Room to improve light engineering dev policy: BUILD

The Light Engineering Industry Development Policy-2022 does not feature any special provision for attracting foreign direct investment to the sector, according to a top official of the Business Initiative Leading Development (BUILD).

And although technology transfer has been identified as a constraint with the accommodation of artificial intelligence being suggested as a solution, there is no policy to this end, said Ferdaus Ara Begum, chief executive officer of Build.

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She made these comments at the 8th meeting of the SME Development Working Committee of BUILD at the Ministry of Industries yesterday.

Begum then said issues regarding the industry's dependency on high-quality raw materials, scale of operation, compliance, environmental protection and climate change need to be addressed as well.

In the export policy, it is mentioned that industry owners will be encouraged to categorise factories as green, but there is no specific strategic target regarding this in the development policy, she added.

The BUILD CEO went on to say that only five countries -- China, the US, India, Singapore and Japan – import about $2.51 trillion of light engineering products each year.

"And as Bangladesh enjoys market access to all these destinations, we can export about $25 billion worth of products from the sector if we can meet just 1 per cent of their requirement," Begum said.

Having appreciated the role of the industries ministry in formulating the Light Engineering Industry Development Policy, she pointed out there is room to improve the policy by developing strategy and action plans considering the post-graduation scenario and "Made in Bangladesh" campaign.

"We will extensively support the light engineering sector while exploring ways to set up a separate industrial park for it while also giving special incentives," said Zakia Sultana, secretary of the industries ministry.

Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industry, urged the ministry to keep supporting the sector, which has high potential as it contributes 3 per cent to the country's gross domestic product.

The SME Foundation is currently formulating a cluster development guideline that will promote small-and-medium enterprises in the light engineering sector, said Mafizur Rahman, managing director of the organisation.

He then urged for resolving tax-related issues for importing raw materials and accessories for entrepreneurs.

Mohammad Monjurul Islam, additional director of Bangladesh Bank, said they are very much willing to support the sector during its growing stage.

"And we will see how they can gain financial benefits under the collateral scheme," he added.

All industrial policies need to be mandatory and, in that respect, an industrial protection act can be framed where different chapters will be included in other sectors, suggested Manzur Ahmed, adviser of the Federation of Bangladesh Chambers of Commerce and Industry.

Aledul Amin, director of the Bangladesh Engineering Industry Owners Association, said a subcontracting act is needed as soon as possible while industrial plots need to be ensured at affordable costs for safeguarding the sector's interests.