ECONOMIC HISTORY OF SINGAPORE

South Korea, Taiwan, Hong Kong, Singapore

Four Tigers of Asia: ___, ___, ___, and ___; these economies raised per-capita incomes sixfold between 1965 and 1995.

Indonesia, Malaysia, Thailand

___, ___, and ___ tripled their income levels during the same period.

Sweatshops, garments, shoes, toys, electronics

Singapore’s growth began with ___ and light assembly industries producing ___, ___, ___, and cheap ___.

Middle

Economic transformation lifted most of the population from poverty into the ___ class.

Globalization

Singapore’s success was closely tied to ___, serving as a major global trade hub.

Singapore’s Seaport

Became a major crossroads of East–West trade, compared to the “Chicago O’Hare of freighters and supertankers.”

Export

Most of Singapore’s manufactured goods are made for ___ markets.

Foreigner

One in every three workers in Singapore is a ___, showing the city’s dependence on migrant labor.

International, free port

Singapore’s economy depends heavily on ___ trade and operates as a ___ with free markets.

Free Port

A port where goods can be traded freely without heavy customs duties, helping Singapore attract global commerce.

3

1988: The value of Singapore’s international trade was more than ___ times its gross domestic product (GDP).

China, India, Malay

Singapore connected ___, ___, and the ___ Archipelago through active trade exchanges.

Silks, incense, spices

In early colonial times, ___, European goods, Indian ___, and Moluccan ___ passed through Singapore’s port.

British

By the late 19th century, ___ control expanded over the Malay Peninsula, increasing Singapore’s trading power.

Tin, rubber

Singapore became the main outlet for Malaya’s ___ and ___ exports.

Tin, rubber

Industrial Expansion: ___ smelting and ___ processing industries developed in Singapore, adding to its economic services.

Wholesaling, ship, warehousing

The port provided various services such as ___, ___ repair, ___, and financial operations.

1819

Year: Singapore was established as a trading post of the British East India Company due to its strategic location, harbor, and free port status.

Defense

The establishment of a naval base turned Singapore into a vital ___ center for the British Commonwealth east of India, adding naval industries to its economy.

1963

Year: Singapore joined Malaya, Sabah, and Sarawak to form Malaysia, seeking political independence and a larger market.

1965

Year: Political and ethnic conflicts led Singapore to separate from Malaysia and become an independent nation.

Konfrontasi Policy

Policy: Indonesia’s confrontation with Malaysia reduced Singapore’s entrepôt trade during that period.

1968

Year: Britain’s decision to withdraw forces by the early 1970s led Singapore’s government to take a more active role in the economy..

Industrial

After separation from Malaysia and British withdrawal, the government promoted ___ growth to solve unemployment, population, and housing problems.

Job, machinery

Economic growth was driven by ___ creation and better ___ for workers.

Fiscal policies, money supply

Despite fast growth, inflation remained low due to conservative ___ and strict ___ control.

Industrialization

The government viewed ___ as the best path toward economic progress.

Foreign Direct Investment

Singapore chose to attract ___ rather than rely mainly on domestic entrepreneurs (FDI).

Foreign, export

A large portion of Singapore’s manufacturing became ___-owned, leading to ___-led growth.

Labor

The government promoted ___-intensive industries focused on exports through incentive programs.

United States, Japan

The ___ and ___ became key investors in Singapore’s growing economy.

Oil

The 1973 global ___ crisis ended Singapore’s period of “super growth” but did not halt expansion.

Manufacturing, transportation, communications

___, ___, and ___ sectors continued expanding during the 1970s.

Manufacturing, finance, business

1980s: ___, ___, and ___ services became Singapore’s key drivers of growth.

Producer, consumer

Singapore acted like an oil ___ rather than an oil ___ by serving as a petroleum hub.

Malaysia

After separation, ___ remained Singapore’s top source of imports and a major export destination.

