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Jobike hits Dhaka streets

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Jobike hits Dhaka streets

The bicycle rental firm expands service after success in pilot schemes

Bicycle rental company Jobike yesterday rolled out its service in Dhaka, a year after its successful piloting in Cox’s Bazar, as part of its plan to transform the two-wheelers as one of the main modes of transport in the congested city.

In Dhaka, the service will be provided in Mirpur DOHS with 50 bicycles on a pilot basis.

To rent a bicycle from Jobike, one has to download the mobile application and open an account. The app would show the nearby docks with available bikes. After entering the payment information a QR code will be provided, which needs to be scanned to unlock the bikes from the dock.

In Dhaka, for each minute the rider will be charged Tk 1, and the bicycles must be returned to the point where they were taken from.

Jobike has appointed some retail points around their service area, where riders can top-up their account balance and pay for their service.

The company is now working with mobile financial service provider bKash and within next one month customers will be able to pay through the platform.

After getting huge response in Cox’s Bazar, the company rolled out commercial operations on the campus of two public universities: Jahangirnagar and Chittagong.

“We have received extraordinary responses from our customers in the three places, so we are now launching it in the capital,” said Mehedi Reza, founder and chief executive of Jobike.

Currently, 100 two-wheelers are running in Jahangirnagar University, 50 in Cox’s Bazar, and another 50 in the University of Chittagong.

This week the start-up will add another 50 bikes in the University of Chittagong as the demand is very high, Reza said. “A few days ago, students chanted slogans demanding an increase in bike numbers.”

The company is also working to roll out the service in Bashundhara residential area within the next two months, said Reza, adding that there were also plans to cover Gulshan, Baridhara, Uttara and Dhanmondi.

As of now, the Internet of Things-based specially-designed bicycles are being used 3,000 times a day. The Jobike application has already been downloaded 35,000 times and it is increasing every day.

The company plans to cover major parts of the country within a year.

“This will help in building clean and smart cities in Bangladesh,” said Reza, also a former product operations manager at Alibaba Group, the world’s largest online trading company.

With bicycles being an environment-friendly mode of transport, the rental service is very popular in large cities such as London, New York, Melbourne, Paris, Madrid, Copenhagen and Singapore.

Tyre market grows on rising demand

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Tyre market grows on rising demand

Jagaran Chakma

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The automotive tyre market is flourishing in Bangladesh thanks to increasing sales of commercial and passenger vehicles fuelled by expanding economic activities and affluent consumers.

The market size of automotive tyres reached Tk 4,750 crore last year, up from about Tk 4,000 crore in 2017 and Tk 3,000 crore in 2015, according to market players.

The commercial vehicle tyre segment dominates the industry with the market size standing at Tk 3,750 crore. At least 1.5 lakh pieces of tyres in the segment were sold in 2018.

Besides, 1 lakh pieces of tyres used in private cars were sold last year amounting to Tk 1,000 crore, said Mohammed Shahidul Islam, chairman of HNS, an importer of Korean Hankook tyre brand.

“The tyre market has been growing very fast for the last 10 years riding on the back of an increasing number of commercial vehicles and diversifying economic activities,” said Nazrul Islam, general manager of Veloxo Trading Ltd, the sole importer of Indian tyre MRF.

In the commercial vehicle tyre segment, the MRF’s market share is 30 percent. Apollo controls 5 percent of the segment, Birla 10 percent, CEAT 3 percent, and Hankook 1 percent. The rest 51 percent is controlled by non-branded Chinese tyres.

In the private car tyre segment, the combined share of Japanese brands Yokohama, Bridgestone and Toyo and US brand Dunlop stands at about 70 percent. Thai brand Maxxis owns 20 percent share, Korean brand Hankook 2 percent, and non-branded Chinese tyres the rest 8 percent.

Shahidul Islam said private car users preferred premium quality tyres for reliability and the value for money. Mojibur Rahman Sheikh, manager of The Tyre & Battery Bazar, a retailer in the city’s Karwan Bazar, says Japanese tyre brands are popular among consumers. There is also good demand for Thai and Korean tyres.

