks and vulnerabilities which would erode human development gains and even lead to human development reversals and it is those left-out in the human development journeys who become the major victims of such erosion. By addressing those shocks and vulnerabilities, the human development approach keeps people and development on the trajectory of progress. That makes human development resilient.
In the mid-fifties, Joseph John Spengler, the American economist, stated that the future of the world lies in Asia. With China and India growing into economic superpowers, this phenomenon is evident. What is your evaluation of this projection?
Over the span of human civilization, the development hubs and growth centers have shifted from continent to continent. For example, during the industrial revolution, Europe was the engine of development for the whole world. There is no doubt that it is Asia which has become the growth and development hub for the whole world today. In 15 years’ time, China is
According to you, today’s reality is tomorrow’s future. In this context, you have stated that social media is hampering human interaction. Why do you believe that this is the case at present?
What do you believe is the future of Bangladesh?
I am proud and hopeful for my country, we have achieved a lot which should be celebrated, but like all other countries, we also have challenges which with our ingenuity, creativity, and vision, we shall overcome. Our challenges are being addressed and with the youth having greater access to knowledge and quality education, the dynamics of the nation as a global player will slowly but surely ensue. www.ibtbd.net
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Interview
WATER H E A LT H
A pure Initiative Kazi Amdadul Hoque
Head of Education, Disaster Management and Infrastructure Development Friendship Bangladesh
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Kazi Amdadul Hoque has twenty two years of experience in the field of Disaster Management-Climate Change Adaptation, Community based Food Security (implementation and advocacy), Infrastructure Development for resilience, Public Health and Education in Emergency, Good Governance, HIV and AIDS within Bangladesh. He has a Masters in Social Sciences form Dhaka University, Bangladesh. He currently works as the Head of Education, Disaster Management and Infrastructure Development at Friendship Bangladesh.
inundation caused by cyclone-induced storm surges. Storm-surge heights of 10 meters or more have not been uncommon, where the height above mean sea level of the coastal zone is less than 3 meters. Frequent storms have brought much saline water inland and ruined the rice fields that people depend on for employment and food, and surface water. Traditional ponds or surface water bodies become inundated with sea water making these unsuitable for any form of human use.
Cyclone Aila has caused a great deal of damage to the Satkhira district. Could you elaborate on the situation in that area?
Q
Salinity intrusion due to a reduction of freshwater flow from upstream areas, salinization of groundwater and fluctuation of soil salinity are the major concerns of the coastal areas of the country. What can you tell us about these occurrences?
The south and west coastal regions of Bangladesh have been experiencing an acute shortage of safe drinking water and an increase in salinity intrusion on the surface and ground water over the past few years. Due to their geographical disadvantage, this southwestern region is commonly subjected to floods, river erosions, and tidal surges but most importantly cyclones and storm surges. It has been estimated that Bangladesh is on the receiving end of about two-fifths of the world’s total impact from storm surges. In order to understand this dynamic, a bit of background information regarding the reality behind the penetration of saline water is required. The phenomenon of re-curvature of tropical cyclones in the Bay of Bengal is the single most cause of the disproportional large impact of storm surges on the Bangladesh coast. Records indicate that the greatest damage during cyclones has resulted from the
The people in Satkhira received the highest degree of drinking water shortage following Aila. The cyclone devastated all the drinking water sources (ponds and tube wells). During the disaster, high tidal surges contaminated all fresh water sources with polluted saline water. The fresh water crisis had intensified after cyclone Aila hit in 2009 when the polders in the coast were damaged and the region was submerged by saline water. The district of Khulna and Satkhira were also the worst affected areas in terms of Water Sanitation facilities where 278 Pond Sand Filters (PSF) were damaged. The situation was acute in Shyamnagar, Satkhira district where most of the drinking water sources were damaged. Many people were forced to drink such polluted water since they did not have any other option and consequently suffered from waterborne diseases such as allergy, skin diseases, cholera, and diarrhea. According to the population and housing census of 2011, more than 60% of the www.ibtbd.net
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households of Shatkhira District do not have water source inside the dwelling. They cannot ensure the security of water sources at times of disaster. Furthermore, 80% of the households depended on tube well for drinking water. This water is often affected by salinity and arsenic.
You have taken on the task of providing pure water for the people in these remote areas. What are the challenges you are facing to doing this task? Recently, certain alternatives to collect safe drinking water were initiated by NGOs and government agencies. Nevertheless, the solutions to mitigate salinity problems, treatment and prevention of saline water intrusion are not sustainable. In addition, the demand of local communities for safe drinking water surpasses the number of freshwater points in the region causing immense water crisis. Lack of access to potable water poses a threat to public health and security particularly to that of women and young girls. At present, coastal populations are mostly dependent on natural sources such as rainwater and pond water for drinking purposes. There are few tube-wells in the pockets of deep aquifer, which are hard to reach in most cases. Finding no alternative, many also use bacteriological unsafe surface water. Currently, ponds with pond sand filter and rainwater harvesting at households and community level are the only major sources of safe drinking water.
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It is very important to contribute to the country not only through monetary revenue but through environmental causes as well. Sustainable development includes caring for the environment through activities such as water treatment which helps us to create a green environment.
What were the findings that you have discovered from your study with Friendship? I have conducted a study on behalf of Friendship about water health in various schools of Shyamnagar Upozila’s Aturia Union. It has been observed that only 27% of the schools reported having drinkable water at their disposal. Additionally, 39% of the schools had seen students having these difficulties with stomach problems, diarrhea etc. The slow rate of change in this area means that students are suffering because of the lack of healthy water supply. This is increasing absenteeism, which is leading to disruption in education and quality of life. We need to find a solution immediately to save our future generation.
In the endeavor to provide clean drinking water, what is your future plan?
The Friendship (NGO) has installed 5 water treatment plants in Shyamnagar and one in Chalna with river osmosis technologies. The equipment supplies and technical assistance were taken from the AK Khan Water Health (AKKWH). The benefits from this
effort were found to be quite significant; the citizens taking water from plants are active in water management and reduced the disease burden. This plant is connected with two other services; these are the satellite clinics and the capacity building for the preparedness of Disaster Risk reduction. Because, we realized standalone water projects are difficult to sustain if it’s not a part of package program. The Department of Public Health Engineering (DPHE) and some private initiatives are also trying to address this crisis. Friendship has an understanding with AKKWH with the aim to install more plants in the future and thus we are exploring more opportunities. In my opinion, the best option is the public and private partnership for water in southern part of the country with a community management mechanism to reduce the water crisis.
Interview
Through the Flames
WOMEN EMPOWERMENT
By Asaduzzaman
Nasrin Sultana
Fire Officer Bangladesh Fire Service and Civil Defense
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The winds of change start within each and every household. We must educate the general populous that the women in their households are equal contributors; their progress will lead to a more successful nation.
B angladesh’s National Poet, Kazi Nazrul Islam, penned the ideology that perennial well-being is a united effort, half of which is done by male and half by women; his words are embodied in Nasrin Sultana, a Fire Officer in the Bangladesh Fire Service and Civil Defense unit. She was the recipient of the President Service, which was given to her by Prime Minister Sheikh Hasina. It is an award for her courageous service to disaster prone areas, victims of fires, and fire control. Nasrin Sultana is from Khulna and was educated in Khulna BL College. In a family of seven siblings, she cited her elder sister, Hasina Begum as one of her supporters, “My sister relentlessly encouraged me to pursue this adventurous career path that is seldom taken by women. In a field dominated by men, I was adamant to graduate from the MSR course, Training of Trainers (TOT) and leadership training.” Her husband, Md. Yousuf Ali was also very supportive throughout her career. Nasrin recalls the encouragement that she received from Mr. Ali Ahmed Khan, the Director General of the
Directorate of Bangladesh Fire Service and Civil Defense. “He provided me with the opportunity and space to prove myself as a leader. This recognition inspired me to strive for higher positions in my field even though I was skeptical and conscious of being a woman in the fire service field.” Reminiscing on the momentous occasion, Nasrin stated, “It was a moment of immense pleasure because I was being recognized for my services against a disaster that plagues human beings on a daily basis. I felt a sense of profound success the moment the award insignia was pinned to my shoulder.” She chose this line of duty because her job involves being there for victims during a time that they are facing one of the greatest perils. Nasrin observes that her field of work involves round the clock service, “I strive to serve people through these tumultuous times. Fire-fighting is multi-dimensional in the sense that it entails controlling the flames and rescue operations, the latter being the greater challenge. Firefighters must have a sense of human bravery and humanity. These traits are the trademarks as one puts on the uniform.” She emphasizes the ideology that human service is a profession that should not consider gender because it is about the service for humanity and the greater good, “When facing the most dangerous
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“When facing the most dangerous disasters, the evacuation and control of the people within the vicinity are imperative. In this regard, leadership is a necessary quality that both men and women develop with time and experience.”
disasters, the evacuation and control of the people within the vicinity are imperative. In this regard, leadership is a necessary quality that both men and women develop with time and experience.” The recognition that she has received has compelled Nasrin to provide services and work arduously for the people she serves. She expressed her gratitude to her family, and fellow officers, “I am truly gratuitous to my fellow officers for entrusting me with the role and supporting me as a leader. Their trust in my ability and bestowing me with such a paramount responsibility has acted as a profound motivation for my service I provide as an officer.” Nasrin is elated with the current government’s initiative to recruit women into the work force and believes that this will shatter the barriers set for women in the fire service as well as other professions. She explains that as a child she had witnessed a fire in her neighborhood and it compelled her towards her career path. “Upon seeing the vigilant actions of the fire service workers through such a dreadful situation, I had known that this was the occupation for me. With the current government’s
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actions, women will be inspired to pursue their passions without thinking of the many obstacles that prevent their dreams from becoming a reality.” Nasrin hopes that more women will rise to the occasion and prove that they are all valuable contributors towards the betterment of our society and nation. She postulates, “That particular event was the marker that enthralled me to join the service and my childhood dream has become a successful career. The women of my generation have paved the way for females to join the workforce of their desires. I only hope and pray that this generation will continue that endeavor to level the playing field in every field of work.” Furthermore, the Prime Minister’s vision towards a digital nation will benefit the Fire Service and Civil Defense of the nation according to Nasrin. She believes that this will make the national service recognized throughout the world, “Through the integration of state-of-the-art technology and innovative practices, the fire service will become a force that provides unparalleled services. It will lead to a much safer and more prepared Bangladesh in terms of safety and
disaster relief. We will be able to save human beings, their properties and everything they treasure with the utmost efficiency in the future.” She cites our homes as the foundation for any women to have a fulfilling and successful career. She expands upon this idea, “The winds of change start within each and every household. We must educate the general populous that the women in their households are equal contributors; their progress will lead to a more successful household and nation. Women should be allowed to pursue the career path that they have chosen.” Nasrin dreams of the day when women will be leaders, zealously participating in every work stratosphere of the nation. Nasrin considers her profession to be unique and as such, full of unique challenges. She conveys that these provocations have compelled her to continually strive to become better, “My profession involves the assurance of human life. Therefore, my fellow fire service men and women take the responsibility of saving our fellow citizens and salvaging as much of their livelihood against the devastating effects of fires.”
