Singapore pushes $1bn investment plan for Chittagong Bay Terminal project

It is keen to expand its business and investment footprint in Bangladesh, Singapore high commissioner says

Singapore has reiterated its interest in managing the proposed Bay Terminal at Chittagong Port and plans to invest up to $1 billion in its infrastructure development.

The non-resident High Commissioner of Singapore to Bangladesh Derek Loh conveyed the interest during a courtesy call on Commerce Minister Khandakar Abdul Muktadir at the Secretariat on Tuesday, according to the ministry.

Describing the Bay Terminal project as a "vital and exemplary initiative", Loh said Singapore is keen to expand its business and investment footprint in Bangladesh.

“This investment of approximately $800 million to $1 billion will play a crucial role in developing Bangladesh’s trade infrastructure and will help attract more foreign direct investment (FDI) in the future,” a statement from the ministry quoted Loh.

He added that once operational, the terminal will enhance port capacity, minimise demurrage costs, and ensure significant savings for Bangladeshi exporters, opening new doors for the trade and industrial sectors.

The interim government approved the Bay Terminal infrastructure development project -- valued at Tk 135.25 billion -- in April 2025.

Of the total cost, the World Bank is providing Tk 93.33 billion, while the remaining Tk 41.92 billion will come from government funds.

Although the project took a decade to finalise, physical work remained stalled for nearly four and a half months following the subsequent change in government.

While the land has been secured, infrastructural work is yet to begin.

The master plan includes a total of four terminals to be developed under a megaproject framework, including public-private partnership (PPP) initiatives.

PSA International Private Limited, a leading Singaporean port operator, has been pursuing involvement in the construction and management of the first terminal for several years.

While the interim government had initially favoured handing over management to them, it later backtracked amid criticism over leasing local ports to foreign entities.

However, the investment prospects remain steady under the current administration.

Ashik Chowdhury, the executive chairman of the Bangladesh Investment Development Authority (BIDA) -- who was appointed during the interim tenure and retained by the BNP government -- had previously detailed the FDI outlook.

Following a site visit in May 2025, the BIDA chief noted that two global operators, PSA Singapore and Dubai-based DP World, are estimated to invest roughly $1 billion each in the first two terminals.

Ashik emphasised that this $2 billion FDI influx would be infused gradually over time rather than as an abrupt lump sum.

Beyond the port project, Tuesday's bilateral meeting between the commerce minister and the Singaporean envoy covered a wide range of issues, including reducing trade deficits, boosting Singaporean investment in renewable energy, agri-product exports, food security, and eco-friendly industries.

Muktadir assured the envoy of Bangladesh's commitment to strengthening trade ties, highlighting the country's business-friendly environment, improved infrastructure, and skilled workforce as key incentives for foreign investors.