Business Supplement Issue-24

DT
VOL1, ISSUE 24 | Sunday, August 6, 2017
Business Tribune
Bangladesh’s bicycle industry needs
to curb reliance on imported parts
Courtesy
Banking stocks drive
6 bull market
The fault in how we
7 measure things

2
Sunday, August 6, 2017
DT
Special
Bangladesh’s bicycle industry needs
to curb reliance on imported parts
• Ibrahim Hossain Ovi
Bangladesh’s bicycle industry, an
emerging export sector, needs new
investment to locally manufacture
parts instead of importing as it has
huge potentials in the global market,
said industry insiders.
As of 2016, Bangladesh has occupied
11% market share of bicycle
in the European Union countries
being the third largest exporter.
In the last fiscal year, Bangladesh
earned nearly Tk700 crore
exporting bicycle, especially to the
EU market. The industry people
and analysts said the country has
the capacity to earn Tk1,000 crore
from bicycle export.
Over 50% of demand of parts,
sometimes 70%, are now locally
met while the country can be
completely reliant on local parts
through increasing investment. It
will help Bangladesh tap the global
market potentials, said analysts.
In translating the dream into
a reality, the government should
pave the way to new investment
removing hurdles including cumbersome
registration process and
higher import duty on raw materials,
they said.
“Bangladesh cannot produce all
the parts needed for manufacturing
a complete bicycle. It has to import
parts and raw materials to produce
parts,” Bangladesh Bi-Cycle Merchants
Assembling and Importers
Association President Mizanur Rahman
Babul told the Dhaka Tribune.
“In becoming self-reliant in
parts, a large volume of investment
is a prerequisite, what Bangladesh
did not see due to bureaucratic difficulties
and corruption,” he said.
Meghna Group is one of the
country’s major assemblers of
bi-cycle. It bi-cycle unit director
(operation) Supol Chandra Saha,
however, said it is not possible to
produce 100% parts locally but
“most can be done.”
“It depends on the type of bicycle
and in some cases the country
produces over 60% of bicycle
parts,” he added.
AB Mirza Azizul Islam, former
finance adviser to a caretaker government,
said in keeping the export
growth momentum, the country
needs to expand the market beyond
the EU. He said the government
should facilitate foreign investment,
especially in manufacturing
higher bi-cycle parts. “Also, an investment-friendly
atmosphere for
local investors must be ensured.”
Local Market
In recent years, the use of bicycles
in the country has seen 35%-40%
Bangladesh ranks third in terms of bicycle export to the European Union countries holding 11% global market share
In grabbing more market shares, what the bicycle industry needs
currently is policy support and infrastructure. Tax holiday on new
investment can be attractive for new investors
growth and the demand rose to
about 500,000 units.
“The use of bicycles is increasing
rapidly here in Bangladesh because
of traffic congestion in the capital
city and increased consciousness
about healthy lifestyle,” Mahmud
Khan, one of the admins of Bdcyclists,
a group of cyclists in Bangladesh.
The Facebook-based group
has over 99,036 members who organise
different programmes to encourage
people about cycling.
Although most of the bicycles
used by the cyclists are imported,
Meghna Group is leading in local
supplies, said Mahmud Khan.
He said the local brands maintain
international standard “but
what’s needed is building users’
confidence in local products.
“They will also have to focus on
designs both for local and international
markets.”
Export potentials
Despite negative growth in the
last fiscal year, there is a huge
export opportunity for Bangladesh’s
bicycle industry. Cycling is
being popular across the globe as
an Eco-friendly transport. While
health-conscious people are taking
bicycles as a mean of their daily exercise
in the busy life.
According to a Persistence Market
Research (PMR) report, the
global market for bicycles is anticipated
to expand by 37.5% over the
period 2016-24. The global market
size is expected to reach at $62bn
by 2024.
The Asia Pacific region is anticipated
to be the most lucrative market
for bicycles over the forecast
period while e-bikes will be the
leading segment of the market.
According to Export Promotion
Bureau (EPB) of Bangladesh, in
the fiscal year 2016-17, Bangladesh
earned $82.46m exporting bicycles
to 26 countries. The figure is
16.83% less compared to $99.15m
in 2016.