Special Feature
POWER SECTOR
Power to the People By Mohammed Masudur Rahman
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Bangladesh Power Sector: Market Overview
From a mere 21 MW in 1947, Bangladesh currently boasts a total installed capacity of 13,095 MW as of December 2016. 54% of the installed capacity is publicly owned, while private sector and foreign imports accounts for the rest. The energy mix of the country is significantly skewed towards fossil fuels, with a 63% capacity relying on gas, coupled with a strong dependence on diesel and furnace oil. Despite being the global leader in distributed solar home systems penetration, Bangladesh is not a renewable-ready market. Access to electricity and grid efficiency are still the priority problem statements compared to a shift to renewable energy sources and green power developments. Access to electricity in Bangladesh currently stands at 76%, which accounts for a scanty 293 kW-hour electric power consumption per capita. To put this in context, neighboring country India consumes 765 kWh, and developed nations like the United States consumes around 12,988 kWh per capita (World Bank, 2013). According to the Power Sector Master Plan (2010) of the government, the government plans to generate 24,000 MW by 2021, and 39,000 MW by 2030. Much higher than the projected demand of 33,708 MW by the same year. The Government also plans for 100% electrification in the country by 2021. www.ibtbd.net
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Despite being the global leader in distributed solar home systems penetration, Bangladesh is not a renewable-ready market.
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Challenges for the Growing Market
While rampant load shedding was commonplace few years back, the situation is rapidly improving. Solar home systems are providing basic and minimum access to electricity where grid connection has not reached yet. Due to power purchase agreements with the government, the private sector now has an aggressive participation in power generation. It should be noted that the biggest challenge in the Bangladesh market is the single-fuel dependency. The excessive reliance on fossil fuels weakens the energy mix portfolio. Burning hydrocarbons increased the
carbon footprint of Bangladesh, but that is a debate for another day. The more pressing concern is that the use of natural gas depletes the main domestic fuel source of the country. This is leading to a shift in consumption to the LPG market, a segment still to flourish properly in Bangladesh. Pressure is mounting to increase import, bottle, and distribute LPG to all corners of the country, swiftly, and reliably, before the natural sources run out. At the same time, the shift has to be accompanied with socioeconomic development in the country as the rise in purchasing power needs to accompany the rising price of household fuel sources. For industrial and commercial users, unreliable and inconsistent supply of power is a concern. This leads to
delayed and inconsistent output schedule for the increasingly competitive markets, especially for the export-oriented industries. Large organizations are bypassing this trouble by installing captive power generation utilities. This ensures consistent and reliable power connection to high-power consumption manufacturing units, and some can also choose to sell additional generation back to the national grid. When it comes to overall generation capacity, recent times have seen significant strides. New plants are created not only through private-public partnerships, but generation is also increasing due to cross-border power sharing arrangements. However, the generation performance could have translated much better into actual consumption if not for high
For industrial and commercial users, unreliable and inconsistent supply of power is a concern. This leads to delayed and inconsistent output schedule for the increasingly competitive markets, especially for the export-oriented industries.
Way Forward
system loss in transmission and distribution setups. Project completion delays due to various governance issues also contributes to the situation.
Cross-Border Power Sharing Opportunities
Quick rental power generation contracts are not the only short-term capacity development options anymore. The South Asian region in general is a
seasonally surplus region in terms of electricity production. Both Nepal and Bhutan produce more hydropower than they require in the monsoon seasons, and export a significant surplus to India. In the winter, however, they end up trading back power from India. Bangladesh is bordered by India and Myanmar; both countries have a strong cross-border trading potential that Bangladesh can benefit from. Bangladesh currently imports 600 MW of Power from India but the government plans to
increase this to 2,000 MW. The North Eastern states of India are a viable option for Bangladesh. At the same time, Myanmar is a country of strong hydropower potential, estimated to be up to 100 GW by International Hydropower Association. SAARC as a regional bloc is yet to come up with its avenues of connectivity. If a regional exchange can be established through India via the BBIN channel, Bangladesh can benefit from the connectivity opportunities, and import hydropower from Nepal and Bhutan.
In a bid to reach the ambitious stage of 39,000 MW supply of electricity in the Bangladesh market by 2030, the government has to focus in a multitude of areas. While generation capacity development and electrification coverage are seemingly the most straightforward objectives, considerations have to be made in building up a balanced energy mix, as the current portfolio not only depletes the already scarce gas reserves, it makes insufficient use of viable alternatives like coal. Focus on renewable energy certainly takes a priority seat as the current solution of distributed home systems do not add to the grid capacity. While infrastructural capacity gains momentum, significant focus must be assumed to developing and retaining competent energy professionals in the country. The author is a Development Professional with concentration in Sustainable Trade and Clean Energy.
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Feature
CORPORATE
Of Colleagues and Camaraderie By Shaikh Ashfaque Zaman
There are anywhere from 20,000 to 60,000 bees in the average beehive. These buzzing critters epitomize how teamwork can lead to the success and progress of any entity with the worker, caretaker, and queen bee efficiently carrying out their respective roles. Although this an innate quality within the animal kingdom, as an evolved species, humans should note the dynamics of functionality and how individual contributions lead to overall success. From this testament of unity from Mother Nature, the corporate hive can learn a significant deal about functionality. Though very few companies encompass such a large populace, the smooth everyday operation requires an amalgamation of the entire workforce in order to function with harmony.
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ccording to research conducted by Vital Smarts, 9 out of 10 employees ignore the possibility to help a colleague with an ability barrier, an overwhelming 95% of employees have experienced dismal behavior such as passive aggressiveness or deflecting blame and an overwhelming 94% fail to resolve accountability matters with co-workers because of preconceived notions about them. These statistics show that ill sentiments in the workplace are not uncommon.This is problematic because not having a positive working relationship with your coworkers could potentially affect the kind of work produced. Worker interaction is an inevitable phenomenon in a professional environment; you can’t just stick yourself in a cubicle with the ideology that teamwork is not necessary. Therefore, this issue should be addressed and dealt with accordingly. Fostering a negative work environment not only leads to the disengagement of the tasks at hand; it also produces unsatisfactory work and diminished productivity. The Queens School of Business
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has conducted a study that concludes that a disengaged work has 49% more accidents, 37% more absenteeism, and 60% more errors and defects. On the contrary, studies show colleagues that have an amiable relationship are 50% more satisfied in their professional life and workers that have a best friend at work are seven times more productive. In this context, unity has been cited as one of the most imperative tools in building professional repertoire and efficiency. However, unity is not as natural within the confinements of the professional arena. One method of building unity is through intimate activities outside of the office, a leisure game of Ping-Pong or the occasional dinner can lead to better working relationships.
In the spirit of building a healthier working activity, the enthusiastic team of NewsCred came together to mold clay and cooperation.
It’s Clay Time
In the spirit of building a healthier working activity, the enthusiastic team of NewsCred came together to mold clay and cooperation. As the team entered, Sharmin, the Founder and Managing Director of Clay Station, introduced them to the activities available and the eclectic array of work that they could use for inspiration. They were requested to think of making individual sculptures that would come together as a larger installation. Sharmin explained that this could be anything from a crest to a sculpture part of which would be individually designed to come together, “We want you to come up with a concept together. Not only will this give you a chance to come together on a leisure activity, molding clay while
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socializing with your colleagues is an excellent way to relieve stress.” Following a jovial discussion while putting on their aprons, the team had decided that they would each make the individual letters of the name of their company along with the logo. They’d come to this decision after a round of elimination of other ideas, with the reasoning that the logo would be a great statement piece at their office and a token of the friendly dynamics behind the pristine glass door of the Jamuna Building. The molding commenced with each of them receiving their individual slabs of clay and disseminating who would mold each component based on artistic abilities. With the aid of the start of the art molding and designing tools, and Clay Station’s resident clay expert, Robiul Hossain,
who patiently explains how to produce the clay visions of our dream into a reality that most us novices would not expect. After an hour of pointing fingers, measuring dimensions and affectionate arguments over incorporating designs to the letter or leaving them as is, the team successfully made their indistinguishable logo. Taking pride in their completed masterpiece, as the team displayed the finished product on the table, they looked at one another smiling, taking pictures, and realizing as always that colleagues can become a remarkable support system both during and after deadlines, projects, and the traditional 9 to 5 hours.
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Your workforce should share a common understanding and identity. If they set individual goals for a group task it manifests into a culture of competition where an individual harbors the idea of “me versus them.” Make sure your team knows that the target being set is the common target for everyone. 05. Small Talk, Big Results all work and no play doesn’t just apply for children. When employees have an allotted time to speak with each other intimately, they communicate on a human level thus building stronger companionship.
A United Front
Henry Ford, the creator of the Ford Motors Ltd, stated, “Coming together is a beginning. Keeping together is progress. Working together is success.” The key to the success of any company is reliant on the collaborative efforts of the entire team and each person’s individual contribution to a target set by the entire workforce. The key to a prosperous work environment is collaboration and it can be established in a number of manners: 01. Communication Channels - with the advent of texting and group chats, communication has become much more efficient. Nevertheless, use the very technology that has improved mediums of communication to create intimacy; initiate video calls, because conversing with one another while seeing each other creates more effective communication. 02. Feedback and Appreciation - recognize
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the achievements and the contributions of your colleagues in instances when they have done a noteworthy job or advanced a task delegated to the entire team. Provide feedback in the form of constructive criticism, as everyone is prone to mistakes. Avoid singling someone out and disparaging them; this will allow for the free flow of ideas and input. 03. The Gift Culture - an effective methodology that entails the mentoring of colleagues and subordinates in order for them to hone their skills. When a worker is mentored as opposed to trained, the time that they are being given is considered to be more valuable, in turn, the gift of time. They are much more likely to adapt to the working culture and become inept of their potential when they are viewed as a commodity and not a responsibility. 04. Shared Mindset - as the age-old saying goes, ‘there is no ‘I’ in team.’
Corporate Workshop at Clay Station
The pottery-making workshop at Clay Station studio is aimed at enhancing the creativity among the participants and creating a self-awareness of each participant’s ability to innovate. The team-building workshop is aimed at bringing people together to share ideas and use their hands in creating pottery masterpieces. The participants may not normally be working together in a creative environment but our workshop will take them away from their busy schedules. The participants will also feel a strong sense of accomplishment in having contributed to being part of a creative project. The workshop allows individuals to make collaborative or individual displays. The core objective is to enhance communication through a fun shared experience. The workshops can be anywhere from a couple of hours to the entire day depending on the company’s wishes.
