While three leading Bangladeshi companies applied to make equity investments overseas, only Akij Jute Mills Ltd was recommended by a committee formed by Bangladesh Bank.
The Financial Institutions Division under the Ministry of Finance had proposed the Cabinet Division about permitting three local firms to invest abroad. Nitol-Niloy Group, Ha-Meem Group, and Akij Group were the three contenders. The Cabinet Committee on Economic Affairs tasked Bangladesh Bank to form the committee to evaluate the companies.
Bangladesh Bank Performance Evaluation Committee (PEC) had 13 conditions, all of which were met by Akij Jute Mills Ltd. The conditions included creating employment opportunities for Bangladeshi workers in the country of investment, remit profit made abroad back to Bangladesh, account for the investment capital among others.
Akij Jute Mills Ltd proposed to acquire a Malaysian company called Robin Resources (Malaysia) Sdn Bhd including its fully-owned subsidiary Robina Flooring (Malaysia) Sdn Bhd.
The PEC responded positively to the proposal in Malaysia, and the recommendation was passed by the committee’s Executive Director Ahmed Jamal.
Under the Foreign Exchange Regulation Act, overseas investment is not permitted for resident Bangladeshis. If the Akij Group investment comes through, it will break open new grounds in foreign trade for the country.