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Attract more Foreign Direct Investment

  • Sun Online Desk
  • 27th February, 2022 06:07:26 PM
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Attract more Foreign Direct Investment

That Malaysia has stepped up to strengthen relations with Bangladesh is a good piece of news for the latter. The long-time friend in regards to appointing Bangladeshi workers is now showing interest in enhancing trade ties and looking for ways to set up downstream industries in Bangladesh for the commodities because of the growing furniture and footwear industries. Malaysian Minister for Plantation Industries and Commodities Zuraida Kamaruddin said businessmen of her country are actively considering setting up joint venture industries here. It will surely bring a positive impact on the economic development of our country.

Making Malaysian businessmen interested in investing in our country is an enormous success for our government that has been working for it by incorporating investment-friendly policy reform. It is for sure that with the increasing number of Bangladesh Export Processing Zones, duty-free facilities, the most liberal foreign direct investment (FDI) regime in South Asia, allowing 100% foreign equity with unrestricted entry and exit, etc. the investment environment in our country has improved to a great extent and it is still continuing to get better.

However, it is disheartening that despite the steady economic development of the country and offering special facilities to foreign investors, the FDI was very low in the last decade. Even in the previous year, the rate of FDI inflow was only around 1 per cent of GDP, one of the lowest in Asia and far below the expectation. There are also allegations that some investors went back to their country after finding long periods of waiting and hassles of overcoming many obstacles.

After graduation from LDC, Bangladesh will face different challenges, including the withdrawal of the facilities our country is currently enjoying.  Bilateral negotiations with different countries for getting some preferential treatment in exporting goods and attracting foreign investment as much as possible will be viable options to face that challenges. Therefore, it is expected that instead of becoming complacent about Malaysian traders' interest to invest here, the authorities concerned would work harder to strengthen our position in the global market as a major FDI destination and remove the deterrents responsible for the high cost of investment.

Source: Sun Editorial