Written by The Banking Post
Foreign investors at the Foreign Investors Summit 2025 in Dhaka yesterday called on the interim government to prioritise good governance, transparency, policy continuity, and political stability — warning that violence and policy shocks could undermine Bangladesh’s ability to attract overseas funds.
Speaking at a panel titled “Bangladesh Capital Market: An Unsung Story of Growth and Opportunities”, Takao Hirose, Managing Director of Contextual Investment LLC, said Bangladesh’s industries need more long-term equity capital, which global investors can provide — but only if a proper framework is in place.
“We are fast, aggressive, and capricious money. One sign of instability can send us back,” Hirose cautioned. “No violence, please. Talk over your differences — you’re being watched by international investors.”
He urged authorities to develop stock trading apps, aggressively deregulate wealth creation, and deepen the domestic investor base to counter the volatility of foreign portfolio flows.
Policy stability key to investor confidence
Ruchir Desai, Fund Manager at Asia Frontier Investments Ltd, pointed to past policy moves — including interest rate caps by Bangladesh Bank and the 2020 stock exchange shutdown — that shook investor confidence. While Bangladesh has strong companies in consumer goods, pharmaceuticals, and infrastructure, Desai said political clarity after the next elections could be a turning point for the economy and markets.
Bangladesh’s resilience highlighted
Speakers including Policy Exchange Chairman M Masrur Reaz and Special Assistant to the Chief Adviser Anisuzzaman Chowdhury highlighted Bangladesh’s resilience, noting that inflation has eased since the fall of the previous government and output has avoided the post-crisis declines seen in other countries.
BNP Standing Committee Member Amir Khasru Mahmud Chowdhury stressed a shift from a debt- and money-printing-based economy to an investment-driven model. “We are fully committed to addressing capital market issues and bringing in more blue-chip companies,” he said.
Capital market depth still lacking
Former World Bank economist Zahid Hossain urged foreign investors to take a longer-term view, holding positions for three to four years. DSE Brokers Association President Saiful Islam moderated the discussion, which also featured senior officials from the Bangladesh Securities and Exchange Commission, Dhaka and Chittagong stock exchanges, BRAC Bank, and BRAC EPL Stock Brokerage.
