Project launched for RMG workers’ financial inclusion

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Project launched for RMG workers’ financial inclusion

A MetLife Foundation-funded Swisscontact project was launched at a Dhaka hotel on Thursday to ensure financial inclusion of 60,000 workers in the readymade garment sector.

The 30-month “Sarathi” plans to bring the practice of salary disbursement through bank accounts at 30 factories by June 2020, says a statement. It also intends to improve basic financial literacy on issues such as using bank accounts and cards, benefits of saving products, gaining control and privacy over earnings, planning and paying for recurring expenses and accessing savings and credit products.

Three major factories have already agreed to come on board. The pilot phase in the last two years benefitted over 1,100 workers. Partner commercial banks are to provide services through agent banking networks. Bank Asia and City Bank have signed agreements with Swisscontact recently.
Speaking on the initiative, MA Mannan, state minister for finance, said “We need to agree that poverty is not our only problem, there are many other factors.”

Anirban Bhowmik, country director, Swisscontact in Bangladesh; Shafiqur Rahman Patwari, chairman, Insurance Development and Regulatory Authority; Nurul Islam, chairman, MetLife Bangladesh, and Mansoor Ahmed, first vice president, Bangladesh Knitwear Manufacturers and Exporters Association, also spoke.

Bangladesh lowest internet using country in Asia Pacific: study

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Bangladesh lowest internet using country in Asia Pacific: study

Bangladesh, along with Pakistan, has the lowest level of mobile internet penetration in the Asia Pacific region, according to a report of GSMA, the global trade body of mobile operators. Only 21 percent of the population of both Bangladesh and Pakistan have mobile internet connection — the lowest among regional peers.

In 2017, one in five Bangladeshis subscribed to mobile internet services despite 3G networks covering in excess of 90 percent of the population. Even countries like Nepal and Myanmar, both of which have lower GDP per capita than Bangladesh, have higher mobile internet penetration: 28 percent and 35 percent respectively. The majority of subscribers in Bangladesh primarily use their phones for basic voice and SMS services, the report said.
As a result of this low level of engagement, the country also generates one of the lowest subscriber average revenue per user (ARPU) levels in the world at $2.9. This is considerably below the averages for Asia Pacific and the world of $10.4 and $14.6 respectively, limiting the ability of operators to engender the required transition to mobile broadband technologies, the report said.

“The enablers critical to creating the right conditions for mobile internet connectivity to flourish rank low in Bangladesh, despite the progress made in recent years.”

In particular, the country scores below average on infrastructure and affordability enablers relative to its regional peers.

The slow transition to mobile broadband technologies in Bangladesh is also, in part, a matter of timing: the 4G/LTE spectrum auction only took place in February, making it one of the last countries in South Asia to award licences for the technologies.

“Affordability represents a major barrier to the uptake of mobile services in Bangladesh,” said the GSMA, which has approximately 800 members.

A medium consumption basket of 1 GB of data would cost an individual in the bottom 20 percent by income distribution approximately 11 percent of their monthly earnings in Bangladesh, which is above the affordability threshold recently adopted by the United Nations.

High levels of taxation and fees applied to the mobile sector affect the total cost of mobile ownership (TCMO) by directly raising the retail prices faced by consumers, and thus represent a significant barrier to digital inclusion.

For example, taxes on the use of mobile services in Bangladesh represent a higher share of tariff costs (22 percent) than in a number of neighbouring countries, said the report. To date, the limited allocation of 3G spectrum in Bangladesh and its price in previous auctions have had a significant negative impact on the quality of mobile services, hindering the uptake and use of digital services.

At the end of 2017, just over 71 percent of connections were 2G, with 3G comprising the remainder. In the February 2018 spectrum auction too, the high reserve prices and the associated licence fees remained.

When coupled with a mobile market with some of the lowest ARPU levels in the world, some of this high-priced spectrum went unsold. This highlights the importance of setting reserve prices for future spectrum auctions at levels that consider operators’ needs to not only finance access to spectrum, but also to deploy infrastructure to use that spectrum.

