Policies carried out to solve problems

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

-Training provided

-Loans provided

-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.

Training provided

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.

Loans provided

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.

Stable Government

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. 

Problem faced by Singapore in 1960s

In 1965, Singapore was separated from Malaysia and gained the independence. However, it is not really beneficial to the country. Singapore faced various problems, socially and economically. 

Below is a list of problem faced by Singapore:

-High Unemployment

-Racial Conflicts

-Workers on strikes

-No resources

-Lack of educated people and skilled work force

-Significant increase of population

-Economy challenges

-Lack of housing

High Unemployment

People in Singapore depended on British too much and lost their job after British left. When British were still in Singapore, locals worked for them as cleaners and servants in their military base, prisons, etc. Besides, the economy between Malaysia and Singapore terminated for a short while, making many people lost their jobs. Common market that was supposed to be set up had failed after the separation.

Racial Conflicts

Several racial conflicts occurred before the independence in 1965. One of the worst incidents is the Racial Riots in 1964.

Workers on strikes

Workers were not satisfied with the employers who paid them lowly. Thus, they went on strikes and caused big problems to the economies.

No resources

Singapore has very little land where the resources are limited. Importing resources was not beneficial to the economy because it was a huge cost.

Lacking of educated people and skilled work force

People during the time had fewer chances to have proper education of training. Even they are skilled, they did not get any upgrade.

Significant increase of population

The population boomed and had a significant increase of population. The generation felt safer to give birth to kids as the war time was over.

Economy challenges

Many countries in SouthEast Asia had already far in front of Singapore in economies. Singapore had a decline in portion or entrepot trade.

Lacking of houses

There were a lot of farmlands in Singapore in 1960s. Those lands were suitable for development. And during that time, houses were built not according to the orders. Unlike the HDB or condominium, the houses were built like terraces. Thus, many people did not have living shelter during that time.

(Background Information)

The reason Singapore was separated from Malaysia is due to people with racial imbalance mindset. There were a few of elections that were held in Malaysia and Singapore. The lacking of unity within the races had totally affected the relationship between the Central Government and Singapore government. Malaysia's political parties, UMNO, MCA and MIC were only finding benefits for their own races and not united. Singapore, on the other hand, with a mixed-racial political party, PAP wanted to make the situation better and all the races united. However, they participated in one of the Malaysia's Election when they had already promised not to do so. This made the Central Government frustrated and wanted to interrupt Singapore's election too. The Central Government sent most of the UMNO members to take part in the elections. When they know that people are mainly towards the PAP, they planned to spread rumours about Singapore's PAP did not care about Malays. One of the representatives also made a speech for the Malays in Singapore and told them how the Malays were actually treated. This had caused a lot of unnecessary responses. The relationship of two countries was like a breaking bridge, it would collapse in anytime. When the prime minister of Malaysia knew the situations, he was depressed and disappointed. He wanted it to stop and the only solution was separation. Singapore government was not willing to accept the solution. They thought there would be some ways to solve the problems. However, the Malaysia government seemed to change their mind. Thus, Singapore was officially separated from Malaysia, in a very unhappy way. 

Introduction of this blog

This is a blog created for the Integrated Humanities for 2012. It'll be updated very often about our Integrated Humanities' topic, which is Singapore Industrialization. =D