United Kingdom imported bicycle
of $40.22m, the highest, while Germany
imported bicycle of $17.17m
followed by Denmark $6.71m, India
$5.47m and Belgium $4.97m.
The sector people have blamed
the devaluation of euro and fall of
production capacity for the slowdown.
According to a World Bank report
(Bangladesh: Diagnostic Trade
Integration Study 2013), Bangladesh’s
labour costs in the production
of bicycles are quite low across
the manufacturing stages. It acts as
an advantage for manufacturers to
remain price-competitive edge in
export market.
“In grabbing more market
Courtesy
shares, what the bicycle industry
needs currently is policy support
and infrastructure. Tax holiday on
new investment can be attractive
for new investors,” said AHM Ferduos,
General Manager of Alita BD
Limited, a manufacturer of bicycles
in the Chittagong Export Processing
Zone.
“Bangladesh has good prospects
in bicycle exports. The port congestion
and delaying delivery of parts
in air shipment are big barriers of
the sector. The problems need be
addressed as soon as possible,” he
added.
Talking on negative growth in
the last fiscal year, the sector people
blamed the prolonged winter
in the European countries while
devaluation of pound against US
dollars was another reason.
What Bangladesh produces and
exports
Besides complete bicycles, the
country also exports accessories
such frames, forks, spoke, nipple,
mudguard, hubs, spanners, axel,
saddle, handle, carrier, bicycle pipe,
rim strip, head tube, frame pipe, bicycle
tyre and tubes, wheels, pedal,
grips, wheels and all sort of plastic
components of bicycle. •

Interview
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Sunday, August 6, 2017
DT
Bicycles can become the wheel
of economic fortune
Bangladesh plans to grab more of the global market share in bicycle exports with its quality
products. The environmentally friendly two-wheeler has carved out a place among domestic
and international cyclists, PRAN-RFL Group Marketing Director Chowdhury Kamruzzan told
the Dhaka Tribune’s Ibrahim Hossain Ovi in an exclusive interview
What are the challenges facing the
bicycle industry?
Bangladesh is fully reliant on the
import of raw materials to produce
parts necessary to manufacture bicycles,
while spare parts are also
imported. We can produce 60% of
the parts required to make a complete
bicycle. Currently, businessmen
in the industry pay an average
of 55% duty on such imports,
which poses a big challenge to the
emerging industry. Since the industry
is new, a skilled workforce is
required to produce quality products
in larger volume.
In the near future, Bangladesh
will do better in exports as well as
in expanding production capacity
since Bangladesh is in better position
in terms of ease of doing business.
Only the cost of doing business
is a little bit higher due to higher
interest rates compared to other
countries. If the government considers
it positively, Bangladesh
would take the lead in the global
export market.
Can local manufacturers meet local
demands?
Though Bangladesh imports bicycles
and parts, our installed capacity
is good enough to meet local
demands. This is because of price
factors. Most local users prefer
traditional bicycles, not the fancy
ones. Some choose cheaper imported
bicycles. To provide bicycles
at an affordable price for local
users, the government should cut
the import duty on raw materials
as well as parts.
What is PRAN-RFL Group’s future
plan for the bicycle industry?
We would like to promote the use
of bicycles to the entire country, as
it is an environmentally friendly
means of transportation, and riding
a bicycle is also great exercise.
If the government emphasises
the importance of cycling in
the interest of keeping environment
pollution at bay, urban residents
will feel encouraged to use
bicycles for their transportation.
For this, road infrastructure
needs to be developed, with the
building of four-lane highways that
will help cyclists move freely and
safely.
In the near future, Bangladesh will do better in exports as well as in
expanding production capacity since Bangladesh is in better position
in terms of ease of doing business
Why are Bangladeshi bicycles
popular in the European Union?
The quality of bicycles produced in
Bangladesh is better and they are
also affordable. This is because of
the cheap cost of labour and utility
services compared to our competitors.
The industry shifting away
from China is also a great advantage
for Bangladesh. There is an
anti-dumping duty on China, and
Bangladesh has taken the opportunity.
In the coming days, the country
could be able to lead bicycle exports
as our production capacity is
increasing gradually.
Do you have a research and
development wing to improve
quality and meet demands of
fashion-conscious users?
