Cabinet nods to Akij’s Malaysia investment plan

Cabinet committee on Economic Affairs has finally given approval to business conglomerate Akij Group for investment of USD 20 million in Malaysia.

The approval was given at a meeting on Wednesday with Finance Minister AMA Muhith in the chair, said Cabinet Division's Additional Secretary Mustafizur Rahman while briefing the journalists on the committee's decision.

Proposals of three local companies, including Akij Group, were rejected earlier in May this year by the committee.

The two other firms' proposals were Hamid Group`s $10.44 million in Haiti, and Nitol-Niloy Group`s $7 million in Gambia.

The concerned authorities were asked at the time by the committee to place their proposals again along with detailed assessment report of Bangladesh Bank about the detailed project proposal, amount of investment, prospects of profit, possibilities of repatriation of profit and invested money.

Only Akij Group submitted their detailed proposal and the Bangladesh Bank Project Evaluation Committee (PEC) scrutinised and put forth the proposal through the Banking Division where it was approved by the Cabinet committee.

If Akij Group is allowed to invest, it is possible to repatriate $20 million from the project in next three years, revealed the Central Bank's PEC although it feels that there is further scope for negotiation with the Malaysian counterpart over the proposed project.

A UNB report said the PEC also thought that it is uncertain for the Bangladeshi company to operate business in Malaysian environment after change in the management.