Financial Times

Bangladesh as an emerging market is more advantages to Sri Lankan companies seeking to invest (in the region) as against India for example where – even though the opportunity is greater – the market-entry threshold is much higher, according to Malka Shamrose, MTI Country Manager for Bangladesh.

During a recent visit to Colombo, Ms Shamrose, who joined MTI in 2005 after a successful career with Unlever, Nestle and BAT, shared her thoughts on opportunities for Sri Lankan companies in Bangladesh, in an interview with The Sunday Times FT.

Part of a prominent business family in Dhaka, she has a passion for consulting and has built a strong team and business platform for MTI in Bangladesh. Ms Shamrose received MIT's Best Country Award.
Excerpts of the interview:

What are main consulting solutions offered by MTI Bangladesh? Does it vary from other parts of the world?

After one year of operations we have learnt that the market need is to concentrate on strategic planning, marketing and restructuring solutions – pretty similar to anywhere else in the world where there exists a competitive and free market.

Is Bangladesh ready for consulting?

To be very honest, at the beginning I was quite skeptical about the prospect of consulting in Bangladesh. Even moreso when it came down to establishing awareness on the need for consulting. To my utter surprise I was proved to be wrong, and greatly encouraged to see the potential that the Bangladesh market offers.

Is there opportunity for Sri Lankan companies to enter Bangladesh?

You see, the main reason foreign investors have been attracted to Bangladesh is because of its competitive labour costs – which have been one of the lowest in South Asia. The country also is experiencing modest but steady economic growth at a rate of 6.5% and the fact that it is heavily populated, with disposable income growing (especially among the middle class), has drawn global investors seeking large markets.

An important fact to consider is the strategic location of Bangladesh – serving as a bridge between South and East Asian high-growth regions as well as links with other markets like India, Pakistan, Malaysia and Singapore.

Besides, the infrastructure in Bangladesh has developed considerably for supporting large-scale investments.

The government of Bangladesh has been very supportive toward foreign investors through a number of policy reforms designed to create a more open and competitive climate for private investment, both foreign and local.

A permanent Law Reform Commission has already been set up to ensure greater transparency and predictability in the way rules and regulations are made and implemented.

What are the emerging opportunities in Bangladesh that Sri Lankan companies should be targeting?

The greater concentration of labour-intensive foreign direct investments in Bangladesh is occurring notably in textiles, light engineering, agro processing and leather. Furthermore, a growing middle class in a country with a population of 140 million offers enormous opportunity for consumer goods.

What is the perception of Sri Lanka, as a country, as a business partner and as a brand in Bangladesh?

Sri Lanka is perceived to be light years ahead in terms of professionalism in the corporate world, and please also note that Sri Lanka enjoys a positive image in Bangladesh.

What advice would you offer Sri Lankan companies contemplating entry in Bangladesh? Any pitfalls they ought to be aware of?

Bureaucracy and legal bottlenecks do exist, as with anywhere in the region. There are cases of non-implementation of the government policies that have been regarded as major obstacles. However, as I mentioned before, the Bangladesh Government is taking serious measures to improve the situation to facilitate an ideal environment to foreign investors to conduct their businesses profitably and efficiently.

How is the political situation in Bangladesh affecting business and how are you coping with it?

The political situation has its ups and down in Bangladesh - no exception from that of the region. Within the region we have started living with this without letting it hinder our progress.

A good example is the GDP growth of the nation, which has reached the highest peak at 6.5% and is expected to grow further, which if you think about it may have been even higher with a more stable political condition.

What are the challenges for a professional woman like you working in consulting in a male-dominated environment?

Truthfully, based on my experience I have never faced differential behavior even when I joined Unilever Bangladesh as the lone professional woman 13 years back. More and more today, people are judged by their capabilities and competencies and not by their gender. This is a phenomenon occurring world over, and Bangladesh I am proud to say as a professional and a woman, is no exception.