Experts opine for raising govt. supports to domestic electronics and tech industry

The electronics and hi-tech goods manufacturing industry is one of the hallmarks of the success and pride of post-independence Bangladesh. With the government’s timely policy supports, the reputation and contribution of this sector has been spread out all over the world. Bangladesh, specially in the production of compressors and refrigerators, has created new milestone. And thus, senior government officials, economists and sector’s entrepreneurs have expressed their views in favor of continuing the existing facilities for the development of domestic electronics and technology industry.

According to the sector concerned, the electronics and hi-tech industry of Bangladesh has witnessed unprecedented development in the last one decade mainly due to various industry-friendly policies adopted by the present government with hundred percent electrification. Earlier this sector was completely import-oriented. Then, the annual demand for refrigerators was only 3 lakh units and the employment in this sector was around five hundred. But that picture has been completely changed within a decade. At present, millions of people have been directly employed in the electronics sector of the country. Instead of 3 lakh, the annual demand for refrigerators has gone up to more than 30 lakh. The rural economy has also developed centering this sector. This has been possible due to the development of local industries in this sector.

The development of domestic electronics and technology goods manufacturing sector has resulted in saving huge import cost of products. This industry has turned into a potential export-oriented sector. Economists believe that the electronics and technology industry would be the largest export earnings sector after the readymade garments.

Already domestically manufactured electronics and technology products are being exported to more than 40 countries of the world. The exportable items include compressor and its components, refrigerator, television, air conditioner, home appliance, mobile phone, laptop etc. ‘Made in Bangladesh’ tagged these products are gaining wide acceptance in the global market. This industry is also making a great contribution to the national export earnings and also branding Bangladesh’s industrial progress in international arena. And thus, the stakeholders of this sectors opined for upholding all kinds of benefits, given by the government in in this sector.

Bangladesh Securities and Exchange Commission Chairman Professor Shibli Rubayat-Ul-Islam said, the existing VAT exemption and other facilities for domestic manufacturing industries need to be uphold in future. The products that are being produced in the country need to be encouraged as those products will reduce the country’s import dependency.

Additional Commerce Secretary (Planning) Mosharraf Hossain said: The government believes that investment in the country will increase if it helps in the development of domestic industries and increases investment opportunities. If investment increases, employment will increase and at the same time domestic industry will develop. Nothing is being said in advance about any specific sector right now, but I can say that the next budget is also going to be a helpful budget for the development of domestic industry.

It is learned that new investments are being made in electronics and technology products targeting exports. Already, a Bangladeshi company has acquired the rights of a fully automated inverter and fixed speed compatible compressor manufacturing plant, along with the rights of research and development (R&D) intellectual property (patents, designs and software licenses), trademarks in 57 countries, with more than 50 years long established 3 European brands- ACC, Zanussi Elettromeccanica (ZEM) and Verdichter (VOE). The domestic company has taken this initiative with the aim of exporting to the European-American market. Which will be able to make significant contribution in creating new employment, increasing export earnings, production of energy efficient products, development of sustainable targets etc.

Export Promotion Bureau’s Director General Mahbubur Rahman said, the government is interested in any issue that is conducive to the country's industry. I think a positive decision will be taken in this regard.

In this regard, Bangladesh Trade and Tariff Commission’s Chairman Afzal Hossain said, “We will seriously consider the demands for any kinks of policy supports sought by the domestic entrepreneurs.”

The Covid-19 epidemic has ruined the economies of different countries of the world. But due to various timely steps taken by the government, Bangladesh's economy is on the rise. To maintain this trend of development, the sector’s entrepreneurs have demanded to increase the policy support in the electronics and technology sector of the country.

The Bangladesh Refrigerator Manufacturers and Exporters Association’s Secretary General Zahidul Alam said, the country's electronics and technology industry had suffered from corona pandemic. At present, the country's industrial sector is trying to recover the loss incurred during the Covid-19 outbreak. Prices of raw materials and spare parts for electronics and technology products have risen sharply in the international market due to the supply crunch of raw materials centering corona pandemic. And thus, the prices of these products have already gone up at the consumer level. In such a situation, the local electronics and technology sector needs a lot of support. At present increase the level of government facilities is very crucial for this sector. Otherwise, price of electronics products will further increase and thus the products will go beyond the reach of consumers.

He further said, we are very happy that the country has come under 100% electrification due to the dedicated efforts of the government. To get the full benefits, it is necessary to produce and use energy efficient products.

In this context, the United Nations Development Program or UNDP Bangladesh's Country Economist Dr. Nazneen Ahmed said that the budget for 2021-22 fiscal year was industry friendly and employment friendly. In this budget, an attempt had been made to bring dynamism in the economy of the country by keeping a balance between the livelihoods. It is expected that these issues will be given priority in the next budget as well. The advantages that exist in the domestic industry may continue. She said it would be better for the domestic industrial support facilities to stay for a few more years.

According to the sector concerned, the entrepreneurs of the electronics sector are giving back much more than the facilities that the government is providing. The local and foreign investment in this sector is increasing, employment and domestic production are increasing, import expenditure is decreasing, on the contrary, export income is increasing. This sector is also contributing to the revenue earnings. Therefore, the existing benefits in this sector continue and now is the right time to increase it.