Without sufficient spectrum, quality of service for users will suffer, impeding the use of digital services. “The government should ensure both the timely release of spectrum and fair prices for access to that spectrum to facilitate better quality and more affordable services.”

Although taxes and fees from the mobile industry remain an important source of revenue to finance public expenditure in Bangladesh, the current tax system is not conducive to improving the affordability of mobile services, the GSMA said.

“Taxes and fees on the mobile sector in Bangladesh are disproportionately high relative to other sectors in the economy and to other countries in Asia, and are often levied in ways that do not account for key investment and economic features of the industry.”

In 2014, the mobile industry in Bangladesh made a large contribution in taxes and fees relative to its size in the economy: tax and fee payments from the sector, as a share of total tax revenues, were 4.5 times greater than the sector’s revenue as a share of GDP. “A forward-looking regulatory environment will help boost the uptake of mobile internet services,” said the GSMA report that will be unveiled today in Dhaka. The number of mobile internet subscribers in Bangladesh is forecast to reach 7.3 crore by the end of 2025, representing 41 percent of the population. However, approximately 10.6 crore people will remain without access to the mobile internet, factoring in population growth.

The report, however, went on to state that the mobile industry in Bangladesh has scaled rapidly over the last decade to become the fifth largest mobile market in Asia Pacific, with 8.5 crore unique subscribers in 2017, which is half the population. “The country still faces a significant digital divide and steps must be taken to enable the right conditions for mobile internet connectivity to flourish in Bangladesh,” said Alasdair Grant, head of GSMA Asia Pacific.

The mobile ecosystem provided employment to more than 7.60 lakh people in Bangladesh, both in formal and informal sectors. A third of the jobs were created directly in the ecosystem, while the rest were generated indirectly in other sectors as a result of the consumption of inputs generated by the mobile sector, it said.

Looking ahead, total employment is expected to grow around 9 percent to 8.5 lakh in the period from 2016 to 2020, largely driven by direct employment creation in the mobile industry. “We expect that the economic contribution of the mobile ecosystem in Bangladesh will continue to grow. In value-added terms, we estimate that the ecosystem will generate $17 billion by 2020.”

$2.5b investment round the corner

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$2.5b investment round the corner

Super Petrochemical Pvt Ltd (SPPL), a concern of TK Group, and SK Group of South Korea plan to invest $2.5 billion jointly to establish a petrochemical complex and an LPG terminal in Moheshkhali. “We are planning to implement the project in phases,” said Mohammad Mustafa Haider, managing director of Super Petrochemical Pvt Ltd.

“However, we intend to implement the LPG terminal project by 2021,” he told The Daily Star. Under the joint venture, a full-fledged petrochemical, chemical storage facilities and liquefied petroleum gas (LPG) terminal will be set up in the island. “We initially estimated the investment amount to reach $2.5 billion. The amount will be finalised after conducting a feasibility study,” said the businessman, who is also a director of TK Group.

The project is financially viable, according to another feasibility study conducted by the Engineers India, a Delhi-based company, Haider said.

The entities have sought land from Bangladesh Economic Zones Authority (Beza).

The Beza has also agreed to allocate 410 acres of land in Moheshkhali-3 Economic Zone. The Beza would hand over the letter of land allocation to Super Petrochemical today so that it can start construction work as soon as possible, according to Paban Chowdhury, executive chairman of the authority.

“It is a big investment and it will be helpful for plastic manufacturers, power companies and others sectors,” he told The Daily Star.

According to Haider, the project once fully developed will create 2,500 jobs directly.

