12 January 2024, NIICE Commentary 8962
Dr Mohammad Tarikul Islam
Brunei and Bangladesh are two friendly countries in Asia. Diplomatic coexistence and positive international trade relations have strengthened the two countries’ friendly position. Mutual trust and cooperation at the top level of government of the two countries are very significant in the current global context. In recent times, increasing trade opportunities of Bangladesh with Brunei and the growing bilateral commercial relations have been ostensible. In such cases, the inadequacy of population, size of the economy and other related factors might act as a barrier to the bilateral trade between Bangladesh and Brunei, but it is hoped that these will not hinder the overall foreign trade.
According to the ‘Observatory of Economic Complexity’, in 2020, Brunei exported USD 30m to Bangladesh. The main products that Brunei exported to Bangladesh are Petroleum Gas (USD 29.9m), Valves (USD 79.8k), and other garments (USD 23.2k). During the last 24 years, the exports of Brunei to Bangladesh have increased at an annualized rate of 16.4 percent, from USD 777k in 1996 to USD 30m in 2020. On the other hand, Bangladesh exported USD 2.81m to Brunei. The main products that Bangladesh exported to Brunei were Air Pumps (USD 1.51m), Baked Goods (USD 169k), and Flavored Water (USD 163k). During the last 24 years, the exports of Bangladesh to Brunei have increased at an annualized rate of 19 percent, from USD 43.5k in 1996 to USD 2.81m in 2020. Also, in recent times, there has been a great interest among the Bangladeshi business community regarding Brunei, which is playing a positive role in expanding the commercial relations between the two countries.
Brunei is a significant labour market for Bangladesh and the second-largest destination for Bangladeshi migrant workers in Southeast Asia. About 100,000 workers work in various sectors in Brunei. About 30 percent of them (less than 20,000) are Bangladeshi workers. A significant part of Brunei’s construction sector is dependent on Bangladeshi workers. Both countries have signed MOU on recruitment of Bangladesh workers. This dependency created a win-win situation for both countries. On the one hand, Brunei has been able to accelerate the development activities by utilizing the skilled workforce of Bangladesh; at the same time, Bangladesh has been able to create an area of earning foreign currency in this regard, which is playing a significant role in the economic development of Bangladesh.
In recent times, apart from the construction sector, there is also a possibility of creating demand for Bangladeshi workers in the service sector. However, after August 2020, labour imports from Bangladesh went to almost zero quotas. The main reason was that the labour market in Brunei was affected due to the coronavirus. Brunei has already expressed interest in taking workers from Bangladesh in the fisheries sector, as Bangladesh has been prosperous in the fisheries sector for a long time. A memorandum of understanding on the employment of workers signed between two countries will play an essential role in ensuring the arrival of Bangladeshi workers in Brunei and their fair wages, safety and rights.
Brunei and Bangladesh are interested in developing bilateral relations at the diplomatic level. The visit of the Hon’ble Prime Minister of the People’s Republic of Bangladesh Sheikh Hasina to Brunei on 21-23 April 2019 inspired the relationship between the two countries to move forward with new dimensions, enthusiasm and dynamism. During that visit, 6 MoUs were signed between Bangladesh and Brunei on cooperation in the fields of science and technology in agriculture, cultural and industrial fields, fisheries, livestock, gas supply, youth and sports. Besides, Agreement on Avoidance of Double Taxation, Air Services Agreement, Mutual Investment Promotion and Protection Agreement and MoU on Cooperation in Education and Defense boost up the bilateral relations. Internal welfare activities of both countries in various fields are positively increasing the interdependence of the two countries. Both countries signed several MOUs covering Bangladesh’s workers recruitment, LNG supply, Recognition of Certificates regarding Seafarers and an Agreement on Air Services during the State Visit of His Majesty Sultan Yang DiPertuan of Brunei Darussalam in October 2022.
Similarly, Bangladesh always expects Brunei’s cooperation in repatriating the Rohingyas. The positive attitude of the Brunei government deserves praise. During the visit, Prime Minister Sheikh Hasina sought more significant involvement of ASEAN in the Rohingya issue and sought the cooperation of the Sultan of Brunei on Rohingya repatriation. We request countries in this region and beyond to show solidarity with Bangladesh and start creating conditions for voluntary, safe and dignified return of Rohingya refugees. Bruni always stand in solidarity with the government of Bangladesh urging upon the international community to take steps in the repatriation of Rohingya refugees to Myanmar.
Bangladesh and Brunei have already agreed to strengthen bilateral cooperation in health sector training and recruitment of professionals, drug production and trade, the establishment of specialized medical centre and other areas. In the field of agriculture, along with technical issues, the joint establishment of farms, agricultural processing, etc., can be considered areas of potential cooperation. Besides, Brunei and Bangladesh can work together in halal food production, food processing, energy, information technology, shipbuilding, manufacturing, tourism industry, blue economy and so on. Above all, working on a partnership basis, both countries can effectively achieve the SDGs, which will undoubtedly ensure inclusive development.
During the last 39 years of Brunei-Bangladesh bilateral relations, our two countries have explored various opportunities and taken positive actions to improve our friendship and bilateral cooperation. Bangladesh, at the beginning of the 21st century, is striving hard to attain its maximum economic benefit through the instigation of economic diplomacy which is evident from closer relations of its government with different global and regional economic forums. At the same time, Bangladesh is a good investment venue, with variety of sectors to invest in, such as cement, ceramics, electronics, electrical items, pharmaceuticals, fertilizer, food processing and garments, among others. Export Processing Zones (EPZ) in Bangladesh are success stories. The Brunei High Commission in Dhaka and the Bangladesh High Commission in Brunei Darussalam must remain steadfast in building win-win bilateral relations through economic diplomacy.
Dr Mohammad Tarikul Islam is a Professor of Government and Politics at Jahangirnagar University, Bangladesh.