The takeaway from an ideal Corporate Team Building workshop is the following: Collaboration: The workshops involve participants working together towards a common goal – creating a finished artwork everybody has had a hand in making. Shared ownership: The finished artwork and the collaborative manner in which it was produced will foster a sense of pride and shared ownership. Individual contribution: The workshops are structured to nurture respect for each other’s ideas and work. New skills will be discovered and hidden talents revealed. Communication: The collaborative nature of the workshop means that participants will be in constant dialogue with each other, interacting and exchanging ideas. Resolving conflict: Problem solving, decision-making and competition will encourage participants to find different ways of working together. These methods will be transferable to the work arena. Feedback: Participants are encouraged to present their ideas. This involves discussions, giving and managing criticism. Reminder: Installation of the artwork in the workplace will serve as a permanent reminder of what can be achieved by effective teamwork.
One method of building unity is through intimate activities outside of the office, a leisure game of Ping-Pong or the occasional dinner can lead to better working relationships. The data and statistics were taken from Harvard Business Review.
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Sponsored Interview
ISLAMI BANK
Through the Decades of Banking Mohammad Abdul Mannan
Managing Director and CEO Islami Bank Limited
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million. By 2016, the number stands at 11.5 million. In the last 5 years, the number of depositors grew by 6.5 million. 14% of the country’s total bank depositors’ accounts are with Islami Bank alone.
In 2000, the Bank had 1 million customers, in 2010 it had 5 million. By 2016, the number stands at 11.5 million. In the last 5 years, the number of depositors grew by 6.5 million. 14% of the country’s total bank depositors’ accounts are with Islami Bank alone.
Q
Islami Bank has had a historic opening. Could you elaborate on its beginnings?
On February 1974, the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman attended the 2nd OIC Conference. There, it was resolved to establish an International Bank of the Muslim States. In the August conference of the OIC Finance Ministers in Jeddah, 1974, Finance Minister of the Bangabandhu Government Tajuddin Ahmed signed the IDB Charter. In this backdrop, through different Government and non-government initiatives and the vital role of the central bank, Islami Bank Bangladesh Limited (IBBL) started operations as the first generation commercial bank of the country on March 30, 1983, by the opening of its first Account for Islamic Foundation, Bangladesh.
Islami Bank has retained an impeccable reputation for more than 40 years. What are the markers of your success? How has the bank grown within the course of time?
Islami Bank has completed its journey of more than three decades of service and care in the perspective of a global trend of shifting to Islamic way of banking; being ranked as “One of the world’s best 1,000 Banks’ and awarded as the “Best Managed Bank in Bangladesh” by the ‘Asian Banker’s resemble the continuity of its global ranking and appreciation of success. Touching the success points one after another in rapid succession, Islami Bank has already become the largest commercial bank in the country, creating a name for itself in all service initiatives – especially in deposit, investment, export-import, remittance, industrialization, entrepreneur development, and women empowerment. Islami Bank is a partner in the national growth and development. It happens to be the highest tax-paying institution of the country. As the best micro-enterprise-friendly bank IBBL is recognized by the huge populace all over the country. In 2000, the Bank had 1 million customers, in 2010 it had 5
What are some the services that Islami Bank provides?
Islami Bank encourages people for savings both for individual benefit and for the greater benefit of the country. It has been consistently and very meticulously working to raise the savings awareness of the people, especially in the remote inaccessible areas and among the less-advantaged population of the country. Since 1995, Islami Bank has been operating a scheme of micro-savings with Tk 10 deposit. Besides this, Islami Bank has introduced innovative schemes like Cash Waqf in order to ensure welfare to the poor and deprived sections of the population. For the empowerment of the women, it has introduced ‘Mohor’ Account, based on the saving installments by male members. Islami Bank attaches greater emphasis to harnessing small deposits rather than huge or corporate deposits. As a result, this bank’s deposit base is very strong. The deposit profile of the bank has increased three times in each five years since 1990. In the last decade, the bank’s deposits have grown ten times. These figures stood at Tk 290,000 million in 2010, which stood at Tk 660,000 million by July 2016. Islami Bank holds almost 8% of the country’s total bank deposit and its average deposit growth is 21%.
Banks are the financial center of business development. How has Islami Bank supported Bangladesh on a national level?
Islami Bank has been ceaselessly working to strengthen the economic base of the country ever since its inception. As part of the delegation of discretion, six committees comprising the members of the Board of Directors were constituted in 1984 in order to augment national development priorities and welfare programs of the Bank. Those committees were on Agriculture, Industry, Trade, Housing, Investment and Foreign Remittance Mobilization. This Bank attaches utmost priority in investing into sectors that concern people’s basic www.ibtbd.net
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needs, economic development, people’s welfare and overall socio-economic development of the country. Islami Bank pursues a coherent strategy of investing into need-based, labor-intensive, productive, import-substitute and export-oriented sectors and all are carried forth with the national priority coherence for equitable and sustainable development, especially through investment diversification protocols. IBBL is the pioneer in the advancement of the national economy through two major pillars – Foreign Remittance and Readymade Garments. Islami Bank’s investment portfolio was worth Tk 597,600 million by June 2016, out of which investment in foreign exchange was Tk 28,000 million. Islami Bank’s market share in investment in Garments and Textile Sector stands at 21%. IBBL disburses 9% of the total investment/credit of the entire banking system of the country. Growth in Investment of Islami Bank in last 5 years was 17%.
What are the major sectors that Islami Bank has focused on?
More than 5,000 industrial enterprises of the country are now run by IBBL Finance. During the last 15 years, IBBL’s investment was Tk 1,800 billion for industrialization. More than 1,000 Garments factories are run by Islami Bank finance. Islami Bank has been attaching key priority to the SME sector making significant contributions to the sector since its inception. In 2015, IBBL’s contribution in SME sector were 25%; in total, it has invested Tk 1,484,860 million during last 10 years. The bank has disbursed investments to some 0.2 million clients,
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Islami Bank pursues a coherent strategy of investing into need-based, labor-intensive, productive, import-substitute and export-oriented sectors and all are carried forth with the national priority coherence for equitable and sustainable development, especially through investment diversification protocols.
which is one and a half times more than the target. More than 1,500 agro-based industries have emerged with IBBL investment. IBBL financed more than Tk 10,000 million in Jute sector. More than 17% of Jute goods are produced from factories financed by IBBL.
How is Islami Bank contributing towards decreasing the poverty levels of the nation?
To eradicate rural poverty, creating employment in the countryside, developing agriculture and agro-based enterprise, Islami Bank introduced RDS (Rural Development Scheme) in 1995. Enhancing rural life and livelihood and thus to bring qualitative change in rural life was the core objective of RDS. This unique rural initiative includes, in addition to generating rural job opportunities, some basic human development efforts like creating awareness, enhancement of skills and vocational aptitude, training, savings, various income generating activities, micro-investment, and social security awareness etc. Islami Bank is equally concerned for the urban poor. In 2012, IBBL introduced ‘Urban Poor Development Project’ (UPDP) for the urban slum-dwellers. Tk 150,000 million were disbursed under this project up to June 2016. 4.24% of the country’s total micro-investment is conducted by IBBL. One million families are beneficiaries of this scheme, out of which 82% are women. RDS project members are imparted training support by the local agricultural extension, fishery, veterinary, and youth development officials on various agro-based and income-generating activities. Up to
Tk 0.1 million is disbursed without collateral. Up to Tk 0.5 million is disbursed under this scheme for various productive, trading and service enterprises.
Incorporating technology and green banking have become the future of banking. What is your take on this trend?
Islami bank is increasing technology-based services like internet banking, mobile banking, SMS Banking, e-commerce etc. for their valued customers. Up to June 2016, the number of Islami bank's ATM card reached to 2.6 million, mobile banking customer 2.35 million, SMS banking customer 3.1 million and internet banking customer is 0.2 million. Green economy is needed to build a green earth as such, Islami Bank is working to make the grey economy turn green. The bank doesn't invest in tobacco, narcotics or any socially harmful grey sectors. It is working for fuel-efficient electrical equipment, solar panels, online communication and marketing, training and skills developments, etc. The bank is contributing in greening the country through massive forestation programs. As a part of green banking, IBBL has introduced paper-saving and time-saving internet banking, ATM, VISA Card, Khidmah card, i-banking, SMS banking, Call Centers, etc.
Followership
SOCIAL BUSINESS
Commanding the Ship By Muzahidul Islam Jahid A few days back, I was having an enthralling discussion with an Executive Director of a fast-growing company. Not only is he very popular with his teammates and subordinates, he is also the first choice for any upcoming project by his employer. He started his career as a machine operator with a diploma in Electronics; since then, he has risen to the acme of the ladder in a matter of 15 to
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16 years. The astonishing part of his endeavor is that he lacks higher education and connections that would lobby him into such a position. Furthermore, he has a progressive mind and does not resort to any unethical means to gain favor. Obtaining a promotion or coming under special perks has never been his concern. He concentrates on knowing and doing his job while setting a personal example through applying
common sense; humility and the fact that there is always space to learn. When asked how he had attained such success, he answered in one word, “Followership�. He explained that he equates it as the most important trait to his achievements. The concept of followership demands a discussion at the moment and the practice of it is the call of the time. Moreover, with extensive studies focused on
leadership, we are neglecting the need to comprehend followership; this is largely due to the common mindset that following entails being in the control of another. We commonly entertain the myth that followership makes one a tool for others, hampering our own courage or zeal to take command. It’s a fact that leadership is a must-have quality for the youth but the way it is to be practiced is a matter to reconsider. If everyone
wants to lead and direct an organization, who then will accomplish the rest? As a matter of fact, followership is the art of practicing leadership from any given position. It is the key strategy to help any leader be successful and prepare them for the future. It should be perceived as an integral and ubiquitous part of leading with the ‘cause’ for sustainable success. Followership makes the bench strength of an organization when considering the total prosperity of the company. It
1 PASSIVE
Passive followers are those who are dependent on others, they do not have the capacity to think critically and remain passive in the organization. Robert Kelly calls them ‘Sheep’. These types of people are those who are satisfied with their position and do not prioritize growth. They function in order to complete the task without any attention to innovation. To them, life is unfair, the world is cruel, bosses are horrible and successful colleagues are intimidating and exasperating.
creates an indomitable inquisitiveness to understand the stigma of life. Followership means having a mentor, listening to
2 CONFORMIST
Conformist followers are also dependent on others. Although they do not have critical thinking brain but are very active in the organization. Robert considers them as ‘yes men’. They basically take on any task they are delegated and act according to their superiors’ instructions. Lacking the power of judgment, they compensate as very good executioners. They are sometimes well paid and well appreciated as they implement instructions without much questioning. They enjoy the fact that they are retained but never feel that they are brutally used to get things done. However, these people generally tend to suffer from age.
that person, being coached effectively, and actualizing the lessons to achieve meaningful milestones of life. It is the strategy to
3 ALIENATED
These types of people who are nonaligned; they have a high level of critical thinking but they remain passive in organizational activities, expecting high performance from others without anything in return. They usually take shelter of their good education from reputed universities, metropolitan locality, and social status. As they are very talented and brainy, they tend to be heard by the youth who often get misled by their hollow logic.
build a long-term relationship with success being driven by wise collaborators as masterminds. Leading research states that on average, leaders contribute, to about 20% of the success of the organization while followership represents 70% to 90%. The inconvenient truth that we fail to acknowledge is that we follow more than we lead. In perspective, if why refuse to follow, how can we expect others to follow us? To encapsulate, a follower is
4 EXEMPLARY
Exemplary followers are those who are independent; have a high level of critical thinking and they are very active in organizational performance. They are the superstars of the company, formulating the bench-strength of the organization. They focus on implementing the instructions and bringing about the results. Despite facing criticism from the alienated group, it is a factor that is rather trivial in their perspective. Even when they are the victims of a situation, they manage to recover with resilience.
