The world economy is reordering to respond to the rise of China and India, said Singapore Prime Minister Lee Hsien Loong on Monday.

Speaking at the official dinner hosted for visiting Bangladeshi Prime Minister Begum Khaleda Zia, Lee stressed that the opening up and transformation of China and India is shifting the center of gravity of the global economy toward Asia.

"Trade, investment and talent are all flowing in new directions," Lee said, adding that this is one of the major challenges all countries face.

To survive and prosper in the new environment, Singapore will open up its economies to foreign investment and trade, and strengthen its position as a provider of high tech components, machinery as well as all kinds of services, according to Lee.

He urged the Association of Southeast Asian Nations (ASEAN) and South Asia to deepen and broaden their cooperation, letting Singapore and Bangladesh play a role within and beyond their respective regions.

Lee identified trade, investment, air services and shipping as cooperation areas between the two nations as Bangladesh is Singapore's second largest trading partner in South Asia, and Singapore one of the top foreign investors in Bangladesh.

The two sides inked the Investment Guarantee Agreement last year and will sign a maritime transport agreement soon.

At Lee's invitation, Begum Khaleda Zia started her three-day official visit to Singapore on Sunday.