Rangpur Metal Industries Ltd has
been in the market for the last two
years, and has witnessed a double-digit
growth. They have a skilled
workforce, who takes into consideration
the customers’ demands.
They work while keeping in mind
what a customer would like and at
what cost. Based on this, the team
improves designs and the quality of
bicycles depending on the trend.
What should the government
policy support be to boost exports?
Since the cycle industry has enormous
potential and can help government
plans for product diversification
to reduce dependency on
single products, the government
can lower import duties and provide
cash incentives against export.
Furthermore, a tax holiday for
new investment may encourage
the much-needed investment in
the sector. This would help produce
most of the required parts locally,
reducing import dependency.
Courtesy
Why does Bangladesh Import
bicycles?
A small group of cyclists are fond
of higher-end products, while most
local consumers prefer traditional
ones due to lower prices. Since
there was a lower domestic demand
for higher-end bicycles, production
of high-end two-wheelers
was not prioritised, and that is why
exports are necessary to satisfy
fashion-conscious local customers.
But now, manufacturers are
considering high-end bicycles as
demand is on the rise. The purchasing
capacity of potential buyers
is growing in line with the country’s
steady economic growth, and
we are devising plan on how to get
bicycles to rural areas at an affordable
cost.
Does Bangladesh make high-end
bicycles?
As I said, manufacturers are gradually
turning to the production of
higher-end products, as it would
serve both local and international
demands.
In exports, manufacturers usually
produce cycle as per the design
of the buyers. However, now there
are innovative designs to draw
global buyers as well as locals as
the market is gradually expanding.
Bangladeshi manufacturers are
able to make mid-range products.
In producing higher-end bicycles,
a lack of skilled workforce is
a challenge while the demand for
higher-end products is not very
high in the local market. There are
only a small number of cyclists that
use them. We need a skilled workforce
with some specific qualities.
Currently, we are producing
bicycles at prices ranging from
Tk6,000 to Tk35,000. Expertise is
building and we are working hard
to develop workforce to meet the
buyers’ demands.
What is the export potential for
Bangladesh?
Bangladesh has already established
a strong foothold in the European
market, especially in the
United Kingdom. This is because of
our quality products and affordable
price, as well as our strong commitment
to delivering products on
time.
As people grow more health and
environment consciousness, the
use of bicycles will be on the rise.
Why did exports fall this year?
The European Union is the largest
destination for Bangladeshi
bicycles. The medium of transaction
is the US dollar. The Euro has
seen devaluation against the USD.
As a result, earnings from the sector
have dropped, but we are very
hopeful about positive growth in
the current fiscal year as the EU
is recovering from its economic
downturn.
Do you think the current
environment favours investment?
There are some difficulties, but still
we are trying to make good use of
the positives that we have.
In Bangladesh, the cost of land
and other utility services is comparatively
lower than other countries.
We also have cheap cost of
labour. The workforce is very flexible
and can adapt to any new tasks,
and if groomed they will become
skilled within a shorter period.
Despite having some difficulties,
Bangladesh is a very suitable place
for doing business. •

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Sunday, August 6, 2017
DT
Week in Review
500 firms sued over evading import
duty at Chittagong port in FY17
More than 500 firms have been sued
by Chittagong Customs House officials
in the last fiscal year for evading customs
duty by giving false information
in their import declaration forms.
Using the wrong harmonised
system (HS) code, used to identify
different goods, is the most prevalent
among the anomalies, while importing
extra amounts of goods, importing
goods with false declarations, and
tampering with import and bank documents
of the consignments in question
are other ways to pay lesser tax.
A total of 730 cases have been filed
against the 500 firms in connection
with such anomalies, implying that
there are firms which have regularly
adopted these ways to pay lesser
duties for the products they import,
according to the Audit Investigation
& Research (AIR) section of the Chittagong
Customs House.
Surprisingly, the firms sued more
than once include some big names like
Abul Khair Steel Mills Limited, Rangpur
Metal Industries Limited, Anwar Ispat
Ltd, SS Steel Ltd, MBD Factory, Tanvir
Enterprise, Rahim Steel Mills Ltd, Bangladesh
Service Limited, Farjana Enterprise,
SBA Trading, Yamin Enterprise,
Raj Enterprise, Tahsan Trading, Al Safa
Trading Corporation, Fashion Footwear
Limited and others.