Indonesia

The entrepôt trade with ___ revived after the end of Confrontation in 1966.

Third

Singapore became the world’s ___-largest petroleum-refining and oil-trading center.

Rotterdam

Singapore surpassed ___ to become the world’s busiest port in tonnage handled.

Shipyards

Four major ___ employed about 70,000 workers, 40% of whom came from nearby Asian countries.

Lee Kuan Yew

Under ___’s rule, Singapore maintained low inflation and near-zero unemployment.

20

In the 1980s, wages were raised by government decree at a rate of ___ percent, while strikes were almost nonexistent.

Welfare

Lee opposed ___, believing it discouraged people from working and slowed down progress.

South Korea, Hong Kong, Taiwan

From the 1970s to 1990s, Singapore was recognized alongside ___, ___, and ___ as the Four Tigers of Asia.

Technology

Labor-intensive industries were moved to other ASEAN nations and replaced with high-___ industries and services.

People's Action Party

The ___ (PAP) built a stable, corruption-free government with strong central planning and social policies.

Family Planning Program

1966: The government launched a ___ to prevent overpopulation from threatening economic success.

Organizations, broadcasting, critical

The government restricted student and labor ___, controlled ___, and pressured ___ newspapers.

Paternalistic

___ Governance: Leaders believed only those who guided the nation through crisis could ensure stability, and most citizens accepted this view.

Suzhou Industrial Park

Lee’s project in Suzhou, China, failed due to corruption and nepotism, contrasting with Singapore’s disciplined model.

Free Trade Principle

The policy introduced by Raffles remained in effect in the 1980s, with only minor tariffs on goods like tobacco and liquor.

3— In 1988, the value of Singapore’s international trade was ___ times its GDP, showing its dependence on trade.

Global City

By the late 1980s, Singapore aimed to become a “___” serving world markets and multinational corporations.

Manufacturing

Twenty-five years after independence, Singapore became a ___ hub with high income and labor shortages.

Little Dragons

Singapore, along with South Korea, Taiwan, and Hong Kong, was one of Asia’s four “___” marked by export-oriented growth and equitable income.

Tokyo

In the late 1980s, the financial services sector made up nearly 25% of Singapore’s GDP and was among Asia’s top centers after ___.

political, infrastructures, incentives

___ stability, good ___, and government ___ attracted international banks and companies.

Multinational

By 1990, Singapore hosted over 650 ___ corporations and thousands of financial and trading firms.

Regulated

Due to its dependence on global trade, the government closely ___ domestic conditions to maintain stability.

Benefits

The government balanced strict labor discipline with worker ___ such as housing, education, healthcare, and transport.

Central Provident Fund

A compulsory savings system that financed government projects and served as a social security scheme (CPF).

1985— Year: The worst recession in Singapore’s history, with a -1.5% growth rate caused by both external and internal factors.

Entrepôt, export, petroleum, shipping

Major Economic Sectors: These included ___ trade, ___-oriented manufacturing, ___ refining, ___, domestic production, and services.

Skill, technology

In the late 1970s, planners replaced labor-intensive industries with ___- and ___-intensive, high-value-added industries.

Disk drives

Information technology was targeted for development, and by 1989 Singapore became the world’s largest producer of ___ and parts.

Manufacturing

In 1989, ___ accounted for 30 percent of Singapore’s GDP.

Electronics

In the 1990s, GDP growth was closely tied to exports and the expansion of the ___ industry.

Goh Chok Tong

Under Prime Minister ___ (1990–2004), Singapore experienced steady growth rates of 7–8 percent until the mid-1990s.

Hong Kong

1997: ___’s return to China benefited Singapore, as many entrepreneurial ___ Chinese relocated and brought their businesses.

Asian Financial Crisis

1997–1998: Singapore was affected by the ___ but less severely than its neighboring Asian countries.

United States, Europe— Singapore was less affected because much of its trade was with the ___ and ___ rather than Asia.