Know about market first, then invest

Planning Minister AHM Mustafa Kamal yesterday advised retail investors to know about the stockmarket before making any investment there to avoid losses.

He said the capital market is vibrant. “However, the investors should keep in mind that the stockmarket is not Karwan Bazar (a kitchen market). Before investing, they have to have knowledge about it.”

He made the comments while speaking to reporters at a meet-the-press at the National Economic Council in Dhaka. According to experts, there are many retail investors in Bangladesh who have little idea about how the market works.

So, the Dhaka Stock Exchange requests investors every day in a note before starting of the trade, saying without acquiring proper knowledge, information and experience regarding different aspects and matters of the capital market, one should not invest.

Kamal also opposed entrepreneurs borrowing from the banking system to set up industries as such loans are blamed for the rising default loans. 

“I discourage setting up of industries by taking loans from banks,” he said, adding that default loan is the lowest in China as entrepreneurs can't set up industries by borrowing from banks in the world's second-largest economy.

The minister said the default loan situation in Bangladesh is not so bad. In India, the percentage of default loan is like that of in Bangladesh.

Kamal said the capital market may be an alternative source to bankroll industries.

About the investment scenario, the minister said the government is implementing a number of mega projects, which will be completed in next three to four years. Then the government's investment will drop.

Citing a report of the International Monetary Fund, Kamal said Bangladesh is the most attractive destination for investment in South Asia.

“If electricity and energy could be ensured there would be no scarcity of foreign investors,” he said.

He said import of liquefied natural gas would start very soon. Besides, new gas fields have been found in Bhola recently. “So, there will be no problem regarding gas and power.” The minister also gave update on job creation.

A total of 37 lakh people found jobs last year, the highest in a single year. Of them, 13 lakh jobs were created in the country, while 14 lakh people switched to paid jobs from unpaid ones. 

More than 10 lakh people found jobs abroad, said the minister. 

Kamal said many indicators of the economy such as exports and remittance didn't live up to the expectation in the last fiscal year, but they are faring well in the current fiscal year.

Export and remittance inflows have increased, he said.