DECLINE IN 1960 EXPORTS TO DOLLAR AREA AND NON-STERLING ASIAN COUNTRIES AS COMPARED WITH 1959 (Request for Statement)

Mr David Marshall asked the Minister for Finance whether he knows of any reasons why exports from Singapore in 1960 to the Dollar area and non-Sterling Asian countries should have declined as compared with 1959, and whether he will make a statement on developments in that sphere.

Mr Ramaswamy (for the Minister for Finance): Mr Speaker, Sir, I have been asked to reply.

In 1960, exports from Singapore to the dollar area declined by $62.2 million as compared with 1959 and exports to the non-Sterling Asian countries declined by $63.7 million.

As far as the dollar area is concerned, the decrease in exports to the United States of America and Canada in 1960 as compared with 1959 was $59.7 million. Thus the decrease in exports to the dollar area was mainly owing to the decrease in exports to the United States of America and Canada. Similarly, the decrease in exports from Singapore to Japan and China in 1960 as compared with 1959 was $67.7 million. Thus the decrease in exports to the non-Sterling Asian countries was due mainly to decrease in exports to Japan and China.

In 1960, the export of rubber from Singapore came up to almost 53 per cent of total exports from Singapore. This gives us the first clue. The export of rubber from Singapore to the United States of America and Canada, and to Japan and China, expressed as a percentage of total exports from Singapore to these countries for the two years was more than 80 per cent in the case of the United States of America and Canada, and more than 70 per cent in the case of Japan and China. The decrease in total export to these countries was therefore mainly owing to a decrease in the export of rubber to these countries.

The reasons for the decrease in the value and quantity of rubber exported from Singapore in 1960 as compared with 1959 have already been given on page 6 of the 1960 Annual Report of the Division of Commerce and Industry.

Briefly, the sales from the American and British stockpiles and the greater use of synthetic rubber were the main causes of a decline in the export of natural rubber from Singapore in 1960.

I should add that since then the volume of exports of rubber has increased from 598,000 tons in 1960 to 677,000 tons in 1961.