SPPL is the largest producer of petroleum and petrochemical products in the private sector in Bangladesh. It produces and supplies fuel oil to state-run Bangladesh Petroleum Corporation. The company caters for 60 percent of local demand for octane. Besides, it produces petrochemical products such as toluene and xylene used in making paints, inks and adhesive. The project—which will produce a lot of raw materials for plastic goods—will also encourage many small and medium enterprises to invest in the plastic sector, he said. Local investors will be able to use raw materials to set up LPG-based or dual fuel power plants, he said. TK Group is one of the largest and diversified business conglomerates in Bangladesh, with 42 active business units and more than 12,000 employees.

Bangladesh, India, Bhutan, Sri Lanka need more WB funds

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Bangladesh, India, Bhutan, Sri Lanka need more WB funds

India has made a strong pitch for increased lending by the World Bank and its affiliates for Bangladesh, India, Bhutan and Sri Lanka, in a meeting of the World Bank and International Monetary Fund held in Washington on Saturday. The combined gross domestic product of India, Bangladesh, Bhutan and Sri Lanka will cross $3 trillion this year, said Subhash Chandra Garg, secretary of the economic affairs department at India’s finance ministry.

These four countries not only constitute the highest growing economic block in South Asia and the world at large but also face widespread poverty, Garg said while addressing the meeting as a representative of the four countries.
The region attracts close to $100 billion of foreign direct investment and portfolio investment and will grow
around 7.5 percent this year, he said. The four also faces enormous developmental challenges, Garg said.
“Our constituency (comprising India, Bangladesh, Bhutan and Sri Lanka) members continue to make notable progress and set an example for other emerging middle-level developing countries.”

The Indian official said Bangladesh has made significant progress in reducing poverty.

Over 20 million people have been lifted out of poverty in that country in the last two decades with poverty rate declining below 24 percent, he said. He said Bangladesh is expected to grow at 7.2 percent this year. Bangladesh has also made rapid progress in human development. Its Infant mortality rate—34 per 1,000 live births—and maternal mortality rate—176 per 100,000 live births—are much improved and better than the global averages, he said.

“Bangladesh’s progress towards low middle income country category and its eventual transition to ‘gap’ and ‘blend’ status under World Bank group are a testimony of the massive developmental efforts of the government of Bangladesh.”

The World Bank Group—Inter-national Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), Interna-tional Development Association (IDA), Multilateral Investment Guarantee Agency (MIGA)—has supported the growth and development of the four countries, he said. “It will need to continue to do so in the foreseeable future.”

This is the reason capital increase has been a matter of critical interest for India, he added.

Garg expressed happiness that there is now an agreement on the capital increase package and that it is reasonably large – a 13 billion-dollar capital increase in IBRD and IFC together, “which from the historical context, is a truly unprecedented. “The regional growth momentum is backed by robust domestic demand, strong FDI inflows, infrastructure spending, and supportive macroeconomic policies.”

India is poised to remain as the fastest growing large economy in the world. “In 2018, we expect India to grow at over 7.4 percent, Bangladesh 7.2 percent, Sri Lanka 4.6 percent and Bhutan 7.5 percent.” He expressed the hope that increased lending for middle income countries will start flowing soon and single borrower limits revised upwards quickly.

Garg said the current capital increase package was due in 2015 but its delivery was delayed and delivered in 2018.

The next capital review, as agreed, is due in 2020, he said and urged the World Bank management to start preparation for the same well in time to deliver it on time. Garg said the background paper for last annual meeting of the World Bank spelt out an ambition of $130 billion for the Bank and its affiliates but “we are now looking at a further lowered ambition of only $100 billion”. Garg is currently on an official tour of Washington to attend the Spring Meetings of the IMF and the World Bank and other associated meetings.

Bangladesh still popular for low-cost apparel

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Bangladesh still popular for low-cost apparel

Bangladesh is still a lucrative destination for sourcing low-cost garment items, coming second to only China, according to the Global Sourcing Survey-2018 by the AsiaInspection, which provides inspection services to global brands. “Outside of China, India and Bangladesh are increasingly given preferences for textile sourcing due to being lower-cost destinations,” said the report on the survey conducted by AI in December last year. Top officials of more than 250 companies working in all major consumer product segments were interviewed for the survey.

