I refer to your report, [#1] Singapore opening backdoor to Afta, Dr M warns [/#] (Feb 26). While not an economist, I believe that Prime Minister Dr Mahathir Mohamad's concern is somewhat misplaced.

Based on the data provided by The Economist 's Intelligence Unit, we see the following main components for Australian exports (with their percentage of the total in brackets) in1999:

Metal ores, minerals and metals (21); coal, coke and petroleum (16); machinery (12); and gold (6).

The corresponding figures for Singapore are as such:

Electronic components (21.2); mineral fuels (7.9); chemicals (7.9); radios, televisions and parts (2.5); and food (1.5).

Based on these figures, and the current areas of focus for our economic policies (IT services, life sciences, microelectronics), there is a mismatch between the structure of exports between Singapore and Australia. Hence, my view is that it is unlikely that there would be much scope for Australia to use Singapore as a backdoor to Afta.

Furthermore, that there is up to a 60 percent import content for all Singapore exports is a well-known fact. Given such a situation, would Mahathir therefore suggest that all countries trading with us are in fact gaining a backdoor entry?