The AIR section is responsible for
keeping vigil against any sort of tax
evasion in the consignments brought in
through the port.
Apart from realising the evaded
tax, the concerned departments of
the customs house also file cases over
anomalies detectable during taxation-related
activities.
The AIR section files the majority
of the cases for dodging tax during the
final stage when the imported containers
are unpacked.
Such a last-minute inspection of a
container imported by S Golden Trade
on June 22 this year revealed that a
Tk45 lakh worth consignment of burner
gas stoves were being cleared under
the HS code for car accessories.
Dhaka Tribune
Joint Commissioner of Chittagong
Customs House Rais Uddin Khan said
that AIR is assigned with the task of
carrying out intelligence activities on a
regular basis.
“Increasing revenue income from
tax is not the only responsibility of the
customs authorities. We also attach
top priority to checking anomalies and
money laundering,” he said. •
Government to
form FSC to deal
with financial
crises
The government will form an apex
body – Financial Stability Council (FSC)
– to deal with financial crises of banks
and financial institutions and bail them
out in need, officials have said.
The decision to set up an FSC
came at a meeting attended by Bangladesh
Bank Deputy Governor SK
Sur Chowdhury and Finance Minister
AMA Muhith who was in the chair.
Sur presented the concept paper
on Financial Stability Council at the
Finance Division meeting held on
August 3.
Officials that attended the meeting
said the proposed council would
work as a resolution authority to
solve financial crises of banks and
financial institutions.
The FSC will include all financial
sector regulators, Ministry of
Finance, Bangladesh Bank, Bangladesh
Security Exchange Commission,
Micro-credit Regulatory
Authority, Insurance Development
Regulatory Authority and National
Board of Revenue.
Against the backdrop of global
financial crisis, many countries have
come up with large-scale government
support and financial bailout
for failed banks and other financial
conglomerates in order to maintain
financial stability. •
Bangladesh’s share in global
clothing jumps to 6.4%
Bangladesh’s share of the global clothing
market rose again in 2016 as the
country sealed its place as the second
largest exporter of apparel products
– despite sluggish export growth and
lacklustre demand.
According to the World Trade
Statistical Review 2017 released on July
28 by the World Trade Organisation
(WTO), Bangladesh’s global market share
in clothing rose to 6.4% in 2016, an increase
of 0.50% over the previous year.
The continuous rise in market share
shows that there is a huge opportunity
for Bangladesh to spearhead RMG
export in future. But there are also
challenges if Bangladeshi manufacturers
are to tap into the potentials, said
trade analysts and RMG manufacturers.
“It is a positive sign that Bangladesh’s
global market share increased,
but the question is how much we
reaped profit or if there is profit,”
BGMEA vice-president Mahmud Hasan
Khan Babu told the Dhaka Tribune.
He said the country’s market share
will go down in the current year, as the
sector has already witnessed negative
growth in the first six months of 2017.
“In true sense, there is no growth in
the just-concluded fiscal year, he said,
adding that this is due to price fall,” the
BGMEA leader said.
In FY’17, Bangladesh’s export earnings
from the apparel industry, the lifeline of
foreign currency earners, have seen only
a 0.20% rise to $28.15 billion, the lowest
in the last one and a half decades.
The global market for clothing products
came down to $444 billion in 2016
from $450 billion in 2015. Although
China still retains its position as the top
exporter of apparel products with $161
billion, its market share slid to 36.4%
Reuters
from 39.3% last year.
China shifting is a great opportunity
for Bangladesh but due to challenges it
is remaining untapped.
“Bangladesh’s market share moved
up as global consumption fell, while
China is losing its stake. Our first
challenge is not losing our competitive
edge,” BGMEA senior vice-president
Faruq Hassan told the Dhaka Tribune.
Hasan said the RMG manufacturers
are failing to fulfil work orders due to
increased congestion at Chittagong
port. •
Export target set at
$41bn for FY2017-18
The Bangladesh government has set
its export target at $41 billion, with
a growth target of 7.87%, riding on
apparel products, for the FY2017-18.
Of the amount, $37.50 billion is
expected to come from the manufacturing
sector, including the RMG
sector, while $3.50 billion will come
from the service sector, including
computer services.
