Use of technology in manufacturing industries of Bangladesh moves downward: CPD
There is no alternative to incorporating modern technology in industries to increase production and exports and to diversify products. But there is a considerable lack of skilled manpower to manage these modern technologies. The kind of education and research needed to produce skilled workers is also insufficient. Industries do not want to spend on research and development. Most of the industrial establishments spend less than 500 taka per worker per year. Emphasis on the research sector is essential to take advantage of the fourth industrial revolution.
On Sunday, the experts expressed such views in the dialogue 'Use of technology in the industrial sector of Bangladesh' held at the BRAC Center in Mohakhali of the capital. The dialogue was organized by the Center for Policy Dialogue (CPD), a non-governmental think tank.
Industries Minister Nurul Majid Mahmud Humayun was the chief guest at the dialogue moderated by CPD Executive Director Fahmida Khatun. Bangladesh representative of United Nations Industrial Development Organization (UNIDO) Zaki Uz Zaman, president of Bangladesh-Malaysia Chamber of Commerce Syed Almas Kabir, director of BGMEA Asif Ashraf and various industrial entrepreneurs participated in the discussion.
In the event, the Minister of Industry said that if there is no investment in technology on time; if there is no good research, the industrial sector will lag behind and the country will also lag behind. Still many areas of need are not being properly invested. Foreign investment is not coming that way.
The Minister of Industry expressed his dissatisfaction with the education of private universities. He said, there are questions about what is being taught in many private universities. Students are getting certificates only. They are not able to survive the job test. In order to develop skilled human resources, education cannot be discounted in any way.
He said, expatriate workers send remittances. And highly educated businessmen do not send remittances, on the contrary they take money from the country. Many animal skins are supplied during the sacrificial festivals. But not sold. Hides lie in the tannery. They become waste. Because some businessmen have a lot of money now, they live abroad. Nothing happens to them. Because they have interests with the leaders or ministers of business organizations. A class of businessmen are eating up bank money, people's money too. In fact dishonesty is the main problem.
In the original article, Syed Yusuf Sadat, research fellow of CPD, said that the use of modern technology in the industrial sector requires good quality research and innovation. But the industries do not want to spend at all in this sector. Most industries spend less than 500 taka per worker per year, except for a few industries such as medicine and chemicals. Only 5 percent of large industrial firms invest in research and development. And 2 and 1 percent have invested in small and medium industries respectively. This is ominous for the industrial sector of the country.
Fahmida Khatun said that high quality technology must be used in the industrial sector for economic prosperity. Bangladesh will lag behind if it cannot keep up with the revolution in the field of technology. The economy will slow down. Apart from the garment sector, there is no significant export sector. The garment sector is also not using very high-end technology.
Zaki Uz Zaman said that investment in hi-tech parks should be increased to escalate exports. Therefore investment in higher research sector is required. This investment should be foreign direct investment.
Bangladesh-Malaysia Chamber of Commerce President Syed Almas Kabir expressed the opinion that productivity will increase if Internet of Things is used in the supply chain from SMEs using technology. He said, apart from manual labor, cognitive work will also be machined. Therefore, if technology is not used in the garment industry, Bangladesh will fall behind.
Syed Almas Kabir said, 'If the country's companies would get the scattered work of the technology products that have been used or are still being used in the mega project, then the companies here would have stood. Not saying that technology cannot be brought from abroad. But when these projects start, the contract should have stipulated a minimum of 60 percent local value addition. Fourth industrial revolution requires national policies on issues like Blockchain, IoT. Data privacy laws should be brought to light soon.'
Asif Ashraf said automation is happening in big factories. Small factories are lagging behind in this regard. Government policy support is needed to add automation to small businesses as wll.
According to a research report by the Center for Policy Dialogue (CPD), despite the increase in the amount of other types of products including middle and high-tech products among the manufacturing products in the exports of other countries, the opposite picture is seen in Bangladesh. The proportion of medium and high technology products in the total exports of Bangladesh's manufacturing sector is only two percent. But even around 1990, the proportion of medium and high technology products was six percent. The contribution of the technology sector in the export products of other countries comparable to the economy of Bangladesh has increased to a large extent, but it is not happening in Bangladesh.
