JBCCI calls for reforms and stronger investment climate

The Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) has welcomed Bangladesh’s national budget for the 2026-27 fiscal year, describing it as a positive step towards maintaining macroeconomic stability, encouraging investment, and supporting sustainable economic growth amid continuing global economic uncertainty.

In a statement issued on Tuesday, JBCCI congratulated the government on presenting a budget that demonstrates a commitment to fiscal discipline, inflation control and the creation of a more business-friendly environment for both domestic and foreign investors.

“At a time when the global economy continues to face significant uncertainty, the budget demonstrates a commitment to maintaining macroeconomic stability, strengthening fiscal discipline, controlling inflation, and creating a more conducive environment for domestic and foreign investment,” the chamber said.

The organisation praised the government’s focus on sustainable and inclusive development, highlighting investments in education, healthcare, social protection and employment generation as critical elements of Bangladesh’s long-term economic transformation.

According to JBCCI, such priorities are essential not only for social advancement but also for developing a productive and skilled workforce capable of supporting the country’s transition towards a higher-value economy.

The chamber particularly welcomed the government’s recognition of the private sector as a key driver of economic growth.

“The emphasis on improving the business environment, encouraging industrial diversification, promoting exports, and attracting foreign direct investment sends a positive signal to the international business community,” it noted.

JBCCI also expressed strong support for measures aimed at modernising tax and customs administration through digitalisation.

It said initiatives to automate VAT registration, expand online compliance systems, recognise enterprise resource planning (ERP)-based documentation and introduce more structured audit procedures could significantly improve transparency and predictability for businesses.

“Such reforms are consistent with international best practices and will contribute to improving Bangladesh’s ease of doing business,” the statement said.

The chamber further welcomed reforms related to customs modernisation, bonded warehouse operations, logistics development and the establishment of Free Trade Zones.

It observed that efficient customs procedures and modern logistics infrastructure are among the most important considerations for Japanese manufacturers and global supply chain operators when selecting investment destinations.

JBCCI also praised incentives introduced for emerging industries, including electric vehicles, battery technologies, semiconductors, advanced electronics and medical devices.

“The budget’s incentives for emerging industries demonstrate an encouraging commitment to future-oriented industrial development,” it said, adding that such initiatives could attract high-quality investment, facilitate technology transfer and create skilled jobs for Bangladesh’s growing workforce.

The organisation also welcomed measures designed to increase foreign participation in logistics and supply chain infrastructure, arguing that these reforms could help improve trade efficiency and support Bangladesh’s ambition of becoming a regional manufacturing and export hub.

Referring to the evolving economic partnership between Bangladesh and Japan, JBCCI said the budget comes at a significant moment as the two countries prepare to implement the Bangladesh-Japan Economic Partnership Agreement (EPA).

“Bangladesh has a unique opportunity to position itself as a preferred destination for Japanese investment in manufacturing, infrastructure, logistics, technology, and services,” the chamber said.

It added that the EPA, coupled with ongoing domestic reforms, could substantially deepen bilateral trade and investment ties while strengthening Bangladesh’s integration into global supply chains.

Despite its positive assessment, JBCCI identified several areas that require continued attention to maximise the budget’s benefits.

The chamber stressed that implementation would be the most important determinant of success.

“The effectiveness of policy announcements will depend on timely issuance of implementing rules, clear operational guidelines, and consistent interpretation by field-level authorities,” it said, noting that predictable implementation is essential for maintaining investor confidence.

JBCCI also underscored the importance of regulatory stability and policy predictability, particularly for Japanese companies that often make investment decisions with long-term horizons extending over several decades.

“Stable taxation, transparent customs administration, and consistent regulatory frameworks significantly reduce investment risk and encourage larger commitments,” it said.

The chamber further cautioned that the government’s digitalisation drive must be accompanied by reliable systems and adequate technical support.

Businesses should not face compliance difficulties or penalties due to system failures, it noted.

Among other priorities, JBCCI called for continued efforts to reduce the overall cost of doing business by addressing logistics expenses, financing costs, energy prices, administrative complexity and procedural delays.

It also urged the government to maintain investment in ports, airports, multimodal transport systems, bonded warehouse facilities and customs operations to strengthen export competitiveness and attract global manufacturers seeking resilient supply chains.

The chamber highlighted the importance of human capital development, calling for closer collaboration between industry, universities and technical institutions to prepare workers for advanced manufacturing, digital technologies, artificial intelligence, automation and green industries.

JBCCI additionally stressed the need for continuous public-private dialogue, saying regular consultations between the government, the National Board of Revenue, chambers of commerce and industry associations would help identify and resolve practical challenges efficiently.

Concluding its statement, JBCCI said Bangladesh stands at a pivotal stage in its economic transformation and that prudent macroeconomic management, structural reforms, effective implementation and the forthcoming EPA offer a significant opportunity to accelerate investment, exports and industrial diversification.

“Japanese investors highly value policy consistency, transparency, good governance, and long-term partnership,” it said.

“Continued progress in these areas will further strengthen Bangladesh’s reputation as a reliable and competitive investment destination in Asia.”

The chamber reaffirmed its commitment to working closely with the government, the Embassy of Japan, the Japan External Trade Organization (JETRO), development partners and the private sector to deepen economic cooperation between Bangladesh and Japan.

It expressed confidence that effective implementation of the budget’s reform agenda would help attract greater Japanese investment, promote technology transfer, create quality employment and support Bangladesh’s vision of becoming a prosperous, resilient and globally competitive economy.