Dhaka Chamber, the country’s largest chamber, on Wednesday urged the government to frame an SME linkage policy as well as to speed up the way of disbursing the fund from stimulus package, announced by the government .
The leaders of Dhaka Chamber of Commerce & Industry (DCCI) made the urge while exchanging views in a discussion meeting through Zoom with the stakeholders of old-Dhaka-based specialized business associations to hear their concerns in getting bank loans from the stimulus and the downward trend of businesses during Covid 19-led crisis time.
Shams Mahmud, President, DCCI was moderating the meeting while Hossain Khaled, Managing Director, Anwar Group of Industries and former President, DCCI attended as Guest of Honour.
In his keynote speech, DCCI President said 13 million MSMEs are contributing 25% of our GDP and 35.5% of our total employment. MSMEs’ contribution to the export earnings is ranging from 75% to 80%. But the sector is hit hard by Covid-19 pandemic. Besides, banks are reluctant to disburse loan from the stimulus package to the MSMEs.
MSMEs sometimes face challenges in access to finance, market linkage, product standardization, modern technology, access to training and lack of skilled manpower. Small entrepreneurs still want to pay VAT and tax but they want facility to pay in installments to cover up loses, he said.
Hossain Khaled, Managing Director, Anwar Group of Industries and former President, DCCI said small enterprises all together create a big conglomerate and large businesses are mostly dependent on SMEs.
“We have to create employment opportunities as it is the main concern now in a country like Bangladesh. Due to Covid 19 pandemic our sales come down to 35% which would have many negative ripple effects. Unbanked SMEs may not be benefited by the stimulus which he termed as a challenge.
Md. Alauddin Malik, President of Local Garments Manufacturers Association said that we did not able to sell any products during this pandemic time. This sector is hit hard, not getting adequate support from banks to get loan from stimulus.
Hossain A Sikder, President, Dhaka Shilpa Malik Samity said 120 industries are there in Keranigonj BSCIC industrial area. Many employees went home due to industries closure and most them are yet to come back.
Md. Abdur Razzaque, President, Bangladesh Engineering Industry Owners’ Association requested the government for deferral of VAT and electricity bill payment for a year. This sector represents 40,000 members in Bangladesh.
Mohammad Jalal Uddin, President, Bangladesh Bread Biscuit and Confectionery Makers Association said most of MSMEs in old Dhaka do not have bank accounts.
He said 95% of SMEs are good borrowers and successfully repaid their loans. He called upon the banks to give loans to those MSMEs who have not any bank account upon recommendation by the respective business bodies.
Alhaj Md. Golam Mawla, President, Bangladesh Edible Oil Wholesalers Association said most of MSMEs are unable to fulfill all requirements of banks.
Vice President of DCCI Mohammad Bashiruddin, Director and former Senior Vice President, DCCI Waqar Ahmad Choudhury, Directors Alhaj Deen Mohammad, Md. Shahid Hossain, Monowar Hossain, former Vice Presidents M Abu Horairah, Kh. Shahidul Islam, Riyadh Hossain, Imran Ahmed, DCCI Member Md. Zamsher Ahmed and Zarina Sayed, Chairman, Karika also spoke on the occasion. Speakers said access to finance is very critical now.
