M.

Shahidul Islam
Research Associate, ISAS.
 Outline
 Historic ties between Singapore
and Bangladesh
 Current relations
- Trade, investment and other
economic relations
- Political relations
 Future prospects
 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 hasn’t.
“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.
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
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.
Singapore-Bangladesh Economic
Relations
Singapore-Bangladesh Economic
Relations

 In 2007, Bangladesh was Singapore’s 36th largest trading

partner and 27th largest export destination

 In 2006, Singapore was the 9th largest investor in Bangladesh

 Singapore’s investments in key sectors:

- telecom, textiles, electronic & electrical goods, knit ware,
readymade garments, chemicals etc
 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

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
 Possible Relocation of Singapore’s
Sunset Industries
 Possible relocation of Singapore’s
sunset industries in Bangladesh
 Bangladesh’s 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
 Globalization of Bangladesh
Brand
 Singapore can help Bangladesh to globalize
its brands
 Need for more presence of Bangladeshi
companies in Singapore
 India’s 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.
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
- Singapore’s expertise: eco-city, waste and water management etc
could be useful for Bangladesh
- Singapore’s service sector too offer some lessons for Bangladesh
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
 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.