Home ›› 16 Oct 2022 ›› Editorial
Brunei proclaimed independence in 1984. Bangladesh immediately gave recognition to Brunei and opened a resident diplomatic mission in 1985. Bangladesh maintains excellent diplomatic relations with Brunei Darussalam. Given the good understanding existing at the highest political level, bilateral relations between Bangladesh and Brunei could be further expanded and deepened in a number of areas including trade, culture, defence, education, manpower and investment etc. The Brunei economy is dependent on import of consumer and manufactured goods. Its import amounts to B$ 3.3billion while its export (mainly oil and gas) is over B$11.5 billion.
There exist many avenues and possibilities to explore regarding the strengthening of ties. Brunei has, in the meantime, become one of the more suitable destinations for Bangladeshi migrant workers. Brunei, a small but oil-rich Southeast Asian nation which has just relinquished the charge of ASEAN Chair can also tap into the human capital and the economic potential of Bangladesh, a country of nearly 170 million people and phenomenal economic growth. If the two nations can mutually expand bilateral trade relations, there are possibilities of immense mutual benefits which may not be limited only to economic gains but can also spread across multiple areas of mutual interests. Brunei is a tiny country in Southeast Asia with an estimated population of 439,338, gross domestic product (GDP) of US$ 12.02 billion and per capita income of about US $31,501. On the other hand, Bangladesh’s GDP size is US $409 billion with a per capita income US $ 2,554. Hence, it is high time to make headway bilaterally considering the needs of the time. The ongoing three days state visit of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan will usher a new horizon of bilateral as well as regional cooperation .
In the present context, Bangladesh needs liquefied natural gas (LNG) to address economic challenges and to lessen dependency on Oman and Qatar. Though Brunei is a small country, it has a strong economy which is heavily dependent on its natural resources and hence half of the country’s GDP depends on the export of crude oil and natural gas. In view of the growing demand for energy in Bangladesh, looking for new energy sources is indisputably a wise and effective decision. The expansion of bilateral trade relations can also be facilitated through signing of Preferential Trade Agreement (PTA) between the nations.
Four memorandums of understanding (MoUs) are scheduled to be signed during Sultan’s first ever state visit to Bangladesh. People in Bangladesh have great interest in the Sultanate. Bangladesh, a country with the majority of its population being Muslims, admire Brunei’s beautiful mosques and its religious lifestyle. This is the reason why His Majesty is respected in Bangladesh and the state visit has been a huge event. The first MoU signing is an agreement for establishing and operating air services between and beyond the territories of the two countries. Second MoU signing between the Government of His Majesty is to be represented by the Maritime and Port Authority of Brunei Darussalam (MPABD), and the Government of Bangladesh, represented by the Department of Shipping, Ministry of Shipping. This signing is on the recognition of certificate issued under the provisions of the International Convention on Standards of Training, Certification and Watchkeeping (STCW) for Seafarers. The third MoU will cover the employment and recruitment of Bangladesh workers, taking into account cordial ties and existing cooperation between both countries in various fields.
The Organisation of Islamic Cooperation (OIC) is the second largest inter-governmental organization after the United Nations spread over four continents. The Organization is the collective voice of the Muslim world which endeavors to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world. Regional and sub-Regional Co-operation between OIC member states is, deemed a priority area for Joint Action for achieving intra-Islamic Commercial and economic integration. The Plan of Action and the Dakar Declaration of the Sixth Islamic Summit had also resolved to strengthen measures in this regard.
Concurrently, a number of OIC Member states have developed various structured regional co-operation arrangements such as the Arab Common Market (ACM), Arab Magreb Union (UMA), Economic Community of West African States (ECOWAS), West African Economic Community (CEMAO), Gulf Cooperation Council (GCC), Arab Co-operation Council (ACC), and Economic Co-operation Organization (ECO). However, there is no framework for similar institutional co-operation or socio- economic co-operation among OIC Countries in the South and South East Asian Region.
The urgency of regional cooperation among OIC countries must be understood in the context of failed talks at the WTO level in concluding fair trade terms for developing countries. Developed countries in the West are adamant to impose strict restrictions on market access for the developing world, in which the OIC is part of. Thus there is an impending need for the Muslim world to increase cooperation among the member states.
