Following in the footsteps of Singapore, can Bangladesh become a Tiger economy?
Singapore’s transformation from a British colonial outpost to a global financial hub is a remarkable story. After gaining independence in 1965, Singapore had become one of the world’s most developed nations by the 1990s, with a highly developed free market economy and strong international trading links. Its GDP per capita, currently standing at approximately USD 95,000, is one of the highest globally, a testament to its economic prowess. Central to its success was Lee Kuan Yew, widely regarded as the founder of modern Singapore and a dedicated statesman with a vision to transform the island with a strategic focus on trade, industry, education, skills development, and good governance.
LEADERSHIP
Lee Kuan Yew, Singapore’s first Prime Minister, was instrumental in shaping the nation’s economic trajectory. His visionary leadership, coupled with a pragmatic approach, laid the foundation for Singapore’s transformation. Yew’s philosophy emphasised meritocracy, discipline, and a strong work ethic. He believed in a clean and efficient government, free from corruption, and implemented strict policies to ensure accountability and transparency. His unwavering commitment to education and skills development was another key pillar of his vision, recognising human capital as the cornerstone of economic progress. Yew’s pragmatic approach to economic policy, coupled with his ability to attract foreign investment, played a pivotal role in Singapore’s rapid industrialisation and economic growth. Yew became the Prime Minister in 1959 and served till 1990. In these 31 years, he transformed Singapore from one of the poorest countries in the world to the most advanced today. His approach serves as a model for several developing nations, particularly for Bangladesh which now stands at a crossroads with its people embracing change under an interim government led by Chief Adviser Dr. Muhammad Yunus. In creating a better Bangladesh, there is an opportunity to implement Yew’s vision of meritocracy, a culture of discipline and hard work, good governance, transparency and accountability, and battling corruption by empowering a nation by recognising its people’s rights.
With an interim government driving reforms from the ground up, Bangladesh, despite massive challenges, has the opportunity to learn from Singapore’s example and aspire to become a developed nation.
RESOURCES AND INFRASTRUCTURE
Singapore has had some innate factors contribute to its success. The country’s small land area, abundant natural resources, and strategic location have proven advantageous in fulfilling Singapore’s economic ambitions. Contrarily, Bangladesh, with its vast population and geographical constraints, faces different realities. Now more than ever, our low-lying, delta-exposed nation stands at a crossroads between rapid economic development and climate sustainability. Additionally, Bangladesh is already outmatched by Singapore in terms of GDP per capita, being 15 times higher than that of Bangladesh. Not only do high growth rates need to be maintained for several decades, but infrastructure improvements are also necessary to boost Bangladesh’s economic growth. To efficiently utilise our natural resources, Bangladesh can draw valuable insights from Singapore to prioritise infrastructure development like world-class ports, efficient transportation networks, and reliable power supply.
REIMAGINING EXPORTS
An important factor to consider is that Singapore’s export-oriented economy has been a major driver of its growth. Singapore focused on building a strong manufacturing base and diversifying its export basket. Additionally, the island nation leveraged its geographical location to become a crucial trade and shipping nexus, handling approximately 3.7 million TEUs, or twenty-foot equivalent units, of containerised cargo annually, attracting foreign investments and fostering a robust export-oriented economy. Bangladesh has demonstrated potential in the ready-made garment (RMG) sector, with RMG accounting for four-fifths of our total exports. However, it is high time we explore other areas such as software and IT alongside supporting value addition in existing sectors, for which it is instrumental to invest in research and development. By embracing innovation and diversifying our exports, Bangladesh can position itself as a competitive global player, much like Singapore.
ENSURING GOOD GOVERNANCE
Singapore’s commitment to good governance and corruption control is another achievement Bangladesh should pursue. The Corruption Perception Index (CPI), which scores countries on a scale of 0 to 100, with 0 being ‘highly corrupt’ to 100 being ‘very clean’, Singapore, with its rigorous anti-corruption policies, achieved an impressive score of 83 in 2023. In the same year, Bangladesh scored 24. Thus, it is vital that we ensure a transparent and efficient bureaucracy. While Bangladesh has made significant strides in recent years, becoming Singapore-like is a long-term challenge.
CONDUCIVE BUSINESS ENVIRONMENT
Singapore’s business-friendly environment and political stability have been key to attracting substantial foreign direct investment (FDI). The country has implemented rigorous policies on taxation, boasting a tax regime that is particularly attractive to businesses. Maintaining a corporate tax rate of 17% and exempting dividends and capital gains linked to business activities from taxation, Singapore has created a conducive business environment and cemented its status as a tax haven in the Asia-Pacific region. While Bangladesh has made progress in improving its investment climate, there remains room for improvement. To attract more FDI, Bangladesh needs to focus on reducing bureaucratic hurdles and ensuring political stability.
HOLISTIC EDUCATION AND DEVELOPMENT
An essential component of Singapore’s emergence as a successful economy was its emphasis on education and skills development. Consistently securing a top-three position in the annual Global Talent Competitiveness Index by INSEAD, Singapore has secured its status as a leading destination for skilled professionals. The country has attained measurable success by focusing on key areas such as talent enablement, vocational skills, and global knowledge. Bangladesh, with its 27.96% youth population, can draw inspiration from this. Despite Bangladesh’s burgeoning graduate population, they lack an industry-appropriate skill set. Revising curricula to emphasise on lifelong learning programs can improve Bangladesh’s human capital to ensure they remain updated with technological advancements.
While replicating Singapore’s model entirely may be infeasible due to our differing economic and social contexts, drawing inspiration from Singapore’s experiences is valuable in sketching Bangladesh’s development pathway. By focusing on key areas such as education, infrastructure, governance, and export diversification, Bangladesh can significantly improve its economic standing. Bangladesh cannot expect to mirror Singapore’s development overnight, but it can certainly aspire to a higher level of prosperity.