5 PRAGMATIST
Pragmatist followers are those who have attributes from all of the other groups. They represent the qualities from all mannerisms in times of need and work in peace, a quality that makes them the heart of the organization. They play a very strong role within the organization and maintain a balance to keep their job safe, growing with time and finding their niche. They do not have fame or popularity but they have a secured lifestyle.
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the one who pursues a course of action in common with a leader to achieve the organizational goal. A true follower is the future leader. Today, the time has come when we should cultivate the habit of followership, learn the basics of leadership and execute the lessons when the time comes. Robert Kelly, a professor at Carnegie Melon University, pioneered the styles of followership in 1988 and I have found the styles very relevant for our context. You have read about the typology in the previous page, each type is a follower but interestingly most of them are not efficient. It also demands the attention that some followers are needed for the organization to keep the office running smoothly whereas some are deemed as the future of the company.
Observing and Acting
Although it is a difficult task, being an exemplary follower means being a future leader. So, the common qualities such as working hard, taking a risk or utilizing opportunities are utterly indispensable. Moreover, my observations and experience have allowed me to observe the following points to inculcate followership:
1. Have Respect for Leaders and their Solutions While working in an organization, we have to respect the leader while keeping in mind that we have to strongly voice the ways for the solution. Learning to balance the respect for the leader while discussing a solution that they may not agree with is the key. Being unable to do so can prove to be extremely detrimental to growth.
2. Find a Mentor In life, having a mentor is nothing short of having a roof over your head. We should have them guide us, to motivate us when
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prospects are grim, and criticize and correct our mistakes. However, we have to drive ourselves to outshine our mentors in every positive way so that they feel proud of us.
3. Be Coachable Learning is a survival tool. The day we stop learning is the day we stop growing. Therefore, we have to have an open mind to be instructed by the respective figure at any given time. Being trainable interprets into the ability to grow; being coachable ultimately leads to advancement.
4. Keep a low-profile Showing off is a precarious attitude that destroys the good-will. As a future leader, one should never boast their educational background, impeccable speaking abilities, brilliant presentation skills or writing style. We have to adopt humility in behavior and retain a low profile so
that every seasoned professional feels comfortable to share their thoughts. However, we should not forget to behave ourselves.
5. Respect Everyone Nurturing the habit of showing respect while putting on a friendly face is a great display of potential leadership. Regardless of their hierarchy, one has to truly respect and treat them in a befitting manner. Exchanging pleasantry with an office cleaner indicates that one has a wholeheartedness to lead the world courageously.
Last but not the least, anyone can be a leader if they do not lose sight of the perspective that leaders can also be followers. If you are a great follower, you are a true future leader. Accompany the best in order to become the smartest.
Feature
FUTURE OF MONEY
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Fintech Finds for 2017 By Taposh Ghosh
n his annual letter to shareholders last year, Jamie Dimon, the boss at JPMorgan Chase, stated that ‘Silicon Valley is coming’. A year forward, perhaps it is more fitting to say that the ‘Silicon Valley is here’, as startups by geeks in t-shirts are stirring up the entirety of the financial and investment industries of the world. These financial technology firms, more popularly known as Fintechs are drawing in gargantuan amounts of investment and looking strong to ‘disrupt’ established global banking and financial sectors. Here are 15 trends and insights about Fintechs that you need to know in 2017.
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The $4.7 trillion target
What started as providing a more convenient method of making payments is now spreading its reach to capture markets of wealth management, peer-to-peer lending, and crowdfunding. A report by Goldman Sachs estimates these potential markets to generate revenues worth $4.7 trillion. With such an enormous market to capture, it might take years for Fintech firms to fully saturate the industry.
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Exponential growth, globally
Investment in Fintech firms experienced an unprecedented growth of almost 75% in the previous year. The global investment was valued at $22.3 billion in 2015, increasing by $9.6 billion from figures of 2014. Despite enjoying a moderate 44% growth, US startups have attracted the highest amount at $4.5 billion in new funding. China, India, Germany, and Ireland follow the list with rapid growth in Fintech investment over the last year.
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Collaborative vs. Disruptive.
While some traditional financial businesses are looking at Fintechs as competitors, others have managed to work hand-in-hand with such firms to integrate technology into their legacy business models. The entirety of the industry can be categorized into two broad groups, collaborative ventures –those targeting financial institutions as customers, and disruptive players – those who enter the market to compete against existing institutions.
The battle between Europe and Asia
The proportion of competitive Fintech ventures in Europe and Asia is currently greater than in North America. Experts suggest that the North American market has already entered earlier stages of maturity, with growth expected to slowly decline in coming years. In contrary, the welcoming regulatory environments in European countries and the massive customer base of Asian countries is promising enough for new ventures to pop-up at regular intervals.
China and India: the forerunners
It is only plausible to think that China and India with their populations in billions to cater to will dominate the Asian Fintech market. By 2015, China’s internet finance sector was valued at $1.8 trillion. It is the established companies in China, such as Alibaba and JD.com who are leading the country’s Fintech industry. Whereas in India, smaller startups attracted $1.25 billion in investments in 2015, with leading global companies such as PayPal looking to invest in the country’s Fintech market.
Free of regulatory hassles
Fintech disrupters are cutting down on costs as well as improving the quality of financial services. These ventures are unburdened by regulators and legacy IT systems, while providing services similar to those of traditional financial institutions, blurring the lines between them and the disruptors. No branch networks are needed, meaning costs go down further, enabling Fintechs to offer better deals to borrowers and lenders. Lack of fixed business hours also means that the customers are now in full control of their finances, 24/7.
Data is the key
New clever ways are being adopted by Fintechs to integrate data analysis to assess business risk. Rather than only relying on a single credit score or meeting between the investor and client, Fintechs are looking at using any available information to make better decisions. Companies like Kabbage and OnDeck, analyze social-media reviews of small business to evaluate their performance. Others use machine learning to underwrite consumers whose credit scores were damaged during the financial crisis.
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The newcomers’ landscape
Banks and other financial institutions borrow heavily to fund lending; the Fintechs do not. Instead, these platforms focus more on matching borrowers and savers directly. This helps the tech startups to avoid the risks of mismatched maturities and leverage. This model, which is hardly geographically concentrated, has the lenders committing their money until the final payments are due and the firm only bears the risk of default.
Insurtechs are emerging
Between 2014 and 2015, venture capital based funding for tech-based insurance firms or Insurtechs grew by 225%. The sector attracted funding of $2.6 billion globally in 2015. Insurtechs are operating similar to Fintechs into two categories: Disruptive Insurtechs, who are licensed to underwrite and issue their own policies and are enabling Insurtechs that, work in conjunction with traditional players in optimizing operations and helping reach customers through new distribution channels.
Increasing interest of banks
Most might consider the disruptors as a direct threat to existing financial institutions. But recently banks and other corporate conglomerates are investing in startups as it allows them to support and integrate innovation in a way which otherwise is unattainable. Fintechs can take more risks and progress at a pace faster than larger companies. Such investments also help banks to attract a talent pool, unique from their existing types. www.ibtbd.net
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The rise of equity crowd funding
Crowdfunding is still only a decade old concept, with startups successfully raising money through online campaigns. But Fintechs have opened up ways to rethink the concept and introduce ‘equity crowdfunding’, which allows private companies to sell stocks to individuals. Until recently this form of funding was highly limited, but regulation changes have lifted limitations and opened this form of financing to businesses of all sizes.
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Targeting the digital natives of Asia
Financial inclusion lies within the top priorities of the sustainable goals for Asian developing nations. It has been difficult to bring the majority of the rural population of Asian nations under the umbrella of financial services. However, this unbanked population is now being reached through mobile financial services. Bkash in Bangladesh is one of the prime success stories, enabling payment services and channeling of funds to the rural population of the nation. Fintechs have further roles to play in taking advantage of increasing mobile phone users in catering to these customers.
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Innovative payment platforms
Payment is perhaps the most mature of all the internet finance sectors, but growth in this industry is far from slowing down. The growing popularity of smartphones has opened up new possibilities for online-to-offline payment, as firms are competing fiercely for market share. At the same time, global capital markets are opening up as people are accumulating more wealth. Consumers are seeking higher investment returns,
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which provide Fintechs with opportunities for internet based wealth management.
Technology for reducing time and cost
The popularity of Fintechs is opening up pathways to integrate more innovative technologies into the financial industry. Blockchain is a technology that is now being considered by banks for point-to-point transactions eliminating the need for a clearing intermediary. This can substantially reduce transaction time and cost. Amazon Go was recently introduced, which uses near-field communication payment to run stores without staff and payment checkouts.
It’s all about the consumer
Banks and other financial institutions are the largest deposits of consumer behavior data, which can be used through collaborative Fintech ventures to provide existing and new customers with a more personalized experience, which traditional financial institutions are unable to provide their customers with. The modern customer expects their banks to play more of an advisory role in decisions relating to investment, something which can be achieved leveraging on big data. Provision of a richer customer experience by Fintechs can lead to a financial institution in upcoming years to manage their customers’ entire digital wallet.
Banking
DIGITAL MARKETING
The Digital Deposit By Antony Rahman
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or some time now, digital marketing has been slowly gaining traction as one of the most important avenues for growth in the financial world. A pervasive online presence is indispensable for any bank looking to increase their customer base. Additionally, a polished user interaction design and support system for its suite of apps retain customer loyalty and contentment. This is all brought together by an easily distinguishable and memorable brand which should be consistent across all facets of a bank's digital marketing services. Financial institutions in Bangladesh that wish to expand and reap the greatest benefits of their digital marketing efforts must presently ask themselves some very important questions in regards to their digital marketing capabilities.
