Messages

226

Real Estate / Real estate should go online

« on: July 08, 2015, 01:19:42 PM »

The real estate industry in Bangladesh has of late become a major sector of the country. However, for the industry to thrive, modern technological advantage should be adopted to reach the core target customers.  Most realtors in the real estate industry of Bangladesh are not doing enough to utilize digital technology for its marketing. About 85.0 per cent of the realtors in the west are now using social media professionally to boost their sales.

In Bangladesh we now have about 9.6 million people using facebook, out of which, 0.46 million talk about housing on the social media. Over 0.80 million Bangladeshi professionals use LinkedIn. Around 0.76 million users can be targeted on Facebook which indicates that the scope for real estate and B2B marketing is wide open in the digital space. Hence it will not only be the survival of the fittest but also a pioneering strategy for success.

227

Real Estate / Real estate impasse

« on: July 08, 2015, 01:19:12 PM »

Potential buyers are shying away from buying plots and flats reportedly due to a recent government move to collect clients' particulars from leading real estate companies and list the sector as a targeted one under suspicious money laundering deals. As a result, sales of both flats and plots of land have reportedly declined by 60 per cent during the last one year.

The recent developments would tend to suggest that the National Board of Revenue (NBR) and a host of other government agencies hold the view that a large part of the daily transactions in the real estate industry are not properly reflected in the documents including the deed of registration, shown to the authorities. There are, of course, some valid reasons for holding such a view. In this context, the authorities concerned have asked the realtors to provide information about the actual sales' price of a flat or a plot of land and its 'stated' cost in the deed of registration during last five years.

On its part, the Real Estate and Housing Association of Bangladesh (REHAB) wrote a letter recently to the NBR stating that it would not be possible to provide such information to them for such a long period of time. The realtors likened the drive to 'intimidating' the potential clients and 'forcing' them to stay away from making any fresh purchase or buying. They also requested the ministry of finance (MoF) not to list the sector as a targeted one to plug the holes that are responsible for deployment of large amounts of tax-evaded or 'black' money and laundering of the same through investment in the sector. A government committee is expected to submit a report in this connection by April 30. The realtors are now expecting that the sector would be de-listed, if the committee recommends it.

Reports say the realtors had set the sales target at over 18,000 flats for 2013. If the current sluggish growth continues this year, the sales target won't be achieved; rather, it will come down drastically. Banks are otherwise reluctant or are exercising restraint at the directive of the central bank, to sanction and disburse loans to the sector. Without credit facilities by banks, many individuals will be able to buy any flat or a piece of plot with their own means. There is, of course, also no denying the fact that there are some risks about making heavy investments in the real estate sector, in view of the bubble of the latest intangible properly-related asset prices.

If this bubble bursts, it will be too difficult for banks to cover their loans. Besides the increased prices of land in all major cities including that of Dhaka, high rates of taxes and registration fees, lack of power and gas connections, share market debacle, liquidity problems of banks and financial institutions etc., have all created a stagnant situation in the housing sector. If the government does not come forward to save the sector from a dire straits, it, the realtors say, will face a severe crisis in the near future.

The sector's contribution to the country's gross domestic product (GDP) is about 12-15 per cent. It has not only generated 2.5 million employment opportunities directly and indirectly but also created several dozens of ancillary industries, namely those of steel, cement, tiles and sanitary ware, cable and electric ware, paint, glass and aluminum, brick and other building materials.

The industry is also facing major challenges in the absence of proper urban planning and land administration. It does not enjoy the status of an industry yet in real terms. In the midst of such odds, inadequate funding support, shortage of skilled and qualified manpower, phenomenal hikes in prices of land and rising manpower and material costs have all compounded the problems in the sector.

On their part, the REHAB leaders had earlier demanded that the government should allow investment of 'undisclosed' income in the sector, made being subject to payment of a nominal rate of tax. Given the tax compliance culture in this country, there are some points in favour of realtors here. The latter have thus been arguing that such a concessionary fiscal facility, to up a certain limit, will help them overcome the depression facing the sector for some years now. They told the government that between 22,000 and 30,000 ready flats remained unsold due to lack of gas and electricity connections. The problems facing the real estate industry, according to them, would remain unresolved unless the government allowed the investment of 'undisclosed income' in the sector.

