The Economies of the Asean Countries: Indonesia, Malaysia, Philippines, Singapore and Thailand

198 Pages·1982·18.086 MB·English

by  Brian Wawn (auth.)

THE ECONOMIES OF THE ASEAN COUNTRIES
The ASEAN countries are among the fastest growing economically in
the world. As the world's largest producer of natural rubber, tin,
tropical hardwood, palm oil and coconut products, the region has an
impressive resource base. Indonesia and Malaysia are net petroleum
exporters and Singapore is the world's third largest refining centre.
Manufacturing has grown rapidly and, with the planned expansion in
areas such as steel, petrochemicals, fertilizer, aluminium and motor
vehicles, is likely to become increasingly sophisticated over the 1980s.
The ASEAN countries are significantly different in size and level of
development. At one extreme, if trends of the past decade continue,
Singapore will surpass New Zealand by the mid-1980s and Britain by
the late 1980s in terms of GOP per capita. At the other extreme,
Indonesia, although growing impressively, is still among the poorest
fifty countries in the world. However, for all the countries of the
region, the outlook for the 1980s is promising. Furthermore,
notwithstanding their differences, they are building up cooperation
with each other.
Continued strong economic growth will mean increasing trade and
investment opportunities for those outside the region. Imports into
ASEAN in 1981 were roughly three times those into Australia and
nearly equal to those into all South America combined. Foreign
investment is welcomed in a number of areas.
This book analyzes recent economic developments in the region
and the outlook for the 1980s. Separate chapters on each country are
self-contained and can be read individually by those not interested in
all the countries of the region. At the same time the book is written so
as to allow the reader to make comparisons among the five countries
and to give a picture of the region as a whole. It is aimed at all those,
such as business people, officials, teachers and students, with an
interest in economic developments in the region.
Brian Wawn set up his own consultancy/publishing firm in 1981,
having resigned the previous year from the Department of Foreign
Affairs, Canberra, for whom he had worked since 1970. His overseas
postings were in Laos, Sri Lanka and West Germany, and he worked a
good deal on ASEAN issues, notably in Canberra between 1975 and
19n. While in Laos (1971-3) he was also involved with Thailand.
He was a member of the Australian delegation to the annual
meeting of the UN Economic and Social Commission for Asia and the
Pacific (ESCAP) held in Bangkok in 1976 and to the Special Session of
the UN General Assembly on North-South issues held in New York in
1980.
THE ECONOMIES OF THE
ASEAN COUNTRIES
Indonesia, Malaysia, Philippines,
Singapore and Thailand
BRIAN WAWN
© Brian Wawn 1982
Softcover reprint of the hardcover 1st edition 1982 978-0-333-32481-3
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First edition 1982
Reprinted 1984
Published by
THE MACMILLAN PRESS LT O
London and Basingstoke
Companies and representatives
throughout the world
ISBN 978-1-349-16974-0 ISBN 978-1-349-16972-6 (eBook)
DOI 10.1007/978-1-349-16972-6
Contents
LIST OF TABLES vii
LIST OF MAPS viii
ACKNOWLEDGEMENTS ix
1. INTRODUCTION 1
2. INDONESIA 5
Introduction 5; Role of Government 9; Macroeconomic
policy 11; Balance of payments 15; Foreign investment
19; Industry 20; Agriculture 23; Mining 26; Energy 27;
Financial sector 31; Labour 33; Conclusion 36
3. MALAYSIA 38
Introduction 38; Role of Government 44; Macroeconomic
policy 45; Balance of payments 49; Foreign investment
52; Industry 54; Agriculture 57; Mining 60; Energy 61;
Financial sector 65; Labour 66; Conclusion 69
4. PHILIPPINES 71
Introd uction 71; Role of Government 76; Macroeconomic
policy 77; Balance of payments 80; Foreign investment
85; Industry 86; Agriculture 90; Mining 92; Energy 93;
Financial sector 97; Labour 99; Conclusion 102
5. SINGAPORE 104
Introduction 104; Role of Government 108; Macroeconomic
policy 110; Balance of payments 114; Foreign investment
118; Industry 120; Agriculture and mining 122; Energy
