n discussing intra-ASEAN trade, we need
I to e"e.cise some caution. The role of
Singapore as an entrepot port tends to
distort the picture somewhat. A large proportion
of Singapore's exports to the
ASEAN neighbours are really re-exports of
products from outside the region. By the
same token, a significant share of Singapore's
imports from its ASEAN partners are
re-exported to third countries. It is in this
sense that trade statistics seem to overstate
the importance of intra-ASEAN trade,
especially since Singapore accounts for the
lion's share of intra-regional trade. If Singapore
is excluded, intra-ASEAN exports
would only represent much less than onetenth
of total ASEAN exports, (8.4 per cent
in 1991).
Seen from another angle, however, it
does appear that intra-ASEAN trade may
well be substantially larger than what trade
statistics would suggest. This is so because
trade statistics do not capture the thriving
"illegal" trade flows among the ASEAN
countries. Illegal trade links are particularly