C 9
progressively diminishing financial stability. Competition is very severe and the result is that a large number of sub-contracts are secured by men of no substance, at figures too low to permit of honest fulfilment.
The evil is aggravated by the confiding nature of the average coolie who, so long as he receives his daily food, is content to wait indefinitely for his wages without lodging a complaint.
Cost of living of Poorer Classes.
40. The cost of living as reflected in the commodities rice, fish, meat, vegetables, oil, tea, firewood, clothes and shoes appears to have remained much the same for the beginning of the year as in 1935, but an upward trend is noticeable towards the end of the year. On two labour-food index figures taken for 1928-1933, the approximate percentage for 1936 rises from 75.3 in both cases in January 1936 to 80.9 and 91.8 respectively for December 1936.
41. So far as can be ascertained there has not been any corresponding rise in wages which remain at approximately the same levels as in 1935. Up to date this has not led to any serious industrial dispute but if the increase in the cost of living is maintained, wages adjustments may be necessary in the near future.
FACTORIES AND WORKSHOPS.
(Table XXXI).
42. There was a definite improvement in the industrial life of the Colony during the year, though, as usual, some of the smaller factories closed down after the annual settling of accounts at Chinese New Year.
43. There has been great activity in factories where electric torches, dry batteries, confectionery, cork and felt hats, rubber shoes and rubber knee boots are made. The sweet factories are adopting foreign styles in making and packing and have found good markets in Siam, Manila and Federated Malay States. The paper dyeing industry has been increased by the transfer of several concerns from Fat Shan, due to local facilities for obtaining the raw materials.
44. Within the last few months there has been a marked increase in the shirt and pyjama making industry. The output is mainly for export.
45. Factories have opened during the year for silk cloth printing, manufacture of hurricane lanterns and shoe making by machinery.