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The 1960s |
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The 1960s: A time of turbulence and economic uncertainty
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In the 1960s, Singapore was a third world country with a GNP per capita of less than US$320. Infrastructure was poor, there was little capital, and the handful of industries produced only for domestic consumption. Low-end commerce was the mainstay of the economy, and there was little or no direct foreign investment.
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There was massive unemployment and labour unrest following the withdrawal of the British troops.
Creating jobs was the priority, and this meant attracting labour-intensive industries. But first there had to be an environment conducive to industrial development.
Thus Jurong Industrial Estate was born. A swampy area along the west coast of the island, Jurong was transformed into Singapore's first industrial estate. As the swamps were filled and foundations laid for factories and roads, the Singapore Economic Development Board (EDB), set up in 1961 with a budget of $100 million, set about the challenge of convincing foreign investors that Singapore was a good place for business.
Singapore's industrialisation programme began with factories producing garments, textiles, toys, wood products and hair wigs. But along with these labour-intensive industries, there were also some capital and technology-intensive projects such as Shell Eastern Petroleum and the National Iron and Steel Mills.
The expulsion of Singapore from Malaya in 1965 meant the loss of a vast hinterland from which to draw raw materials as well as a large domestic market to absorb the finished goods. The new challenge for Singapore was to develop export-oriented industries, and EDB opened its first overseas centres, in Hong Kong and New York, so as to be better placed to woo foreign investors.
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