Bangladeshi tycoon Khan says investor confidence must be revived
Lack of quality employment a key reason for recent protests
One of Bangladesh's wealthiest tycoons said the world's second-largest garments exporter must do more to create quality jobs and assuage nervous investors.
"There are so many unemployed youth," said Muhammed Aziz Khan, chairman of Summit Group, in an interview in Singapore.
Student-led protests that forced Prime Minister Sheikh Hasina to resign this month were largely focused on the nation's jobs conundrum. Though Bangladesh's economy has grown rapidly over the past 15 years, many say opportunities for lucrative employment are scarce, leading to widespread resentment toward the government and business owners.
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During Hasina's tenure, industrial conglomerates became closely entangled with her ruling Awami League party. After the prime minister's downfall, politicians and entrepreneurs with proximity to her regime have come under sharp scrutiny. Transparency International has placed Bangladesh high on its index measuring corruption.
"Investor confidence is marred by the violence and anarchy," Khan said, referring to the protests, which left more than 600 people dead.
Khan, 70, is among a handful of Bangladeshi industrialists who control the country's key infrastructure assets. His businesses span the power, energy and shipping sectors. Since starting operations in the 1990s, Singapore-based Summit Group has grown to become Bangladesh's largest independent power producer.
The tycoon, whose brother was a minister in Hasina's government, declined to comment on the prime minister's ouster or recent political upheaval. But he said Bangladesh needs to support entrepreneurs and work on its messaging. The average citizen, he said, needs to change their mindset to "wealth is not evil."
"Wealth for investment is the key to the development of any country," Khan said.
The businessman's comments come as an interim government headed by Nobel-winning economist Muhammad Yunus attempts to clean up public institutions and push through reform. The temporary administration has in past days arrested members of Hasina's government.
Broader economic challenges also persist. Despite Bangladesh's climb into the ranks of lower-middle-income economies, growth has lately slowed and foreign direct investment has fallen. Bangladesh, highly reliant on a giant garment-export industry, is currently drawing on a $4.7 billion loan program from the International Monetary Fund.