Is your bank currently making useof mobile appsto help customers manage their account? A mobile app must offer vital features such as mobile bill payment options and deposit features. Many financial institutions jumped on the mobile app bandwagon instantaneously when they witnessed its potential for customer satisfaction. However, in doing so, they unsurprisingly created clunky apps that were hard to use and low on features. It is important to make the development of the app a high priority; it is commonly the first impression that customers have in terms of digital banking. Mobile apps will soon become every bank’s central hub for providing service and customer interaction. According to surveys, at least 40% of customers (of all ages) now pay close attention to financial institutions online and mobile banking solutions to help them decide if they'll patronize it or not.
Are you educating your employees and customers on your banking technology? Your employees must be well versed in all aspects of the technology being used at your institution. They must be the first in line brand representatives of your digital media, and have a proficient and intimate understanding of all the online and mobile app solutions being offered by the bank. This will allow them to easily explain these services to any interested customer in detail. Similarly, an effort must be made to present the banking technology in an easily comprehensible way for customers. Sometimes, innovative online solutions and offers are simply not utilized to their fullest by customers because the customers do not find out about them, or do not properly understand the benefits they'd enjoy by using them.
Does your bank have a responsive, professionally designed and carefully maintained a website? In today's digital world, a bank's website is in many ways the 'face' of the bank in the public eye. If the website is difficult to use, poorly designed, or lacking in important information or features, customers will immediately be more wary of engaging with that bank. Steps must be taken to ensure that your bank's website is responsive and easy to peruse on mobile, tab and desktop computer platforms. If a potential customer enters your website through their mobile and they are met with limited content and features, they may not take the time to try and check the site on their computer.
Does your bank have a social media presence? Delving into social media marketing is an investment into a bank's reputation; over time, it pays off and becomes a considerable utility for building trust with the consumer-base. A bank which maintains a strong social media presence on Twitter, Facebook, and LinkedIn is more likely to be viewed more favorably. Social media engagement with consumers creates a sense of personal interaction that prevents them from seeing your institution as a faceless, uncaring corporate machine. Advertisements, product, and service sales are seen as less grating and
A pervasive online presence is indispensable for any bank looking to increase their customer base. Additionally, a polished user interaction design and support system for its suite of apps retain customer loyalty and contentment.
intrusive when they appear in the form of a new tweet, or a Facebook post.
Does your bank have a unique and recognizable brand? With digital media and technology becoming an important asset of every financial institution, the only way to set yourself apart from the masses is to have a clear and distinct brand. A Brand is more than simply a logo, it is the culmination of the vision that the founders started with, and a representation of everything that makes your institution stand out from the rest. A brand is a story, and that story must be easily inferable from the bank's social media and other digital marketing technology. Every part of a bank's online presence must work to highlight and enhance the bank as a distinctive brand, which gives it a recognizable appeal to consumers. These answers are only the tip of the iceberg when it comes to a financial institution's digital marketing needs. Nevertheless, they provide a solid starting point. There are dozens, possibly even hundreds of other avenues for a bank to invest in to keep up in today's cyber-savvy business world and the greatest competitive edge now lies with those who stay ahead in the race for digital marketing innovation and implementation. www.ibtbd.net
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Social media affords an incredible opportunity to sensationalize banking solutions with creative campaigns and positioning, with the added ability to push new products in a swift manner and take audiences to their websites.” Mohammed Risalat Siddique
Co-Investor and the Man of Steel Analyzen
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How important is it for banks to maintain a social media presence in the digital space now?
Social media platforms can no longer be considered places where people simply connect and communicate in real-time with the click of a button. Platforms like Facebook, LinkedIn, Instagram, etc. are increasingly providing a broader range of services to their users either directly or through partners, making them central to people’s lives. Content posted on social media platforms offers a clear picture of how banks seek to portray the organization. On top of the content list is information on their products, sponsorship news – events, teams and activities that the bank sponsors, and in third place comes news on the bank's philanthropic activities.
How can banks in Bangladesh be made more aware of the importance of digital marketing and what it entails?
Banks in Bangladesh have already started adopting Digital Marketing. How effective this
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is, is rather questionable on the grounds that most of the banks do not provide online banking or smartphone app services as of yet. Having said that, successful digital marketing campaigns can penetrate the right areas and convert the online audience into potential consumers. The banks need to be aware that the facilities it provides and how their competitions are adopting this not-so-new trend in marketing, and how far they have come. Only through recognizing the opportunities it creates, the banks can be more aware of the importance of digital marketing and what it entails.
Banks are already active through their web portals. How can they improve upon the services they provide through their websites? There is a shift worldwide to blogging and rise of online articles. Banks can grab that opportunity and create a recognizable identity for their products and services on a familiar
platform for their customers through this. Social media affords an incredible opportunity to sensationalize banking solutions with creative campaigns and positioning, with the added ability to push new products in a swift manner and take audiences to their websites.
To become more proficient in the digital landscape means that banks will require staff who can operate on this landscape. How important is to familiarize their older workforce to this concept?
For any brand, it is important to understand that the employees are not devoid of the horizon of social networking. The people in an organization contribute to their social selling; not only should they be taught tips, tricks, and best practices, but companies should also make sure their employees post on their own behalf and not on the company’s behalf.
Inside Out
Realizing the Potentials of Social Solutions SOCIAL BUSINESS
By Shazeeb M Khairul Islam
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n the current emerging era of the world, social businesses are complementing organizations in the public, private, and donation-based social sectors. It is observed that these trends underpin a high potential for growth among the other similar hybrid models and concepts that use a couple of existing approaches like a conventional private company selling its products or services to make money for the investors or initiators; a government that creates institutions, law and organizations to serve the common people or a charity that works to maximize the social impact by improving lives. Then again, the question remains - does this system really serve the greater good? The answer is no. A clear sense of purpose and meaning is increasingly important for the current generation of youth and young adults, which triggered the necessity of a newer economic model of impacting lives. Nobel peace
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prize laureate Professor Muhammad Yunus combined the two sides and gave us the model of social business - a cause driven, for profit, non-dividend business. Social businesses are created to solve human problems in a business way. A social business company needs to be sustainable financially while achieving its social objectives. The regulatory environment and capital markets are also becoming more amendable to the development of these businesses. Ever since Professor Yunus’s Nobel victory, the social business concept has profoundly managed to become a widely accepted model, globally. Many nonprofits have begun exploring innovative ways of migrating towards these business models and generating revenues through their operations. A recent global entrepreneurship monitor study estimates that roughly 3-4% of the working
population is involved in making the hybrid social models and enterprises become successful enough to be able to ensure set up of certain key services like effective healthcare centers for the bottom of the pyramid, solar appliances at offgrid areas, providing clean drinking water facilities for communities, and setting up quality education for economically disadvantaged people. Thus, creating a pool of economic opportunities for empowering the local youth and women entrepreneurs. With Professor Muhammad Yunus, Grameen, the pioneer of social business, has created many international joint venture social businesses with corporations like Danone, Violia, Intel, BASF, Uniqlo, Adidas etc. In just a short period of time many local corporates have also ventured into social businesses utilizing their CSR funds. Many of these joint ventures are already in break-even and are running self-sustainably. This gives us hope that conventional profit making businesses will realize the power of social business and play a huge role in the development of social businesses in the coming days. In 2017 we will see Watersprint AB, a clean drinking water solution provider from Sweden venturing into the industry in partnership with Yunus Centre, Grameen Telecom Trust and Social Business Youth Alliance- Global. The Yunus Centre Social Business Design Lab is a meeting place for the people of diverse backgrounds, with the sole purpose/goal of developing into social business for the betterment
of society. It has facilitated partnerships and funding for more than 10,000 new entrepreneurial projects in the last three years. This proves that new ideas are getting vastly encouraged by existing social business funds like the Grameen Telecom Trust driving young people to come up with innovative social business ventures which leads to the creation of multifaceted employment opportunities and solves many social challenges. Along with such programs, we also have one of the leading social business plan competitions of the country, the ‘Social Business Champ’, that has attracted more than thousands of students/young adults every year leading to a rise of social business ideas which can possibly be implemented in the coming years. Globally there are more than 25 social business centers dedicated to undertake inter-disciplinary research on social business which helps entrepreneurs, ecosystem designers, academicians and students to learn and build social businesses. We have seen many academic institutions in Bangladesh opening up social business research centers and offering academic programs of social business like Daffodil University, Eastern University, ULAB etc. These centers will play a key role in developing local, national and international industry relationships through dedicated programs of training and education on social business. Development organizations and foreign aid agencies have acted as catalysts for the economic development
of our country. They have done it mostly through aid programs but now-a-days we see a huge shift in their work while they promote and support sustainable businesses, impact investment and social innovations that are blended with a business model. Last year we have seen international accelerators like Spark* opening up their Bangladesh chapters to support entrepreneurs who contribute in changing lives with mentorship, funding, strategy, creative and legal support. This network development is to be a progressive and continuing platform for the coming days and can be accessed by all social businesses. Very recently the Blue Gold Program with financial support from the Government of Netherlands has initiated their Blue Gold Innovation Challenge in collaboration with YY Goshti, as the country’s first independent social business incubator to contrive social businesses in south west of Bangladesh addressing water resource management and agricultural development. “Once poverty is gone, we'll need to build museums to display its horrors to future generations.” Professor Muhammad Yunus describes the vision of social business this way. It is also the vision of Sustainable Development Goals with the ultimate aim of creating a world without poverty. The social business activists worldwide believes that social businesses can play a huge role in the achievement of SDG’s. Many social business ventures are being created addressing specific SDGS. Like YC
Watersprint, a social business ensuring clean drinking water for all addresses SDG no 6. Existing social business ventures and funds are also creating many program arms and ventures to address other SDGs. Youth groups like, Social Business Youth AllianceGlobal ensures a platform for the youth where they come to listen to the role models, learn from their experiences and successful Social Business ventures and the start their own initiative to solve a social problem and then lead through Social Business. Development of social business in the coming years depends on the power of young people and technology. Today’s youth needs to exploit the opportunities that the market offers, utilize the power of technology and solve human problems to create a poverty free Bangladesh and world.
The writer is the Founder & President of Social Business Youth Alliance – Global and the CEO of Spark* Bangladesh.
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FEATURE
To A Healthier Future
MEDICAL BREAKTHROUGHS OF 2017
By Sadman Bin Sazzad
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oday, the medical world is rapidly changing, trying to meet the demands to solve the complications we face today in various fields of medicine. Here are some interesting inventions that we may anticipate in the upcoming year and hope that these can help us bring better health and safety to our lives.
