Bangladesh can plug supply chain holes to turn crisis into opportunity: US special rep Syed

Technology, pharma and textiles could be the best ways forward for Bangladesh, US State Department's Special Representative for Commercial and Business Affairs Dilawar Syed said on Thursday.

In an interview with The Business Standard at the US Embassy's Annex compound in the capital, Syed said Bangladesh was brimming with potential and there was a lot it could do.

"There have been some serious major global events which dislocated economies. The pandemic and Russia's brutal invasion of Ukraine have shocked supply chains. But these have also created opportunities for Bangladesh to plug in the supply chain holes. Last year, President Joe Biden signed an executive order to make US supply chains more resilient," he said.

"We encourage our allies to plug supply chains. This is relevant for Bangladeshi textiles and pharma. We cannot rely on supply chains which existed before February 2022," Syed said.

"[Given] the country's size, its talent skill, Bangladesh could do more," he said, adding that it was time for the country to seize the opportunities it was so well-positioned to do.

Pointing to the pharma sector, he said Bangladesh had the manufacturing capacity. "You can develop that and modernise Intellectual Property laws. Pfizer was here a while back, why can't they be here in the new Bangladesh? It's a matter of reviewing what Bangladesh can do better there."

He also pointed out that Pfizer had recently set up a research and development centre in India's Chennai.

"The region has the capacity and for some drugs, Bangladesh has a role to play.

"The broader point is there is so much disruption, so we need more nations stepping up to supply essential things to the world. Hopefully it won't be a monumental lift for Bangladesh to play a role."  

On supply disruptions, Syed also highlighted the semiconductor market that relies on Taiwan for 85% of its supply.

"It all comes from one country, so it's pretty risky. I am not suggesting Bangladesh get into that market; there are many potential opportunities available, but there has to be an enabling environment so Bangladesh can deliver…"

Syed, whose career as an entrepreneur spanned some 20 years and who served as a member of the Silicon Valley Recovery Roundtable to help the region recover from the pandemic, also said Bangladesh should focus on technology.

"Technology is a sector close to my heart. There is clearly an opportunity for Bangladesh to grow its total exports [through it] but for this it has to get a few things right," he said.   

He said entrepreneurs shouldn't just concentrate on providing services but focus on creating truly global product companies.
"In the last 24 hours, I met entrepreneurs and early stage investors. The tech industry is at a nascent stage but it's only a matter of time before it can contribute in a meaningful way."

For this, he emphasised on the need for an enabling environment, modern IP laws and especially a skilled workforce.
Citing a study by the Asian Development Bank, he said around 20,000 Computer Science and Engineering (CSE) students graduate every year in Bangladesh, but 80% of them lack basic maths and coding skills.

"You have to develop their skills. With tech and IT, there is serious potential there," he said, adding that India had the blueprint of how to make the sector work.

He also urged convening mentorship platforms as lack of mentoring could hold the sector back.

Syed, who also served as president and chief executive officer of Lumiata, an artificial intelligence for healthcare company, further touched upon how AI could spark a dramatic shift in how Bangladesh looked at its healthcare services.
As user data could be used to predict future health complications, he said Bangladesh could make use of it for its health sector which already suffers from strained resources.

"But technology is the future. We have to support entrepreneurs and we have to support startups," he said, urging companies to invest more in the sector.

On Bangladesh's ready made garments sector, he said Bangladesh was known around America for being a manufacturing powerhouse, but urged caution in putting all its eggs in one basket.

"I hope Bangladesh diversifies. We cannot anticipate global shocks. What happened in March 2020 was a humbling awakening for every part of the world. It was the great equaliser, in that all countries were affected," he said.

He said the impact on countries which were dependent on only one sector would be much more, adding, "This is why it's so critical Bangladesh punches at its weight to deliver in more than just one sector."   

Reiterating the USA's position on the Russian action in Ukraine, he said the current crisis were the effects of the invasion.
"Twenty million metric tonnes of grain, in 83 ships, that we could use to feed our people, remain stuck in the Black Sea because of Russia's blockade. So of course it's causing non-availability. Ukraine is also the top producer of fertiliser, so of course there are issues. We still have not recovered from the pandemic, as new variants are emerging," he said.

On any advice, he would give to small-, medium-enterprises he said, "Get sharper on Digital…go digital. We have seen how the pandemic created a new class of women entrepreneurs. Now we must also look towards those underserved," he said, adding digital literacy was still a burning issue.

On a personal front, Syed - who is on the cusp of becoming the highest ranking Muslim-American in the Biden administration - said when he arrived in the farming community in Ohio for his education from Pakistan, he never imagined he would one day be an advisor to a US president.

But he worked hard and drove civic efforts, eventually reaching his current position. "America, I think, is the only place in the world where something like this could happen. Our American values are our greatest export," he said with a beam, adding he knew that he represented millions of South Asian Americans and thus worked hard for them.  

Syed, who has toured India, Pakistan and Bangladesh since the start of July, also spoke about the shared connections the region fostered and how it could be leveraged. "When I ate here today, it felt like I was eating at home. There are so many links between the different countries," he said.

He called for having more collaboration and thus serving a bigger market which could help create more global companies.