Home ›› 15 May 2021 ›› Front
Bangladesh is ambitious to take a fast-changing digital world head-on and keep up with the imminent fourth industrial revolution, said Syed Almas Kabir, president of the Bangladesh Association of Software and Information Services, while speaking to The Business Post’s Rifat Islam during a recent interview. In the interview, Almas detailed how the government could allocate fund for businesses in the budget for the fiscal year 2021-22 to boost software and IT-based business to keep the country ahead of the game.
How much did the Covid-19 pandemic impact the IT business?
Last year, our $1 billion export market came to a standstill. Orders were cancelled or suspended because of lockdowns in European and American markets.
However, businesses are reviving for the last four to five months as markets are reopening. The future of exports seems to be bright, as many organisations and companies need new IT solutions.
We are hit hard in our local market. This $1 billion market will take more time to recover. We are counting losses as companies we used to offer IT support are unable to make new investments or perform software upgrades.
What kind of opportunities are you offering for startups?
Most of the 1,600 members of BASIS are startups, companies established less than five years ago.
Companies under the age of two are categorised in the Associate Category and they receive a 50 per cent discount on the annual subscription fee.
We also support them through the ‘Growth Ecosystem’, which gives them access to financial assistance such as bank loans, free legal assistance, IT-related advice, and training for their marketing and human resource development.
Furthermore, as part of our mentoring pool programme, a senior industry figure provides proper guidance and training to three to four aspiring entrepreneurs over the course of three months.
What are the facilities for female entrepreneurs?
Women working in the IT sector regardless of BASIS membership can participate in our 'Women Forum'. Apart from this, a standing committee is also working to their benefit.
Women's participation in IT is as low as 12-13 per cent, and only 2-3 per cent of IT entrepreneurs are women. To make it easier for women to enter the IT arena, we are encouraging BASIS member companies by offering discounts on various service fees that have at least 25 per cent female employees.
Female trainees of BASIS Institute of Training and Management are also getting discounts on their fees. For the past two years, we have been allocating 20 free stalls for women entrepreneurs at our biggest annual event, BASIS SoftExpo.
What proposals should be made for the next national budget to create IT-centric skilled workforce?
We are moving towards a knowledge-based society and a mere institutional degree is worthless if we are not proficient in that particular discipline.
To progress in the upcoming fourth industrial revolution, an immediate initiative needs to be taken to upskill or reskill our young workforce. If not, many will lose their jobs because of this change.
What steps should the government take to increase software exports?
Bangladesh needs to be re-branded. Readymade garments in our country witnessed success by riding on cheap labour. We need to change this cheap labour identity and gain recognition as a country of skilled workers.
For this, we have to highlight the skills we possess in IT.
After discussing with the government, we identified five regions — the USA, the UK, Europe, Africa and Japan — where we want to do marketing or set up liaison offices. We can connect our IT companies with them by doing this.
In addition, if we can strengthen our internet infrastructure, along with the 6,50,000 freelancers we have, a new young workforce will be able to conduct outsourcing from rural and remote areas equipped with laptop or desktop computers. This will increase our export-based revenue.
How the Government Hi-tech parks can operate successfully?
Hi-tech parks are already operational in Jashore, Rajshahi and Janata Tower in Dhaka and another one in Sylhet is going to start soon. Many companies in our country lack skilled workers as everyone has become Dhaka-centric. For example, a student who has passed from Khulna or Shahjalal University of Science and Technology comes to Dhaka looking for a job.
However, the government is providing a range of opportunities for foreign investors, and we can attract them and build Hi-tech parks through country branding.
How to increase Foreign Direct Investment in the ICT sector?
To encourage foreign investment, the government has announced a tax holiday, 100 per cent profit repatriation along with other offers.
We have also urged the government to extend the tax holiday until 2030 so that foreign entities feel encouraged for investing.
Setting up a business in Bangladesh is quite complicated, which discourages many investors. Starting a business in Singapore, for example, takes half an hour. But it takes more than a month or two to do the same thing in Bangladesh combined with hectic paperwork.
These things happen because many of our government officials and administration staffers are not familiar with ICT issues, leading to complications. This process needs to be made simple and dynamic.
What should be done to turn Bangladesh into a cashless society?
We have requested the government to waive VAT on digital transactions for at least three to five years in the upcoming budget, as this will encourage the growth of e-commerce and digital transactions during the pandemic. As a result, the goal of our cashless society will be realised quickly.
What problems in the ICT sector can be solved with the next budget?
We have a tax holiday till 2024. Obtaining a certification from the National Board of Revenue for this takes a lot of hard work each year. The process should be simplified. VATs at source should be repealed as traders are already suffering. The high tax on security devices should also be reduced.
