Singapore-Bangladesh Relations: Singapore Perspectives

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Singapore-Bangladesh Relations Singapore
Perspectives

• M. Shahidul Islam
• Research Associate, ISAS.

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Outline

• Historic ties between Singapore and Bangladesh
• Current relations
• Trade, investment and other economic relations
• Political relations
• Future prospects

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Singapore-Bangladesh Historic Ties

• A tale of two accidental nations
• -Singapore was a society that was supposed to
  have failed but the fact is that it hasn't.
• -Bangladesh was doomed to fail but it hasnt.
• the place is and always will be a basket
  case- Henry Kissinger in 1971
• The historic relations between Singapore/Malay
  Archipelago and the Indian subcontinent
• Singapore and Penang were part of the Bengal
  Presidency till 1867.

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Singapore-Bangladesh Historic Ties

• The golden age of Bengal
• -Bengal ranked 9th with Netherlands topped the
  list in 1770s
• The decline of Bengal
• For a state that was once supposed to think today
  what India thought tomorrow.
• The rise and rise of Singapore
• - From a 'backward fishing village' to a
  near-first world country
• The emergence of Bangladesh and renewed ties with
  Southeast Asia
• - East Asian dynamism, Look east policy, etc

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Singapore-Bangladesh Contemporary Relations

• Close relations between States Convergence of
  Outlook and Interest
• -Best example India-Singapore relations
• Common interest
• believe in Free-market economy
• seeking a balanced and multi-polar world
• common objectives in key global issues
• WTO, climate change/environment, terrorism etc.

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Singapore-Bangladesh Economic Relations
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Singapore-Bangladesh Economic Relations

• In 2007, Bangladesh was Singapores 36th largest
  trading partner and 27th largest export
  destination
• In 2006, Singapore was the 9th largest investor
  in Bangladesh
• Singapores investments in key sectors
• - telecom, textiles, electronic electrical
  goods, knit ware, readymade garments, chemicals
  etc

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Singapore-Bangladesh Economic Relations

• Singapore is becoming a favorite destination to
  Bangladeshi tourists
• - Bangladeshi tourists in Singapore
• 77,000 in 2007 , 64,000 in 2006
• More Bangladeshis preferring Singapore as a
  workplace, with some setting home
• - Bangladeshis employed in Singapore
• 27,651 in 2008 (January- June), 6,870 in 2002 ,
• Singapore is drawing a sizable Bangladeshi
  students too

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Some setbacks for Singapore and search for new
engines of growth

• Some recent setbacks for Singapore
• - Financial crisis, export plunge, problems in
  its hinterland Malaysia
• Singapore exploring new engines of growth
• - Possibility of more small-sized economic
  engines like Vietnam
• Countries like Bangladesh can possibly fill up
  some gap
• Steady growth rate of 5-6 percent for the last 15
  years, sizable domestic market, low-cost
  production destination, favorable demography etc
  

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Possible Relocation of Singapores Sunset
Industries

• Possible relocation of Singapores sunset
  industries in Bangladesh
• Bangladeshs intellectual capability
• - success in labour-intensive manufacturing
  produces (RMG, Footwear etc)
• - emerging ship-building nation
• An EPZ for Singaporean businesses in Bangladesh?
• Currently 8 EPZs are in operation, govt.
  recently approved a separate EPZ for Korea

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Globalization of Bangladesh Brand

• Singapore can help Bangladesh to globalize its
  brands
• Need for more presence of Bangladeshi companies
  in Singapore
• Indias success can be emulated-
• - 3200 Indian co. have presence in Singapore.
• But there are some constraint too
• cost of doing business, intellectual property
  right, political instability, etc.

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Learning from the Singapore Model?

• What is the Singapore Model?
• State capitalism, outward-looking export-led
  growth, PPP, property rights, etc.
• Rapid urbanization in Bangladesh and learning
  from Singapore
• - Both are two most densely populated countries
• Singapore-China experience
• Singapores expertise eco-city, waste and water
  management etc could be useful for Bangladesh
• Singapores service sector too offer some lessons
  for Bangladesh

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Cooperation through Multilateralism

• Singapore ASEAN Champion/thought leader?
• Sub-regional cooperation
• The rise of India and Singapore-India engagements
  
• Singapore can take the advantage of Indo-Bangla
  geographic proximity

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Conclusions

• Bangladesh is becoming a meaningful economic
  partner of Singapore steadily.
• Room for exploitation of economic
  complementarities.
• A common outlook on economic and security
  affairs.
• But need to work out on some structural issues.