Newly elected President of Dhaka Chamber, Shams Mahmud on Monday demanded single digit loan facility for the SMEs. "Micro credit and banking loan to SMEs are different thing. Some of the private sector companies are now availing foreign funds as their credit source but it would be better for all to keep in between the target", Shams added.
Newly elected President of Dhaka Chamber of Commerce & Industry (DCCI) Shams Mahmud snapshots some of the major player of the economy and shared his priorities for the year 2020 to the newsmen addressing the maiden meet the press since assuming office as President on MOnday at the DCCI Bhaban, Matijheel in the capital.
He made a presentation that covered Export Diversification, Skill Development, Economic Diplomacy, Capital Market, Energy Security, 4IR, VAT & TAX, FDI & Doing Business & FDI, Research & Innovation, Infrastructure, SMEs and SDG.
Shams Mahmud said RMG is our only largest export earning sector, but we need to develop other sectors as well to backup RMG. To promote other sectors he urged for bonded warehouse facility, back to back LC to leather made products, tax rebate and new technology adoption. He also said nearly 80% of exports are destined to North America and Europe and products sophistication has remained almost static.
According to a study of a2i, around 40% of all employment of Bangladesh from RMG and textile, agro food, tourism and leather has a risk of loss due to automation. He thus urged for strong collaboration of National Skills Development Authority and Bureau of Manpower Employment and Training for need-based skill development.
President said said for the development of SME, DCCI is going to establish a Research & Innovation centre (RnI)giving it a separate entity. RnI will do necessary research for the SME, first of its kind initiated by DCCI. DCCI will also work for the up-skilling of entrepreneurs and startups. He also emphasized proper implementation of SME Policy.
DCCI leader said in terms of world-wide political and economic situation, we are in a critical crossroads. To control NPL, he suggested to figure out willful defaulters. But if someone fails to repay his loan due to delayed power or energy connections, he should not be considered as willful defaulters. He said soaring NPL would increase cost of doing business as it fuels cost of borrowers.
He expressed his hope that the commitment of the government of cutting down lending rate to single digit would come into effect from April this year. "We have to have a secondary bond market, said Shams Mahmud. We welcome Prime Minister's intervention and her six concrete directions to revive the stock market.
He also urged to allow company buy back system and good governance", he added. Presently VAT rebate is allowed for 15% VAT quota but he demanded VAT rebate facility for other slabs like 5%, 7%, 7.5% and 10% VAT quota. VAT rebate in 5%, 7%, 7.5% and 10% slabs would boost SMEs, he informed.
Quality of electricity is equally important as its price is, Said Shams Mahmud. We are surplus in electricity generation now, but he requested to allow private sector for distribution and transmission of energy.
Factories those are using green technology and successful to cut down consumption should get incentives, he suggested. In terms of global political context, we have to reduce fuel import dependency. Moreover we need to encourage local explorer to allow gas exploration, he said.
Other office bearers of the DCCI along with the officials concerned of the chamber were present on the occasion.
