Singapore Keen For Indonesian Trade

Press, Volume CVI, Issue 31084, 13 June 1966, Page 13

Singapore Keen For Indonesian Trade

(Special Cr«pdt. N.Z.P.A.) SINGAPORE, June 12. With the resumption of some normal trade after peace talks between Malaysia and Indonesia, increasing numbers of Indonesian traders have been slipping into Singapore. Singapore merchants, whose profits from trade with Indonesia dropped sharply after confrontation began in 1963, are ticking off lists of goods they know the Indonesians want badly.

In Singapore and in Malaysia, business men are echoing the words of the Malaysian Deputy Prime Minister, Tun Abdul Razak: “Thank God that is all over.” Although confrontation did not have the harmful effect on the Singapore and Malaysian economies that many originally predicted—and the Indonesians hoped many businessmen and their employees were undoubtedly hard hit by it Indonesian imports pre-

viously amounted to about 15 per cent of Singapore's total foreign trade. In 1962, its trade with Indonesia was worth about £l36m.

Malaya’s trade with Indonesia had been much smaller than Singapore's. Indonesia bought goods worth about £Bm sterling from Malaya in 1962, and sold her goods worth about £36m.

In spite of confrontation, Indonesian rubber, coffee, spices and oils continued to come into Singapore and Malaysia through ports like Bangkok and Hong Kong.

Singapore merchants expect a short-lived rush of business once trade relations officially resume with Indonesia. Then, they say, business is likely to pick up gradually, although many doubt if it will reach the pre-confronta-tion volume.

They think that new trading patterns and outlets established by the Indonesians during confrontation are likely to remain. Indonesia’s biggest demand at this stage is likely to be for clothing, according to officials of the Singapore Chinese chamber of commerce.