}
70
7 July 1982]
THE INDUSTRY AND TRADE COMMITTEE
[Continued
7
per cent of the country's inward investment. Although the economy is predominantly agriculture based there is an established industrial sector which accounted for 36 per cent of GNP in 1980. However, this sector has suffered in recent years from the world recession the main cause being the high cost of oil imports which provide 85 per cent of the country's energy requirements and account for 25 per cent (value) of total imports. However, there are substantial alternative energy sources (including hydro electricity, coal and geothermal energy) and the aim of the current energy programme is to speed up their development with a view to the country becoming more than 50 per cent self sufficient in energy within the next few years. In addition, a number of important industrial projects are expected to be developed in the next few years including copper and aluminium smelters, a steel mill, a petrochemical complex and heavy engineering and manufacturing developments. They will be located in various parts of the country in order to provide employment by attracting smaller manufacturing and service projects. These developments will provide opportunities for UK exporters to gain substantial business in the Philippines.
2. Growth of GNP fell from 5·8 per cent in 1979 to 5-4 per cent in 1980 and still further to 3.8 per cent in 1981. The estimate for 1982 is 4-1 per cent. Inflation was 17-2 per cent in 1980 although the estimate for 1981 shows a reduction to 11-5 per cent. Foreign investment in the country is welcomed but it geared towards selected an industrial sectors. The UK share of inward investment is about 4 per cent which probably exceeds the combined total for all other EC countries. New legislation for the promotion and protection of investment came into force in January 1981.
3. In 1980 and 81 one UK Minister visited the Philippines. The then Foreign Secretary, Lord Carrington, visited the Philippines in January 1982 as part of his ASEAN tour; the Minister of State for Industry and Information Technology, Mr Baker, also visited the country in January 1982.
SINGAPORE: MARKET AND ECONOMY
ANNEX B-IV
1. Singapore is the UK's major trading partner is ASEAN, although our market share has dropped to 7 per cent over the past decade. Singapore's New Economic Strategy is aimed at creating a high technology, capital intensive industrial base. With few natural resources, apart from its advantageous geographical location and a young, trainable and highly adaptable workforce, Singapore has expanded its traditional entrepot trade and established itself as the hub of South East Asia's offshore oil industry. In this role it has become the world's third largest centre of ship and oil rig building and repair and petroleum refining and processing. In addition, it is encouraging the development of high technology industries such as electronics and computers (it is South East Asia's communications centre), whilst its banking and finance services are developing apace as part of a strong 'invisibles' sector. Singapore has the highest GNP per capità in Asia after Japan has maintained an enviably high economic growth rate which averaged 12-14 per cent in the 1970's. This dropped to 9.7 per cent in 1981 which reflected the effect the recession in world trade is having on the Singapore economy. Unemployment is low and inflation stable at 8 per cent.
2. During 1980 and 81 7 UK Ministers visited Singapore including the Minister for Trade, Mr Rees, on his ASEAN tour. In January 1982 the Foreign Secretary visited Singapore as part of his tour of ASEAN.
ANNEX B-V
THAILAND: MARKET AND ECONOMY
1. Thailand has not been a traditional market for UK exporters and British investment in the country is small. UK exports to Thailand in 1980 (£97 million) amounted to less than 3 per cent of Thailand's visible imports. In the reverse direction UK imports from the market in 1980 were £52 million. The predominant suppliers to the Thai market are Japan and the United States. The UK, with a share of about 5-5 per cent, is the fifth largest foreign investor in Thailand behind Japan, Taiwan, America, and Hong Kong.