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History: Chap 7 & 8 (Reactions of People to Independence (Political…
History: Chap 7 & 8
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Challenges
Economic Survival
Solution
Diversifying Economy
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Developing Manufacturing Industries: Using incentives (like low tax, cheap land), SG attracted Multi-National Corporations (MNCs) to set up factories here. By 1966, there were 26 MNCs and local enterprises set up, employing a total of over 19 000 workers.
Industrial Estates were set up by the Economic Development Board to attract MNCs. This made space for the factories set up by the corporations. This included Jurong Industrial Estate, which had factories producing myriad products, like hair wigs and toys
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Problem
Dying entrepot trade: Less countries were engaging in trade, so SG had to find another source of $
Neighbouring countries (eg Malaysia) implementing tariffs on Singapore exported goods, thus difficult for SG to export goods
National Identity
Problem
Citizenship: Many people qualified for Malaysian citizenship, so govt had to appeal to people to apply for SG citizenship
Solution
Housing
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Improving public utilities: New flats included modern toilet facilities, electricity and water supply. Proper waste disposal chutes were also constructed, attracting people to settle down in SG
Building more flats: The govt sought to build 53 000 flats, to house more people and solve the overcrowding problem. New housing estates like Queenstown and Toa Payoh were also set up
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Defence
Problem
Faced security threats: Due to surrounding countries threatening to attack SG, or war going on in neighbouring countries (eg Konfrontasi, Vietnam War)
Lack of strong defence force: Small army with only 2 full-time service battalions, small police force only amounting to 5000 people, no air force and only 2 old gunboats. SG was unable to defend itself well in the case of any threats
Withdrawal of British troops: The British withdrew their troops from SG by 1971, so SG was left with an even weaker defence force, as it did not have enough people to replace the ~26 000 British soldiers
Solutions
National Service: Upon the establishment of the Ministry of Defence, male citizens aged 18 were required to serve National Service for 2 years. This allowed the force to be built up quickly
Military cooperation with other countries: SG, Australia, New Zealand, Malaysia, Britain agreed to conduct joint military exercises and consult each other in the event of SG or MY facing threats. This was agreed upon in the Five Power Defence Arrangements, signed in 1971
Establishing military industries: Chartered Industries Singapore was set up to manufacture weapons and ammunition to the newly set up SAF. This reduced SG's reliance on other countries for weapons in battle