Economic infrastructure was destroyed during World War 2 in Malaya. The Japanese, however, did not bother to restore the destruction done. The economic activities were thus disrupted. There were depletions in resources. For example, tin declined from 79000 tons in 1941 to 3000 tons in 1945. This caused Malaya to be unable to generate revenue as they did not have enough resources to do so.
Inflation also escalated during the Japanese Occupation. The Japanese printed as much money as they liked. Due to over-printing of money, the value of notes became very small and worthless. In many cases, trade was reduced to barter. This affected the livelihood of people as they were unable to earn a living to support their families, causing the standard of living in Malaya to decline, resulting in unhappiness.
The prices of essentials also increased several-fold. For instance, the price of 500g of rice soared to $120 from 1941 to 1945. Rice is also difficult to be imported from Burma and Thailand because Japan has imposed restrictions on international trade. This caused people to feel that the Japanese were responsible for the economic slump.
There were shortages basic essentials such as water, electricity, gas and food. Rubber trees were cut down to grow subsistence crops for the Japanese, mainly tapioca, millet and maize. This resulted in lower standards of living, and caused the people to be unhappy with Japanese rule.
("banana" note that the Japanese created)
Inflation also escalated during the Japanese Occupation. The Japanese printed as much money as they liked. Due to over-printing of money, the value of notes became very small and worthless. In many cases, trade was reduced to barter. This affected the livelihood of people as they were unable to earn a living to support their families, causing the standard of living in Malaya to decline, resulting in unhappiness.
The prices of essentials also increased several-fold. For instance, the price of 500g of rice soared to $120 from 1941 to 1945. Rice is also difficult to be imported from Burma and Thailand because Japan has imposed restrictions on international trade. This caused people to feel that the Japanese were responsible for the economic slump.
There were shortages basic essentials such as water, electricity, gas and food. Rubber trees were cut down to grow subsistence crops for the Japanese, mainly tapioca, millet and maize. This resulted in lower standards of living, and caused the people to be unhappy with Japanese rule.
Black markets began to rise during this period. Goods were sold at very high prices. However, the masses did not have money to purchase such goods. Corruption also increased.
The Chinese were allowed to carry on trade and business. They were forced to make a gift of $50million to Japan in 1942.
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