Of the total respondents, 16 percent said Bangladesh is their destination of choice for sourcing textile and garment products. China though remains in the lead: it is a regular sourcing destination for nearly 88 percent of the respondents and half of the businesses expect to buy even more from there in 2018. “The work order situation is positive now,” said Asif Zahir, director of Ananta Group, a leading garment exporter. Thanks to the rebound of economic situation in Europe and the US, the retailers and brands are placing work orders in bulk in Bangladesh. At the same time, Bangladesh’s reputation has also improved due to inspection and remediation of the garment factories by the Accord and Alliance.

However, buyers do not want to pay higher prices, although the cost of production will go up further with wage hike, port congestion and higher transportation cost. “Of course, Bangladesh is a lucrative destination for the global garment buyers,” said Anwar-ul Alam Chowdhury Parvez, a former president of the Bangladesh Garment Manufacturers and Exporters Association. Bangladesh is a favoured destination not only for the competitive price and quality, but also for technical upgrades and improved safety after the inspection and remediation.

After a journey of nearly four decades, the country’s production base is gradually shifting to high-end apparel items from basic products. Of the total garment exports from Bangladesh in a year, 40 percent are high-end value-added garment items, he said.

“Previously the focus was on basic items but now we are looking at value-added items,” he added. In the footwear segment, 21 percent of the survey respondents said they will source from Bangladesh. Some 36 percent respondents said they will source food items from Bangladesh, while 15 percent will buy electrical and electronics products from here, the survey said.Among the top challenges in sourcing in 2017, the cost of manufacturing and raw materials comes first — a trend expected to continue into 2018.

Politics is expected to have a more immediate impact than technology: most of the surveyed businesses anticipate to be affected by tariffs, quotas, protectionism and embargos, rather than automation and 3D printing. Vietnam is a notable competitor for China in footwear, chosen by 50 percent of respondents, the single most popular choice of any industry outside of China, the study said. In cross industry average, 14 percent of the respondents preferred Bangladesh as their sourcing destination.

Wilmar-Adani to invest $350m in Mirsarai economic zone

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Wilmar-Adani to invest $350m in Mirsarai economic zone

Singapore-based Wilmar and India’s Adani Group plan to invest $350 million in Bangladesh to establish an industrial park in the Mirsarai economic zone under a joint venture that will produce agro-based foods and allied products. Pua Seck Guan, chief operating officer of Wilmar International, a leading agribusiness group in Asia, sought a 50-acre land at Mirsarai in Chittagong so as to make the investment during Prime Minister Sheikh Hasina’s visit to Singapore in March this year. Hasina agreed and urged the officials of Wilmar to visit the zone.

Subsequently, Kuok Khoon Hong, chairman and CEO of Wilmar Group, visited the zone in the first week of April, said Paban Chowdhury, executive chairman of the Bangladesh Economic Zones Authority (Beza). “Hong was so much impressed with the zone that he doubled his demand to 100 acres to make the best use of the $350 million investment.”

The Beza consented and urged the group to submit its investment proposals in detail. The investment will enhance competitiveness of local manufacturers and help consumers get quality products, Chowdhury said. The amount of investment could be higher, said Ainul Haque Sarder, head of human resources at Bangladesh Edible Oil Ltd (BEOL), a joint venture of Wilmar and Adani.

Established in 1993, BEOL sells edible oil in Bangladesh under various brands, including Rupchanda, Meizan, King’s, Fortune, Veola and Lucky. “Our products such as Rupchanda Soybean Oil, Mustard Oil, and King’s Sun Flower Oil have gained huge popularity in Bangladesh, which has encouraged Wilmar to go for further investment.” He said Adani and Wilmar plan to invest heavily in Bangladesh if they get proper investment environment.

Online fund transfer to any bank from June

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Online fund transfer to any bank from June

Fund transfer to any Bangladeshi bank account through online banking will become possible from June, in a development that promises to be a great timesaver for bank customers. For that end, the central bank has asked all banks in the middle of February to connect their fund transfer channel to the National Payment Switch Bangladesh (NPSB).

