​ADDRESS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE) AT THE BANGLADESH-SINGAPORE BUSINESS FORUM ON TUESDAY 13 MARCH 2018 AT 9.40 AM, SHANGRI-LA HOTEL, SINGAPORE

Your Excellency Sheikh Hasina, Prime Minister of the People’s Republic of Bangladesh,

Honourable Ministers,

Higher Commissioners,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.          Good morning. I am pleased to join you this morning at the Bangladesh – Singapore Business Forum organised by the Singapore Business Federation and the Bangladesh Business Chamber of Commerce.

Singapore-Bangladesh relations

2.          Bilateral economic relations between Singapore and Bangladesh have gathered significant momentum, especially in recent years. As an indicator of our growing bilateral economic relations, trade in goods has steadily increased by an average annual growth of about 12% over the past 5 years from S$2.7 billion in 2012 to S$4.3 billion in 2017. Singapore is also a significant source of Foreign Direct Investment into Bangladesh with investments in Bangladesh’s infrastructure, hospitality, logistics and food services sectors.

3.          We also have an Avoidance of Double Taxation Agreement signed in 1979, which we hope to update in a Review to support the evolving needs of businesses on both sides. We have a Bilateral Investment Treaty in force to safeguard investments in both countries. Singapore and Bangladesh also enjoy good air connectivity with 38 weekly flights to Dhaka. I am confident that our economic relations will continue to strengthen, given Bangladesh’s strong growth trajectory and Singapore’s strategic position in the heart of Asia.

Opportunities for Singapore in Bangladesh

4.          Bangladesh’s economy has grown at between 6 to 7 percent over the past decade and its economy has remained strong and resilient despite a challenging external environment. Reflecting the strong global spending on infrastructure, it is not surprising that the majority of FDI into Bangladesh is going towards infrastructure development. Such is the opportunity that Bangladesh presents.

5.          Notwithstanding this, Bangladesh has been actively encouraging FDI into the country through agencies such as the Public Private Partnership Authority (PPPA), whom International Enterprise Singapore signed an MOU with yesterday, and the Bangladesh Investment Development Authority (BIDA) whom IE Singapore will sign an MOU with shortly after the series of speeches.

6.          These developments, coupled together with the growing appetite on both sides to deepen linkages, augurs well for Singapore companies that have expertise not only in infrastructure, but also urban solutions and logistics – areas which Bangladesh is looking to swiftly develop. A good example is the Sembcorp Industries’ S$500 million power plant project, which have ventured into the Bangladesh market, and are there for the long-term.

Opportunities for Bangladesh in Singapore

7.          Bangladesh companies should also take advantage of Singapore as a base to deepen knowledge of and venture into the South East Asia region. For example, Singapore has built a strong infrastructure finance ecosystem, with foreign and local financing institutions such as the World Bank and Clifford Capital that offers solutions from project structuring to project financing. Singapore also positions itself as an attractive destination to raise funds. For example, Bangladesh electricity producer Summit Power plans to list on the Singapore Stock Exchange this year.

Encouraging more interactions to build knowledge of market

8.          I would like to urge more Singapore companies to look beyond traditional markets and make use of today’s Forum to better understand the diversified opportunities in Bangladesh. Build up your knowledge of the country, not just of the economy and business environment, but of the people and its culture as well. International Enterprise Singapore and the Singapore Business Federation organise business seminars as well as sector-specific business missions to Bangladesh periodically, so please reach out to them if you are interested in venturing into Bangladesh.

9.          I wish all of you a good session. Thank you.

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