• Thursday, Jan 27, 2022
  • Last Update : 03:32 am

Private sector confidence takes hit due to Covid-19-induced uncertainties

  • Published at 02:47 pm July 26th, 2020
private sector

The business confidence index (BCI) report aims at gauging the business sentiments of private sector leaders (CXO members) across 20+ sectors, having a notable contribution to Bangladesh’s economy

A recent study, launched by LightCastle Partners, has found that top executives of the private sector have low confidence regarding the country’s economy in the coming months.

LightCastle launched the third edition of its study titled ‘LightCastle Business Confidence Index (BCI) 2019-20’ through a webinar on Thursday.

LightCastle is a consulting firm for creating data-driven opportunities for growth for development partners, corporations, startups and SMEs.

As part of the launch, LightCastle also hosted a panel discussion with four experts from their relative fields.

The panel included Masrur Reaz, chairman, Policy Exchange Bangladesh; Nihad Kabir, president, Metropolitan Chamber of Commerce & Industry (MCCI); Asif Ibrahim, chairman, Chittagong Stock Exchange (CSE); and Nasir Uddin Ahmed, former chairman, National Board of Revenue (NBR).

The BCI report aims at gauging the business sentiments of private sector leaders (CXO members) across 20+ sectors, having a notable contribution to Bangladesh’s economy, said a media release.

This year's business confidence is found to be critically low, -19.27, influenced largely by the pandemic induced uncertainties and the fragile state of the financial sector even before the global crisis.

The previous editions of the report saw the private sector confidence at +43 (2018) and +39 (2017) respectively. The index is determined on a scale of -100 to +100 using Harmonized Expectation Indicator (HEI).

Key problem areas on a macro level were the diminishing export receipts and reduced foreign remittances the two fundamentals in which the nation’s economy is dependent upon.

Asif Ibrahim said, “We have to look at the global trends of RMG manufacturing and start implementing them in Bangladesh. We need to look into lean manufacturing where we reduce wastage and increase productivity.”

Opening up on doing business globally, Masrur Reza mentioned that Bangladesh has zero Free Trade Agreements. We will need to establish bilateral trade agreements before graduating from Least developed countries (LDCs) status.”

On a macro level, depleted demand, curtailed capacity and inadequate infrastructure were highlighted as the major bottlenecks.

Based on these factors, 80% of C-suite members surveyed believe that the performance of the economy would deteriorate in the coming six months.

Almost 40% of the CXO members responded that they are on the process of employee layoff, with the inclination more prominent in manufacturing sectors such as Leather & footwear, and RMG & Textile. Furthermore, one in every three respondent expects lower sales in the coming months.

“We need to scope the job market and map the skill gaps in order to facilitate employment and productivity.It’s equally important to facilitate job creators alongside job seekers, said MCCI President Nihad Kabir.

Moderated by Bijon Islam, CEO of LightCastle, the speakers at the event stressed on taking steps for restoring the private sector’s confidence, work on investment friendly policies and develop eco systems to facilitate employment.

Nasiruddin said, “We need to look at the entire ecosystem instead of specific sectors. Only then can we have a comprehensive view and systematic development”

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail