The Bangladesh Mobile Phone Manufacturing Association (BMPMA) has sought its share in the government-declared stimulus package to survive the COVID-19 pandemic. All the mobile handset assembly plants and factories are now out of operation during the ongoing countrywide lockdown, it said. In a letter to finance minister AHM Mustafa Kamal, the BMPMA has sought financing the sector under the incentive fund. It said Tk 300 billion has been declared for big industries and service sector as working capital loan at 9.0-per cent interest rate with the government subsidising 4.5 per cent. However, the association of phone assemblers did not mention any amount they seek from the support package for the industry. The BMPMA said financial incentives are needed to pay salaries and wages to the workers for six months. Last year, for the first time in the country’s history, local assemblage took the lead over smartphone import, buoyed by tax benefits for the industry. As per the latest data of the Bangladesh Telecommunication Regulatory Commission, the number of locally assembled smartphones increased to 2.0 million in 2019 from 0.7 million in 2018. On the other hand, the number of smartphone import fell to an estimated 0.97 million in 2019 from 2.44 million in the year 2018. “Our industry was hit by the pandemic long before the lockdown was imposed in Bangladesh as a major share of the backward-linkage materials is sourced from China,” said BMPMA secretary general Jakaria Shahid. An estimated 0.2 million workers are currently engaged in the production of smartphones and feature phones in Bangladesh, he added. Mr Shahid said, “A big chunk of money lies stuck as large numbers of phones were sold on credit in the market. Even sale is almost zero for this lockdown.” He expressed hope that the government would consider the matter as it is an import-substitute industry. The phone assemblers have also sought waiver for six months of utility charges of the closed factories. In 2018, the government allowed nine companies to assemble mobile phone handsets locally. The assemblers were Walton Digi-Tech Industries, Fair Electronics, EDISON Industries, Carlcare Technology BD, Alamin and Brothers, Anira International, OK Mobile, Transsion Bangladesh and Best Tycoon (BD) Enterprise. The government now collects 57-per cent customs duty on smartphone import and 15-per cent duty on the components of the locally assembled smartphones.
