Japan chamber welcomes budget, urges reform delivery

The Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) has welcomed the proposed national budget for the fiscal year 2026-27, saying it reflects the government’s efforts to maintain macroeconomic stability, control inflation, and create a more investment-friendly environment despite ongoing global economic uncertainty.

In a statement, the chamber said the budget’s focus on education, healthcare, social protection and employment generation demonstrates a commitment to inclusive and sustainable growth. These priorities, it noted, are crucial for developing the skilled workforce needed to support Bangladesh’s economic transformation.

JBCCI also appreciated the government’s emphasis on the private sector as a key driver of growth. Measures aimed at improving the business climate, encouraging industrial diversification, boosting exports and attracting foreign direct investment were described as positive signals for the international business community.

The chamber particularly welcomed initiatives to digitalise tax and customs administration, including automated VAT registration, expanded online compliance systems, recognition of ERP-based documentation and more structured audit procedures. It said these measures could improve transparency, reduce administrative burdens and make business operations more predictable.

Reforms related to customs modernisation, bonded warehouse operations, logistics and free trade zones were also praised.

According to JBCCI, efficient customs procedures and modern logistics infrastructure are among the most important factors considered by Japanese manufacturers and global supply chain operators when selecting investment destinations.

The chamber further welcomed incentives for emerging sectors such as electric vehicles, battery technology, semiconductors, advanced electronics and medical devices, saying they could help attract quality investment, encourage technology transfer and create skilled jobs.

JBCCI noted that the budget comes at a significant moment in Bangladesh-Japan economic relations as the two countries prepare to implement the Bangladesh-Japan Economic Partnership Agreement (EPA).

The agreement, combined with ongoing domestic reforms, could strengthen bilateral trade and investment while deepening Bangladesh’s integration into global supply chains.

While expressing support for the budget’s overall direction, the chamber stressed that effective implementation remains critical.

It said timely issuance of rules, clear operational guidelines and consistent interpretation by authorities will be essential to ensure the intended benefits reach businesses.

The chamber also called for greater regulatory predictability, reliable digital systems and continued efforts to reduce the cost of doing business through improvements in logistics, energy supply and administrative processes.

It emphasised the need for continued investment in trade infrastructure and stronger collaboration between industry, universities and technical institutions to develop skills in advanced manufacturing and technology sectors.