Commerce Minister Tofail Ahmed
made the announcement at his office
in the capital on July 30. Commerce
Secretary Shubhashish Bose was also
present during the meeting.
“Taking into consideration the
global economic outlook, policy
changes in import and export
destinations, fluctuating exchange
rate, stakeholders’ feedback and
supply-side capacity, we have set the
target for FY18,” Tofail told reporters.
“I think we can achieve because it
is a conservative target.”
The government wants to earn
$30.16 billion from the RMG sector
with an 8.12% growth. It also plans to
earn $1.38 billion from leather industry,
followed by jute and jute goods
at $1.05 billion and $880 million from
home-textile products.
Meanwhile, export-oriented
business representatives present in
the meeting urged the government
to provide policy support, along with
incentives, to help achieve the export
target.
“The lead time is very import as
businesses have to export products
after importing raw materials, but we
struggle to ship products due to congestion
in Chittagong port,” said FBCCI
president Shafiul Islam Mohiuddin.
Due to rise in e-commerce business,
the buyers have broken down RMG
products into several categories to
have more unique and different designs
to meet consumer demand, he added.
“Retailers want quick delivery, but
due to congestion we are losing the
competitive edge.”
Mohiuddin claimed that businesses
are still not getting adequate electricity
supply and they have to use costly fuel-run
generators to run their factories.
“The export target is achievable,
but the sector needs government
support, including gas and electricity
connection in the newly built
Leather Industrial Park in Savar,” said a
representative of Bangladesh Tanners
Association (BTA). •

Corporate News
5
Sunday, August 6, 2017
DT
Mumbai branch of AB Bank Limited has recently been presented with the 2017 Elite Quality Recognition
Award by JP Morgan Chase Bank, New York, USA for its outstanding achievement of Best In Class MT 103
STP (straight through processing of transactions) for the year 2016, said a press release
Bangladesh Council of Scientific and Industrial Research (BSCIR) has recently developed a process for
producing vegetable ghee, said a press release
Prime Bank opened its 4th priority banking service centre ‘Monarch’ at Siaam Tower, Uttara recently
SIBL Foundation Hospital and Diagnostic Center has recently signed an agreement with Bashundhara Group
on providing Bashundhara Group’s employees and their family members with discounts at the hospital
Al-Arafah Islami Bank Limited has recently opened an ATM booth at Hotel Radisson Blue Chittagong Bay
View, said a press release. The bank’s chairperson, Alhajj Abdus Samad Labu inaugurated the booth as
chief guest
CanCham Bangladesh’s 3rd Grain Importers’ Meet Up held on Thursday
Midland Bank Limited has recently signed an agreement with Total Air Services Limited (TAS) on
providing special discounts on AirAsia tickets to the bank’s cardholders for a specific route, said a press
release. The bank’s AMD, Masihul Huq Chowdhury and Morshedul Alam Chaklader, director of TAS have
signed the agreement
UGC Member Professor Dr M Shah Nowaz Ali has recently led a delegation team for attending Vice-
Chancellors’ Forum held at Ankara in Turkey, said a press release. The event was organised by Turkish
Council of Higher Education
Mercantile Bank Limited has recently signed an agreement with Golden Harvest on collection of funds
from distributors of Golden Harvest through the bank’s mobile banking platform
Dhaka Bank Limited has recently signed an agreement with IDLC
Finance Limited on strengthening its business relationship
Minaoar Hossain Tanzil
has been apponted as the
Managing Director of KONA
Software Lab appointed

6
Sunday, August 6, 2017
DT
Stocks
W E E K L Y M a r k e t O v e r v i e w
SUMMARY Points Change (%) Turnover (BDTmn) Volume (mn) Advanced issues Declined issues Unchanged Issues
DSEX
5,880.5 DSEX 5,880.5 1.12% 53,219 1,814 177 142 15
(+) 1.12%
CSE ASI 18,236.6 1.09% 3,225 120 156 118 15
Banking stocks drive bull market
• Tribune Business Desk
Stocks gained moderately last
week as banking stocks showed
strength by sustaining its momentum
throughout the week.
Banking sector stocks rose
4.9%, thanks to positive earnings
results posted by several banks
over the week.