In November last year, six banks — Bank Asia, Standard Chartered, Bangladesh Commerce Bank, City, Dutch-Bangla and Midland — signed up for the fund transfer facility through the NPSB. Another 22 banks will soon integrate their systems with the NPSB, said a Bangladesh Bank official. The banks that are yet to introduce internet banking will have to offer at least fund receiving facility to their clients.

Thanks to the facility, customers will be able to pay their credit card bills and make their monthly instalment payments on deposit pension schemes, loans and insurance premiums from the comforts of one’s homes. A person can make a maximum of five transactions amounting to Tk 2 lakh a day; the single transaction limit is Tk 50,000. Customers will be informed about the transactions instantly through an SMS alert service. As of January, there are nearly 17.61 lakh users of internet banking, according to data from the BB. Of them, more than 90 percent are clients of private banks and the remaining foreign banks. About 7.18 lakh transactions involving Tk 2,175 crore were made through the internet banking platform in January this year.

Both the number of users of the online banking platform and the transactions will shoot after June, the BB official said. “We have completed the testing process to integrate internet banking with the NPSB. We will connect the system in due time,” said Mohammad Ali, deputy managing director of Pubali Bank. The initiative taken up by the central bank will ultimately help build a cashless society as it will encourage e-commerce, he added.

The latest initiative will be of great convenience to customers, said Syed Mahbubur Rahman, managing director of Dhaka Bank. But the banks should follow all cybersecurity-related compliance to avoid untoward situation, said Rahman, also the chairman of the Association of Bankers, Bangladesh, a forum of chief executives of banks.

The central bank introduced the NPSB on December 27, 2012 with a view to upgrading inter-bank electronic payments. The NPSB is now playing the role of a “mother switch” and it will gradually connect all “child switches” owned or shared by banks in the country. The child switches are: automated teller machines, point of sale, electronic commerce, internet banking, mobile banking and other online banking services offered by banks.

Shipbuilders served loan rescheduling on silver platter

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Shipbuilders served loan rescheduling on silver platter

At a time when the country’s banking sector is going through a liquidity stress, the borrowers from the shipbuilding industry are being gifted with a 10-year loan rescheduling facility by the finance ministry.As of December last year, the total loans to the shipbuilding industry, whose contribution to the economy is less than 1 percent, were Tk 4,600 crore, and now the banking sector will be saddled with the sum for the next decade.

The loans carry interest rate of 10-13 percent, but as per the special package being offered to the shipbuilders the interest rate will be revised down during rescheduling. Of the loan amount, only Tk 860 crore is with the state banks, meaning the move will intensify the ongoing liquidity crisis in the banking sector, the epicentre of which is in the private banks. It will also enable indiscipline in the banking sector further, said a central bank official requesting anonymity to speak candidly about the matter.

“The Bangladesh Bank was not in favour of extending the package to the shipbuilders but the finance ministry put it in a tight stop.”

The finance ministry sent a letter to the central bank in August last year asking it to issue a notice offering long-term loan payment facility for the industry upon request from shipbuilders.

“But the central bank refused to issue any such letter.”

The shipbuilders had first approached the BB in August last year for the facility but their request was turned down. Subsequently, they went to the finance ministry, he said.

On January 3 this year, the finance ministry held a meeting with representatives from the shipping ministry, the Bangladesh Securities and Exchange Commission, the Association of Bankers Bangladesh and the BB over the issue.

At the meeting, a decision was taken to assist the borrowers of the shipbuilding industry with loan rescheduling for 10 years with three years grace period.

It was also decided at the meeting that the interest rates on the loans would be revised down and the rescheduling would be done without any down payment. Those who had already rescheduled their loans will also come under the facility.

Then on March 25, the ministry forwarded the decision to the central bank asking it to take the necessary measures for implementation.