Bio Absorbable Stents
This technology will help surgeons work efficiently and accurately while standing upright instead of working in the traditional way of bending over for long periods of time which can be painful.
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Every year many patients require metal stents to widen and unclog the coronary arteries (blood vessels that supply food and oxygen to heart muscles) to avoid threatening situations like heart attacks. Unfortunately, these stents remain with the vessels, opening up new possibilities for future troubles like blood clotting and difficulties faced during surgeries or scans. The bio absorbable stents are made of naturally dissolving materials that will cause the arteries to dilate for up to two years before being reabsorbed into our bodies hence reducing chances of future complication.
Ketamine to Rapidly Treat the Severely Depressed
Sometime it is very difficult to treat some severely depressed individuals. They simply do not respond to any methods of treatment. In 2013, a drug called Ketamine was designed and used to target and stop the function of certain receptors in our nerve cells that are active in depressed patients. Results were overwhelmingly satisfactory and within 24 hours many patients reported feeling much better. Ketamine has the potential readily treat many patients who have unfortunately suffered from mood swings for a long time.
Synthetic Blood
Just like artificial limbs and ear infants, scientists have figured out a way to produce synthetic blood out of stem cells in our body. Stem cells are those cells that take part in reproducing and healing damages that occurs in our bodies whether the injury is large or small. Synthetic blood can help patients with rare blood types for blood transfusion purposes or in emergency situations where not enough blood is readily available to treat patients. It can also help to treat diseases such as sickle cell anemia.
The Mini Pacemaker
Currently, the pacemakers in use requires risky invasive procedures and the wires that are needed to connect to the heart can get infected overtime causing further damage. Pacemakers are used to allow the heart to have regular continued rhythm so that the heart functions normally as a little disturbance in this regularity may result in a fatal situation. The mini pacemakers are as effective as the current ones but does not require any form of surgery or wires to function. Hence there is no chance of wires getting infected.
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3D Visualization of Surgery
Method to Detect Cancer Earlier
New Immunotherapy to Treat Cancer
The Bionic Eye
This technology will help surgeons work efficiently and accurately while standing upright instead of working in the traditional way of bending over for long periods of time which can be painful. It will also allow them to look around the site to be operated and make more accurate decisions. Furthermore it will help junior doctors see more clearly what the surgeon is doing and help to facilitate learning.
This is a novel way and has the potential to replace chemotherapy and its painful side effects. The therapy includes selecting certain blood cells from our body that helps to fight against infections and genetically modifying these cells. These are then reintroduced into the body of the patient with tumor or cancer cells. The modified blood cells are capable of attacking and destroying the tumor cells. These therapies are effective especially for treating certain blood cancers.
Blood samples taken from patients are tested to look for "cell-free circulating tumor DNA (ctDNA)". This means these DNA are freely circulating in the blood after being free from the tumor cells. These cells are not numerous in the earlier stages of cancer unlike the ctDNA. Early detection of this DNA from the "liquid biopsies" (the blood sample taken) can help detect cancer and hence prompt successful treatment.
Unfortunately, some of us are victims to certain genetic diseases that causes us to lose our precious sight. The bionic eye is a recent technology that can help restore some vision to these unfortunate individuals. It consist of a microchip implanted into the retina. The patient wears a pair of glasses on which a camera is attached. The camera transmits radio signals to the microchip which then activates retinal cells to send messages to the brain. The brain is responsible for interpreting these signals and turning them into images.
Feature
Cream of the New Crop
STARTUPS TO LOOK FORWARD TO
By Sakib Hasan
Grail
Illumina, a company known for its DNA-sequencing technology, has partnered with a group of Silicon Valley investors to develop a universal test for cancer that can detect cancer at an earlier stage than has been previously possible. This would be the Holy Grail for cancer detection hence the company name Grail. The startup has already garnered over a $100 million in investments.
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Cheddar
It’s not a cheese delivery service but a video news network that is geared toward millennials. Providing the news from the perspective of the executives, the company showcases the most innovative and transformative new products that companies have to offer. The service currently has a paywall but you can watch snippets of their interviews on the website.
Comparably Truebill “Never ask a woman her age and a man his salary.” Comparably allows a worker to compare his salary with that of peers with similar experience level, without going against the age-old saying. The service retains a person’s anonymity yet creates better transparency of pay and culture of the workplace.
Nowadays, we have monthly subscriptions for everything ranging, from streaming services to gym memberships. Truebill aims to minimize how much you pay in monthly by analyzing your credit card bills and helping you cancel any unwanted subscriptions.
Bakeys
This startup aims to reduce the amount of plastic waste that we create. They make utensils from different types of flour which can either be consumed or naturally decompose within a week after use.
Every company from Exxon-Mobile to the historic Dutch East India Company was once a start-up; a term that has become a more commonly termed word for emerging company at the turn of the century. With the advent of technology in every aspect of our lives, the opportunity for new and innovative companies has significantly emerged. ICE Business Times looks back at a year of the start-up that will set storm to the business climate for years to come.
Otto
Thanks to the efforts of Tesla, self-driving cars no longer seems like science fiction. The team at Otto hopes to do the same for trucks. The group of former employees from Google, Tesla and Apple has teamed up to create a kit that would transform any truck made after 2013 into a self-driving truck.
Pavegen
Pavegen envisions a future where walking is no longer just a method of getting from point A to B. Their smart flooring solution turns the kinetic energy of our footsteps into renewable electricity. They have already completed over a 100 projects around the world so expect to see them in most modern cities in the near future.
Futureplay Recharge Aiming to capitalize on the rapidly growing mobile game market, Futureplay is developing a new way of incorporating ads into mobile games in a way that is less intrusive than most current methods. The startups first game ‘Farm Away!’ is already a great success so expect to see more games from them on the Appstore soon.
The service allows users to check in to a hotel and pay according to the number of minutes spent in the room. This is so that users can get a quick snooze or shower, without having to worry about renting the room for the entire day. Recharge is currently only available in San Francisco but will likely revolutionize the hospitality industry as it expands.
Clearabee Darktrace Clearabee makes something as simple as taking out the trash even simpler. Its employees collect refuse and recyclables from the customers’ homes and then deliver it to partner processing stations. The convenience afforded to customers by this service has made it very popular in the UK and Clearbee is slowly expanding to surrounding countries.
With recent prevalence of high profile online security breaches, cybersecurity is becoming a top priority in today’s world. Darktrace has developed a self-learning program that identifies potential security threats before they attack. This startup has gained the backing a billionaire, an ex-CIA tech leader and an ex-MI5 chief so you know they are doing something right.
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Beyond the Business
Deck the Cubicles By Mashkawath Hamid
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he Office Christmas Party is a "The Night Before"-esque movie to bring the season of Christmas into the spotlight with the likes of comedic figures such as Jennifer Aniston, Jason Bateman, and T.J Miller. Will Speck and Josh Gordon throw a group of less than stellar employees into the failing Zenotek Company run by Carol Vanstone (Jennifer Aniston) who threatens to cut staff by 40% and even worse, cancel the annual Christmas Party. Thus begins the uncoordinated, rushed and undoubtedly questionable attempts at restoring the status of the company by Josh Parker (Jason Bateman), Clay Vanstone (T.J Miller) and Tracey Hughes (Olivia Munn). The movie progresses with clichĂŠd catchphrases and includes its fair share of droll stand still moments but if you haven't descended to tears during a few of the scenes then you deserve to lose money on a ticket. Even
though the first one-third of the movie seemed rather Bateman-centric, T.J Miller and Kate Mckinnon (Head of Human resources) rushed to embrace the roles of possible protagonists. One of the problems likely to turn apparent over the course of time would be the incessant references to a current pop culture which will make this movie age like cheese unlike some of its Christmas Comedy counterparts National Lampoons's Christmas Vacation or A very Harold and Kumar 3D Christmas. On the upside, the movie makes you appreciate Jennifer Aniston's
impeccable comedic timing and the mere existence of Courtney B. Vance (Walter Davis) who promptly disappears after his Tarzan scene. However, the ending felt too safe and foreseeable with it the "miracle idea that saves the company" and the cute yet clichĂŠd final kiss since the whole movie set the premise of recklessness and misfortune. However, if you're willing to leave the critics at the door and invite a group of friends or colleagues looking to catch a flick that's relatable in the "now", look no further.
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our colleagues shouldn’t just be the person you borrow staples from or shrug to acknowledge as you both get lunch; considering you spend more than 40% of the day at work, building a friendly repertoire with your co-workers can make the surmounting stack of papers on your desk much more bearable. Here are a few ways to shred the tension between the persons across the hall.
Labors of Love By Shaikh Ashfaque Zaman
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Staying fit
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considering that you clock in and out at the same time, working out is most convenient with your colleagues; furthermore, maintaining a fitness regimen also helps instill a sense of routine with one another.
Singing the blues away
karaoke is definitely one of the most embarrassing and entertaining activities. It’s also a great way to laugh away stress, and become rather uninhibited with one another.
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06 Volunteering
given that you’re all contributing to the betterment of your organization, why not extend your potentials to the helping the society. Volunteering your time for a common cause establishes a sense of purpose and appreciation for one another.
Potluck meals
sharing a meal together brings minds and stomachs together. Delegate a dish to each member of your work pool; not only will you enjoy the experience, it’s a great way learn new recipes and share kitchen nightmares.
Memory Wall
designate a wall in which anyone can put a post it with a short note such as “work travel” and “late night”. After everyone has had a chance to see the wall, let a few colleagues share their experience regarding the topic.
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Tech
Vs
AMD: Ryzen Rising MICROPROCESSORS
By Abhijit Asad
Will the underdog of the microprocessor market finally prevail?
