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M. Shahidul Islam
Research Associate, ISAS.
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Outline
Historic ties between Singaporeand 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/MalayArchipelago 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 ofOutlookand 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 toBangladeshi 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 hinterlandMalaysia
Singapore exploring new engines of growth- Possibility of more small-sized economic engines likeVietnam
Countries like Bangladesh can possibly fillup 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 Singaporessunset industries in Bangladesh
Bangladeshs intellectual capability
- success in labour-intensive manufacturing produces(RMG, Footwear etc)
- emerging ship-building nation
An EPZ for Singaporean businesses inBangladesh?
- Currently 8 EPZs are in operation, govt. recentlyapproved a separate EPZ for Korea
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Globalization of Bangladesh
Brand Singapore can help Bangladesh to globalizeits 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: ASEANChampion/thought leader?
Sub-regional cooperation
The rise of India and Singapore-India engagements
Singapore can take the advantage
of Indo-Bangla geographicproximity
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Conclusions
Bangladesh is becoming a meaningfuleconomic 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 structuralissues.
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