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Our banks run behind the rising suns, only assisting those who rise, says Mahbubul Alam, president of the CCCI in an exclusive interview with The Business Post’s Md Saidur Rahman
Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industry (CCCI), a humble businessman from Khatungonj, sets a new record by becoming president of this 117-year-old business association for five consecutive times. He has also been elected as CIP (Industry) in 2013. The Chairman of M Alam Group, Mahbubul Alam does business in the banking, insurance, hospital, fishery and import-export sectors.
Khatunganj, once a business hub of the country’s largest consumer goods market, has lost its zeal and at the same time, Chittagong, the commercial capital of the country, has seldom national commercial activities. Mahbubul Alam talked to The Business Post about the overall commercial issues of Chittagong and Khatungonj.
From the humble beginnings of Khatungonj to being the president of CCCI. How are you able to manage this 117-year-old association along with your business?
Everything is possible with will force. You have to take ownership of everything you do. The root of my work is business and I am involved in it always. However, due to increasing responsibilities, I cannot devote as much time to the business as before, but I still try. I love working with the business community and serving them, and I take it as a challenge.
Khatungonj used to be the main hub of business in the country’s consumer goods sector. But now that is not the case. What are your thoughts regarding the matter?
It is the decentralisation of business. There are many reasons for this. Once upon a time trade used to be dependent on the river. That situation has changed drastically. In the 1980s, ships carrying 10-12 thousand tonnes used to come to our port. Since 2000, 40-50 thousand tonnes, now more than 70-80 thousand tonnes weighing ships are coming to our port. That means our internal market is becoming rich, that is, the business has moved from the river to the sea. Railways and roads have improved, so, the products are released in Chittagong and are going off to different parts of the country. So there is no need to depend on Chaktai-Khatungonj.
Many of the country’s significant businessmen originated from Khatungonj but they are not to be seen here. These businessmen are heading towards Dhaka. What is the reason behind this?
Due to lack of opportunities in Chittagong. The facilities they are getting in Dhaka are not available in Chittagong. Almost all public and private institutions have their headquarters in Dhaka. So, they are moving towards Dhaka to sustain their business.
What obstacles are the businesses of Chaktai-Khatunganj facing? And what are the ways to overcome them?
There are many obstacles here. The roads here are narrow, the communication system is bad, and traffic jams and waterlogging are paired with a bad sewage system. There is no mass parking spot. I have studied together with the Ministry of Planning, and many problems have come up. The roads here should be widened and many facilities need to be increased.
The concentration of wealth creates huge disparities between the big cities and small towns, especially regarding the accumulation of capital in big cities. What is the way out of this discrimination?
There was a license in quota meaning whoever held the license, could import. Then came the (OGR), open market economy and now IRC, which is a free market economy. This means, whoever has an import permit, can import from anywhere. However, it is not right to accumulate money in one place as it increases discrimination.
Although Chittagong is called the commercial capital, no commercial activity can be seen. All 64 of the country’s commercial banks have their headquarters in Dhaka. A few of the main branches of these government offices are in Chittagong, all of which are managed from Dhaka. Officials are not present in Chittagong, what do you have to say about this?
This is a big problem. Even those institutions that have offices here do not have sufficient and high-ranking manpower. That is, there is no decision-making officer. Many problems would have been solved if manpower had been employed. At the same time, some government offices should have been based here. We have been saying this for a long time but to no avail. Decentralisation is needed. The pressure on Dhaka should be reduced.
A deep sea port is being built in Matarbari, and the country’s largest economic zone is being built in Mirsarai. Is the current communication system of Chittagong sufficient to handle all that?
The current communication system of Dhaka-Chittagong-Cox’s Bazar is not sufficient. Even if only 20 per cent of the port and economic zone are operational, the pressure will massively increase. Therefore, it is necessary to build the Dhaka Chittagong highway into an expressway of six to eight lanes. At the same time, the capacity of the rail route of Dhaka-Chittagong should be increased.
Almost 90 per cent of the country’s import and export packages go through the Chittagong port. But it is a river port. Hence, the bay terminal is being built to increase the capacity of the port, but there is no progress. What do you say about this?
Although it is our main port, it is basically a feeder port. The draft here does not exceed 9.5 metres depending on the tide. The number of jetties should be increased here. And there is no alternative to Patenga Bay Terminal. Because our export target is 100 billion. So it needs to be implemented soon for the good of the country.
You have been talking about the cost of doing business or the ease of doing business for a long time, what condition is it in now?
I don’t see it decreasing anywhere. Rather it is increasing. Let the containers come here, let it dock off quickly. Fuel prices are increasing. Their prices will also increase.
What steps should be taken to increase foreign investment in Chittagong?
The government is taking various steps to increase investment. They are building different economic zones.
Defaulters are the main obstacle to businesses. Half of the top 20 defaulters raised in the national parliament are from Chittagong. Some of them have defaulted due to business losses. These traders want to return to their previous position. What are your thoughts on the matter?
There are two types of defaults. Someone may be defaulting on purpose. However, most of the defaults are due to business reasons. Our banks run behind the rising suns, only assisting those who rise while ignoring those who fall. I think there is a need to change this mindset. However, action should be taken against those who are deliberately defaulting.
