Modi Goes Shopping For LNG From Brunei, Semiconductors From Singapore

Prime Minister Narendra Modi supported by officials of the Indian Ministry of External Affairs, have just undertaken a couple of strategic bilateral visits. These are designed to increase its profile in China’s backyard even as it has been trying to dominate and bully the ASEAN region, the countries bordering the East and South China Sea and indeed farther afield. And, of course, they hold great potential for an increase in bilateral trade and cooperation.

Prime Minister Narendra Modi has been the first Indian head of government to visit the strategically located and oil rich island of Brunei to boost bilateral ties and economic activity. The Indian expatriate and ethnic community were greatly enthused by the short visit, and Sultan Haji Hassanal Bolkiah, 29^th in his line of rulers, laid out a red-carpet welcome second to none.

This despite Borneo’s location in the Malay Archipelago, southeast of the Malay Peninsula, and southwest of the Philippines. It is therefore not at all far from China and the South China Sea, risking a possible menace from China for warming up towards India.

Borneo is however, very close to the Western powers, and has nothing to fear in waters regularly patrolled by the US Navy. India, as a member of QUAD, and under its Act East Policy, is upgrading its neglected relationship with the island nation.  

A new chancery was inaugurated at the Indian High Commission, located near the US Embassy, on this 40^th anniversary of diplomatic relations between India and Brunei.

News reports state that the moderate Islamic nation of Borneo and India have agreed to engage in the areas of Defence, Space, and long-term supply of LNG to India. India currently imports a lot of its long-term supplies of LNG from Qatar.

A regular flight between the Borneo capital of Bandar Seri Begawan and Chennai was also announced.

 Prime Minister Modi went to Singapore next, the tiny Asian country with first world standards, on a two-day visit. Singapore is a much more familiar destination for our prime minister, and there have been steady bilateral visits from both sides over the years. Singapore has participated in the Malabar military exercises with India, alongside Japan and Australia. In addition, Singapore and India conduct another naval exercise bilaterally, called SIMBEX, held on a regular basis. All this, even though it also enjoys a good relationship with China. Singapore is a major transshipment port for China, amongst other things.

Again, like Borneo, there is a large, historically present ethnic Indian community in Singapore, in addition to modern residencies, comings and goings.  Indians like to invest in Singapore real-estate, Indian students go there for secondary and higher education, renowned as it is for its high academic standards, discipline, safety, and strong law and order matrix. Singapore is also favoured as a regional HQ for a large number of US and European companies.

Prime Minister Modi met with his counterpart Prime Minister Lawrence Wong. President Tharman Shanmugaratnam (of ethnic Indian or Sri Lankan origin from the days of British indentured labour, after the abolition of slavery, into then Malaya), Senior Minister Hsien Loong and Emeritus Senior Minister Goh Chok Tong. He has also met with leading members of the business community and the Indian diaspora.

Singapore citizens trace their ancestry mainly to Malaysia, China, and India, going back to the Malayan rubber plantation days of the British Empire.

Singapore is already India’s largest trading partner in Asia, with a trade value of $ 36.6 billion, and is a key partner in its ‘Act East’ Policy. In 2023, Singapore was the largest FDI investor in India, at $ 11.77 billion.

The two prime ministers, Modi and Wong, visited a leading Singaporean company, AEM Holdings Ltd., in the semiconductors and electronics sector, and discussed collaboration in this high-technology area.

During the visit, the two countries raised their bilateral cooperation to a ‘comprehensive strategic partnership’. This as an upgrade of the existing Comprehensive Economic Cooperation Agreement (CECA),  there as of June 2005, which eliminated tariffs on 81% of Singapore exports to India.

The two countries signed four MoUs now, including one on collaboration in the Semiconductor Industry. The other three were to do with Educational Cooperation and Skill Development, in the field of Health and Medicine, and in the rapidly growing field of Digital Technologies.

Singapore had earlier agreed to be a prime-mover in promoting the involvement of India in the ASEAN countries, where China is most prominent.

Singapore is part of the global semiconductor value chain and is keen to invest in India to develop semiconductor clusters, as well as develop Indian talent in design and manufacturing. India, on its part is equally enthusiastic to grow this trillion-dollar opportunity along with its emerging electronic chip industry.

(786 words)

September 5^th, 2024

For: Firstpost/News18.com

Gautam Mukherjee