Reza Mahmud :
Md. Shafiul Islam Mahiuddin, Managing Director of Onus Group, is a president candidate of the upcoming FBCCI election scheduled to be held on May 14.
He shared his views with The New Nation (NN) as a former business leader of different trade bodies and future plan of action for the well-being of the business community if he was elected to lead the Federation of Bangladesh Chamber of Commerce and Industry, the country’s apex trade body.
NN: How confident you are about winning of your panel in the upcoming FBCCI election?
Mahiuddin: I am hundred percent hopeful of our panel’s winning. Because, we are getting huge responses from the voters whereever we go. The businessmen assure us of voting in full panel.
NN: If you are elected then what will be your main focus to boost business? What issues will get priority?
Mahiuddin: We will help the government to make a business friendly policy. The government is telling about development roadmap of 2021 and 2041. We have achieved MDG and are working for achieving SDG.
Our Parliament passed over three lakh crore taka budget for the current fiscal year. Our per capita income now reached around US$ 1400 which is a prestigious stage.
Prime Minister Sheikh Hasina has declared to achieve the poverty free country in her road maps. All of these are lots of challenges. If we wanted to continue the pace of development and win the challenges we must give priority to research for proper use of our resources.
As an example, we have to decide how to utilize our national resources like gas. We have to
decide whether we will use it in household purpose, industrial production or as raw material of producing fertiliser. For an example, we now produce 10 megawatts of electricity. But it was not using properly. For this, there should be some research works by some business bodies for the appropriate use of electricity.
On the other hand, the government plans to import LMG. But only importing of LMG will not be sufficient. If the price was fixed higher then it would not be fruitful for industrialization. So the government should keep the price low, if necessary it should give subsidy. We will cooperate to take necessary policies to create environment for sustainable economic development.
NN: There are angers among the small traders about the Value Added Tax (VAT). What are you thinking about the matter?
Mahiuddin: There are 2,24,00,000 small businessmen in the country. They have huge contribution in our national economy. We must protect their interests as a national interest. There are some complexities about the government imposed VAT on the small traders. They traditionally do not keep their accounts, but the government wants them to take under transparent accounts.
In the mean time, the small businessmen observed strike against the imposition of VAT rate on them. We are trying to negotiate with the government to consider the small traders’ demands. In future we will work closely to protect their interests.
NN: According to international reports of standard, ‘doing business’ is not easy in Bangladesh. What is the cause behind it you think?
Mahiuddin: According to World Bank’s “Ease of Doing Business 2017: Equal Opportunity for All” report, Bangladesh ranks 176 among 190 economies in the world. It is unfortunate. The government is trying to resolve the problems of doing business here by creating Bangladesh Investment Development Authority (BIDA). The body is trying to remove all difficulties in doing business. If elected, we would work closely with BIDA to create an environment for entrepreneurs in the country.
NN: The government imposes VAT while issuing trade license to new entrepreneurs and businessmen. They think it make them disheartened to start business, what you think?
Mahiuddin: The FBCCI protested it as I am the First Vice-President of the apex body for businesses. Collecting VAT, before starting a business is really disheartening. We have immediately talked with the Local Government and Rural Development Secretary that it should not collect VAT before starting business. He also agreed with us. He assured us to solve the matter talking with other stalk holders. In future we must try to make the National Board of Revenue to understand the bad impacts of the matter.
NN: The country’s two Stock Exchanges could not regain trust of investors after devastating fall of the stock markets in 2010-2011. As the main source to raise funds for the industrial sector what you thinking about our share markets?
Mahiuddin: It is true that the Stock markets could not regain trust as we hoped. It is a big challenge to build confidence among the investors to invest their money in the stock markets. If we could achieve trust of small investors we might be able to build the Padma Bridge collecting money from our stock exchanges. It is highly necessary to make the stock markets stable to create an industry friendly environment. Our investors need to get proper training before investments in the markets. They should judge the real conditions of companies rather than hearing rumors before they invest their money.
NN: What would you think about getting easy loans for the new entrepreneurs?
Mahiuddin: The larger business owners getting facilities of 9 percent interest in bank loans while the small traders need to pay 12 percent interest to banks. It is not fare. The big merchants frequently become defaulters while the small businessmen repay hundred percent of their loans. I have a plan to create a special desk for new entrepreneurs to inform them about easy loan systems from different banks.
NN: What would be your steps to make the youths as future entrepreneurs to boost SME?
Mahiuddin: The government has kept the cottage industries out of VAT. The industries with a capital of TK 40 lakh are considering as cottage industries. The youths should take the chance. We should remember that without rising of Small and Medium-Sized Enterprises, the economic development is not possible. The government should take various policies to boost SME in the country.
We have chosen some young director candidates in our panel. We will give the liability to the young directors to create new entrepreneurs by applying their own experiences. Our help desk will extend cooperation to the youths to make them entrepreneurs.
NN: The government has given priority on Direct Foreign Investment (DFI). But the FDI is not at the desired level. What are the barriers there?
Mahiuddin: Yes, there are some barriers here on the way of FDI. The foreign investors could not get one stop services.
The government should assure them uninterrupted supply of gas and electricity. The foreign investors also want to get fair political environment.
The government has brought the Joint-Stock registry system in online. The other facilities should be ensured soon.
NN: What are you thinking about the hi-tech industries in Bangladesh?
Mahiuddin: There are very few hi-tech industries in Bangladesh. There is a negotiation going on to establish automotive industries in the country which will produce motor cars here. There are huge potentials about IT sectors also.
NN: How you want to work to make a business friendly national budget if elected?
Mahiuddin: To boost our economy we must make a business friendly budget. We will ask the government not to make burden on certain groups like businessmen. The government should expand the coverage of taxes.
