Luring in Asian investors

With a growth outlook of upwards of 6 percent, an overall stable credit rating, a sizeable youthful and flexible demographic, and a Goldman Sachs billing of 'one to watch out', Bangladesh presents a rather compelling investment case.

But all too often it gets buried under the news of natural or man-made disasters or political strife. In other words, the investment case for Bangladesh could do with some publicity.

So, enter: the Bangladesh Investment Summit, the brainchild of Standard Chartered Bangladesh that provides a platform for the country's regulators, government high-ups, banks and corporates to market the land's opportunities to foreign investors and just pique interest.

“It will not be a challenge for Bangladesh to raise money to help meet its development needs as positives about the country are greater than the negatives,” said Abrar A Anwar, chief executive of SCB.

Bangladesh will have to spend $7.4 billion to $10 billion a year until 2020 to bring its power grids, roads and water supplies up to the standards needed to serve its growing population, according to the World Bank.

Now in its third year, Bangladesh Investment Summit is slowly but nimbly succeeding in its objectives.

Take, for instance, the remark of Arif Khan, a commissioner of Bangladesh Securities and Exchange Commission, at a roundtable styled 'Bangladesh: Breaking Through the Frontier' on February 12 at the City Bank Centre in the capital.

He said there has been an influx of foreign investment to the capital market after the summit in Singapore last year.

“Foreign investment percentage has moved up from 3 percent to 10 percent in the last couple of months. It is a direct manifestation of the work we did in Singapore,” Khan said at the roundtable.

Sohail RK Hussain, chief executive officer of City Bank, one of the sponsors of the event, echoed Khan's views about the positive impact of the initiative on the country's investment scenario.

Thanks to the previous editions of the summit, the number of international investors inquiring about Bangladesh is on the rise, he said recently.

City Bank alone has received about three-dozen international enquiries in the last three years, of which four have already been converted into projects, with another four under process, according to Hussain.

Besides, the present level of investment as a percentage of gross domestic product -- which is 28.97 percent in fiscal 2014-15 -- is not high enough to support the country's growth aspirations. There is a need for a minimum investment-GDP rate of 32 percent. So the event's aim to lure in investment from abroad cannot be underplayed.

The inaugural edition of the summit took place in Singapore in 2012 and next year, the venue was shifted to London to target the European investors. But following great interests from Asian investors, the annual event was moved back to Singapore in 2014.

This year's summit, scheduled for today at the Asian financial hub, is poised to take the momentum forward.

The daylong event will shed light on topics such as the regulatory changes needed to stimulate investment, incentives for inbound investment, understanding and navigating the local ecosystem, areas for investment and so on.

Gowher Rizvi, the prime minister's international affairs adviser, will give a keynote speech on tapping the country's growth potential and Nabhash Chandra Mandal, executive member of the Board of Investment, on making Bangladesh the investment destination of choice in Asia.

The topic of power, often blamed for the country's below-par investment scenario, will be discussed at length. Mohammad Hossain, director general of the ministry's power cell, will give a presentation on the steps being taken by the government to address the situation.

It will be followed by a panel discussion on the opportunities for international developers in the power sector, diversifying the power source and the steps being taken by the country to become self-sufficient in power.

Biru Paksha Paul, chief economist of Bangladesh Bank, will give a keynote presentation on the monetary policy outlook and Syed Afsor Uddin, chief executive of the public private partnership office under the Prime Minister's Office, on the opportunities in the public-private partnership sector.

Afsor Uddin's presentation will be followed by a panel discussion that would deal with topics pertaining to the developments in the PPP law, appetite for projects, tendering process, among others.

The financial market too would get attention, with presentation on the attractiveness of the sovereign and corporate bond market and a panel discussion on portfolio management strategies. The scope for private equity too would be looked at.

IT, often billed as the next big export product from Bangladesh after garments, would be examined in-depth.

Shameem Ahsan, president of Bangladesh Association of Software and Information Services, would give a presentation on the developments in the ICT sector.

The presentation will be followed by a panel discussion on the key drivers for the sector's growth, the major investment opportunities and the access routes for multinational corporations.

Standard Chartered and City Bank are the headline sponsors of the summit, while Brac EPL and Brac Bank are the co-sponsors, and DFDL associate sponsor. FinanceAsia, the continent's leading financial publishing company, will organise the event.

About 300 attendees -- government representatives, multilateral financiers, rating agencies, portfolio managers, global asset managers, institutional investors, private banks, principals from private equity and hedge funds, and heads of Asia-based brokerages -- are expected to attend the event at The St Regis Singapore.