In order to solve those problems, PAP had carried out few steps.
Below is a list of their solutions
-Consultation from a Dutch economist, Dr Albert Winsemius
-Economic Development Board (EDB) was set up in August 1961
-Foreign countries were welcomed to set up business in Singapore
-Improve the structure of government and its stability
Consultation from Dr Albert Winsemius
Dr Albert, who had looked through the economies in Singapore, advised Singapore that they should focus on the industrialization and manufactory. When they concentrated on those fields, job opportunities would increase rapidly as those jobs often required a lot of manpower. Furthermore, the people were mainly uneducated and non-skilled. Thus, these types of work would be very efficient for them.
Economic Development Board (EDB)
It was set up in August 1961. They encouraged foreign people to set up factories in Singapore. This could help a lot in Singapore’s economy. Besides, the foreign companies were willing to give loans to those who wanted to set up factories. They also conducted research on new types of industries that were set up. In return, they were given Pionees Certificates, which mean they would have their trading in Singapore free-taxed for five years or more, depending on the goods they produced.
As the industrialization needed a lot of skilled worker, training centres were set up by locals and foreigners for those who needed skills to work. Apart from training skills, there were also upgrades of skills for them.
Several banks were set up by foreign companies and they provided loans to the locals as well. They did not need to pay extra money if they loaned from the banks.
The government carried out a lot of policies that ensured the ministers did their part well. They also tried very hard to avoid corruption in the government.