Investors oppose plan to merge Bepza with other investment agencies

Investors operating in Bangladesh's Export Processing Zones have voiced strong opposition to the government's plan to merge the Bangladesh Export Processing Zones Authority (Bepza) with other investment promotion agencies under a single umbrella authority.

They voiced their concerns through separate letters to the Chief Adviser's Office, stressing that Bepza's performance and ecosystem should remain undisturbed for the sake of investment confidence.

Shams Mahmud, director of the Bangladesh EPZ Investors' Association (Bepzia) and managing director of Shasha Denims, said the government's aim to offer digital One Stop Service under one roof is commendable.

"However, we are very satisfied with Bepza's services. Since it is functioning well, Bepza should remain independent," he said. "The government may consider bringing underperforming agencies under one body, but Bepza should be left out."

He argued that the officials at Bepza have developed strong expertise through years of experience. If a merger is enforced, it may disrupt the existing efficiency. 

"New officers might be appointed, current team members could be replaced, and positions like general manager may no longer exist. These potential changes would create unnecessary complications. For these reasons, Bepza should remain independent," he added.

Chang Yoe Chong Felix, Chairman of Evergreen Products Factory BD and the largest investor in Uttara EPZ, echoed similar concerns. 

"The merger is moving too fast and investors were not consulted.. There should be more discussion with stakeholders before any final decision is made," he said, adding that he had also conveyed his concern to the Chinese Ambassador in Dhaka.

The government is currently working to unify several agencies – including Bida, Bepza, Beza, BSCIC, PPP Authority, and Hi-Tech Park Authority – to establish a central agency capable of providing streamlined, one-stop investment services. 

The proposal was discussed during the 3rd Bida Governing Board meeting on 13 April, chaired by Chief Adviser Muhammad Yunus.

A high-powered eight-member committee, led by Industry Adviser Adilur Rahman Khan and comprising top government officials, was formed on 30 April to review and recommend a course of action. 

The committee includes representatives from the Bangladesh Bank, Ministry of Public Administration, Ministry of Finance, and others. Bida and Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun serves as the member secretary.

Responding to investors' concerns, Ashik Chowdhury, who currently heads both Bida and Beza, told TBS, "We are working to identify the best possible solution for investors. I hope we will reach a decision that ensures both efficiency and investor confidence."

There are currently eight active export processing zones in Bangladesh, with Bepza playing a crucial role in attracting and supporting export-oriented industries.

Queen South Textile writes to CA

In its letter dated 27 April, Queen South Textile Mills Managing Director Wong Jammy Kwok Chan also urged the government to reconsider the merger plan. 

"As a long-term investor operating in Bangladesh under Bepza for nearly three decades, we have created around 5,000 jobs and contributed significantly to the economy, thanks to Bepza's investor-friendly environment," he wrote.

He noted that the company had signed 30-year lease agreements with Bepza under specific terms and stressed that investors should be properly informed of the potential risks and implications of any structural changes.