Chattogram-based steel manufacturer BSRM, pharma companies Square Pharmaceuticals and Renata Ltd and Columbia Garments have received Bangladesh Bank’s approval to invest in foreign countries.
According to the proposal evaluation committee’s (PEC) recommendation letter BSRM and Columbia are all set to invest in Hong Kong, Square Pharma in the Philippines, Reata in Ireland and the UK.
One of the High officials of BB stated that firms are going to invest in foreign countries as part of their marketing plan to expand their business overseas.
Square Pharmaceuticals Limited, a subsidiary of Square Group, would invest $1 million in the Philippines, giving it a chance to break into the $6 billion pharmaceutical market, which is the third largest in the Asean region.
Salahuddin Ahmed, Managing Director of Columbia Garments stated that his company would invest $1.5 million in Hong Kong.
On January 16, 2022 the government set some rules regarding foreign investment as local firms could make equity investment abroad up to 20% of its average annual income from exports during the last five years or 25% of net asset value as per the latest audited report, whichever is lower, according to the new guidelines.
The Bangladesh Bank has allowed 16 companies to register subsidiaries in Malaysia, Singapore, Ethiopia, and Kenya on a case-by-case basis so far. The BB has permitted them to spend $59.9 million abroad since 2014.