ABSTRACT
With the United States acknowledged as the world’s only remaining superpower, American leadership surged ahead in the Indian Ocean and worldwide. However, the growing American role in Indian Ocean commerce was shared with business interests native to the region. Singapore and Malaysia both enjoyed a trade surplus. Singapore especially flourished with its liberal taxes, its streamlined customs procedures, and its largely dutyfree import and export policy. The United States was Singapore’s largest trading partner (followed by Malaysia, Hong Kong, and Japan). Over half of Singapore’s exports of electronics, computers, and machinery derived from American-owned factories located there. Singapore also exported petroleum products and chemicals. Japan was Singapore’s main provider of imports (25 percent), and Singapore was a major investor in China, and was its fifth largest trading partner. Singapore was the location of the first World Trade Organization ministerial meeting, in 1996. Malaysia sought to spur the iron and steel industry, and manufactured goods rose to 77.4 percent of Malaysian exports in 1994. In 1991, prime minister Mahathir of Malaysia promoted the East Asian Economic Caucus (EAEC) as a self-protecting trading block between Southeast Asian member countries, aimed at combating an inequitable competition from Western economies. Indonesia remained a main exporter of oil, as well as of furniture, garments, shoes, machinery, and electronics.
