21. Japanese Invasion Money

When the Japanese occupied Malaya, the military launched its invasion currency at par with the prevalent British Straits currency. Penang became the first city in Malaya to be issued with Japanese Invasion Money (JIM).

Issued at the end of 1941 or early 1942, the first series of JIM for Malaya consisted of only $1, $5 and $10 notes issued by Yokohama Specie Bank, authorized by the Japanese Government. The Chinese communities were forced to pay 'tributary money' amounting to 50 million Straits dollars as a penalty for raising funds in aid of the Chinese war of resistance in the Sino-Japanese conflict. Our parents were forced to contribute to this fund.

In 1942, the Japanese released a series of 1-cent, 5-cent, 10-cent and 50-cent notes. Japan continued to plunder Malaya's rich resources of crude oil, gutta-percha and tin-ore. Even public and private structures such as metal railings, lamp posts, window grilles, bed-frames etc. were not spared. Staple foodstuff as in beans, rice, oil, sugar, became scarce and rations had to be implemented. Many were forced to subsist on tapioca and diluted rice porridge, which caused rife malnutrition. The purchases of necessary provisions such as matches, petrol, soap, etc. was regulated through ration coupons. Runaway inflation made the JIM notes, from 1-cent to $5 totally worthless.

In 1944, the Japanese issued $100 and $1000 notes with the $10 notes being the lowest denomination. The wartime Japanese economy could not support a prolonged war. Faced with runaway inflation, the Japanese administration merely printed more currency notes for circulation.

When the Japanese surrendered in 1945, the invasion notes were useless and were sold in trunks as waste paper. The karung-gunny Indian men carried bundles of currency notes in their baskets and paraded them in the streets. When granduncle Ying Kau passed away, they only had Japanese money to pay for the coffin. The undertaker was kind enough to waive payment for he was a very good friend of the family.