Accordingly, on April 4, the central bank sent out a notice advising all banks to follow the ministry’s decision.

The rescheduling package is similar to the one extended to 11 big business groups in 2015 involving loans amounting to Tk 15,000 crore.

The package did not yield the desired result as most of the companies turned defaulters within two years of their payment schedule. “This will be a great mistake,” said Khondkar Ibrahim Khaled, a former deputy governor of the BB. Besides, the finance ministry has violated the bank company act by imposing the decision on the central bank, he said.

The bank company act clearly states that the BB has the sole authority to do loan rescheduling or restructuring, according to Khaled. Contacted, Abu Hena Mohd. Razee Hassan, deputy governor of the BB, and Eunusur Rahman, senior secretary of banking and financial institution division of finance ministry, declined to comment on the matter.

On the other hand, the banks are being inconvenienced by the loans of the shipping industry, which is going through a prolonged slump in business.

For instance, Ananda Shipyard, one of the largest shipbuilders, took Tk 1,300 crore loans, leaving seven banks in trouble. Western Marine Shipyard, the leading shipbuilder of Bangladesh, has loans worth more than Tk 1,000 crore with many banks. It has been unable to make loan instalments regularly.

“The main problem of the shipbuilding industry is the high cost of funds,” said Md Sakhawat Hossain, managing director of Western Marine.

The shipbuilder’s investment is higher than its operating income, he added.

Currently, more than 100 companies are involved in the sector.

Saving Kuakata’s resort character

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Saving Kuakata’s resort character

The way unauthorised structures are sprouting in the Kuakata beach town makes its fate uncertain. A concrete mess is in the making. Several committees are working to build Kuakata as an ideal resort town but not all are conforming to the plan. A master plan for Kuakata, the second largest natural beach in the country, was approved two years ago. It slapped a ban on construction of structures without permission. The prohibition raised expectation of the growth of a well-planned and beautiful beach town. With the relevant committee rejecting flawed plans, and the local influential quarters disregarding the decisions, the town’s view continues to deteriorate. The small town in the southern district of Patuaklhali laced by the Bay of Bengal is now chockablock with myriad types of multi-storey buildings. Most of them have failed to get approval of the committee comprising architects. The mayoral office has expressed its inability to stop the errant builders.

The Cox’s Bazar has for the last six months been plagued with the pervasive presence of Rohingya refugees. A lot of tourists feel disinclined to visit the site. Many have shunned the beach and the resort town. They now prefer Kuakata to the attractive Cox’s Bazar, as well as St Martin’s in the Teknaf upazila. A properly planned and idyllic Kuakata could have attracted the potential tourists. The beach has been constrained by bad communication, lack of hotels and lodges and the unsightly look of its area as a tourist spot. To the disappointment of many local small businesses, the beach is yet to be able to lure remarkable number of tourists in nearly three decades. The ongoing illegal construction spree prompting the fast loss of the town’s tourist-site character is feared to deter prospective tourists.

The high-power committees formed to give Kuakata a major face-lift are required to swing into full action. Mere rejection of the wrong building designs is not going to serve any purpose. In the meantime, the otherwise-emboldened constructors will turn more reckless. The turning-down of wrong building plans is being outnumbered by the defiant attempts to construct structures. It portends worse times for the town.

Kuakata people can ill afford to see the uplift project go awry. A great opportunity will be missed. Apart from the Housing and Public Works Ministry, the initiative involves several government bodies headed by the Barisal Divisional Commissioner and the Patuakhali Deputy Commissioner (DC). On top of all, the Prime Minister’s Office (PMO) is watchful of the Kuakata project’s progress. In May last it instructed the authorities concerned to execute the master plan, vesting power in the DC’s office to stringently put into effect the rules and prerequisites for building structures in Kuakata. The intervention of the PMO ought to be viewed as a great fillip and morale booster to the committees involved in Kuakata’s development. The slipshod treatment that has been meted out to the tourist site since the beginning is indeed distressing. This is chiefly because of the fact that Kuakata is full of potential for becoming a thriving attraction. With domestic tourism on sharp increase, the nation is not prepared to see a prospective tourist spot go to waste. The sooner Kuakata undergoes a thorough remodelling, the better.

