We welcome reports that the Malaysian automobile company Proton plans to build a car manufacturing plant in Bangladesh.
This may bring many spin-off benefits by building skills and knowledge and by using local manufacturers of components and spare parts feed into their supply chain. Bangladeshi companies have already been successful in such fields, for example in supplying batteries to the global car industry.
It is vital that the government uses trade talks to attract more such investments our way.
Efforts to improve our infrastructure by building a deep- sea port and improving regional connectivity, via the BCIM corridor and the BIMSTEC initiative, are key to the future of our economy. Developing relations with the big three Asian economies of China, India, and Japan are of critical importance to these endeavours.
While Malaysia’s interest in building low-cost housing, supplying railway carriages, and tourism infrastructure in Bangladesh are welcome, it is important that we make strategic use of our geographical advantages and growing market to maximise the value we get out of such deals.
The government needs to use talks with Malaysia to encourage technology and skills transfers and to level the playing field for our exporters.
It should focus talks with Malaysia more on opening up competition and investment that benefits both our economies, than on being content with increasing our supply of low-cost migrant workers. Our battery producers, for instance, pay 29% duty on exports to Malaysia compared to 3% by China and India and zero by Asean countries. Malaysia must be asked to remove such duties to help build closer trade relations.
