CONFIDENTIAL
The Economy and Bilateral Trade
9.
Singapore has earned itself the reputation as the
communications and business hub of South East Asia, not least
because of its excellent infrastructure and services. The
opportunities on offer therefore extend far beyond the island
itself. Singapore has continued to enjoy strong economic
growth, although this has slowed somewhat as the economy
approaches maturity and with its main export markets experiencing recession. GDP growth in 1991 was 6.7%, with
inflation at 3.4%.
10. After dropping into the red for the first time in 1989,
our bilateral trade with Singapore achieved a positive
balance again in 1990, with exports up by 35%. The balance
for 1991 was again in the rd, with exports of £1.02 bn and
imports of £1.13 bn. These were however creditable figures,
especially in view of the Gulf war, with UK exports maintaining their increased level. Singapore remains the
UK's largest market in South East Asia and our 20th foreign
market overall. A steady growth in the number of business
visitors suggests that opportunities are being recognised by
British exporters. Trade and investment are at an all-time
high. This however has not inhibited senior Singaporeans
from occasionally suggesting that the UK is not capitalising
fully on the goodwill it enjoyed in Singapore. The Lord Mayor of London plans to visit in August 1993 to promote British financial expertise.
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CONFIDENTIAL
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