Investors were seen trading
mostly on the banking and textile
sector stocks with the expectation
of positive earnings, said traders
at several stock brokerage firms.
Banking stocks contributed
25.6% of the week’s total turnover,
said the weekly market report
of UCB Capital Management Ltd.
Participation in the Dhaka
Stock Exchange increased sharply
by 70.7% to amount an average
Most Traded Price Weekly change
LankaBangla 57.0 0.88%
City Bank 41.9 9.69%
BBS Cables 84.3 -
CNA Textiles 13.1 10.08%
One Bank 24.7 7.39%
SAIF Powertec 48.7 4.28%
Mercantile Bank 24.3 7.05%
Fu Wang Food 25.7 11.26%
IDLC 79.0 3.81%
Generation Next 12.0 3.45%
Dhaka Tribune has accumulated the stock market related data primarily from Dhaka Stock Exchange website. The basis of information collected was primarily from daily stock quotations and audited/unaudited
reports of publicly listed companies. High level of caution has been taken to collect and present the above information and data. The publisher will not take any responsibility if any body uses this information and
data for his/her investment decision. For any query please email to news@dhakatribune.com.
US jobs report sends global stocks higher
• AFP, New York
daily turnover of Tk1,064cr from
previous week’s Tk624cr.
The benchmark index, DSEX
closed at 5,880.5 points on Thursday
with a weekly gain of 65.4
points or 1.1% over the week while
5,900
5,880
5,860
5,840
5,820
5,800
5,780
5,760
5,740
Rosy US jobs numbers sent Wall
Street higher on Friday, with the
Dow Jones Industrial Average rising
to an eighth straight record
finish.
The beleaguered US dollar
also got a shot in the arm from
the strong July employment report,
which showed the world’s
largest economy adding north of
200,000 new positions for the
second straight month.
Across the Atlantic, European
equities also pushed higher amid
unequivocal signs of American
economic strength.
In New York, the Dow rose
0.3%, while the S&P 500 and Nasdaq
each gained 0.2%.
But Adam Sarhan, CEO of
50 Park Investments, told AFP
the jobs numbers were a “double-edged
sword.”
“On the one hand, it is good to
see the economy growing, jobs
coming in,” he said. “At the same
time, it is a hawkish data point for
the Fed.”
The strong job creation and
slowly rising wages could spur
the Fed to raise the cost of borrowing
a third time this year to
keep a tight rein on inflation.
But a rate increase would boost
bank profits, and that fueled banking
shares. Goldman Sachs jumped
2.6%, and JP Morgan Chase added
1.3%, leading the Dow higher.
Dhaka Tribune
CSE ASI advanced 197.2 points or
1.1% to end at 18,236.6 points.
Contrarily to the benchmark
index, the blue-chip index DS30
lost 6.0 points or 0.28% to end at
2,123.1 points, while DSE Shariah
MOVEMENT OF DSEX INDEX LAST WEEK
Meanwhile, the dollar jumped
0.8% against a basket of other
major currencies, rising off a
15-month low.
European markets higher
“Strong wage growth is key takeaway
today,” ING Economics said,
but one strong jobs report may
not be enough to sway skeptical
based index declined by 6.0 points
or 0.46% to close at 1,311.6 points.
Among the traded issues 177
gained, 142 declined and 15 remained
unchanged during the
week. Dulamia Cotton Ltd secured
the highest weekly gain
of 32.1% while Union Capital Ltd
turned out the worst loser with its
price declining by 9.5%.
LankaBangla Finance secured
leadership position for the second
time in a row on the weekly
top turnover chart with a turnover
of Tk245cr over the week with
its share price advancing 0.9% by
the end of week.
The Dhaka Stock Exchange currently
has a market capitalisation
of BDT 395,570cr with the benchmark
index, DSEX up by 16.8%
since beginning of this year. •
DAY 0 DAY 1 DAY 2 DAY 3 DAY 4 DAY 5
The eurozone is
today seen by
many as a zone
of stability
investors trying to second-guess
the US central bank.
The data also helped European
equities extend early tentative
gains ahead of the weekend, with
Frankfurt and Paris seeing increases
of better than one percent
and London adding 0.5%.
The newfound dollar strength
took the pressure off the euro
whose recent rise has been threatening
to undermine the competitiveness
of eurozone exporters.
