TRADE BETWEEN SINGAPORE AND INDONESIA

Mr Ong Chang Sam asked the Minister for Finance whether trade between Singapore and Indonesia has improved since the establishment of the Trade and Cultural Commission in Djakarta, and to what extent.

Mr Ramaswamy (for the Minister for Finance): There has been a great improvement in total trade between Singapore and Indonesia since the establishment of the Singapore Trade and Cultural Representation. The value of Singapore's exports to Indonesia has more than doubled since 1960. In 1960, we exported $121 million worth of goods to Indonesia; in 1962, our exports increased to $292.5 million, which is 242 per cent of the 1960 figure.

As the hon. Member may be aware, every country tries its utmost to expand its export trade and this increase in our exports to Indonesia is most gratifying.

As regards imports, the value has declined and this is due principally to the heavy fall in the price of rubber over the last two to three years. Rubber accounts for more than three-fourths of our imports from Indonesia. Although values have dropped, the volume of imports, that is, the quantity of rubber imported, has increased considerably, from 285.3 thousand tons in 1960 to 367.2 thousand tons in 1962, an increase of nearly 30 per cent.

The Singapore Trade and Cultural Representation has helped to explain Singapore's policy to the Indonesian Government and in return to understand and appreciate Indonesia's policy, thus helping to foster and improve cordial relations now existing between Singapore and Indonesia.