The morale aspect of such a demand does certainly raise a number of critical and also normal issues that must not escape the attention of all concerned. However, the practicalities of the state of affairs in the context of Bangladesh as far as tax-related matters are concerned, can not also be relegated to the background, on grounds of pragmatism.

The practice of maintaining different books of accounts to hide transactions by many real estate companies is otherwise facilitating the pumping of 'undisclosed income' into the economy. In all fairness, the concerned authorities do need to act upon this situation to combat the dual menace of black money and money laundering. The country is otherwise committed to upholding the standards and practices of Financial Action Task Force and Asia Pacific Group on money laundering. However, actions done in a hurry may be counter-productive, unless there is a synergy of actions on all fronts to curb the areas of activities that promote or encourage the growth of 'black' or 'undisclosed' money and help or induce money laundering at both country and inter-country levels.

Given such circumstances, real estate companies at large are really facing a hard time as sales of plots and flats which were otherwise robust even a few years back, are now on the decline. But it is also beyond doubt that the prices of flats, regardless of the areas of their locations, have gone phenomenally up, far beyond the purchasing capacity of the majority. Besides, absence of gas and power connections has also discouraged buyers; they do if like not to jump into an uncertain situation for some valid reasons.

On the whole, all issues of consequence that are responsible for the ongoing crisis facing the real estate sector merit a clear scrutiny on a dispassionate basis. These, according to some analysts and industry insiders, are mostly connected to the policies, economic and infrastructure development. The emerging situation demands that something is done to protect the genuine interests of the buyers of apartments, industry operators and the economy. The government and the leaders of the real estate sector should sit together to devise ways and means to bring an end to the ongoing impasse.

Housing is one of the basic needs of every citizen. 'Housing for all' should not merely be an empty political slogan. The government should create an enabling environment, with the support of encouraging policies, so that the real estate sector can flourish, and this will also be a great boon for the national economy.

228

MBA Discussion Forum / Greece faces debt deal deadline

« on: July 08, 2015, 01:16:55 PM »

Euro zone members have given Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of Europe's currency bloc and into economic ruin. "The stark reality is that we have only five days left ... Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week," European Council President Donald Tusk told a news conference. Prime Minister Alexis Tsipras has until Friday to present the proposal, but German Chancellor Angela Merkel said she hoped to have convincing reform commitments from Tsipras on Thursday so she could ask the German parliament to authorise negotiations on a new aid programme. Merkel said she was "not exaggeratedly optimistic" for a solution.

At an emergency summit in Brussels on Tuesday, representatives of the 19-country euro zone said all 28 European Union leaders would meet on Sunday to decide Greece's fate. The talks were organised after Greeks voted in a referendum on Sunday against a bailout that carried stringent austerity measures. French President Francois Hollande said the European Central Bank would ensure that Greek banks had the minimum necessary liquidity to stay afloat until Sunday. The situation in Greece worsened with banks closed for a second week, limited cash withdrawals and businesses feeling the crunch of demands from vendors for cash payments. Tsipras sounded upbeat as he left the summit, even though many of the reforms demanded by his partners would inflict more pain on Greeks who voted at his behest to reject the austerity measures in return for financial aid. "The discussion took place in a positive climate," he said. "The process will be extremely fast. It starts in the coming hours, with the aim to conclude by the end of the week at the latest." He promised to work for a socially just deal that would bring a "final exit" from the crisis, return Greece to growth and restructure Greek debt to make it viable. Failure, Tusk warned, would undermine the EU's standing in the world and said the six-decade-old bloc may face "the most critical moment in our history", according to Reuters.

229

MBA Discussion Forum / Incentive for Bangladeshi diaspora

« on: July 08, 2015, 01:15:28 PM »

The gradual dominance of economic globalisation and the sweeping progress of the information and communication technologies have intensively persuaded countless people to pursue private and professional lives in more than one country simultaneously. However, such people - already being part of a 'diaspora' - maintain varying economic, political and social ties with their country of origin, regardless of whether they have taken up citizenship in their country of residence. Hence, this makes their activities potentially more significant in terms of a development strategy in their country of origin. Lately, Bangladesh has recognised a large population of Non-Resident Bangladeshis (NRB) and expatriates who temporarily work overseas.