Najib offers lavish benefits ahead of Malaysia poll

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Najib offers lavish benefits ahead of Malaysia poll

Malaysian Prime Minister Najib Razak, eager to consolidate control over this south-east Asian nation of 32m in the face of widespread but fragmented opposition, has unveiled a free-spending manifesto ahead of a general election that is expected to be held within weeks. “[This election] will determine our destiny,“ Mr Najib told blue-shirted supporters of the ruling Barisan Nasional coalition in a packed stadium in suburban Kuala Lumpur at the weekend. “We have vast experience, we have been tested, we have a proven track record and we have a clear vision to develop the nation and lift the people of Malaysia.” Mr Najib’s coalition is seeking to regain its two-thirds majority in the 222-seat parliament after ceding the popular vote to an ascendant opposition in 2013. The prime minister now faces an opposition alliance led by Mahathir Mohamad, 92, a grizzled former prime minister who led Malaysia for 22 years. Mr Mahathir has led the charge against his former protégé since allegations emerged in 2015 that Mr Najib received almost $700m linked to the 1Malaysia Berhad Development fund, or 1MDB, which the prime minister denies. Mr Mahathir hopes to leverage his star power with many ethnic Malay voters to erode Mr Najib’s traditional support base. He has pledged to abolish an unpopular sales tax within 100 days and hike basic pay. Mr Najib’s rival manifesto seeks to neutralise the opposition’s appeal with promises to increase cash transfers to the poor, implement debt relief for farmers, raise minimum wages to 1,500 Malaysian ringgit ($388) a month and create 3m jobs over the next five-year parliament. ”A lot of these things are carbon copies from our manifesto,” Syed Saddiq, the head of the youth wing of Mr Mahathir’s party and a candidate in the seat of Muar, Johor state, told the Financial Times on Sunday.

Mr Najib’s 364-point manifesto opens with several promises to women voters, including a commitment to draw up a new law against sexual harassment. Under the slogan “Make My Country Great with BN”, Mr Najib is targeting votes in Borneo with new cash transfers and infrastructure projects. In peninsular Malaysia, he promises to fix water issues in Selangor, create a new special economic zone in Kedah and build new homes in Penang. The government would also resurrect mothballed housing projects and launch a new bank for home loans on properties valued below MYR300,000. “We will form one agency to supervise and make sure all the housing programs will be implemented,” Noh Omar, minister of urban wellbeing, housing and local government, told the FT on Saturday night. The minister declined to comment when asked what message the government had for voters concerned by the allegations of mismanagement at 1MDB. An election date has yet to be set but 14.9m registered voters will go to the polls within weeks. Mr Mahathir told the FT he believes a large swing will be required to win a gerrymandered electoral map in which ethnic Malay voters are afforded greater say than other sections of society. Minority communities tend to prioritise provision of state services and economic performance at the ballot box, but some survey data indicate that Barisan Nasional retains the trust of the Malay majority. Afi Asryi, 22, was one of the few voters at the stadium on Saturday night who was receptive to Mr Mahathir’s platform of governance reform. A weary-looking Mr Asyri leaned against his orange food truck after a lucrative shift selling kebabs to the thousands of BN supporters. “Najib,” he said, scrunching his face while reaching for a hand-towel hanging around his neck. “Maybe at first he was good, but that was a long time ago.” Opposition candidates will have to hope that view is echoed by millions of other voters who have never witnessed a change of government. Shera Ghazali, 22, will also vote for the first time and is unmoved by Mr Mahathir’s criticism of the government management of 1MDB. “I don’t like to take this issue too seriously,” she said, dressed in a Barisan Nasional blue shirt. “My grandfather supported BN; for me it’s generational.”