Bangladesh to increase energy cooperation with ASEAN countries (subhead)
Power, Energy and Mineral Resources of Bangladesh Minister Iqbal Hassan Mahmood MP is most likely to embark on visits to some Southeast Asian countries to expand and explore cooperation in the energy sector, sources said
He is expected to visit Brunei, Malaysia and Indonesia at mutually convenient time to discuss the energy issue with the representatives of the ASEAN countries and stakeholders of the concerned sectors.
Sources said Minister Iqbal Hassan Mahmood MP was supposed to visit three ASEAN countries last month in view of deepening energy crisis. But he postponed the visit was he was busy with handling the deepening energy crisis in the country.
In view of USA-Israel imposed war on Iran, the energy price was rallying high in the global market hurting the economies of the developing and developed countries.
The government of Bangladesh was compelled to procure LNG and petroleum products at higher prices and selling the same at the subsidized prices in the local market.
In the changing global scenario amid war in the middle-east the new BNP government has stepped in to increase economic engagement with ASEAN countries, sources said
The government is scrambling to secure alternative fuel sources amid the US-Israel war on Iran, as the lion’s share of Bangladesh’s fuel imports originates from the Middle East, said Anindya Islam Amit, the state minister for power, energy, and mineral resources.
The middle-east countries like KSA, Qatar, UAE, Kuwait, Iraq and Oman usually export crude oil to Bangladesh, particularly through the Strait of Hormuz, while several Asian suppliers such as Malaysia, Singapore, and Indonesia export refined fuel
About a fifth of the world’s crude oil usually passes through the narrow waterway, mostly to the Asian markets, so the situation would become critical if the other countries’ refineries fail to secure crude to refine, said officials of the Bangladesh Petroleum Corporation (BPC) involved with the proceedings.
State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said that Bangladesh has diversified energy resources in view of war in the middle-east and exploring new energy sources.
He said Brunei is expected to export 120,000 tonnes of oil to Bangladesh. Sources said that Bangladesh has urged ASEAN countries like Singapore, Malaysia, Indonesia to increase export petroleum products that are expected to ease crisis slightly.
During the visit of the then Prime Minister of Bangladesh Sheikh Hasina to Brunei in 2019 and subsequently, Brunei Darussalam Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah visit to Bangladesh in 2022, both counties signed several memoranda of understanding including energy sector. Sources in the energy sector said despite high-level visits during the last seven years, energy talks between Bangladesh and Brunei had no headway. The war in the middle-east and global energy crisis have pressed Bangladesh to negotiate with Brunei in the sector and this is likely to ease some energy crises.
Diplomats working in Bangladesh said that ASEAN countries will work to increase economic engagement with the new Bangladesh government.
Meanwhile, Bangladesh’s export to ASEAN countries remain insignificant over the years despite the government initiatives to boost export beyond the traditional markets of USA, European Union (EU), UK, Canada, Japan and Australia, said policy-makers, business leaders and diplomats
Bangladesh’s exports in the fiscal year 2024-2025 (July 2024-June 2025) reached approximately $48.28 billion, showing an 8.58% year-on-year growth, driven primarily by strong Readymade Garments (RMG) growth, according to Export Promotion Bureau of (EPB) Bangladesh’s total export to ASEAN countries hover at 1.00-2.00 per cent in the same period and stands less than one billion US dollars, according to Export Promotion Bureau of (EPB).
The member countries of the Association of South-East Asian Nations (ASEAN) exported goods worth 10529.8 million US dollars (16.7% of total import) to Bangladesh during 2023-24 fiscal year as against USD 11349.8 million (16.6% of total import ) during the preceding year.
Bangladesh should explore new markets and new products with a view to reducing dependence on traditional beyond the traditional markets of USA, European Union (EU), UK, Canada, Japan and Australia, said a top officer of Export Promotion Bureau(EPB)
Bangladesh exported goods worth 61 million Us dollars (61845064.3 US dollars) to Thailand, 56 million US dollars (56710572.62 US dollars) to Indonesia, 13.00 million US dollars (1276453.48 US dollars) to Brunei, 110.00 million US dollars (109201005.8 US dollars) to Singapore, 86.00 million US dollars (85650629.08US dollars) to the Philippines and 34.00 million US dollars (34834060.59US dollars) to Myanmar during July-June period of the 2024-25 fiscal year , according to data of the Export Promotion Bureau (EPB)
President of the Bangladesh Chamber of Industries (BCI) Anwar-ul Alam Chowdhury (Parvez) said that country’s total exports to ASEAN countries will increase gradually provided Bangladesh signs a free trade garment (FTA) with the region.
Anwar-ul Alam Chowdhury (Parvez) is the Managing Director of Evince Group, one of the largest garment producers in Bangladesh. He was also president of Bangladesh Garment Manufacturers and Exporters Association of Bangladesh (BGMEA)
Former president of the Bangladesh –Malaysia Chamber of Commerce and Industry (BMCCI) Alamgir Jalil while talking to this correspondent said that Bangladesh can groom human sources to cater to the Malaysian labour market. He said that Bangladesh has export semi-conductor to Malaysia. He said that Mohammed Enayetur Rahman, President and CEO of ULKASEMI, has one office in Bangladesh and three offices in USA.
Meanwhile, Thailand has expressed strong interest in opening negotiations on a bilateral free-trade agreement with Bangladesh, a move that could significantly expand trade and encourage Thai investment, as Dhaka intensifies efforts to deepen economic and diplomatic engagement with South-east Asia.
The Thai ambassador to Bangladesh, Thithiporn Chirasawadi, conveyed Bangkok’s position during her first courtesy call on the then Chief Adviser Professor Muhammad Yunus this month at the state guest house Jamuna, according to officials familiar with the meeting.
The ambassador said that both countries were also working towards launching a direct shipping route between Thailand’s Ranong port and Bangladesh’s Chittagong port, a development expected to strengthen maritime connectivity and reduce logistical costs.
The service is likely to begin in March, following talks between shipping authorities scheduled for February.
During the meeting, the two sides discussed a broad range of issues aimed at further strengthening bilateral relations, including trade and investment cooperation, maritime connectivity, the prevention of online scams, multilateral engagement and people-to-people exchanges.
He also reiterated the interim government’s priority of securing Bangladesh’s membership in the Association of Southeast Asian Nations (ASEAN), the 11-member regional bloc that has emerged as a major global economic and trade hub. Yunus said Dhaka hoped Thailand would support its bid, noting that Bangladesh had already applied to become a Sectoral Dialogue Partner of the organisation.
Meanwhile, Thai trade counsellor in Dhaka Khemathat Archawathamrong while talking to this correspondent said that Thailand is interested to sign free trade agreement (FTA) with Bangladesh in a bid to increase bilateral trade as tariff and non-tariff barriers stand in the way of promoting business potentials between the two countries.
Meanwhile, ASEAN diplomats recently visited ICC Bangladesh and held a meeting with ICC Bangladesh President Mahbubur Rahman and Vice Presidents A K Azad and Naser Ezaz Bijoy recently.
Rahman thanked the diplomats for giving the opportunity to brief them about the global activities of the International Chamber of Commerce, Paris, and ICC Bangladesh, says a statement.
Citing poor exports to ASEAN countries, ICC Bangladesh President Mahbubur Rahman urged the ASEAN countries to reduce the trade gap. He urged the ASEAN diplomats to actively promote the inclusion of Bangladesh in ASEAN and laid emphasis on signing free trade agreements (FTAs) with the region.
