04 February 2010 | By: Mohamed Hairul Borhan

Singapore and Bahrain face similar challenges and can learn much from each other, said Senior Minister Goh Chok Tong.

Speaking in Bahrain’s capital of Manama, SM Goh said that both countries “are in a good position to help each other gain a better understanding” of their respective regions and could serve as regional gateways for each other.

SM Goh was in the Bahraini capital for the second leg of his six-day official visit to the region, and called on the kingdom’s top leaders – King Hamad Bin Isa Al-Khalifa, Crown Prince Salman Bin Hamad and Prime Minister Prince Khalifa Bin Salman Al-Khalifa.

Bahrain was one of the first Middle East countries SM Goh visited in 2004 when he began Singapore’s push into the region, and ties have been growing since.

Despite last year’s economic slump, bilateral trade between the two countries rose from S$471 million in 2008 to S$557 million last year.

A number of Singapore companies, including BreadTalk, Charles & Keith, and Banyan Tree have already set up shop in the Gulf island nation while Singapore developer CapitaLand has plans to build a mall, Raffles City Bahrain.

Both countries also have a lot in common, so much so that Bahrain is sometimes known as the ‘Singapore of the Gulf’. Both are island nations with small domestic markets, and both are connected by causeways to large neighbours.

During their meeting, SM Goh and King Hamad exchanged views on the global economic crisis as well as recent developments between the two countries. SM Goh also discussed about possible cooperation in the fields of renewable energy and water resources.

In an interview with Al-Ayam newspaper, SM Goh said that ties between the Asia-Pacific and the Middle East will continue to grow as Arab countries increasingly look to the East.

He highlighted that more than 60 per cent of Arab oil and oil-related products are being exported to the Asia-Pacific region. He said, “I believe the linkages between the Arab countries and Asia will continue to strengthen.

“With the rise of China and India, and their collective demand for oil and its derivatives, our two regions are fast becoming indispensable partners.”

He also said that he would be encouraging more Singaporean companies to venture into the region.