Most of the developing countries have started to formulate innovative policies which attempt to reintegrate the members of their diaspora - supported by a thorough study of the skills and resources that members of such overseas groups possess. They are even facilitating the resettlement or circular immigration of their diaspora by rewarding them with investment incentives. Likewise, private enterprises and the civil societies of several countries have partnered with their governments to endorse the expansion of transnational networks which encourage the exchange of skills and ideas between or among diaspora and their countries of origin.

However, the success of these policies depends upon several factors such as the size and investment capacity of the diaspora, and the political atmosphere, investment projection and institutional competence in the country of origin.

One strategy the government can pursue while attempting to mobilise the NRBs in support of development is to create more favourable conditions for investments. India has eliminated several restrictions on Non-Resident Indians (NRIs). It has allowed them to purchase property, withdrawn obstacles to opening bank accounts for the repatriation of the international migrants' remittances, provided tax incentives for their investments, introduced special bonds which the NRIs can invest in. Aided by the substantial economic growth of India in the recent times, such policies have attracted large-scale investments by members of the Indian diaspora in the areas of information technology, electronic media and the airlines business.

Meanwhile, Bangladesh has also developed NRB-friendly economic policies. It is encouraging NRBs to buy the denationalised state enterprises with the promise of a 40 per cent reduction in the price if they purchased them with foreign currency. The government has introduced special investment bonds for the NRBs in both US dollar and taka. Recently, the country has also pursued major housing projects facilitated by investment from the NRBs. However, in spite of the successful attempts to attract investments in bonds and housing, the government has encountered setbacks from its policies to engage the Bangladeshi diaspora. Bureaucratic impediments, including needless paperwork and formalities have already contributed to the failure of some major investments by the NRBs.

Moreover, international organisations and private institutions can also play crucial roles in mobilising our NRB compatriots. They should create opportunities for the NRB who have the training and skills necessary to work in the education, health and agricultural sectors to return to Bangladesh. Despite the temporary or semi-permanent return of an increasing number of university teachers, bankers and other professionals, the government policies are not sufficient for making the 'return migration' easier. Interestingly, the private universities, banks and hospitals of Bangladesh have outpaced the government in facilitating such returns.

Recently, some developing countries have introduced laws which allow their expatriates to reacquire full or partial citizenship rights. Bangladesh should create a liberal policy for the NRBs - offering dual-citizenship rights to members of the Bangladeshi diaspora residing anywhere in the world, so that they can reestablish full civil, political and economic rights, including the right to own property, engage in business and vote.

The NRB population is interested in contributing to our development programmes but they may choose varying forms of engagement based on their capacity and the political and economic environment of Bangladesh. Since the NRB population is not homogenous, the government should devise specific plans to suit their requirements and skills.

230

MBA Discussion Forum / Re: About legal framework of e-banking

« on: July 08, 2015, 01:15:12 PM »

Informative 
Thanks for Sharing 

231

BBA Discussion Forum / Re: Behavioral Finance: An Introduction

« on: July 08, 2015, 01:13:18 PM »

Indeed 

232

BBA Discussion Forum / Re: Microfinance

« on: July 08, 2015, 01:10:38 PM »

Thank You

233

BBA Discussion Forum / Re: ইকুয়েডরে রপ্তানি হলো বাংলাদেশের জাহাজ

« on: July 08, 2015, 01:10:06 PM »

Hoping for more expansion 

234

Business Administration / China equity crash, Greece fears; Nifty below 8,400

« on: July 08, 2015, 01:08:35 PM »