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he desktop/laptop microprocessor market has been dominated for nearly two decades by silicon giant Intel, and only one rival has managed to put a noticeable dent in their armor during this entire time. Advanced Micro Devices, popularly known as AMD, first started making consumer-grade CPUs since the mid-’90s, launching the K5 processor as a direct competitor to Intel’s new Pentium series of fifth-generation CPUs. Following the success of the K5, AMD subsequently released the new K6 family of CPUs, which proved to be
stiff competition for their Intel counterparts, and it was with the K6-2 that AMD really managed to stand out as Intel’s main opponent. Building their momentum steadily, AMD went on to make several much-loved processors that would go down in history for their innovative nature, including the first consumer-grade 64-bit processor, which ushered in a new era of computer technology for the entire industry. Over time, they amassed a dedicated user base, which only grew further after they acquired graphics technology titan ATI and
began developing GPUs (graphics processing units, or graphics cards in laymen’s terms) of their own. ‘Team Red’ (thus nicknamed because of their fiery red branding scheme) was becoming a very big deal indeed. However, Intel wasn’t planning on taking this barrage sitting down, and they stepped up their game considerably, developing immensely capable yet efficient processors that delivered superior performance compared to AMD’s chips, while consuming less energy and emitting less heat. Fortunately, Intel’s higher pricing of its processors allowed AMD to take over a considerable portion of the budget market, where it continues to reign supreme as a shining example of ‘you get what you pay for’. While AMD’s processors (as well as their GPUs, for that matter) are not lacking in power, for quite some time, they have been ridiculed for their absurd power consumption and absurd heat emission levels, which can potentially cause computer motherboards to start melting. Dedicated AMD users often compensate for this using high-end cooling solutions, but that merely covers up part of the problem instead of making it actually go away. However, AMD has been making some big changes lately, as clearly evidenced by the arrival of their new Polaris series of graphics cards, which are not just powerful, but are also considerably more efficient and run much cooler than their predecessors. AMD has also been mentioning a new family of CPUs that they have been developing for quite some time to replace its existing range of room heaters codenamed Zen. However, it should be noted that the CPUs will be marketed under an entirely new brand by the name of Ryzen, which is subtly reminiscent of the company’s Radeon range of GPUs. The Ryzen CPUs are being targeted primarily at the desktop and server computing markets, and are built keeping performance in mind, with even the slowest among their lineup being clocked at base frequencies of 3.4 GHz or higher. While clock frequencies alone is not a sure-shot indicator of performance, it has been confirmed that the Ryzen family CPUs will have eight cores each, capable of simultaneously handling 16 process threads, in stark contrast to Intel’s more orthodox quad-core
8-thread offerings (not considering the prohibitively expensive ‘Extreme Edition’ i7 CPUs, which are more enthusiast-grade than consumer-grade). It is expected that Ryzen CPUs would play an instrumental role in helping octa-core CPUs becoming mainstream, which means it is safe to assume that processor technology would take a massive leap forward, both in terms of speed and multiprocessing. It should be noted that the Ryzen series will not be AMD’s first foray into octa-core territory, as evidenced by some of their old FX series of processors. However, the FX series was notorious for their inefficiency, and Intel’s i7 chips had safely mopped the floor with them in terms of performance despite having half the number of cores. In order to minimize power drain and thermal output, the Ryzen processors have been designed from the ground up to be far more efficient, and they will also make use of an entirely new and optimized motherboard architecture called AM4 instead of attempting to recycle technological artifacts from the previous generation in the name of establishing backward-compatibility. This much-needed move would make it possible for AMD to establish a level playing field and compete evenly with Intel on all markets, be it for super-stable computers for office use or enthusiast machines built for overclocking. It should come as no surprise that Ryzen utilizes several new proprietary technologies. One of them, SenseMI, will allow it to respond rapidly to changes in voltage, speed and temperature and adjust the power consumption accordingly for load and idle states. Another technology, Precision Boost, sounds like an overclocker’s dream come true, because it allows for precise scaling of CPU frequency in tiny 25-MHz increments (as opposed to typical 100-MHz increments), allowing an overclocker to find the perfect sweet spot for his/her processor and squeeze maximum performance from it without sacrificing stability in the process. One of the most interesting features of Ryzen CPUs is that it can take full advantage of advanced cooling solutions, and ramp up its performance accordingly to take advantage of the
added headroom. In a sense, this means that they would be capable of automatically overclocking themselves under ideal thermal circumstances without requiring any sort of initiative or intervention on the part of the user. And if that’s not all, the CPU will also make use of a neural network-type predictive system to observe the software instructions which it has to execute the most frequently, and adjust its internal pathways accordingly over time to enable their swiftest execution. Ryzen’s benchmarks are also very promising, as they have shown that they can go head to head with an Intel i7-6900K Extreme Edition CPU and deliver equivalent levels of performance, while costing substantially less.
Building their momentum steadily, AMD went on to make several much-loved processors that would go down in history for their innovative nature, including the first consumer-grade 64-bit processor, which ushered in a new era of computer technology for the entire industry. While the actual Ryzen CPUs are yet to be released into the hands of reviewers (and eventually consumers), what we have learned about them to date seems to be extremely promising, and if they come to be true, Intel is up for some very tough competition indeed. While this has already raised the expectations of AMD devotees without question, the recent reveal of further details on the Zen microarchitecture along with leaked performance benchmarks have led even to Intel enthusiasts becoming cautiously excited about the possible appearance of a proper competitor to Intel’s CPUs in a long time, especially after the relatively lackluster performance of their Kaby Lake series of chips. www.ibtbd.net
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HAPPENING
Word of Mouth Zunaid Ahmed Palak, MP, State Minister for ICT and Md. Shahriar Alam, MP, State Minister for Foreign Affairs along with Basis members and dignitaries celebrated the first Merit Award winning at the APICTA 2016. Bangladesh has been selected to be the host country of 2017 APICTA Award, which is considered to be the OSCAR for ICT Sector
The eighteenth edition of the Techshohor.com Laptop Fair-2016 was held this month with customers enjoying the price cuts and gifts combos as well as the participant outlets during the fair
Marcia Bernicat, US Ambassador in Bangladesh at the launching ceremony of Burger King in Dhaka
Le MĂŠridien Dhaka is inviting guests to take advantage of the festive month in a holiday mood to enjoy quality time with family and friends by staying in its holistic comfort and use the uncompromising service it is offering. Guests can enjoy one night accommodation for 2 persons from 12 December to 10 January, 2017
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SOCIAL BUSINESS
Blue Gold Innovation Challenge Kick Starts Activities The Blue Gold Innovation Challenge (BGIC) launched its activities at a Ceremony this December 18, 2016. The Launching Ceremony was attended by representatives from NGOs, Entrepreneurial Funds and Entrepreneurs from all over Bangladesh. BGIC is being organized by YY Goshti, a social business incubation hub in collaboration with Blue Gold Program with financial contribution from the Netherlands Government. It is looking for innovative business solutions which address water supply management, agriculture and sustainable development of south west region of Bangladesh. It is a year-long program which will help 20 would be entrepreneurs launch their own social businesses with training, mentorship and access to resources. The rewards for the top innovations include partnership and Tk 2,500,000 to Tk 5,000,000 funding opportunity from the Blue Gold
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Program. The south west of Bangladesh is a remote region where agriculture is the main source of income and farmers are dependent on water. Accelerating the development inside the target demographics requires new innovative approaches focused on the empowerment of communities, the management of water resources, improvement of agriculture practices and the creation of business opportunities. Innovators, students, startups and organizations can apply with business ideas which will be implemented to improve the lives of the people in the target areas. Thus BGIC is starting its operations in Patuakhali on December 30-31, 2016. The event was a chance for those in the development sector to come together and talk about some of the pressing issues in agriculture and water resource management that can be solved through innovative business solutions. Among chief guests was Lamiya Morshed, Executive Director of Yunus Centre, who shared her thoughts about social business and how the development sector can
achieve social impact through more sustainable models. Boudewijn Sterk, Manager of Innovation Fund, Blue Gold Program and the partner of YY Goshti in this program, was also present. He expressed anticipation in working in the agricultural and water resource management sector, paving the way for collaboration in the development sector that has not been done before. He was excited to see what new things can be achieved through this endeavor. Finally, Shazeeb M. Khairul Islam, Founder of YY Goshti, shared that the YY Goshti team is looking forward to work with aspiring entrepreneurs while building some innovative businesses that can access funds from the Blue Gold Program, using their expertise in incubating next generation businesses.
Mahbubul Alam, President of Chittagong Chamber of Commerce & Industry speaking at the Annual General Meeting of the chamber
Humayun Bakht (NDC, PSC), Managing Director and Robin Edwards, General Manager of Chittagong Blu Bay View hotel celebrated the Victory Day 2016 with their officials at the hotel premises
‘Industrial Promotion and Development Company of Bangladesh Limited’ (IPDC) relaunches its operation in Bangladesh as IPDC Finance Limited ‘Industrial Promotion and Development Company of Bangladesh Limited’ (IPDC) has relaunched its operations in Bangladesh in a gala event at the Radisson Blu Dhaka Water Garden. The Honorable Finance Minister of The People’s Republic of Bangladesh, Abul Maal Abdul Muhith, MP was the Chief Guest at the gala event along with Guest of Honor, Sir Fazle Hasan Abed, KCMG, Founder and Chairperson of BRAC. Among others Mominul Islam, MD and CEO, IPDC Finance Limited and high officials of Bangladesh Bank were also present at the gala event.
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POWER & ENERGY
Efficient Electricity T he National Power Energy Week was conducted over the course of three days, spanning from 7th December to 10th December. The Prime Minister of Bangladesh, Sheikh Hasina inaugurated the program at approximately 10 A.M. at
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By Mashkawath Hamid
the Bashundhara International Convention Centre and the event itself served as a beacon of progress and success achieved when the 15,000 MW power generation capacities had been met. Shortly after the inauguration ceremony, followed the opening of an exhibition relating to power and energy related products and projects. The state minister of Power, Energy, and Mineral Resources Nasrul Hamid had orchestrated a total of four seminars regarding various topics and featuring multiple experts and professionals who addressed a litany of subjects. The seminars were launched
on a positive note at 11 A.M. on the 8th of December. The first seminar addressed matters revolving around the 'Technologies of Coal-based Power Plants' hosted by Arshar Mansoor, Senior Vice President of the Electric Power Research Institute and moderated by Mohammad Hossain, Director General of Power Cell. The seminar saw renowned Business Executive Peter Nicholls, tri-sector commercial strategy advisor, who provided key insight on how the excessive reliance on fossil fuels weaken the energy mix portfolio with 62.68% of the installed capacity consisting of natural gas and risk
The two-hour seminar saw the discussion regarding the power consumption per capita along with entailed plans to generate 24,000 MW by 2021 and 39,000 MW by 2030 alongside the plan of meeting a quota of 100% electrification in the country by 2021.
depleting the main domestic fuel source of the country. This was followed by the consideration of the strides being taken in the new plants created through private-public partnerships and the attainable increase in efficiency that could be derived through proper transmission and distribution management of energy sources. One of the chief panelist's present was none other than the Honorable State Minister of Power, Energy and Mineral Resources, Nasrul Hamid. The event then went with its second seminar on 'Smart Grids, Digital Bangladesh and Internet of Things' at roughly 2 P.M., the same day. The keynote speaker present was Nameer Rahman, Bangladeshi-Canadian Energy Policy Specialist along with the moderator Dr. Ahmad Kaikaus, Chairman (Secretary-in-Charge) of the Bangladesh Energy & Power Research Council (EPRC). The two-hour seminar saw the discussion regarding the power consumption per capita along with entailed plans to generate 24,000 MW by 2021 and 39,000 MW by 2030 alongside the plan of meeting a quota of 100% electrification in the country by 2021. Talks of how the basic solar panel
usage in areas where the grid connection hadn't reached yet could be advanced through an influx of digital appliances shined a broader light on the course Bangladesh has embarked upon. The seminar was graced by Honorable Minister for Science & Technology Architect, Yeafesh Osman, and Honorable State Minister for ICT Zunaid, Ahmed Palak MP and the Executive Director of Climate Parliament, Sanjay Kumar. A presentation then followed to highlight 'Energy Efficiency Case Studies' moderated by Anwar Sikder, Chairman of the Sustainable and Renewable Energy Development Authority (SREDA). Analysis of how the garments industry comprises of almost 78% of the foreign currency earnings depicted how significant the advancement of the sector would rely heavily on the sustainability of its costs in order to meet the targets set by the government; a target ranging in billions. Once more the studies showed how natural gas spans 28.4 trillion cubic feet with approximately 90% being recoverable making it the forefront of energy consumption due to rising economic demands.
