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Factory activity slumps by more than a quarter in April

Factory activity slumps
Factory activity slumps

Manufacturing activity in Bangladesh dropped as much as 28.78 per cent in April from a month earlier, official figures showed, in a first glimpse of the major blow the coronavirus pandemic dished out to the economy. 

It declined 25.57 per cent in April from a year earlier, according to the Quantum Index of medium and large-scale manufacturing industries, mining and electricity prepared by the Bangladesh Bureau of Statistics (BBS).

The manufacturing activity came to a screeching halt on 26 March after the government was compelled to enforce a countrywide lockdown to curb the spread of the coronavirus.

As a result, the general manufacturing production index dropped to 282.60 in April, from 396.85 in March this year and 379.71 in April last year.

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For China’s landlords, rent-to-riches dreams fade in red flag for fragile economy

For China’s
For China’s

Not yet 30, Beijing office worker Li thought she was already on her way up China’s private property ladder with two apartments bought and rented out. Then came the new coronavirus, jobless tenants leaving town and a rent falloff.

She’s one of millions of Chinese landlords who have bought apartments to let in a highway to the country’s growing middle class, many now facing a first slump in rental income.

Analysts say there’s little prospect of widespread mortgage defaults for now, and property prices continue to grow, albeit more slowly. But the rental woes underline China’s economic fragility, with the landlord legions already cutting back on spending amid their gloom.

Li, who declined to give her full name, said she had to almost halve the rent at one of her apartments between February and May to hang on to a tenant, while her own salary was slashed 25 per cent as her employer made coronavirus cutbacks.

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Lufthansa cabin crew union members back cost cut deal

Lufthansa cabin
Lufthansa cabin

Cabin crew at Lufthansa have voted overwhelmingly in favour of a deal to stop pay rises and cut hours, the UFO trade union said on Saturday as the German airline battles to rein in losses due to the coronavirus pandemic.

Lufthansa reached the deal in June with UFO, which represents 22,000 cabin crew, to reap more than 500 million euros ($592.05 million) in savings from shorter hours and an equivalent cut in pay as well as a temporary reduction in pension contributions.

Last week, the airline put German workers on notice of compulsory layoffs, saying the slump in travel and slow progress in union negotiations meant cuts were unavoidable after the carrier lost 1.7 billion euros in a single quarter.

Lufthansa, which in June received a 9 billion euro government bailout to secure its future, said last week it expected capacity to recover to only around 50% of normal by the end of 2020 and to two thirds of last year’s level in 2021.

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Malaysian economy shrinks most in over 20yrs

Malaysian economy
Malaysian economy

Malaysia’s economy suffered its worst contraction in more than 20 years during the second quarter, hit by a collapse in global trade and tough curbs to contain the coronavirus, the central bank said Friday.

The economy shrank 17.1 percent on-year in April-June — the first since the global financial crisis in 2009 and the deepest since the Asian financial turmoil 11 years before that — putting it on course for recession.

The reading was much worse than the 10.9 percent drop forecast in a survey by Bloomberg News, despite interest rates being cut to record lows.

It shrank 16.5 percent on-quarter.Wan Suhaimi Saidi, an economist at Kenanga Investment Bank, warned that the trade-dependent economy was  “heading into a recession since there is no sign of a full recovery in demand and business activity”.

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BGMEA chief urges workers not to be misguided by rumours

BGMEA chief
BGMEA chief

Dhaka, Dec 15 (UNB) – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Siddiqur Rahman on Saturday called upon the garment workers not to be misguided by the rumours spread by conspirators.

He also requested them to return to their respective workplaces at a press conference arranged by the organization on current labour situation of the RMG industry at BGMEA Bhaban in the city.

Mentioning that some factories in Ashulia and Gazipur areas were closed as the workforce refrained themselves from working for the fifth consecutive day Saturday.

Siddikur Rahman said a vested quarter has been provoking the RMG workers on their wage issue to unsettle the industry centering the imminent parliamentary election. 

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Industries not to be set up here and there: BIDA meeting

Industries not
Industries not

DHAKA, Aug 13, 2020 (BSS) – The National Steering Committee on Ease
of Doing Business today held discussions to take decision on not to
let industries to be set up here and there, rather separate zones
would be allocated for separate industries.

This was discussed at a virtual National Steering Committee meeting
on Ease of Doing Business organized by Bangladesh Investment
Development Authority (BIDA).

Chaired by Finance Minister AHM Mustafa Kamal, Commerce Minister
Tipu Munshi, Home Minister Asaduzzaman Khan, Local Government Minister
Md Tajul Islam, PM’s Adviser on Private Industry and Investment Salman
F Rahman, State Minister for Public Administration Farhad Hossain,
State Minister for Shipping Khalid Mahmud Chowdhury, State Minister
for Power, Energy and Mineral Resources Nasrul Hamid and BIDA
Executive Chairman M Sirajul Islam joined the meeting, among others,
said a Finance Ministry press release.

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‘The storm over Bangladesh economy has blown over’

'The storm
'The storm

Bangladesh might be one of only two ASEAN and South Asian economies to register positive growth in 2020 despite a global recession that is shaping up to be historic in scale, according to Standard Chartered Bank’s research team.

“The worst has passed us,” said Saurav Anand, an economist of Standard Chartered for South Asia.

The economy faced challenges between April and June,

Now, there are early signs of recovery in some pockets after the economy started opening up from June, he said at a webinar styled ‘Standard Chartered Global Research Briefing Media Engagement Session’ yesterday.

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Will attain double digit in ease of doing business index in 2021: Salman F Rahman

Salman F Rahman
Salman F Rahman

Private Industry and Investment Adviser to the Prime Minister Salman F Rahman on Wednesday said Bangladesh will attain double digit next year in the global ranking of ease of doing business.

He made the remark at a virtual meeting for the launching of three new services on the Online One Stop Service Portal of Bangladesh Investment Development Authority (BIDA).

Verification of National Identity Card, Security Clearance of Security Services Department and Land Use Clearance of Chittagong Development Authority services were formally launched through the virtual meeting.

Inaugurating the function, Salman F Rahman called upon all to work collectively to increase local and international investment.

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BMW introduces 2 Series Gran Coupe in Bangladesh

BMW introduces
BMW introduces

German car manufacturers BMW have introduced the 2 Series Gran Coupé in Bangladesh.

Executive Motors Limited who are the official dealers for BMW in Bangladesh, unveiled the first ever 2 series Gran coupe this evening through a virtual launch, according to a press release.

Christopher Wehner, Managing Director, BMW Group Asia was the honorable chief guest and gave the welcome speech, M Shamsul Arefeen, Director Operations, Executive Motors limited was present in this virtual launch. 

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Breaking records, remittance continues to beat all odds

remittance
remittance

Remittance continues to defy all expectations. It was supposed to take a massive hit due to the economic recession brought on by the global coronavirus pandemic, leaving one of the pillars of strength for the Bangladesh economy wobbling.

In reality, it is thriving.

After sending home a record $18.20 billion last fiscal year that ended on June 30, migrant workers sent in another $2.6 billion in July, which is a record for a single month.

July’s inflows were up 38.5 percent from a year earlier and 42.1 percent from the previous month, according to data from the Bangladesh Bank.

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