Singapore's Economic Development

1960s y y y y y y y GNP per capita less than USD320 (way below world average) Infrastructure was very poor Little or no foreign investment High unemployment rate No diverse economy (mainly focused on entrepot trade) Lack of land space for industrialization Planned withdrawal of British military forces which contributed to 12.7% of Singapore s GNP, posing as another challenge for Singapore as not only did they have to spend money to build up their own defenses but they also had to find ways to make up for the great loss of revenue Singapore Economic Development Board (EDB) formed to face the challenge of attracting MNCs to Singapore to invest so that Singapore could gain profit to improve its economy Government engaged in careful urban planning to ensure that Singapore had sufficient space to house its population as well as build industrial buildings to facilitate the coming of foreign investors to Singapore for investment

y y

1970s y y y y y Unemployment no longer a problem as many people have been employed by MNCs Industrial base widened Profit gained from MNCs were able to make up for the loss of revenue due to the British withdrawal from Singapore Overseas Training Program launched to train young workers in foreign countries like Germany and Holland and improve the workforce Manufacturing became the largest source of income for Singapore, surpassing entrepot trade which was Singapore s main source of income until then

1980s y y y y y 1990s y y y Technology-intensive industry Service industries contributed much to the growth of Singapore s economy Singapore economy began to become more diverse Second Industrial Revolution (workforce became much more skilled) EDB co-established institutes of technology with foreign countries to train a skilled workforce for more skilled jobs like engineering and electronics Less labor-intensive High-wage policy adapted (due to tight labour market, with upward pressures on wages)
Economic growth averaged 7.7 % p.a. during this period

2000s y y Singapore became more focused on innovation and knowledge Singapore now has a well-diverse economy and strong infrastructure