Md. Shafiul Islam Mahiuddin, Managing Director of Onus Group, is a president candidate of the upcoming FBCCI election scheduled to be held on May 14.
He shared his views with The New Nation (NN) as a former business leader of different trade bodies and future plan of action for the well-being of the business community if he was elected to lead the Federation of Bangladesh Chamber of Commerce and Industry, the country’s apex trade body.
NN: How confident you are about winning of your panel in the upcoming FBCCI election?
Mahiuddin: I am hundred percent hopeful of our panel’s winning. Because, we are getting huge responses from the voters whereever we go. The businessmen assure us of voting in full panel.
NN: If you are elected then what will be your main focus to boost business? What issues will get priority?
Mahiuddin: We will help the government to make a business friendly policy. The government is telling about development roadmap of 2021 and 2041. We have achieved MDG and are working for achieving SDG.
Our Parliament passed over three lakh crore taka budget for the current fiscal year. Our per capita income now reached around US$ 1400 which is a prestigious stage.
Prime Minister Sheikh Hasina has declared to achieve the poverty free country in her road maps. All of these are lots of challenges. If we wanted to continue the pace of development and win the challenges we must give priority to research for proper use of our resources.
As an example, we have to decide how to utilize our national resources like gas. We have to
decide whether we will use it in household purpose, industrial production or as raw material of producing fertiliser. For an example, we now produce 10 megawatts of electricity. But it was not using properly. For this, there should be some research works by some business bodies for the appropriate use of electricity.
On the other hand, the government plans to import LMG. But only importing of LMG will not be sufficient. If the price was fixed higher then it would not be fruitful for industrialization. So the government should keep the price low, if necessary it should give subsidy. We will cooperate to take necessary policies to create environment for sustainable economic development.
NN: There are angers among the small traders about the Value Added Tax (VAT). What are you thinking about the matter?
Mahiuddin: There are 2,24,00,000 small businessmen in the country. They have huge contribution in our national economy. We must protect their interests as a national interest. There are some complexities about the government imposed VAT on the small traders. They traditionally do not keep their accounts, but the government wants them to take under transparent accounts.
In the mean time, the small businessmen observed strike against the imposition of VAT rate on them. We are trying to negotiate with the government to consider the small traders’ demands. In future we will work closely to protect their interests.
NN: According to international reports of standard, ‘doing business’ is not easy in Bangladesh. What is the cause behind it you think?
Mahiuddin: According to World Bank’s “Ease of Doing Business 2017: Equal Opportunity for All” report, Bangladesh ranks 176 among 190 economies in the world. It is unfortunate. The government is trying to resolve the problems of doing business here by creating Bangladesh Investment Development Authority (BIDA). The body is trying to remove all difficulties in doing business. If elected, we would work closely with BIDA to create an environment for entrepreneurs in the country.
NN: The government imposes VAT while issuing trade license to new entrepreneurs and businessmen. They think it make them disheartened to start business, what you think?
Mahiuddin: The FBCCI protested it as I am the First Vice-President of the apex body for businesses. Collecting VAT, before starting a business is really disheartening. We have immediately talked with the Local Government and Rural Development Secretary that it should not collect VAT before starting business. He also agreed with us. He assured us to solve the matter talking with other stalk holders. In future we must try to make the National Board of Revenue to understand the bad impacts of the matter.
NN: The country’s two Stock Exchanges could not regain trust of investors after devastating fall of the stock markets in 2010-2011. As the main source to raise funds for the industrial sector what you thinking about our share markets?
Mahiuddin: It is true that the Stock markets could not regain trust as we hoped. It is a big challenge to build confidence among the investors to invest their money in the stock markets. If we could achieve trust of small investors we might be able to build the Padma Bridge collecting money from our stock exchanges. It is highly necessary to make the stock markets stable to create an industry friendly environment. Our investors need to get proper training before investments in the markets. They should judge the real conditions of companies rather than hearing rumors before they invest their money.
NN: What would you think about getting easy loans for the new entrepreneurs?
Mahiuddin: The larger business owners getting facilities of 9 percent interest in bank loans while the small traders need to pay 12 percent interest to banks. It is not fare. The big merchants frequently become defaulters while the small businessmen repay hundred percent of their loans. I have a plan to create a special desk for new entrepreneurs to inform them about easy loan systems from different banks.
NN: What would be your steps to make the youths as future entrepreneurs to boost SME?
Mahiuddin: The government has kept the cottage industries out of VAT. The industries with a capital of TK 40 lakh are considering as cottage industries. The youths should take the chance. We should remember that without rising of Small and Medium-Sized Enterprises, the economic development is not possible. The government should take various policies to boost SME in the country.
We have chosen some young director candidates in our panel. We will give the liability to the young directors to create new entrepreneurs by applying their own experiences. Our help desk will extend cooperation to the youths to make them entrepreneurs.
NN: The government has given priority on Direct Foreign Investment (DFI). But the FDI is not at the desired level. What are the barriers there?
Mahiuddin: Yes, there are some barriers here on the way of FDI. The foreign investors could not get one stop services.
The government should assure them uninterrupted supply of gas and electricity. The foreign investors also want to get fair political environment.
The government has brought the Joint-Stock registry system in online. The other facilities should be ensured soon.
NN: What are you thinking about the hi-tech industries in Bangladesh?
Mahiuddin: There are very few hi-tech industries in Bangladesh. There is a negotiation going on to establish automotive industries in the country which will produce motor cars here. There are huge potentials about IT sectors also.
NN: How you want to work to make a business friendly national budget if elected?
Mahiuddin: To boost our economy we must make a business friendly budget. We will ask the government not to make burden on certain groups like businessmen. The government should expand the coverage of taxes.