There are two types of tyres in terms of manufacturing: bias and radial.  And 90 percent owners of commercial vehicles use bias tyres to minimise cost.

However, radial tyre is getting popular thanks to its longevity compared to bias tyres, said Amzad Khan Raju, managing director of Shawan International, an importer of Maxxis tyre.

“The future of the tyre market is bright as the number of cars is increasing at least by 10 percent a year,” he said.

Foreign satellites will have to pay fees

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Foreign satellites will have to pay fees

Regulator framing rules for firms doing business in Bangladesh.

Muhammad Zahidul Islam

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The telecom regulator is set to formulate regulations to establish the country’s satellite landing rights with a view to regulating the operations of foreign satellite companies doing business in Bangladesh.

Landing rights are permissions that operators must obtain for their satellites to be used in a particular country.

But in the absence of regulations, foreign satellite companies are providing services to local entities, including television channels, without taking any permission from the regulatory body.

Not only that, the government is also being deprived of revenue from the segment as the foreign companies do not pay anything to the national exchequer, said officials of the Bangladesh Telecommunication Regulatory Commission (BTRC).

“We have no clear idea about the satellite business of our country and it needs to be fixed first for Bangabandhu-1 to succeed commercially,” said Md Jahurul Haque, acting chairman of the telecom regulatory body.

Bangladesh successfully sent its own satellite Bangabandhu-1 into the orbit in May. It is already serving some of the local television channels.

Once the guidelines are finalised, foreign companies would require regulatory approval for entering Bangladesh along with payment of fees.

A senior official of Bangladesh Communication Satellite Company Limited (BCSCL) said they are facing huge challenges in getting the satellite landing rights in different countries but satellite companies are facing no challenges in Bangladesh and are not paying any money to the country’s coffer.

In a recent meeting, the BTRC has formed an 11-member committee headed by Md Aminul Hassan, commissioner of its spectrum department, with representatives from the telecom and information ministry, Bangladesh Television and BCSCL.

The committee will finalise the fees and charges for the landing rights. It will look into the practices of other countries before formalising them, said a member of the newly formed committee.

Not just for television channels, the country needs satellite service to ensure connectivity in the remotest places and for other digital services, all of which Bangabandhu-1 will be capable of providing, officials said. In March 2013, the telecom regulator had formed a committee in this regard but that never got to work and its convener later died.

Kamal in denial about bad loan situation

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Kamal in denial about bad loan situation

Star Business Report.

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Bangladesh’s non-performing loan situation is not as dire as is being reported in the news media, said Finance Minister AHM Mustafa Kamal.

As of September last year, NPL accounts for 11.45 percent of the banking sector’s total loans, according to Bangladesh Bank data.

In terms of amount, it stood at Tk 99,370 crore — the largest yet in Bangladesh’s 48-year history.

The rate of NPL is far higher in other countries, including the neighbouring India, Kamal told reporters after a meeting with the Bankers Association of Bangladesh (BAB) at his office yesterday.

At the end of September, the rate of NPL was 10.58 percent in India. In Pakistan it was 8.3 percent, as of March 2018.

“Everybody is worried about NPL. But the way it is reported in the media, it is not so high,” Kamal said, while instructing the central bank and the financial institution division to evaluate the information.

The new finance minister went on to assert that the total NPLs will not increase by even a penny going forward.

“As of today, what is on the balance sheet will remain the same — it will not increase in anyway.”

He said he held the meeting with the bank owners on the condition that the sector’s NPL cannot increase going forward.

“It is your matter now how the NPL will be managed or reduced.”

Quoting the bank owners, Kamal said they have assured him that the NPL will not edge up further.

“With the government’s assistance and our own efforts the NPL will not increase from today,” said Nazrul Islam Mazumder, chairman of the BAB.

In response to a question from a reporter, Kamal said all businessmen are influential.

Asked whether he would take any actions against the influential businessmen who do not pay back loans, Kamal sought for a specific list of names from reporters that he will verify.

“If the businessmen do not become influential, how will investment come? From where will employment come and how will poverty be reduced?”

Influential businessmen account for 82 percent of the economy and it is impossible to run the economy without them, he said. “Your idea about the people is your perception.”

