Exports to Malaysia rise despite government ban

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(First Edition)

UK exports to Malaysia rose 81per cent in the first six months of this year, despite Kuala Lumpur's ban on government contracts for British companies after the Pergau Dam affair, writes Russell Hotten.

But Malaysian exports to the UK have fallen 24.5 per cent as the country struggles against a rise in its currency.

Trade officials said the surge in UK exports was caused partly by equipment and supplies brought in to build the Pergau Dam.

Mohamad, the Prime Minister, announced the ban after British newspapers claimed Malaysian politicians had been offered bribes in return for contracts.

Figures released from the British high commission in Kuala Lumpur yesterday showed that UK exports rose from pounds 367.7m to pounds 666m in the first six months of 1994. Imports from Malaysia declined to pounds 580.6m, from pounds 769.7m.

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