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Bangladesh Wages: Still Well Below Most Peers After 77% Hike
• 

Ministry of Labour 77% rise in minimum textile wage versus 2010 settlement comes into effect on Dec 1st 2013

• 

77% rise is higher than potential 67% compromise reported by Reuters in October

• 

Bangladesh is #2 ready made garment exporter to EU, new wage still c70% below #1 China
Turkey
Iran
Jordan
Algeria
Morocco
Tunisia
Lebanon
Mauritania
Nigeria
Mozambique
Cote D'Ivoire
Kenya
DRC
Tanzania
China
Pakistan
Nepal
Indonesia
Laos
India
Bhutan
Vietnam
Sri Lanka
2013 Workers Demand
2013 Settlement
Compromise' (Reuters, Oct 2013)
2013 Owners Offer
2010 Settlement
0

1000

2000

3000

4000

	
  

5000

6000

Source: ILO, Most country data is for wages set in in 2012 or 2013. Data on 2013 Bangladesh
negotiation prior to Wage Board announcement from Reuters Oct 2013.

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Frontier Alpha Recent Reports

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Bangladesh

Unrest Priced In

27 October 2013

Nigeria

Political Risks Not Priced In

23 September 2013

Zimbabwe

Election to Succession

4 August 2013

Egypt

Stalemate Broken

4 July 2013

Egypt

Value in Distress

22 June 2013

Kuwait

Elections and Tribe

17 June 2013

Zimbabwe

Value Despite the Run and Risks

10 June 2013

Nigeria, Kenya

Northern Rocks

21 May 2013

Saudi

Dune

9 June 2013

Pakistan

Evolution, Not Revolution Yet

13 May 2013

Saudi

CMA, Government at Euromoney

7 May 2013

Zimbabwe

Rally Through the Risks

2 May 2013

Saudi

Margins Reveal Top Down Risk

22 April 2013

Pan-Frontier

Arab Spring: Pakistan Pointer

9 April 2013

Ethiopia

Merits More Attention

8 April 2013

Nigeria

2015 Calculus

2 April 2013

Egypt

US Disengagement

26 March 2013

Lebanon, Syria

Pessimism Put

25 March 2013

Kenya

Sensitive Moment

21 March 2013

Dubai

Different This Time Why?

13 March 2013

Qatar

LNG: Less No Risk Growth

11 March 2013

Egypt

CoupE2?

7 March 2013

MENA

Persian and Arabian Gulf

6 March 2013

Saudi

Old versus New Media

24 February 2013

Saudi

Regulator Changes

23 February 2013

Egypt

Not (Quite) Pakistan

22 February 2013

Pakistan

Balochistan Vortex

21 February 2013

Bahrain

Drain

14 February 2013

Saudi

Still a Play on Global

12 February 2013

Kuwait

Deteriorates Again

10 February 2013

Disclaimer
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Alpha does not make recommendations on listed securities and is not a
regulated entity. The conclusions and opinions expressed in the research
accurately reflect the views of Frontier Alpha. While the information in the
research is believed to be correct, this cannot be guaranteed. Frontier Alpha or
the analysts responsible for this research do not own shares in the companies
mentioned. They do not hold any other securities or derivatives (including
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not buy or sell shares, and does not undertake investment business anywhere
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and is subject to change or withdrawal without notice. This research is
provided for the use of the professional investment community, market
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This research is not an offer to buy or sell any security. Past performance is not
necessarily a guide to the future and the price of shares, and the income
derived from them, may fall as well as rise and the amount realized might be
less than the original sum invested. The risk of shares in Frontier markets may
be higher than those in more developed markets. Furthermore the
marketability of these shares is often restricted. Our documents must not be
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research will be received by those on our distribution lists later than those
receiving research electronically. Reports may not be reproduced either whole
or in part and Frontier Alpha accepts no liability whatsoever for the actions of
third parties in this respect.

