I like the idea of him being in the Bayern set up for a while before he gets shifted on. Let him settle in make the most of there coaching / facilities and get into good routines along side some of the big names in the game. They have a good core of young players and having guys around him like Davies the young Canadian guy in a similar situation to Singh will be good someone that can probably relate to the cultural challenges there. Also it seems like there coach rates him so that is a real positive.
Playing on a regular basis is also really important for his development. I agree sitting on the bench is not going to do him any good. He's still probably unlikely to get regular first team game time, So playing for the second team for periods is still a really good option at Bayern, especially in his first season there. They know what there doing there at Bayern. I'm sure they want to develop him properly and then sell him on for a killing in a few years time.