Don't disregard Japanese firms' dissatisfaction
We're extremely concerned to learn that a recent survey by the Japanese External Trade Organisation (Jetro) found that 71 percent of Japanese firms operating in Bangladesh are dissatisfied with the general business environment. The findings are particularly distressing, given the fact that Japan had stated last year that they view Bangladesh "as a frontier for foreign investment," and had expected more investment flowing into our nation in the coming years. Japan also happens to be our biggest bilateral development partner since the inception of our nation. So, if Japanese firms are now increasingly dissatisfied, will we be wrong to glean that the alarm bells posed in this survey also apply to all foreign investors?
The Japanese firms in the survey stated that, compared to other ASEAN countries, Bangladesh's exchange rate volatility, difficulties in procuring local raw materials, shortage of electricity, frequency of power cuts, and complicated customs procedures pose significant barriers to their business operations. The reasons cited by the firms undoubtedly undergird core issues prevailing in our economy today. But the tragedy of the situation is that these issues are indeed easily addressable.
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Since the dawn of the crisis, experts have shown great concern regarding the free-falling depreciation of taka. Yet, Bangladesh Bank has repeatedly failed to undertake key measures to pull the brakes on ongoing exchange rate volatility. On the other hand, the ongoing energy crisis fuelled by the authorities' unwillingness to deviate from import-dependent energy policy has put further pressure on the foreign currency reserves, posing various roadblocks for both domestic and foreign businesses to thrive to their full potential. And, needless to say, ease of doing business, such as seamless customs procedures are integral to attracting foreign investment. We need to dramatically shift our current approach and work towards mitigating significant bureaucratic delays and red tape that detract our foreign investors.
The truth is, the lack of necessary adjustments in our economic policies has debilitated our industries and the resulting adverse impacts are becoming increasingly inevitable. We know all too well that the government has a track record of brushing over such surveys that reveal alarming macroeconomic indicators. But in the current global crisis, and with our ambitious aims of economic growth with abundant foreign direct investment, the Jetro survey must be taken seriously. We urge the government to pay attention to the concerns underlined by the Japanese firms and introduce policy reforms to ensure a favourable climate for all foreign investors.
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