THE CONTRIBUTION OF FORESTRY PRODUCTS TO THE ECONOMY OF SINGAPORE

Abstract

Singapore is an island state, with an excellent geographic location being located at the cross-roads of international trading routes but little endowed with natural resources. However, being within close proximity to forest-rich neighbours has enabled Singapore to reap the benefits of the timber trade boom in the post-World War II years, owing to the economic reconstruction taking place in both Japan and Europe. Singapore capitalises on her excellent geographic position and deep waters to serve as a distributing hub for timber. She imports timber products from neighbouring countries, such as, Malaysia, Indonesia, Burma and Thailand, and then distributes them to all parts of the world after re-packing, sorting and grading the imports. Singapore has her own wood-based industries beginning with her first sawmill in 1902. The timber industry played an important role in Singapore's economy during the eighties. In 1984, with a labour force of 13,000 workers, the total exports of timber and timber products amounted to 1.6 million m3 , worth a total of S$920 million. It was ranked ninth in Singapore's total export earnings that year. In recent years, with the government's emphasis on higher value-added goods, furniture is becoming more important in Singapore's timber trade. However, the development of Singapore's timber industry has always been seen as a somewhat paradoxical and to a large extent, vulnerable phenomenon. Singapore does not have any forest resources, yet it has become one of Asia's leading exporters of timber products. The share of timber products in the total exports, however, is on the decline. Its supply faces uncertainties in the face of rampant deforestation. Nonetheless, the timber industry in Singapore has proven its resilience with its ability to survive the ups and downs in the international demand for timber and still emerge as one of Singapore's oldest economic activities.