/ ‘Business-friendly environment remains elusive’

A congenial business environment is yet to be restored under the interim government, said Tapan Chowdhury, managing director of Square Pharmaceuticals.
Until that happens, fresh investment or business expansion plans would be on hold, Chowdhury told The Daily Star in an interview recently.
“Square Group also has plans to expand the group’s business both at home and abroad, but this is not the time for investment as the congenial and business-friendly environment is absent now.”
Regarding the recent labour unrest, he suggested minimising the communication gap between the factory owners and workers.
“There should be regular interactions between the workers and owners — if there is any grievance of the workers, their views should be heard.”
Only police and the army cannot manage the problem of worker unrest, he said, adding his pharmaceutical factory was also attacked during the time of weak law and order situation.
Chowdhury is also a director of the Nirapon, which was earlier the North American garment factory inspection and remediation platform Alliance.
Nirapon has been urging the local factory owners to implement a living wage and ensure freedom of association through trade unions.
However, international brands and retailers are reluctant to raise the prices such that the factory owners could pay a living wage to workers.
“When the question of price hike is raised, they [the international clothing retailers and brands] say that they cannot do it as it is a matter of competition.”
Chowdhury gave an example of freedom of association and industrial relations.
“Many years ago, at our Pabna industrial plant, the workers demanded a salary hike and the then chairman of the group Samson H Chowdhury doubled the salary although the workers demanded half of the salary hike. That made the workers very happy. It was possible because of a warm relationship between the workers and owners.”
Similarly, whenever and whatever the workers demanded something, the chairman honoured that.
“People think the majority of businessmen made money in the wrong way — that perception needs to be changed. Businessmen are seen as villains here. It is true that many have done bad things but all are not bad. Few big groups of companies made money through corruption and they did these things in connivance with the government and in public. They do not represent the whole business community.”
But it is also true that many factory owners do not pay their workers on time.
“But they are buying new cars and enjoying the life of luxury.”
About the banking sector, Chowdhury questioned the logic behind having so many banks.
“In which country are there so many banks?”
With the money deposited by poor people, some are claiming themselves to be bank owners.
“Had the government not patronised them, they wouldn’t have had the chance to become such monsters.”
Chowdhury also touched upon the health sector, which is going through a tough time.
“It is difficult to negotiate with the current government as they do not know what is the priority of the government and there is a huge gap between businessmen and the government.”
For instance, the government has been reforming the pharmaceutical industry, which may affect the prices of medicines.
“Many things are being touched in many areas simultaneously. You cannot do reforms in one day — reforms should be made step by step. Why are the people going to private hospitals? The government should realise it. This government did not do anything to revive the government hospitals. The hospital which was supposed to be built with Tk 500 crore was made with Tk 1,000 crore and no doctor could be found in those hospitals. The government should address it.”