Malaysians plan investment in Bangladesh's electronics, ceramics, edible oil

Malaysian entrepreneurs have identified electronics, ceramics and edible oil as major areas for investment in Bangladesh.

A 13-member Malaysian trade mission led by Federation of Malaysian Manufacturers President Dato Mustafa Mansur yesterday unveiled the investment plan while meeting officials of Board of Investment (BoI) in Dhaka.

The mission is on a five-day visit to Bangladesh to assess viability of investment.

BoI Executive Chairman Mahmudur Rahman made a presentation making an overview of competitive sectors for investment.

About incentives, the BoI chief said the government offers tax holiday of 5-7 years for foreign investment and special exemption of 15 years for power generation sector.

"We are satisfied with incentives offered to the foreign investors and keen to invest in competitive sectors," one BoI source quoted Mustafa Mansur as saying at the meeting.

The BoI chief said Bangladesh and Malaysian entrepreneurs should form strategic alliances in the form of contract production, cross licensing, merger and acquisition, market mapping to expand investment and trade co-operation, according to meeting sources.

According to the BoI, Malaysia has ranked fifth among 29 countries with $26.69 million investment during January-June, 2003.

"As Malaysian investment is mainly concentrated in telecoms sector in Bangladesh the new investment will help diversify investment," an official said.

Malaysia ranks top in world specialisation in consumer electronics with annual export of over $55 billion. Malaysia is also highly skilled in tiles manufacturing and specialised in palm oil production.

The investment registration board also invited Malaysian investment in textiles, leather, agro-processing, processed foods, steel, sugar, paper and tourism sector in Bangladesh.

After attending international conference being held in Dhaka the trade team will go to Chittagong today to meet chamber and business leaders there.

Salauddin Kashem Khan, president of Bangladesh-Malaysia Chamber of Commerce and Industry, was also present at the meeting.