FAO, WFP, IFAD to continue collaboration with Bangladesh

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FAO, WFP, IFAD to continue collaboration with Bangladesh

Finance minister says after meetings in Rome.

Star Business Report

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Three global organisations—the Food and Agriculture Organisation (FAO), World Food Programme (WFP) and International Fund for Agricultural Development (IFAD)—assured of continuing its long-standing collaboration with Bangladesh.

The heads of the three Rome-based agencies of the United Nations expressed the willingness in three separate meetings with Finance Minister AHM Mustafa Kamal on Wednesday.

All the three meetings were held in Rome, the finance ministry said in a statement yesterday.

The leaders of the agencies appreciated the initiatives taken by the government to fight against poverty and hunger, according to the statement.

They also highly appreciated the unprecedented move of Bangladesh by extending shelter to the forcibly displaced Rohingya people.

David Beasley, executive director of the WFP, recalled his recent visit to Bangladesh and lamented the inhuman events the displaced Myanmar nationals had been going through.

He highlighted their commitments to support Bangladesh in its move towards eradicating poverty and hunger.

Recently, WFP has increased its assistance from $531 million to $969 million for the displaced Rohingyas.

José Graziano da Silva, director general of the FAO, praised Bangladesh for its remarkable progress and mentioned its $300 million support to Bangladesh through 316 national projects since the inception of its cooperation.

He informed that currently, FAO has been implementing a total 36 projects involving $98.3 million in the areas of food security, food safety and improving food system. The FAO chief also informed its immediate and longer-term support, along with the World Food Programme (WFP), for the forcibly Rohingyas.

Since its inception in 1978, IFAD has provided $18.5 billion in grants and low-interest loans to projects that have reached about 464 million people, said Gilbert F Houngbo, president of the IFAD.

Moreover, IFAD has invested $717.2 million in loans and grants for 33 rural development projects, improving the livelihoods of 1.11 crore households, he added.

The finance minister said Bangladesh has made a commendable progress in achieving food security, despite frequent natural disasters and population growth, mostly contributed by 88 percent smallholders (small and marginal farmers) having just 0.05 to 2.49 acres of land.

Kamal is now at Rome in Italy to attend the 42nd Session of the governing council meeting of the IFAD that began yesterday.

ADB reaffirms commitment to Bangladesh

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ADB reaffirms commitment to Bangladesh

The lenders vice president meets PM Sheikh Hasina.

Star Business Report

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The Asian Development Bank (ADB) has reaffirmed its plans to strengthen partnership and boost assistance to Bangladesh, said the Manila-based lender yesterday.

Shixin Chen, vice-president of the ADB, reaffirmed the lender’s commitment for Bangladesh during a meeting with Prime Minister Sheikh Hasina at her office on Tuesday.

Chen came to Dhaka on February 11 for a three-day visit. He interacted with the people sheltered in the Rohingya camps, visited project sites and the site office under the ADB’s emergency assistance project in Cox’s Bazar.

Chen held discussions with Mashiur Rahman, economic affairs adviser to the prime minister, and Monowar Ahmed, secretary of the Economic Relations Division and ADB’s alternate governor. Bangladesh has made huge strides in reducing poverty and sustained average growth of more than 6.5 percent over the last decade, achieving a record 7.9 percent GDP growth last year, Chen said in a statement.

“The main challenges ahead are to increase investments—both public and private—to close infrastructure gaps and to invest in human capital with a focus on boosting skills of the labour force.”

Chen assured officials of ADB’s commitment to remain a dependable partner of Bangladesh, responding flexibly to the country’s evolving needs.

ADB’s current country partnership strategy for 2016–2020 aims at a programme of more than $8 billion, compared with $5 billion during 2011–2015. The ADB’s operations will address infrastructure development, rural infrastructure, skills development, and climate and disaster resilience.

The lender said it would continue to support Bangladesh’s regional cooperation and integration efforts, particularly in electricity-sharing with neighbours and developing regional transport corridors.

In 2018, the ADB committed a record $2.15 billion in assistance to the country. This included a grant of $100 million as the first phase of a projected $200 million support for the immediate needs of people sheltered in the camps in Cox’s Bazar.