But fundamentals are still in favor
of the European single currency,
many analysts say.
“The eurozone is today seen
by many as a zone of stability,”
Philippe Waechter, an economist
at Natixis, told AFP. •
DSE NEWS
SHURWID: The Company has informed
the following, “Due to crisis of power i.e
insufficient supply of gas and electricity our
production was seriously hampered and
comprehensive loss was incurred. For this
reason the Board of Directors of Shurwid
Industries Limited has decided to sign an
Agreement with Eurodesh Group that the
management of Shurwid Industries Limited
will be handed over to Eurodesh Group. In
this connection, in the 111th board meeting
which was held on 27 July 2017 at 7:30 pm,
the draft agreement was approved by the
Board of Directors.”
CITYBANK: Q2 Un-audited – Consolidated
EPS was Tk. 1.51 for April-June, 2017 as
against Tk. 1.51 for April-June, 2016; Consolidated
EPS was Tk. 2.18 for January-June,
2017 as against Tk. 2.30 for January-June,
2016. Consolidated NOCFPS was Tk. (10.98)
for January-June, 2017 as against Tk. 0.82
for January-June, 2016. Consolidated NAV
per share was Tk. 32.86 as of June 30, 2017
and Tk. 27.98 as of December 31, 2016.
ISLAMIBANK: Q2 Un-audited – Consolidated
EPS was Tk. 1.18 for April-June,
2017 as against Tk. 1.65 for April-June,
2016; Consolidated EPS was Tk. 1.80 for
January-June, 2017 as against Tk. 2.15 for
January-June, 2016. Consolidated NOCFPS
was Tk. (14.06) for January-June, 2017 as
against Tk. (4.30) for January-June, 2016.
Consolidated NAV per share was Tk. 31.15
as of June 30, 2017 and Tk. 30.34 as of
December 31, 2016.
ONEBANKLTD: Q2 Un-audited – Consolidated
EPS was Tk. 0.67 for April-June,
2017 as against Tk. 0.29 for April-June,
2016; Consolidated EPS was Tk. 1.90 for
January-June, 2017 as against Tk. 0.85 for
January-June, 2016. Consolidated NOCFPS
was Tk. 7.58 for January-June, 2017 as
against Tk. 2.36 for January-June, 2016.
Consolidated NAV per share was Tk. 17.75
as of June 30, 2017 and Tk. 17.23 as of
December 31, 2016.
BATASHOE: Q2 Un-audited – EPS was
Tk. 26.74 for April-June, 2017 as against
Tk. 14.18 for April-June, 2016; EPS was Tk.
39.29 for January-June, 2017 as against Tk.
25.79 for January-June, 2016. NOCFPS was
Tk. 11.80 for January-June, 2017 as against
Tk. 5.99 for January-June, 2016. NAV per
share was Tk. 288.77 as of June 30, 2017
and Tk. 232.03 as of June 30, 2016.
BRACBANK: Q2 Un-audited – Consolidated
EPS was Tk. 1.25 for April-June, 2017 as
against Tk. 1.25 for April-June, 2016; Consolidated
EPS was Tk. 2.66 for January-June,
2017 as against Tk. 2.10 for January-June,
2016. Consolidated NOCFPS was Tk. 13.45
for January-June, 2017 as against Tk. 10.75
for January-June, 2016. Consolidated NAV
per share was Tk. 27.86 as of June 30, 2017
and Tk. 26.15 as of June 30, 2016. •

OPINION 7
DT
Sunday, August 6, 2017
The fault in how we measure things
THE lAST
WORD
• Tim Worstall
We are quite obviously going
through a massive technological
revolution at present – Bangladesh
imported 31 million mobile phones
last year, a product that didn’t
even exist at all well within my
own adult lifetime.
The smart-phone has made mobile
internet a possibility and that’s
almost certainly the fastest adopted
technology in the entire history
of the human species. All of which
is great of course, technological
advance makes us richer and we’re
just fine with getting richer.
However, the one great problem
is that we can’t quite see is this is
the normal economic numbers. If
technology is changing, in a manner
that adds more value, then we
should see productivity rising.