123; Financial sector 126; Labour 130; Conclusion 133
6. THAILAND 135
Introduction 135; Role of Government 139; Macroeconomic
policy 140; Balance of payments 145; Foreign investment
149; Industry 150; Agriculture 153; Mining 155; Energy
156; Financial sector 161; Labour 162; Conclusion 165
v
vi CONTENTS
7. ASEAN ECONOMIC COOPERATION 167
UN Report 167; Bali Summit 169; Progress 169; Organiza
tion 172; Intra-ASEAN trade 173; Conclusion 174
B. CONCLUSION 176
REFERENCES AND FURTHER READING 180
INDEX 184
List of Tables
1.1 ASEAN countries: Economic indicators 1
2.1 Indonesia: Economic indicators 7
2.2 Indonesia: Budgets 11
2.3 Indonesia: Growth in money supply and prices 13
2.4 Indonesia: Balance of payments 16
2.5 Indonesia: Energy prices 30
2.6 Indonesia: Population and labour force 33
3.1 Malaysia: Economic indicators 40
3.2 Malaysia: Proportion of population which is poor
by sector 41
3.3 Malaysia: Ownership of the corporate sector 41
3.4 Malaysia: Budgets 45
3.5 Malaysia: Growth in money supply and prices 47
3.6 Malaysia: Balance of payments 50
3.7 Malaysia: Energy prices 63
3.8 Malaysia: Population and labour force 67
4.1 Philippines: Economic indicators 73
4.2 Philippines: Budgets 77
4.3 Philippines: Growth in money supply and prices 79
4.4 Philippines: Balance of payments 82
4.5 Philippines: Energy prices 96
4.6 Philippines: Population and labour force 100
5.1 Singapore: Economic indicators 106
5.2 Singapore: Budgets 110
5.3 Singapore: Growth in money supply and prices 112
5.4 Singapore: Balance of payments 115
5.5 Singapore: Energy prices 125
5.6 Singapore: Population and labour force 131
6.1 Thailand: Economic indicators 137
6.2 Thailand: Budgets 141
6.3 Thailand: Growth in money supply and prices 143
6.4 Thailand: Balance of payments 145
6.5 Thailand: Energy prices 160
6.6 Thailand: Population and labour force 163
vii
List of Maps
The ASEAN countries 2
Indonesia 6
Malaysia 39
Philippines 72
Singapore 105
Thailand 136
viii
Acknowledgements
I would like to thank the following people, who cannot, of
course, be held responsible for the book, for their valu
able comments on individual chapters: Professor H.W. Arndt,
formerly Professor of Economics, Research School of Pacific
Studies, Australian National University, Canberra; Ms
Alison Broinowski, Department of Foreign Affairs, Canberra;
Mr Michael Connell, Research Economist, Economic Affairs
Division, Victorian Chamber of Manufactures, Melbourne; Dr
Clive Edwards, Assistant Secretary, Office of National
Assessments, Canberra; Mr Terry Ferris, Department of Trade
and Resources, Can berra; Mr E. K. Fisk, Professorial Fellow,
Research School of Pacific Studies, Australian National
University, Canberra; Mr Barry Hitchcock, Department of
Foreign Affairs, Can berra; Mr Peter McMahon, Economist,
Con zinc Riotinto of Australia Ltd, Melbourne; Mr Des
Miller, Export Manager, Commonwealth Serum Laboratories,
Melbourne; Y.B. Dato Rastam Hadi, Managing Director,
PETRONAS, Kuala Lumpur; Mr Richard Smith, Counsellor,
Australian Embassy, Manila; Mr Greg Turnidge, Manager,
Research Services, Economic Affairs Division, Victorian
Chamber of Manufactures, Melbourne; Dr Bernardo Villegas,
Deputy Executive Director, Center for Research and Communi
cation, Manila and Mr Ian Wilcock, Department of Foreign
Affairs, Canberra.
I would like also to thank the dozens of officials,
businessmen, journalists and academics with whom I spoke in
the ASEAN countries, Hong Kong and Australia; officials of
Australian Embassies/High Commissions in the ASEAN
countries, who were particularly helpful; Ms Eve Jaszczyk,
who typed the manuscript with skill and speed; Mr Garth
Lonsdale, District Manager, Lanier Australia Pty Ltd,
Canberra, who made available a word processor for this;
Julia and Ranald Dive, Woody's Mapping Services, Canberra,
who competently drew the maps and the Australian Government
Publishing Service, who gave permission to make use of maps
provided by the Trade Publicity Branch, Department of Trade
and Resources, Melbourne. Finally, I would like to thank my
wife, Chris, and my children, Michael, David and Louisa.
for their support and tolerance.
Canberra, November 1981 B. W.
ix