Kuala lumpur: Malaysia can serve as a strategic economic gateway linking ASEAN and South Asia through Bangladesh, leveraging Bangladesh’s central position as a trade, production, and investment hub.
According to BERNAMA News Agency, Professor Dr Muhammad Yunus, Chief Adviser to the Government of Bangladesh, emphasized Bangladesh’s critical role for both Malaysia and ASEAN due to its large population of over 170 million, presenting a lucrative consumer market and potential for regional production. Bangladesh’s strategic location can facilitate regional trade, especially for landlocked neighbors such as Bhutan and Nepal, and India’s northeastern states, known as the ‘Seven Sisters’. These states include Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura.
Yunus highlighted that Bangladesh’s coastal access offers economic advantages for countries without direct sea routes, making it a crucial pathway to global markets. This connectivity allows Malaysia to expand its economic network through Bangladesh. Yunus shared these insights in an exclusive interview with Bernama during his official visit to Malaysia from August 11 to 13, at the invitation of Prime Minister Datuk Seri Anwar Ibrahim.
During the visit, Yunus met with Prime Minister Anwar to discuss Malaysia-Bangladesh relations, focusing on trade, investment, labor, education, tourism, and defense, alongside regional and international developments. Yunus also engaged with businesses and investors, including Proton Holdings, Sunway Group, Axiata Group Bhd, and Khazanah Nasional Bhd. Leading the Bangladesh interim government since August 8, 2024, Yunus emphasized the importance of foreign investments and global trade in rebuilding Bangladesh’s economy.
Yunus elaborated on Bangladesh’s geographical advantages, which facilitate access to Bhutan, Nepal, and India, proposing that such cooperation could enhance the economic growth of both Malaysia and Bangladesh. He expressed enthusiasm for Malaysia to become the “beneficiary window” through this collaboration.
Highlighting Bangladesh’s potential contributions to the ASEAN economy, Yunus pointed out that member states could access a substantial market of over 170 million people and a significant workforce for regional production needs. He underscored Bangladesh’s capacity to provide skilled labor across various levels, from management to operational roles.
Yunus also discussed unexplored cooperation areas, such as deep-sea fishing with Myanmar and expanding cross-border trade in physical and digital goods. He noted the economic growth opportunities presented by the Bay of Bengal’s untapped deep-sea resources and emphasized the benefits of a larger connected market for all involved.
Infrastructure and transport links through Bangladesh could integrate neighboring economies into broader supply chains, enhancing trade and creating opportunities for investment, technology sharing, and joint ventures in emerging sectors like maritime industries and digital services.
Bangladesh is a signatory to ASEAN’s Treaty of Amity and Cooperation in Southeast Asia (TAC), which facilitates closer engagement with ASEAN through bilateral and multilateral platforms. Economic relations between ASEAN and Bangladesh have been positive, with two-way trade reaching US$6.16 billion in 2023-24.
As the second-largest economy in South Asia, Bangladesh plays a significant role in the Asia-Pacific region, ranking 35th globally in nominal terms and 25th in purchasing power parity. For Malaysia, Bangladesh stands as the second-largest trading partner and export destination in South Asia, with trade in 2024 reaching RM13.35 billion (US$2.92 billion), marking a 5.1 percent increase. Key exports from Malaysia include petroleum products, palm oil, and chemicals, while imports from Bangladesh consist of textiles, footwear, petroleum products, and manufactured goods.