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Journal of Southeast Asian History
Journal of Southeast Asian History
http://journals.cambridge.org/SEH
Martin Rudner
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T H E BMA IN MALAYA
The Malayan Planning Unit was also involved with preparing the
provision of relief supplies to Malaya's civil population during and
after the operational period. An expert working party under the
chairmanship of Sir Hubert Young completed its estimates of civi-
lian consumption needs under conditions of expected near-destitu-
tion. At this stage, however, the military sought to fulfill but its
minimal "disease and unrest" standards of obligation to the civil
populace, but the Colonial Office view prevailed that this was an
insufficient discharge of H.M. Government's responsibility towards
peoples under its protection. In May 1944 the War Office accord-
ingly laid upon the Chief Civil Affairs Office (CCAO)-designate a
responsibility for Malaya's rehabilitation above that level prescribed
by purely military standards. To discharge this added responsibility
the CCAO was to be permitted to communicate directly with the
Colonial Office on matters of rehabilitation, providing this was done
through normal military channels. Whereas the BMA was to serve
first the operational needs of South East Asia Command, both its
administration and outlook were geared to the political programmes
of the Colonial Office.
The British Military Administration in Malaya was thus more
than just a military instrument for territorial pacification in the
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3. Ibid.
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5. Cf. The Colonial Empire 1939-1947 (Cmd. 7167), London: HMSO 1947,
Para. 308.
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To the extent that the policies laid down by the BMA went beyond
the confines of strict military requirements they were thus political.
In concluding this analysis of the BMA it is therefore useful to con-
sider briefly its structural-function relationship with the populace
of Malaya and Singapore. Admiral Mountbatten was himself a man
of fundamental libertarian convictions and sought to integrate local
societal interests into Military Administrations under his jurisdic-
tions. This was easier willed than done, however, for the political
strucure of the BMA was such that authoritative rule-making capa-
cities were located in the highest rungs of the Military Administra-
tion, in the Malayan Planning Unit which set out of the course of
post-liberation policy. This structural pattern allowed participation
in policy-formulation by the Colonial Office, War Office, Ministry of
Supply, and even from British Malayan functional interests with
access to Whitehall, viz. the Rubber Growers Association, British
Association of Straits Merchants, FMS Chamber of Mines, etc. No
provision was made, however, for the direct aggregation of local
societal interests in post-war policy-making.
In Singapore an Advisory Committee representing a broad spec-
trum of community interests was set up at the divisional level and
did submit demands for the DCCAO's consideraion. The Com-
mittee's role was clearly consultative, as an articulator of raw societal
interests, and served mainly to ventilate local grievances. It cer-
tainly had no legislative function. In the Malayan mainland no such
advisory institution was established at the Division level. Efforts by
the Communist-led wartime guerrilla movement to gain entry into
the post-war political system were strongly rebuffed by the BMA.6
The actual policies pursued by and under the BMA had a substan-
tial impact upon the authoritative allocation of values in Malayan
society. Demonetization of the Japanese 'banana currency' imme-
diately on liberation inflicted much dislocation and caused a heavy
transfer of real resources to the BMA as it introduced the new British
money.7 Rubber was acquired exclusively by the Rubber Buying
6. Cf. Gamba, The Origins of Trade Unionism in Malaya, p. 32, footnote 67,
and G.Z. Hanrahan, The Communist Struggle in Malaya, New York:
Institute for Pacific Relations 1954, pp. 54-55.
7. On demonetization of Japanese scrip and its socio-economic effects see
Donnison, British Military Administration in the Far East, p. 223; Hanrahan,
The Communist Struggle in Malaya, p. 55; and Gamba, The Origins of
Trade Unionism in Malaya, p. 49. Hanrahan and Gamba argue that a major
factor inducing the British to demonetize the Japanese scrip was that the
Malayan Communist Party, inter alia had accumulated considerable quantities
of "banana currency" in order to finance their post-war political programme.
Little has indeed been written on Japanese wartime currency; for a contem-
porary commentary see Chin Kee Onn, Malaya Upside Down, Singapore 1946,
pp. 212-213 and also F. H. H. King, Money in British East Asia, Ixmdon:
HMSO 1957, p. 23. On the monetary problems of liberation in Europe and
North Africa see F.M. Tamagna, "The Fixing of Foreign Exchange Rates"
in The Journal of Political Economy Llll, No. 1 esp. pp. 62-66.
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Unit at its own relatively low fixed price of 10 d./lb., pressing real
income deflation on Malayan producers. Inefficient handling of
essential producers' supplies on the part of the Rubber Buying Unit
seriously reduced the competitive position of smallholders.8 Imports
channelled through the agency of the Supplies Distributing Unit
flooded through to the black market in large quantities, official con-
trols notwithstanding, and resulted in a considerable redistribution
of incomes towards merchants generally, and towards the British
merchant houses in particular. Failure to ensure an adequate
importation of rice, Malaya's staple foodstuff, brought in its wake a
soaring cost of living to around ten times pre-war levels by November
1945. Shortages of supplies, profiteering, and the heavy outflow
of purchasing power by the Military Administration and Armed
Services reinforced the post-liberation inflationary spiral, with its
redistribution effects on real incomes.
BMA labour policy had to deal at once with military and rehabili-
tation needs, inflationary conditions, and the political challenge of
a nascent militant labour movement. One of the main roles assigned
to the Military Administration was the mobilization of local labour
for military and rehabilitation purposes. Wages were set at pre-war
levels, despite prevailing inflation, in order to fix the rates desired
ultimately to achieve and to minimize the cost of the BMA to the
British Treasury.9 Labour was thus expected to absorb the income
effects of British post-war economic policy for Malaya. Resultant
labour unrest impelled the BMA to work hard to counter militancy
on the part of the Communist-inspired General Labour Union. As
Labour unrest continued and indeed worsened with deteriorating
real wages the BMA decided that it would be imperative for it
effectively to crush the Communist labour movement while encour-
aging development of a more tractable, "responsible", trade
unionism.10
Whatever the original intent of the Malayan Planners the BMA
was ill-prepared structurally to meet the needs of a trying period.
Its recruitment pattern for personnel and the traditions of colonial
8. For a critique of the Rubber Buying Unit's distribution of supplies to small-
holders see P.T. Bauer, Report on a Visit to the Rubber Growing Small-
holdings of Malaya, London: HMSO 1948 (Colonial Research Paper No. 1),
pp. 52-56.
9. On the factors influencing BMA wages policy see Donnison, British Military
Administration in the Far East, pp. 312-313, 328 and the (McFadzean)
Report of Prices and Wages, British Military Administration, 30 November
1945.
10. As the largest single employer in Malaya and Singapore the BMA had a
common interest with employers in keeping wages low and labour weak and
disunited. On the development of post-liberation trade union policy see
Gamba, The Origins of Trade Unionism in Malaya, pp. 7-20; Hanrahan,
The Communist Struggle in Malaya, pp. 54-55; and Alex Josey, Trade Union-
ism in Malaya, Donald Moore, Singapore 1954.
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11. Vide. Victor Purcell, Malaya: Communist of Free?, Victor Gollancz, London
1954, p. 42.
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