CHAPTER 10! I love Joellyn :D
How did Singapore tackle its challenges in its early years of independence?
Singapore became a sovereign and independent nation after its seperation from Malaysia in 1965. As a new nation, it was vulnerable and had to overcome many challenges in order to succeed.
Challenges:
- Weak industry base
- Limited land space
- Lack of natural resources [ After the separation, Singapore lost Malaysia as its potential hinterland. ]
- Growing population [ Pressure on the government to create more jobs, improve living conditions and provide education for the young. ]
- Fall in trade
- British withdrawing its military forces by the end of 1971.
At that time, British military expenditure amounted to 12.7% of Singapore's Gross National Product. - A country's Gross National Product refers to the total market value of all the goods and services produced within the borders of a nation during a specified period.
30 000 civilian workers who worked in the military bases faced the possibility of losing their jobs and hundreds more would be affeced as their livelihood and business depended on supplying goods and services to the British servicemen in Singapore.
Other than the economic impact, the withdrawal also meant that Singapore now had to build up its own defence to protect the nation from both internal and external threats.
Without social and political stability, the economic development would not be able to take off.
ECONOMY AND JOBS
Challenges with economy and jobs:
1) We lacked natural resources such as rubber, tin, palm oil, gold
2) Our economy was not well diversified (A diversified economy is one that consists of economic activities such as manufacturing, banking and finance.)
We depended solely on entrepot trade which was no longer sufficient to ensure the government's continued growth as other neighbouring countries such as Malaysia and Indonesia were setting up their own ports. (competition. oooh)
3) High unemployment due to high population growth
Solution: Government
1) Provide incentives to Multinational Cerporations ( Companies that have businesses in more than one country ) from Japan, Western Europe and USA to set up factories in Singapore.
- This, in turn created more jobs for the unemployed.
2) Putting in place high standars of public services such as in security, health, education, telecommunications and transportation. This is to transform Singapore into a more efficient an organised country.
Setting itself apart from other countries in the region was important so that it would be able to attract foreign investors and professionals to invest and work in Singapore.
Solution: Dr Albert Winsemius