The project is supporting the improvement of water supply and sanitation, disaster risk management, sustainable energy supply, and access roads. Chen also visited the National Load Dispatch Center under the Southwest Transmission Expansion Project and the Bangladesh Association of Software and Information Services under the Skills for Employment Investment Programme.

Tourism sector needs policy support to thrive: experts

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Tourism sector needs policy support to thrive: experts.

Food and hospitality expo begins in city.

Star Business Report.

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The tourism and hospitality sector of Bangladesh needs policy support from the government to boost its contribution to the economy, said sector people yesterday.

“We are ready to provide world-class hospitality and tourism facilities. We need policy support from the government,” said HM Hakim Ali, chairperson of the Bangladesh International Hotel Association (BIHA).

He said people have no idea about the contribution of the sector – it broadens the country’s image globally.

His comments were backed by Masud A Khan, chairman of the Better Bangladesh Foundation (BBF).

“At least 13 people directly benefit from a tourist, so it is too easy to calculate the contribution of the sector.”

They spoke on the first day of the “Food and Hospitality Bangladesh Expo 2019” at the International Convention City Bashundhara in the capital. The BIHA and the Wem Bangladesh Limited jointly organised the three-day event.

The tourism and hospitality sector directly and indirectly accounts for 8.5 percent of the country’s gross domestic product (GDP), according to sector players.

The sector has huge potential to flourish along with other sectors, they said. Ali said only the private sector can bring significant change to the tourism sector through food and hospitality.

He gave the example of Thailand and Nepal where the major revenue for the governments comes from the tourism sector.

According to Ali, global chains of hotels are eying the Bangladesh market and are operating five-star hotels in the country. “This indicates that the country has good opportunity to grow the sector.”  BBF’s Khan suggested the government be more liberal about the sector to attract foreign tourists.

Land Minister Saifuzza-man Chowdhury, who inaugurated the exposition, said: “Without the private sector, the tourism sector will not advance in Bangladesh. The sector can unfold the natural beauty of Bangladesh through hospitality and food.”

Akhtaruz Zaman Khan Kabir, chairman of the Bangladesh Parjatan Corporation, and Mohd Noor Ali, managing director of Unique Group, were also present. Around 70 exhibitors from seven countries including India, Thailand, Malaysia, China, Italy, Spain and Bangladesh are taking part in the fair.

 

Bangladesh a potential market for foreign foods

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Bangladesh a potential market for foreign foods

Food and hospitality fair ends.

Jagaran Chakma.

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Bangladesh could become a potential market for quality foreign foods as its economy has been witnessing consistent growth for over a decade.

The growing upper middle class who travel abroad like to enjoy foreign food and expect best hospitality services which act as one of the growth drivers of the sector, according to participants of a three-day food and hospitality fair ending yesterday.

“We started importing foreign food targeting the foreigners in Bangladesh 20 years ago. Now local affluent class has become potential consumers of quality foreign foods,” said Parvez Ahamed, general manger of Foodex International. Foodex started its journey in 1997 and has become one of the leading sellers and distributors of foreign foods, including potato chips, energy drinks and juices.

Ahamed said his firm supplies foreign food items to hotels of different star ratings and posh restaurants in Dhaka.

Echoing Ahamed, Golam Siddique Ali, chief operating officer of Noor Trade House, said there were opportunities for this business in Bangladesh as the demand was growing with the pace of the economic growth.

He, however, said they had no reliable data regarding the market size of the foreign food demand and growth rate.

He said his company imported food items from the US, Australia and Europe and supplied it to cafés, hotels and superstores in the country. “Safety and quality of foods matter,” Ali said.

Mohammad Mominul Haque, manager (sales and marketing) at the Beans and Berries, said quality and safe food could bring consumers to restaurants.

Also, there is a relationship between food and hospitality that helps to improve the tourism sector as well, he said.

Radisson Blu Dhaka Water Garden, Hotel Sarina and Pan Pacific Sonargaon Dhaka took part in the fair. Representatives of the hotels said they joined the show just for branding and building up business relations with other players in the market.