The benchmark BSE Sensex cracked the 28,000-mark by tumbling nearly 500 points today on across-the-board selling by participants, tracking more heavy losses in Shanghai and on fears about Greece’s future in the Eurozone.
At 11:56 am, BSE Sensex trades 485.89 points down to 27,685.80. NSE Nifty sinks 143.00 points down at 8,367.80.
At 11:27 am, BSE Sensex trades 411.90 points down to 27,759.79. NSE Nifty sinks 130.25 points down at 8,380.55.
At 11:23 am, BSE Sensex trades 372.17 points down to 27,799.52. NSE Nifty sinks 121.50 points down at 8,389.30.
At 10:10 am, BSE Sensex trades 175.33 points down to 27,996.36. NSE Nifty sinks 54.55 points down at 8,456.25.
At 9:27 am, BSE Sensex trades 206.75  points down to 27,964.94. NSE Nifty sinks 71.60 points down at 8439.20.
At 9:17 am, BSE Sensex trades 292.33 points down to 27,879.. NSE Nifty sinks 86.65 points down at 8,424.15.
The 30-share index dipped below the 28,000-mark by diving 291.65 points or 1.04 per cent to 27,880.04.
The gauge lost 37.07 points in its last choppy session.
All the sectoral indices, led by metal, banking and auto were trading in the negative terrain, falling by up to 1.60 per cent.
On similar lines, the National Stock Exchange index Nifty slipped below the 8,500-mark by falling 93.30 points or 1.09 per cent to 8,417.50.
Brokers said sentiments on the domestic bourses dampened following a rout in other Asian markets with nearly 7 per cent crash in Shanghai and on fears about Greece’s future in the eurozone, triggering widespread selling.
Among other Asian markets, the Shanghai Composite Index slumped 6.72 per cent, Hong Kong’s Hang Seng index plunged 4.45 per cent, while Japan’s Nikkei index was trading 1.52 per cent down in early trade today.
The US Dow Jones Industrial Average, however, ended 0.53 per cent higher in yesterday’s trade.

235

Business Administration / Re: Middle-income country status: Policy options for Bangladesh

« on: July 08, 2015, 01:06:57 PM »

Good One

236

Business Administration / Re: BD makes slight improvement as investment spot

« on: July 08, 2015, 01:06:10 PM »

Pleasure Ma'am 

237

Business Administration / Re: Nokia will get back into phones in 2016

« on: June 28, 2015, 02:13:01 PM »

Thank you

238

Business Administration / BD makes slight improvement as investment spot

« on: June 28, 2015, 02:12:04 PM »

An international ranking of attractive destinations to foreign investors has placed Bangladesh one notch up in 48th position among 110 countries. The Baseline Profitability Index (BPI), constructed by Dr Daniel Altman, an Adjunct Professor at New York University's Stern School of Business, last year had put Bangladesh at 49th stand.   
Thus Bangladesh as an investment destination to foreign investors becomes little bit more attractive, according to BPI ratings. India has been put at the top, while the United States at 50th and China at 65th for this year. The ranking is based on an index for baseline profitability assuming that three factors influence the ultimate success of a foreign investment. These are: the value of an asset grows; the preservation of that value while the asset is owned; and the ease of repatriation of proceeds from selling the asset. 
The index combines measures for each of these factors into a summary statistic that conveys a country's basic attractiveness for investment. Dr Altman wrote about the index and latest annual ranking in the Foreign Policy magazine last week. He claims that the index is a guide for investors to put in their money and make good returns. "Economic growth alone doesn't determine the returns to investing abroad," he wrote. "You have to worry about things like financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates as well." 
Putting all of these factors together gives a better idea of how big the return will be when it finally reaches an investor's pocket, he added.  BPI calculations also use an index of investor protection compiled by the World Bank.  The rankings were published in the same week when the United Nations Conference on Trade and Development (UNCTAD) released its World Investment Report (WIR) 2015.  The UNCTAD report shows that net inflow of foreign direct investment (FDI) into Bangladesh declined 4.5 per cent in 2014. Inflow of FDI stood at $1.5 billion last year against $1.6 billion in 2013.  UNCTAD estimation is based on the data furnished by Bangladesh Bank.       
The central bank data, however, also show that gross inflow of FDI to Bangladesh stood at $2.06 billion in 2014.  Gross inflows are the total inward direct investment made by non-resident investors in the country while net inflows are the gross inflows minus disinvestment. Disinvestment includes capital repatriation, reverse investments, loans given to parent firms and repayments of intra-company loans to parent firms in a certain period of time.  The UN agency report also shows that greenfield investment in Bangladesh having increased last year. "FDI inflows to Bangladesh remained relatively high at $1.5 billion, thanks to large greenfield investments in a range of industries," said the report. "As one of the most important foreign investors and the largest producer of natural gas in Bangladesh, Chevron (United States) invested $500 million in the Bibiyana Expansion Project and prepared to invest another $650 million to Petrobangla, the local state-owned oil company," it added.
UNCTAD also said that becoming fully operational in 2015 the project in Bibiyana is the largest foreign-investment project in the country in value.  The report also said other significant projects announced in 2014 were in manufacturing industries such as chemicals, construction materials and medical devices, as well as services industries such as telecommunications and transportation.
"In April, for example, a joint-venture subsidiary of Azbil Telstar (Japan) in Dhaka was inaugurated with a local partner, SAKA International, aiming to serve the fast-growing pharmaceutical industry in the host country," it noted. According to the UNCTAD findings, value of announced greenfield projects in Bangladesh increased to $2051 million last year from $912 million in 2013. 
Greenfield investment is generally known as fresh investment made by any multinational corporation into a country to build new factory or plant. The corporation also may have existing investment in the country.