On December 10th, the final seminar relating to "International Best Practices in Power and Energy Sector: Lessons for South Asia & Bangladesh" convened under moderator Syed Munir Khasru, Chairman IPAG & Professor, IBA, DU, at 2 P.M. Consultation regarding neighboring countries featured plans of importing roughly 2,000 MW of electricity from India while Myanmar provides potential for a strong source of hydropower generating up to 100 GW according to the International Hydropower Association. Once again chief guests such as Donna Peng from the Oxford Institute for Energy Studies and Vishal Mehta from the Boston Consulting Group (BCG) provided their expertise on such matters. Finally, key figures such as Dr. Ahmad Kaikaus, Chairman (Secretary-in-Charge), Bangladesh Energy & Power Research Council (EPRC) and Md. Abul Kalam Azad, Principal Coordinator, SDG, Prime Minister's Office addressed the entirety of the event, concluding with the cultural program at 6:30 P.M. brought the Power and Energy Weekend into full circle.
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Capital Market BOURSE UPDATE
Fortnightly Report of DSE, 16th November To 30th November 2016 Top 10 securities by turnover value in Tk. Sl. Name of securities No. 1 Bangladesh Building Systems Ltd. 2 Quasem Drycells Ltd. 3 Doreen Power Generations and Systems Limited 4 AB Bank Limited 5 Bangladesh Export Import Company Ltd. 6 Golden Harvest Agro Industries Ltd. 7 Square Pharmaceuticals Ltd. 8 National tubes Ltd. 9 Shasha Denims Limited 10 Fortune Shoes Limited
Category A A N A A A A A A N
Total Turnover in shares 41,792,311 17,816,876 13,672,218 76,038,184 66,135,481 37,542,040 5,490,450 9,741,640 20,358,733 24,698,827
Total Turnover Tk. in mn 1,851.23 1,757.00 1,631.40 1,627.73 1,614.24 1,407.17 1,347.87 1,248.11 1,230.20 1,191.55
% of Total Turnover Tk. 2.31 2.19 2.04 2.03 2.02 1.76 1.68 1.56 1.54 1.49
Top 10 securities by turnover in shares Sl. No. 1 2 3 4 5 6 7 8 9 10
Name of securities
Category
Generation Next Fashions Limited AB Bank Limited National Bank Ltd. Dragon Sweater and Spinning Limited Bangladesh Export Import Company Ltd. First Security Islami Bank Ltd. CMC Kamal Textile Mills Ltd. Premier Leasing & Finance Limited. C & A Textiles Limited Export Import (Exim) Bank of Bangladesh Ltd.
Total Turnover Tk. in mn
A A A N A A A B A A
Top 10 gainer securities (based on closing price) Sl. No.
Name of securities
Category
1 2 3 4 5 6 7 8 9 10
Dragon Sweater and Spinning Limited Bangladesh General Insurance Company Ltd. Miracle Industries Limited Asia Pacific General Insurance Co. Ltd. Republic Insurance Company Ltd. Federal Insurance Company Ltd. Hakkani Pulp & Paper Ltd. Regent Textile Mills Limited AB Bank Limited Fortune Shoes Limited
N A B A A B B N A N
623.71 1,627.73 668.71 943.88 1,614.24 771.64 812.41 530.30 385.62 480.66 Current Fortnight Closing Price 15.00 21.50 51.90 20.80 20.30 12.60 54.10 15.30 21.60 53.40
Top 10 loser securities (based on closing price) Sl. No. 1 2 3 4 5 6 7 8 9 10
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Name of securities SAIF Powertec Limited Desh Garments Ltd. MIDAS Financing Ltd. Modern Dyeing & Screen Printing Ltd. National Polymer Industries Ltd Aziz Pipes Ltd. Libra Infusions Limited Paramount Textile Limited Ambee Pharma Ltd. Stylecraft Limited
Category A A Z Z A Z A A A A
Current Fortnight Closing Price 48.90 303.70 21.10 173.20 73.00 60.10 454.90 18.80 378.80 1,513.40
last Fortnight Closing Price 9.40 15.70 38.90 16.00 16.10 10.00 43.10 12.20 17.30 42.80 last Fortnight Closing Price 60.60 362.80 24.40 200.10 83.70 68.20 512.30 21.10 421.70 1,665.90
Total Turnover in shares
% of Total Turnover shares
78,214,368 76,038,184 67,742,869 66,922,764 66,135,481 62,736,670 50,160,457 47,781,956 46,544,082 44,151,638
change % 59.57 36.94 33.42 30.00 26.09 26.00 25.52 25.41 24.86 24.77
change % (19.31) (16.29) (13.52) (13.44) (12.78) (11.88) (11.20) (10.90) (10.17) (9.15)
2.94 2.86 2.54 2.51 2.48 2.36 1.88 1.79 1.75 1.66
Turnover Tk. in mn 943.88 124.40 476.90 24.50 106.86 135.19 148.62 445.72 1,627.73 1,191.55
Turnover Tk. in mn 411.36 83.70 33.17 6.82 137.84 6.07 36.82 418.30 84.14 23.55
Daily Avg. Turnover Tk.in mn 85.81 11.31 43.35 2.23 9.71 12.29 13.51 40.52 147.98 108.32
Daily Avg. Turnover Tk.in mn 37.40 7.61 3.02 0.62 12.53 0.55 3.35 38.03 7.65 2.14
Disclaimer: Dhaka Stock Exchange does not hold any responsibility for these date.
Fortnightly Report of DSE, 1st December To 15th December 2016 Top 10 securities by turnover value in Tk. Sl. Name of securities No. 1 Bangladesh Building Systems Ltd. 2 Lafarge Surma Cement Ltd. 3 IFAD Autos Limited 4 Ratanpur Steel Re-Rolling Mills Limited 5 Shasha Denims Limited 6 Olympic Accessories Limited 7 Fortune Shoes Limited 8 Argon Denims Limited 9 Quasem Drycells Ltd. 10 Appollo Ispat Complex Limited Top 10 securities by turnover in shares Sl. Name of securities No. 1 Keya Cosmetics Ltd. 2 C & A Textiles Limited 3 Bangladesh Building Systems Ltd. 4 Appollo Ispat Complex Limited 5 Olympic Accessories Limited 6 Generation Next Fashions Limited 7 GBB Power Limited 8 CMC Kamal Textile Mills Ltd. 9 Premier Leasing & Finance Limited. 10 Bangladesh Export Import Company Ltd.
Category A A A A A A N A A A
Category A A A A A A A A B A
Top 10 gainer securities (based on closing price) Sl. No. 1 2 3 4 5 6 7 8 9 10
Name of securities Ratanpur Steel Re-Rolling Mills Limited H.R. Textile Ltd. S. Alam Cold Rolled Steels Ltd. Golden Harvest Agro Industries Ltd. Daffodil Computers Ltd. Bangladesh Building Systems Ltd. Shasha Denims Limited Argon Denims Limited CMC Kamal Textile Mills Ltd. C & A Textiles Limited
Category A A A A A A A A A A
Top 10 loser securities (based on closing price) Sl. No.
Name of securities
Category
1 2 3 4 5 6 7 8 9 10
Kohinoor Chemicals Company (Bangladesh) Ltd. Doreen Power Generations and Systems Limited Shahjibazar Power Co. Ltd. Asia Pacific General Insurance Co. Ltd. Sonar Bangla Insurance Ltd. Hakkani Pulp & Paper Ltd. Paramount Insurance Co. Ltd. Al-Haj Textile Mills Limited Standard Ceramic Industries Ltd. National tubes Ltd.
A N A A A B A A A A
Source: Dhaka Stock Exchange
Total Turnover in shares 74,477,951 31,739,022 27,246,740 36,948,899 29,581,563 60,534,877 23,342,051 39,918,962 12,673,655 73,430,330
Total Turnover Tk. in mn 3,386.84 2,607.53 2,448.51 2,092.62 2,080.97 1,371.95 1,277.03 1,269.06 1,243.80 1,237.14
Total Turnover Tk. in mn 927.23 689.11 3,386.84 1,237.14 1,371.95 488.19 979.69 895.08 596.89 1,130.98
Total Turnover in shares 84,132,405 77,333,935 74,477,951 73,430,330 60,534,877 60,245,585 51,371,493 50,073,913 46,262,621 45,910,198
Current Fortnight Closing Price 66.10 30.60 37.90 54.50 42.00 51.70 71.60 31.40 18.90 9.40
last Fortnight Closing Price 47.50 22.40 29.60 42.60 33.60 42.30 60.00 26.40 15.90 8.00
Current Fortnight Closing Price 381.70 105.70 135.20 18.50 16.00 49.00 20.20 87.80 53.60 130.10
last Fortnight Closing Price 473.30 125.10 152.80 20.80 17.80 54.10 22.30 96.90 59.10 143.00
change % 39.16 36.61 28.04 27.93 25.00 22.22 19.33 18.94 18.87 17.50
change % (19.35) (15.51) (11.52) (11.06) (10.11) (9.43) (9.42) (9.39) (9.31) (9.02)
% of Total Turnover Tk.
3.85 2.96 2.78 2.38 2.36 1.56 1.45 1.44 1.41 1.40
% of Total Turnover shares 3.07 2.82 2.72 2.68 2.21 2.20 1.87 1.83 1.69 1.67
Turnover Tk. in mn
Daily Avg. Turnover Tk.in mn
2,092.62 153.43 583.42 1,221.92 556.39 3,386.84 2,080.97 1,269.06 895.08 689.11
Turnover Tk. in mn
209.26 15.34 58.34 122.19 55.64 338.68 208.10 126.91 89.51 68.91
Daily Avg. Turnover Tk.in mn
35.25 978.83 486.06 6.63 8.95 136.29 58.96 231.39 33.94 1,066.77
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3.53 97.88 48.61 0.66 0.89 13.63 5.90 23.14 3.39 106.68
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