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Chp 10 Post-Independence Singapore Part 1 - Coggle Diagram

- - - - TARIFFS
        
        thus increasing prices of SG-made goods
        
        decrease demand
        
        M'sia increase tariffs on SG exports
      - Reduced Exports
        
        previously store and processed in SG
        
        raw TIN & Rubber
        
        now try to process it in M'sia
        
        to export directly from its own ports
      - No common market & direct access to Malaysia hinterland
        
        M'sia remained SG main trading partner
        
        but trade b/n them was limited
    - - 1965
        
        70,000+ unemployed out of 700,000 workforce
      - PLUS many youths finishing schooling and will enter workforce
      - if no jobs for them, unemployment problem will be more severe
    - - Competition from regional ports
      - Entrepot trade in SG
        Declining since WW2
      - another impt source of job affected
    - - announced 1967
      - affected 40,000+ workers
      - these people dependent on supplying goods & services to British soldiers stationed in SG
      - completed 1971
  - - - Banking & Financial Services
        EXPANDED
        to meet the needs of MNCs & other companies in SG
        
        Development Bank of Singapore
        (DBS, est. 1968)
        
        To FINANCE
        
        Industrialisation
        
        and other Development projects
        
        Many FOREIGN BANKS also set up operations here
    - - Public Utilities Board (PUB)
        
        set up in 1963
        
        provide water, electricity and gas to households and industries
        
        IMPROVE
        
        operating conditions for industries
        
        people's living conditions in households
    - - AIR Transport
        
        Paya Lebar Airport
        
        EXPANDED in the 1960s & 1970s
        to handle more CARGO
        and Passenger traffic
        
        BUT insufficient space for further expansion
        
        1975
        Govt decided to replace it with a larger airport
        
        1981
        CHANGI AIRPORT was opened
      - SEA Transport
        
        Port of Singapore Authority (PSA)
        
        Formed in 1964
        To manage Port Operations
        
        More Port Facilities set up
        to HANDLE rise in CARGO TRAFFIC
        
        in Jurong
        
        Tanjong Pagar
        
        Pasir Panjang
        
        Sembawang
      - LAND Transport
        
        ROADS constructed
        
        to CONNECT
        INDUSTRIAL AREAS
        to
        HOUSING ESTATES
        
        EXPRESSWAY system
        was built to reduce time needed to travel around SG
    - - Attract
        MNCs & foreign investors
      - Facilitate growth of SG's manufacturing industries
    - - SG Telephone Board
        
        1967 to 1972
        in 5 years
        
        double network size from 100k to 200k
  - - - Global Oil Supply shortage
        
        Oil Prices
        increased by almost FOUR TIMES
        in less than 3 months
        
        INCREASE
        in Global Oil Prices
        
        INCREASE
        in
        PETROL + ELECTRICITY
        prices in SG
        
        INCREASE
        in Public Transport fares
        
        INCREASE
        COST of Living
        
        INCREASE
        in
        COST of Producing Goods
        
        INCREASE
        Price of Goods
        
        3 more items...
        
        How Oil Crisis causes
        INFLATION
      - Government Measures
        
        increase workers' wages
        help them cope with INFLATION
      - Recovery
        +
        Vulnerability
        
        SG economy
        recovered by 1976
        
        Crisis is a REMINDER
        that SG economy is
        vulnerable
        to external developments
        beyond its control
    - - 150K jobs created
        from 1967 to 1973
        
        Unemployment
        no longer an issue
        
        IN FACT
        there is a shortage of labour
        
        so much so that SG need to recruit foreign workers to fill jobs
      - Gross Domestic Product (GDP)
        
        up until 1973
        
        SG GDP Growth
        exceeded 10% every year
  - - - SG govt has to diversify its economy
      - Adopt Export-Oriented Economic Policy
        
        producing goods for global export rather than local/MY market
    - - Attracting MNCs
        to set up factories in SG
      - established 1961
      - Task
        
        Promote industrial development in SG
      - Dr Albert Winsemius (Chief Economic Adviser)
        (1964 -1984)
        
        played key role in SG early industrialisation efforts
        
        headed UN study that recommended industrialisation prog for SG
        
        Passed away 1996...
        
        LKY expressed SG's indebtedness to him
    - - JTC
        Established in 1968
        
        SG grew more industrialised
        
        Task of JTC
        To Build & Manage
        industrial estates in SG
        
        Jurong
        Toa Payoh
        Kallang Basin
        Kranji
        
        allow EDB to focus on attracting foreign investment
      - 1961
        EDB transformed almost 70 sq km of land in Jurong
        
        into SG's FIRST INDUSTRIAL ESTATE
    - - (1) Electronics
        (2) Petroleum Refining
        (3) Shipbuilding & Repair
        (4) Garments & Textiles
        
        hundreds of MNCs set up operations in SG
        
        Netherlands
        
        Britain
        
        Japan
        
        USA
        
        for example
        
        Shell
        
        Seiko
        
        Hewlett-Packard
    - - Lower COSTS
        Maximise PROFITS
        
        LOWER TAX RATES
        
        SINGAPORE
        OFFERS
        
        How SG BENEFITS from MNCs
        
        EMPLOYMENT for THOUSANDS of SG-eans
        
        valuable TECHNICAL TRAINING
        and WORK EXPERIENCE
        
        build up LOCAL EXPERTISE
        
        eventually FILL UP VACANCIES
        previously held by foreigners
        
        Greater ACCESS to MODERN TECHNOLOGY
        
        help keep SG competitive GLOBALLY
        
        INCREASED EXPORTS
        
        of LOCALLY MANUFACTURED goods to more overseas markets
        
        made it financially attractive for MNCs to set up their operations in SG
      - Operate in a
        SAFE & SECURE
        environment
        
        LOW CRIME RATES
        
        Strengthened DEFENCE capabilities
        
        Good DIPLOMATIC relations
        with many countries regionally & globally
      - To have a
        RELIABLE SUPPLY
        of LABOUR
        
        Large, young and growing labour force
        
        that PARTNERED with
        Government & Company bosses
        
        to achieve HIGHER PRODUCTIVITY
        and stronger ECONOMIC GROWTH
      - SUITABLE LOCATION
        for their factories with facilities
        and SPACEfor future EXPANSION
        
        Sizeable amount of land
        set aside
        
        for development into
        INDUSTRIAL ESTATES
        with adequate facilities
        
        and space for their
        future expansion