While the OIC champions political cooperation in the Muslim World, the World Islamic economic Forum ( WIEF ) strives for business and trade cooperation between countries in the Muslim world. The Inaugural Conference of the World Islamic Economic Forum, October, 2005 held a Petaling Jaya resolved:
“Therefore, the World Islamic Economic Forum, calls on the Governments of Bangladesh, Brunei, Indonesia, Malaysia and Maldives to call a Preparatory Meeting of the Trade Ministers and the Private Sectors of this region, with the IDB, ICDT and ICCI to give effects to the South East Asian Cooperation ( SEACO) Resolutions of the 24th, 28th 29th ICFM’s and the 9th Islamic Summit, 2002, Doha within a time bound process. The World Islamic Economic Forum further believes that establishment of a Sub-regional FTA in South and South East Asia, through the formation of SEACO Forum will complete the building blocks towards laying the foundation of the Islamic Free Trade Area (IFTA) and the future edifice of the Islamic Common market.”
Thereafter in the6th WIEF, KL, 2010, which was attended by People’s Republic of Bangladesh Hon’ble Prime Minister Sheikh Hasina, Republic of Kosovo President Dr Fatmir Sejdiu, Republic of Senegal President Abdoulaye Wade, Sultan and the Yang Di-pertuan of Brunei His Majesty Sultan Hassanal Bolkiah, Republic of Indonesia President Dr. Susilo Bambang Yudhoyono and Republic of Maldives President Mohamed Nasheed, Hon. Dato’ Sri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia stated: “We need to think a new and more beyond our conventional framework. This may require a new economic model for the region –if necessary, that is designed to meet the specific needs of the Muslim World. ”
Under the above Declarations and Statements from the OIC summit leaders, the SEACO should bring about the desired integration among the participating states in this Region with the private sector closely associated with the respective governments in a PPP structure.
Being buoyant and enlightened by OIC Foreign Ministers’ Conference (Dhaka May 5-6, 2018)the SEACO Forum hold an WIEF Regional Forum in Dhaka, Bangladesh, in 2019, which was the first attempt to revive the SEACO initiative, poised to be the OIC’s first regional market to increase trade intensity in the Muslim World, to increase trade intensity in the Muslim World. This Regional Common Market could be a bridge between SAARC and ASEAN, with 2 OIC countries (Bangladesh and Maldives) currently members of SAARC and three ( Brunei, Indonesia and Malaysia ) of ASEAN. The Forum will highlight areas of potential public-private sector collaboration and joint ventures consider and propose to the OIC Governments in this region a step by step approach towards establishing a “SEACO-FTA” under OIC Framework, having a market of nearly 400 million consumers. It will be an attempt to articulate strategies for the stakeholders of this region to layout a comprehensive road map to achieving the objective of consolidating OIC regional economic cooperation.
Bangladesh PM proposes new regional forum
During her state visit to Brunei in April 2019 Bangladesh Prime Minister Sheikh Hasina proposed formation of the regional economic forum involving five Organisation of Islamic Cooperation member states of South and Southeast Asian region during her talks with Brunei Sultan Hassanal Bolkiah. Briefing reporters after the talks, foreign secretary Md Shahidul Haque said that the members of the Southeast Asian Cooperation Organisation, the proposed regional economic forum, will be Bangladesh and the Maldives from South Asia and Indonesia, Malaysia and Brunei from Southeast Asia. In response to the proposal, the Brunei sultan assured that he will ‘favourably consider’ the matter, the foreign secretary said.)
Geopoliticians prudentially observed that there is no geographic contiguity between the ECO countries and the proposed SEACO countries and only link being by sea. S.E. Asian Region which is home to nearly 500m Muslims if one includes the populations of Muslim in non OIC countries, in fact constitutes over 1/3 of the Global Ummah of 1.5 billion.
A SEACO regional economic co-operation arrangement would thus go a long way in removing the impediments to trade and investment and connectivity within the S.E. Asia Region and provide a viable framework, which will lead to greater interaction between the private sectors, there by encourage OIC Countries in the region to fully explore their complementarities in trade investment, energy, logistics, connectivity and manpower exchanges.
It is highly commonsensical that SEACO could become ultimately a bridge between ASEAN and SAARC–creating a Mega Growth Triangle in the Bay of Bengal, as the World Economic Centre of Gravity makes a paradigm shift to the East from the Persian Gulf to the Bay of Bengal by 2050, underpinned by the One Road, one Belt initiative of China. SEACO may also be developed as a sub-regional entity under D-8, by just including Brunei and Maldives, facilitating a building block approach from Sub-Regional (SEACO) to Intra –Regional D-8 to Global (OIC) Umma.
The writer is former Secretary to the Government of Bangladesh and Adviser, SEACO Foundation
