The country took a successful stride forward in attracting foreign investment thanks to the Bangladesh Investment Summit in Singapore on December 4.

Organised by the publications FinanceAsia and AsianInvestor, the summit aimed to showcase trade and investment opportunities in Bangladesh to Asia's sovereign wealth funds, family offices, public and private pension funds and other investors.

Sponsored by Standard Chartered Bangladesh, City Bank and Deutsche Bank, the daylong event at Marina Bay Sands was attended by high-level personnel from some 250 companies.

“This country of 160 million has enjoyed about 10 years' worth of steady, impressive growth. Its economy has grown by 6.2 percent per annum for the past five years despite the global financial crisis,” said Finance Secretary Fazle Kabir during his keynote speech.

He added that the government is aiming to make Bangladesh a middle-income country by 2020 and has a good momentum going into it.

"Already its per capita income has more than doubled over the past decade to over $800, and is on track to soon reach $1,000,” Kabir said, while citing Bangladesh's billing in Goldman Sachs' 'Next 11' list.

Bangladesh Bank's (BB) Chief Economist Dr Hassan Zaman said the central bank and the securities regulator are reviewing the impediments to foreign investment at present.

According to Zaman, BB is currently reviewing its Foreign Exchange Act with an eye on liberalising how the country deals with foreign capital.

He added there were no barriers to entry as long as firms met “fit and proper” requirements and said that regulators would conduct necessary due diligence.

The BB chief economist further said the country would welcome foreign banks seeking to put operations on the ground, adding there is “plenty of room for competition”.

Jim McCabe, the chief executive officer (CEO) of Standard Chartered Bangladesh, highlighted the success of the country's textiles and readymade garment sectors.

“But several other sectors such as pharmaceuticals and ceramics have already gained a strong foothold in the global marketplace. The potential of jute and its by-products is also immense.”

McCabe mentioned of the country's low-cost efficient labour force, and that the population of 160 million provides a “lucrative” market for products and service.

“We've already seen great performances in the FMCG [fast-moving consumer goods] and telecommunications sectors.”

He also said that the BB was doing a “fantastic job” improving the regulatory framework and upgrading the quality of the system itself.

City Bank's Managing Director K Mahmood Sattar reiterated McCabe's views, saying: “Banks in Bangladesh could provide advisory services to give foreign investors some comfort that the country has regulation and process and offers a safe exit from deals.”

While terming the country's regulatory regime as “very proactive and progressive”, LR Global Bangladesh's CEO Reaz Islam said more development in terms of human resources and technology are needed to cope with industry growth.

News: The Daily Star/Bangladesh/10th-Dec-12