239

Business Administration / Personal Branding

« on: June 28, 2015, 02:07:26 PM »

Personal branding is all about how people marketing themselves and their careers as brands. Personal branding concept shows the way to an individual that success comes through self-packaging and it’s being replaced previous self-help management techniques such as self-improvement.  Analogous to building and managing a corporate brand, one should build and manage his or her own personal brand as well. But yet, most people don’t take it seriously. However, in order to be successful, one should be careful about the image that he/she portrays to others. Personal branding is in many ways synonymous with one’s reputation. It refers to how other people see you. Are you a genius? Are you trustworthy? What do you represent? What do you stand for? And many more so it’s high time one should think of it loudly.
There are so many tenets about personal branding but yet most promising one given by Oscar Wilde. Substance of one of the most important tenets of branding which is also alike to personal branding: all strong brands are based in what’s true, genuine, and real. Since branding is based in authenticity, genuineness and realism, one need to understand who he/she is and what makes him/her compelling to his/her target audience. Besides, If you think about what makes you “YOU”, ponder these questions:
•   What’s your core competence? What do you do better than anyone else?
•   What are your top values & operating principles?
•   What are your true passions and what inspirational factor (s) entice to achieve that?
•   What sort of adjectives do people consistently use to describe you – perhaps when they’re introducing you to others?
•   What makes the way you achieve results interesting or unique?
Obviously personal branding is more than just being yourself, but lacking of material foundation of authenticity, it will be a truly challenging endeavor for building your brand, and a less than fruitful one. Authenticity is as an indispensable ingredient to personal branding as eggs are to omelets.

240

Business Administration / Nokia will get back into phones in 2016

« on: June 19, 2015, 04:44:39 PM »

Nokia, once the world's biggest maker of mobile phones, plans to start designing and licensing handsets again once an agreement with partner Microsoft allows it to in 2016, its chief executive told Germany's Manager Magazin.

"We will look for suitable partners," Rajeev Suri said in an interview published on Thursday. "Microsoft makes mobile phones. We would simply design them and then make the brand name available to license."

Finland's Nokia sold its phone business to Microsoft in 2014 after years of declining sales as it failed to keep up with innovations led by Apple's iPhone.

But months later it launched a new brand-licensed tablet computer, produced under licence by Taiwanese contract manufacturer Foxconn, with an intention to follow up with more devices.

Many analysts expect Microsoft to write off all or part of the $7.2 billion it paid for Nokia's handset unit, a deal that left Microsoft with a money-losing business and only 3 percent of the smartphone market.

Microsoft manager Stephen Elop, whom the US software giant installed as Nokia chief executive for a time, is now leaving Microsoft in a sign the company is turning away from the hardware devices business he headed and back to its core software business.

Nokia in April announced a 15.6 billion-euro ($17.8 billion) takeover of Alcatel-Lucent in a bid to boost the network equipment business that is now its mainstay.

It is also hiving off its mapping business, which has drawn interest from German premium carmakers BMW, Audi and Mercedes, as well as Silicon Valley and Chinese Internet and technology businesses.

Upon being asked whether there were any preferred bidders for the HERE high-definition maps business, Suri told the magazine, "Anybody who can improve the business in the long run is a good buyer."