The president of the American Chamber of Commerce in Bangladesh (AmCham), Syed Ershad Ahmed, emphasised the importance of focusing on sustaining existing investments rather than solely aiming for new foreign direct investment (FDI) amidst the evolving economic landscape. Syed Ershad, who also serves as Chairperson and Founder Managing Director of Expeditors (Bangladesh) Ltd., noted that the interim government is prioritizing support for current foreign investors across sectors, which he believes will enhance Bangladesh’s image in international markets. In an exclusive interview with Jago News, he discussed the current business climate, investment challenges, and strategies for navigating these changes with Md Samiur Rahman Sazzad.
Jago News: What are the business prospects in the current shifting landscape, particularly for the private sector?
Ershad: Bangladesh has immense potential for business growth if we can strategically leverage our opportunities. Our geographic location, competitive labor force, and favorable climate make us an attractive investment destination.
The United States remains Bangladesh's top investor, with the largest investment portfolio and ongoing efforts to share knowledge and technology. Additionally, the US is Bangladesh’s single largest export market.
In this evolving environment, it's essential to unite for a more equitable future. We’re fortunate to have an inspiring leader like Professor Muhammad Yunus. His visionary leadership can guide us through these challenges, ultimately enhancing the lives and welfare of all our citizens.
Jago News: What challenges are businesses facing in the current economic climate? And what solutions can help address these issues?
Ershad: Our economy faces persistent challenges, including rising youth unemployment, sluggish growth, weakened banking institutions, growing external debt, and widespread unrest across sectors.
Improving port logistics through streamlined management and full automation across all ports is essential to enhance our logistics index, allowing us to better compete with rival countries. Additionally, ensuring smooth and hassle-free profit repatriation for existing foreign investors in Bangladesh is vital.
The interim government is now focused on supporting current foreign investors in all areas, which will help strengthen Bangladesh's image internationally. Bangladesh is in a transformational phase, so new foreign investors may need to adopt a wait-and-see approach. In the meantime, providing comprehensive support to existing foreign investors is key to establishing Bangladesh’s credibility abroad.
Furthermore, the government must prioritize governance, accountability, and transparency in financial and administrative sectors, especially within banks, the NBR, and essential service providers such as those for water, energy, and power.
Efficient customs clearance and automated operations at all ports are essential to improving the logistics index, which plays a significant role in our ability to compete globally.
Jago News: New investments have stalled. How can we restore foreign investors' confidence and attract more foreign direct investment (FDI)?
Ershad: Right now, our priority should be on sustaining and nurturing existing investments rather than relying solely on new FDI in these changing circumstances.
One of the biggest obstacles to attracting foreign investors is the weak international branding of Bangladesh. Our foreign ministry, along with investment promotion agencies like the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), and Export Promotion Bureau (EPB), need to make branding and promotion a top priority to enhance our global image.
Additionally, facilitators and regulatory agencies must adopt a more proactive and investor-friendly attitude. This shift is essential to create an environment that reassures current investors and attracts new ones.
Jago News: AmCham recently met with the NBR Chairman, Foreign Adviser, BIDA, and BEZA. What were the outcomes of those discussions?
Ershad: AmCham engaged in discussions with key business growth-related ministries, facilitating agencies, and regulatory bodies, presenting recommendations aimed at building a more robust business ecosystem in Bangladesh. Our focus is on streamlining processes, improving regulatory transparency, and enhancing support for both current and prospective investors.
Jago News: What steps can the interim government take to address current private sector issues?
Ershad: The interim government should prioritize establishing law and order and strengthening an independent, influence-free Anti-Corruption Commission (ACC) to ensure transparency across sectors. Governance and transparency within the financial sector are also critical.
There should be accountability for all individuals involved in corruption, including bureaucrats and bankers implicated in money laundering, inflated infrastructure project costs, and mismanagement of the energy and power sectors.
The government must also focus on supporting students so they can return to their studies, as they are the future leaders. Currently, we have over 800,000 unemployed university graduates, and job creation for them must be a government priority. Reforming the education system to increase academic and industry collaboration is essential.
Finally, all institutions—including the Bangladesh Public Service Commission (BPSC) and Election Commission (EC)—must be staffed with knowledgeable, fair, and strong leaders, rather than those lacking backbone or commitment.