Transcom Beverages and Seagull Hotel were also there.

Md Mohsin Hoq Himel, secretary of Bangladesh International Hotel Association, said the fair brought a number of food and hospitality service providers under a common platform, which would help expand their business.

Similarly Nasimur Rahman, director for marketing at Wem Bangladesh Ltd, co-organiser of the fair, believes the event increased networking among entities of related fields.

Siemens to build LNG power plant in Payra

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Siemens to build LNG power plant in Payra

Unb, Munich.

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The Power Division of Bangladesh and Siemens of Germany on Friday initialled a joint development agreement for the construction of a 3,600MW LNG power plant at Payra in Bangladesh.

The document was signed following a meeting of Siemens CEO Joe Kaeser with Prime Minister Sheikh Hasina at the Sheraton hotel in Munich, Germany where Hasina is staying.

CEO of North West Power Generation Company of Bangladesh Khorshed Alam and Chief Executive Officer and Global President of Siemens Joe Kaeser signed the document.

Briefing reporters after the meeting, Foreign Secretary Md Shahidul Haque said the power plant was the initial part of Siemens’ plan to come to Bangladesh in a big way to invest in health, education and other sectors.

Later, Hans Wolfgang Kunz, CEO of German company Veridos, met Hasina at the hotel.

Wolfgang informed the prime minister about the progress of manufacturing e-passports for Bangladesh, saying that the company would be able to hand over the first batch by June next.

The Veridos CEO said from a technological point of view, such e-passports were very much advanced and would only be used in two countries, Germany and Bangladesh. It is almost impossible for the passport to be forged. Kunz expressed interest in data processing and other sectors, the foreign secretary said, adding that the company has a plan to invest in a greater way in Bangladesh.

Foreign Minister AK Abdul Momen, Principal Secretary Md Nazibur Rahman, Foreign Secretary Md Shahidul Haque, PM’s Press Secretary Ihsanul Karim, Power Division Secretary Ahmad Kaikaus and Bangladesh Ambassador to Germany Imtiaz Ahmed were present.

Big investors seek Accord’s continuation

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Big investors seek Accord’s continuation

They sent a letter to PM.

Refayet Ullah Mirdha
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A group of investors representing $3.1 trillion in assets appealed to the prime minister to let Accord operate until the government is fully capable of ensuring the safety of the workers employed in upwards of the 1,600 garment factories covered by the platform.

The request comes as the government is opposed to the proposition of the Accord continuing its work in Bangladesh uninhibited for three more years.

After much request, the government has agreed to allow the Accord to continue operations under a set of highly restrictive constraints that include prohibiting its inspectors from identifying any new safety violations in factories.

The Accord appealed against such restrictions and a hearing on it is scheduled to be held at the Supreme Court tomorrow.

“As investors, we are concerned,” said the letter from a group of 190 investors from 12 countries on February 12 under the banner of Bangladesh Investor Initiative.

The letter was coordinated by the Interfaith Centre on Corporate Responsibility (ICCR). David Schilling, senior programme director for human rights and resources at the ICCR, signed the letter.

Despite significant progress on worker safety measures, the Accord’s work is not complete yet, it said. Bangladesh government’s Remediation and Coordination Cell (RCC) does not have the capacity nor has it demonstrated the willingness to inspect factories to the same standards, it added.

A transition plan for factory inspections, safety trainings and a worker complaint mechanism will need much more time and genuine engagement by the government.

“It is vital that the Accord be allowed to continue its inspection and remediation work until that time.”

A premature closure of the Accord would mean that the companies that depend on Bangladesh for their sourcing would not be able to exercise their responsibility to respect human rights.

“We believe the positive work done by the Accord companies and trade unions can be secured by staying the course until such time as the government of Bangladesh can fulfil its duty to protect the lives and livelihood of its workers.”

The Accord was formed in May 2013 after the Rana Plaza building collapse with the view to strengthening workplace safety in garment factories by identifying loopholes in fire, structure and electrical.

The tenure of the five-year-long legally binding Accord ended in June last year, but the government extended the tenure up to November 30 last year.