Yet we don’t, not as much as
we think we should be at least – so
there’s something wrong with the
story that the new technology is
adding value. One answer here
is that we’re just measuring stuff
wrong. Hal Varian, the chief economist
at Google, has pointed out
that GDP does deal well with free.
The same is true of most of our
normal economic statistics.
Take the case of WhatsApp.
There is no charge for it, it carries
no advertising, therefore the output
doesn’t appear in GDP at all.
There are some 200 people within
Facebook who work on it so the
costs do appear in GDP.
The net effect is, if we record
the costs of producing something
but not the value of what is
produced, a reduction in productivity.
Yet we’ve some 1 billion
people getting some to all of their
telecoms needs from the work of
200 people. That’s quite obviously
a massive rise in productivity
right there. Part of our problem is
therefore just the way we measure
things.
But there’s another problem too.
We generally do vastly underestimate
the difficulties of gaining
something useful out of a new
technology. It’s not the new thing
which adds value, it’s what people
do with it. That in turn is hugely
influenced by two things the
jargon calls path dependency and
incumbency.
What’s going to happen is hugely
reliant upon what has already
happened – that internet access in
Bangladesh is largely on mobile
phones is dependent upon the fact
that there never was a widespread
Implementing a new technology is difficult because the world
works in a certain way already. We’re therefore disrupting those
who work by the current rules and there will thus be some
resistance
landline phone network before.
The US and UK have much more
cable and wire internet access
because there was such a network
before mobile phones, before even
the internet. Incumbency just
means that whatever the current
arrangements are there are people
who benefit from them. Those
people therefore provide a certain
resistance to changes in the way
we do things.
On Thursday, this newspaper
had a super piece on YouTube
tutorials and the like (web tutorials
help Bangladeshi kids get their
maths right) which neatly illustrates
both problems for us.
Our basic method of teaching,
and this is even more so at university
level, is actually a medieval
technology. The one person up at
the front, the teacher, reading out
from a book, or explaining to the
students, whatever it is, started
because books were so expensive.
Before Gutenberg and movable
type in Europe, one single copy
of a book took some full year of
labour from two people. A book
was therefore worth the same as
two full years of human labour.
Even the most exalted professor
might therefore expect to acquire
a library of say a dozen volumes
in his life – and the students most
certainly weren’t going to have a
series of textbooks.
Thus that medieval technological
solution – the teacher reads
out, or explains, the subject to the
listening audience. Cheap printing
should rather have replaced that
but the university lecture lives on.
It’s difficult to get an institution
built around one technology to
change. YouTube videos is bringing
another such change. It’s possible
for the student to sit through
the same lecture as often as necessary
to get the point across. This
very much changes how education
should be structured.
For example, we simply do
not want to measure education
achieved by attendance. For attendance
in one room, or a school,
for a period of time is no longer the
evidence we want that something
has been learned.
Why would it be when there is
this other method of being able to
understand something?
That, of course, poses something
of a problem for the education
system we currently have. They
currently mix and match two tasks,
only one of which is actually teaching
things to people. The other is
providing a qualification, evidence,
that something has been learned.
Now of course, it’s possible to
take this too far for not everyone
is going to learn everything online.
But what we almost certainly
want to do is separate out those
two tasks. Divorce the proof that
something has been learned from
BIGSTOCK
the attendance for a period of time
at a certain institution.
It’s possible to think of ways to
do this, say just the one system of
public exams which anyone can
take whenever, with anyone who
wants to be able to contribute, in
whatever manner, to people being
able to pass them.
That is, with this new way of
teaching we want to be able to
separate out the proof of what has
been learned from the current system
of teaching things to people.
Note that this isn’t really a diatribe
on how to reform education.
It’s just an example.
Implementing a new technology
is difficult because the world
works in a certain way already.
We’re therefore disrupting those
who work by the current rules and
there will thus be some resistance.
Think of the push-back we’d
get if we announced that you don’t
have to attend, or pay for, a school
or university but you can still get
your degree just by passing the
exam? There will be at least some
professors who will object, no?
Technological advance is a
wonderful thing and it is indeed
what will make us all richer in
the future. But it’s also not easy
– that’s why it’s taken us 10,000
years and counting of civilisation
to get even this far. •
Tim Worstall is a Senior Fellow at the
Adam Smith Institute in London.