Focus on aeronautics, automobiles, NBR boss tells conglomerates

The National Board of Revenue has suggested the country’s conglomerates invest in heavy industries like aeronautics or automobiles instead of occupying the consumer product segment where usually small entrepreneurs invest.

While discussing ways to cope with the country’s economic growth and combat the current and future challenges, the board chairman Abu, Hena Md Rahmatul Muneem, stood by the SMEs.

“Let the SMEs grow. Conglomerates shouldn’t engage in small businesses like making chanachur, puffed rice, flattened rice, or ground spices. They should focus on manufacturing helicopters or buses,” he said.

“Big investment should be left for big industries and small one should go for SMEs,” Muneem said as he was presiding over a pre-budget discussion with members of the Economic Reporters’ Forum (ERF) at the NBR Building at Agargaon in Dhaka on Sunday.

ERF President Refayet Ullah Mirdha, General Secretary Abul Kashem and other executive committee members of the forum were present at the discussion attended by senior NBR officials.

“The country has to go on heavy and challenging industries so the conglomerates should invest in the sector. The country has to support the SMEs also,” he said.

Muneem also found it necessary to develop a guideline and a clear direction on what the companies will be allowed to produce based on their ability. He said he would also discuss the commerce ministry over the issue.

“The Company Act, 1994 allows any investor in the country to take up any venture. The law can be amended if it requires,” he added.

Large business giants like Pran, Square, Akij, ACI, and Meghna in recent years have occupied the consumer product segment with huge investments. Alongside marketing packaged rice, oil, or sugar, they also make and market puffed rice, flattened rice, ground spices and even bakery items.

Bangladesh Bureau of Statistics data shows the penetration of conglomerates in the SME sector is wiping out the medium industries.

In the manufacturing sector, the number of medium industry entities came down to 3,178 in 2019 from 6,103 in 2012 to 2019.

Such engagement of conglomerates in the SME sector also suffers the heavy industries as the number of heavy industries which employ a minimum of 250 people declined to 2,856 from 3,639.