TRADE DEFICIT WITH JAPAN

Mr Chiam See Tong asked the Minister for Trade and Industry what steps the Government has taken or is taking to reduce the large trade deficit with Japan.

BG Lee Hsien Loong: It is more meaningful to look at Singapore's trade balance with the rest of the world as a whole, rather than to try to achieve a balance with each individual trading partner. Part of the deficit in our trade balance with Japan in fact consists of goods which Singapore buys from Japan, but subsequently re-exports to other countries, just as many of our exports to Japan are in fact re-exported products which originated elsewhere.

Japan traditionally has not been an important market for Singapore. But it has been a crucial source of capital goods, industrial materials and foreign investments. Japanese investments in Singapore increase our exports to the rest of the world, which helps us to pay for the imports we need, including imports from Japan.

Nevertheless, the Government is always seeking ways to increase exports of domestic manufactured products to Japan. It is encouraging Japanese manufacturing companies located here to export more goods back to Japan, and Japanese retail stores here to promote our products in their outlets in Japan. As a result of Singapore government lobbying, SISIR has been granted the authority to inspect goods on behalf of MITI for use of the JIS mark. This should help local companies wanting to sell in the Japanese market.

Last year because of the appreciation of the Yen and our greater export competitiveness, our domestic non-oil exports to Japan were 11% higher than the year before. If as a result of international pressure the Japanese economy becomes more open to foreign products, our exporters can expect to gain even more. Table - UNSOLD HDB FLATS AS AT 31 JANUARY 87 (Cols. 103 - 104) answer - LITTERING, SPITTING AND ILLEGAL DUMPING (Cols. 105 - 106) Annex - 1986 RECURRENT EXPENDITURE AND ENROLMENT (Cols. 107 - 108) Annex II - NATIONAL UNIVERSITY OF SINGAPORE AND NANYANG TECHNOLOGICAL INSTITUTE TUITION FEES AND LOANS FOR ACADEMIC YEAR 1987/88 (Cols. 109 - 110) charts - UNIT LABOUR COST OF SELECTED COUNTRIES, RELATIVE UNIT LABOUR COST AGAINST THE THREE NICs, 1980-1986 (Cols. 111 - 114) Appendix 1 - DUTIES ON CIGARETTES AND TOBACCO (Cols. 115 - 116) Appendix II - DUTIES ON LIQUORS (Cols. 117 - 122)