TRADE RELATIONS BETWEEN SINGAPORE AND INDONESIA

Mr Lim Cher Kheng asked the Minister for Commerce and Industry whether he will make a statement on the present trade relations between Singapore and Indonesia.

Mr J. M. Jumabhoy: Mr Speaker, Sir, our trade relations with Indonesia are satisfactory and are best reflected in the fact that, despite an eight-cent drop in the average price of rubber, our trade with Indonesia last year, when the final figures are published, is expected to total $1,300 million in value - only one per cent less than in 1957. To have maintained trade at this level in the face of three successive years of lower average rubber prices, namely from 144.16 cents in 1955 down to 96.76 cents, 88.75 and 80.18 cents in 1956, 1957 and 1958 respectively, is, to say the least, remarkably gratifying.

If we take the available January/November trade figures as a basis for an estimate, we find that in 1958 imports from Indonesia should total approximately $968 million - a shortfall of 12 per cent compared with 1957. However, the actual volume of rubber imported rose to 311,000 tons from 287,000 tons in 1957. Imports of other important produce items such as copra, coffee, tea and pepper tended to fluctuate and may, when final figures are available, be found to have reached slightly lower levels than in 1957.

On the export side, I am glad to say that final statistics are likely to show that exports to Indonesia last year rose to over $360 million-an increase of 47 per cent over the 1957 figure. Largely responsible were increased exports of rice (up approximately 61,000 tons to 163,000 tons), cotton textiles (up $7.5 million to $20.3 million) and art silk piecegoods (up $44 million to $54.9 million). A number of other export items made smaller but significant gains.

Having regard to the comparatively depressed commodity position, this picture is highly satisfactory and reflects the factual state of our trade relations with Indonesia. I may perhaps be pardoned, Sir, if I take this opportunity to state that the level of trade with Indonesia might not have been so satisfactory had it not been for the constant vigilance and assistance of my Ministry, of which the general public is not aware, because we cannot publicise each and every matter we take up or each and every assistance we render.

I do not think I need dwell on the domestic difficulties in Indonesia. Suffice it to say, my Ministry continues to enjoy friendly official relations and a high degree of consultation with the officials of the Indonesian Consulate-General here, and although we respect Indonesia's logical desire to expand her direct trade connections, we believe that Singapore, as the trade figures tend to bear out, will remain a useful entrepot for Indonesian produce and requirements, and a vital and advantageous link in her external trade economy.

Mr Lim Cher Kheng: Sir, the Minister for Commerce and Industry has given us a satisfactory picture of the trade between Singapore and Indonesia. I just quote one item - rubber.

Mr Speaker: Order. Will the hon. Member confine himself to supplementary questions?

Mr Lim Cher Kheng: According to the statement made by the Minister for Commerce and Industry, the quantity of rubber imported from Indonesia has increased. If that is so, why is it that so many rubber mills have shut down in Singapore?

Mr J. M. Jumabhoy: Perhaps, Sir, the answer lies in the fact that the comparison I have drawn is between 1957 and 1958. It is possible that a drop might be shown if comparisons were drawn between, say, 1954 or 1955 and 1958.

Mr Lim Koon Teck (Paya Lebar): Sir, perhaps I can contribute a little to the information required by the Member for Changi.

Mr Lee Kuan Yew rose-

Mr Speaker: Is it on a point of order?

Mr Lee Kuan Yew (Tanjong Pagar): Yes, if the Member for Paya Lebar thinks that he is better fitted to be the Minister for Commerce and Industry, then he should apply to the Chief Minister.

Mr Speaker: It is not a point of order. Mr Lim Koon Teck.

Mr Lim Koon Teck: Sir, the information is that the quality of rubber-

Mr Speaker: Order. I think if the hon. Member wishes to assist, he can assist by way of a supplementary question and that is all that is permitted.