DROP IN RUBBER PRICES

Press, Volume LXXXIX, Issue 27128, 26 August 1953, Page 12

DROP IN RUBBER PRICES

EFFECT ON MALAYA’S OVERSEAS TRADE

A sharp reminder of what the slump in rubber prices has meant to Malaya is given by the latest overseas trade returns of that country, says “The Times.” In the first six months of 1953, imports, at £90,000,000, exceeded exports by £10,000,000. This is twice the import sbi’Plus recorded for the same period of 1952, and already greater than the £7,000,000 deficit for the whole of last year. The drastic change in Malaya’s fortunes is the more apparent when the figures are compared with those for 1951, when the favourable trade balance for the full 12 months was g 148,000,000. Rubber prices have fallen almost without check over the last two and a half years continues “The Times.” In the ? rs l half °f this 3*®3r. they averaged only Is 9d per lb. against 2s 8d in the same ?»c, iod >9 f last year - and 4s 3d throughout 1951. Malaya’s revenue from rubber was down to £76,000,000 for the last halfyear, compared with £128,000,000 in the first six months of 1952. The drop it is true, has been partly due to a reduction in tonnage. Shipments to *'* le United States were halved to £18,000,000, and exports to the United Kingdom moved similarly. There was a further marked decline in trade with Indonesia. Viewed against the background of the anti-Communist campaign and the need to maintain living standards, these figures must be giving cause for acute concern to the administration. A few months ago, when rubber was standing higher than it is now. it was estimated that the Federation s revenue from rubber export duty alone wotfid be less than 60,000,000 dollars (Straits). In 1951, it was 214,000,000 dollars, and in 1952 110,000,000 dollars.