	
  

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Bangladesh Wages Still Below Peers After 77% Hike

  • 1. Bangladesh Wages: Still Well Below Most Peers After 77% Hike •  Ministry of Labour 77% rise in minimum textile wage versus 2010 settlement comes into effect on Dec 1st 2013 •  77% rise is higher than potential 67% compromise reported by Reuters in October •  Bangladesh is #2 ready made garment exporter to EU, new wage still c70% below #1 China Turkey Iran Jordan Algeria Morocco Tunisia Lebanon Mauritania Nigeria Mozambique Cote D'Ivoire Kenya DRC Tanzania China Pakistan Nepal Indonesia Laos India Bhutan Vietnam Sri Lanka 2013 Workers Demand 2013 Settlement Compromise' (Reuters, Oct 2013) 2013 Owners Offer 2010 Settlement 0 1000 2000 3000 4000   5000 6000 Source: ILO, Most country data is for wages set in in 2012 or 2013. Data on 2013 Bangladesh negotiation prior to Wage Board announcement from Reuters Oct 2013. follow on www.twitter.com/frontier_alpha 7000
  • 2. Frontier Alpha Recent Reports follow on www.twitter.com/frontier_alpha Bangladesh Unrest Priced In 27 October 2013 Nigeria Political Risks Not Priced In 23 September 2013 Zimbabwe Election to Succession 4 August 2013 Egypt Stalemate Broken 4 July 2013 Egypt Value in Distress 22 June 2013 Kuwait Elections and Tribe 17 June 2013 Zimbabwe Value Despite the Run and Risks 10 June 2013 Nigeria, Kenya Northern Rocks 21 May 2013 Saudi Dune 9 June 2013 Pakistan Evolution, Not Revolution Yet 13 May 2013 Saudi CMA, Government at Euromoney 7 May 2013 Zimbabwe Rally Through the Risks 2 May 2013 Saudi Margins Reveal Top Down Risk 22 April 2013 Pan-Frontier Arab Spring: Pakistan Pointer 9 April 2013 Ethiopia Merits More Attention 8 April 2013 Nigeria 2015 Calculus 2 April 2013 Egypt US Disengagement 26 March 2013 Lebanon, Syria Pessimism Put 25 March 2013 Kenya Sensitive Moment 21 March 2013 Dubai Different This Time Why? 13 March 2013 Qatar LNG: Less No Risk Growth 11 March 2013 Egypt CoupE2? 7 March 2013 MENA Persian and Arabian Gulf 6 March 2013 Saudi Old versus New Media 24 February 2013 Saudi Regulator Changes 23 February 2013 Egypt Not (Quite) Pakistan 22 February 2013 Pakistan Balochistan Vortex 21 February 2013 Bahrain Drain 14 February 2013 Saudi Still a Play on Global 12 February 2013 Kuwait Deteriorates Again 10 February 2013 Disclaimer Frontier Alpha provides professional independent research services. Frontier Alpha does not make recommendations on listed securities and is not a regulated entity. The conclusions and opinions expressed in the research accurately reflect the views of Frontier Alpha. While the information in the research is believed to be correct, this cannot be guaranteed. Frontier Alpha or the analysts responsible for this research do not own shares in the companies mentioned. They do not hold any other securities or derivatives (including options and warrants) in these companies. Frontier Alpha does not transact corporate finance and therefore does not earn corporate finance fees. It does not buy or sell shares, and does not undertake investment business anywhere globally. Our research is issued in good faith but without legal responsibility and is subject to change or withdrawal without notice. This research is provided for the use of the professional investment community, market counterparties and sophisticated and high net worth investors as defined in the rules of the regulatory bodies. It is not intended for unsophisticated investors. This research is not an offer to buy or sell any security. Past performance is not necessarily a guide to the future and the price of shares, and the income derived from them, may fall as well as rise and the amount realized might be less than the original sum invested. The risk of shares in Frontier markets may be higher than those in more developed markets. Furthermore the marketability of these shares is often restricted. Our documents must not be accessed or used in any way that would be illegal in any jurisdiction. In some cases research is only issued electronically and in some cases printed research will be received by those on our distribution lists later than those receiving research electronically. Reports may not be reproduced either whole or in part and Frontier Alpha accepts no liability whatsoever for the actions of third parties in this respect.