More value added, figures show

Press, 2 May 1984, Page 30

More value added, figures show

The re-export figures for Singapore/New Zealand trade indicated that New Zealand was becoming more of a trading nation by adding value to its products, the Trade Commissioner, Mr Warwick Hawker, told the NZPA in Singapore. Annual exports from New Zealand to Singapore rose 42 per cent in the year ended June, 1983 at JNZI3B million, compared with the previous year’s ?97.3 million, Mr Hawker said. But of the 1983 total, reexports — the importation and further processing of products for export from New Zealand — made up $29 million, compared with $2.4 million in 1982. “It indicates that New Zealand is becoming more of a trading centre,” said Mr Hawker. He instanced two New Zealand companies whose business involved importing textiles and cutting them to lengths to meet the requirements of Singapore interior decorators. The balance of trade remains very much in Singapore’s favour because of its position as the major sup-

plier of New Zealand’s petroleum products. The island state provides 40 per cent of New Zealand’s refined petroleum and 27 per cent of total petroleum imports to New Zealand. Imports from Singapore also grew by around 42 per cent between the 1982 and 1983 June years, from $NZ298.5 million to $418.7 million.

The increase in imports appeared to indicate a greater sourcing of New Zealand’s petroleum needs on Singapore, a major refining centre, said Mr Hawker. Pleasing trends in the growth of New Zealand exports to Singapore were increases in key items such as meat and dairy products, and other food items, and a jump in paper and paper board, and aluminium exports, he said.

“New Zealand foods in particular are increasingly getting a name for quality here,” said Mr Hawker.

The local consumer was becoming more wealthy and more western in his tastes, he said.

“We are ideally placed to meet that demand.”

New Zealand’s major

competition in the food area was Australia, he said. “Our more favourable exchange rate and lower cost structure are in our favour. But we’ve go to work at it.”

Mr Hawker said tremendous potential also existed for New Zealand as a result of Singapore’s commitment to housing and hotel construction, in the supply of building materials and in the longer term, of fittings such as carpets and other interior finishings. Since 1960 the Housing and Development Board has built 431,000 housing units, with some 65 per cent of these now owned privately as a result of a home ownership scheme launched in 1974.

The HDB has set up a building target of 290,000 more units by 1991 to meet projected housing demands for Singapore’s population, now standing at about 2.5 million. The boom in construction has made a major contribution in sustaining Singapore’s growth rate of around six per cent in 1983, and an expected seven to eight per cent this year.