Singapore Case Study - History, Development, Centralizing Government, Securing Investors & Projects

The Singapore case study summarises how the urban renewal process functioned through various legislative, policy, and organisational changes in the government. In the 1960s, the city-state of Singapore was an underdeveloped country with a GDP per capita of less than US$320. Today, it is one of the fastest-growing economies in the world. Singapore GDP per capita has decreased to US $ 60,000, making it one of the most powerful economies in the world. Singapore has had remarkable economic growth for a small nation with limited natural resources. However, the major question arises: how has Singapore added itself to the list of developed countries and its policies to achieve this? Read the article further in order to understand it.

The Singapore Case Study is one of the most important topics for the UPSC IAS exam. It covers a significant part of the World History subject in the General Studies Paper-1 syllabus. 

In this article, we shall study Singapore's independence, the government's centralisation, how it created a market economy and the latest developments in Singapore.

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About Singapore

Singapore is located on the southern tip of the Malay Peninsula, bounded west by the Strait of Malacca, south by the Singapore Strait, north by the South China Sea and north by the Straits of Johor. Singapore also grew more than 100 times in the British East from 1867 to 1963. Japan needed to occupy it from 1942 to 1945 during World War II. Therefore, when the British failed to protect Singapore from Japan during the war, it was possible to see a strong anti-colonialist and nationalist sentiment in the country to see the independence of Singapore.

History and Development of Singapore

• Singapore has a rich history that dates back centuries. It was originally a fishing village and a trading port.
• In the 19th century, it became a British colony. It developed as an important trading hub due to its strategic location.
• After gaining independence in 1965, Singapore faced many challenges such as limited land and resources.
• Under the leadership of its first Prime Minister, Lee Kuan Yew, Singapore focused on economic development.
• The government implemented various policies to promote industrialization, education, and urban planning.
• Singapore's rapid development into a modern city-state is attributed to its efficient governance, long-term planning, and emphasis on innovation and technology.

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Singapore Gaining Independence

• On August 9, 1965, Singapore gained independence from British rule.
• Singapore had initially merged with Malaysia. However, due to social conflicts and differences in ethnicity, Singapore separated from Malaysia.
• The division led to street riots and violence.
• Singapore's Chinese population outnumbered the Malays by a 3:1 ratio. This caused concerns among Malay politicians.
• To unify the Malay majority in Malaysia and limit the influence of communism, Malaysia voted to separate from Singapore.
• After gaining independence, Singapore faced challenges such as high unemployment and slums.
• Despite being surrounded by hostile nations, Singapore had to handle its issues independently.

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Singapore goes for Globalizing Industry and Trade

During colonial times, Singapore's economy centered on the import trade. Import trade is a trade in which imported goods are re-exported without any additional processing or repackaging. Khair, this trade activity can single-handedly contribute to Singapore's development because it is an economic activity from the post-colonial period in job expansion. Apart from this, the return of the British worsened the situation of unemployment.

Large-scale industrialization with a greater emphasis on labor-intensive industries is the most practical answer to Singapore's economic and unemployment crises. Singapore, however, needs an industrial tradition. But its legitimate working population works in trade and services.

Therefore, the citizens need more specialization and easily adaptable skills. Due to hostile neighbours, Singapore was forced to explore opportunities beyond its borders for industrial development. Because of this, Singapore's leaders began experimenting with globalization to address unemployment. Prime Minister Lee also understood that it would be better to ask for help from the developed world and persuade the multinational corporation to be built in Singapore in any way.

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Centralizing Government

Singapore is a safe, corrupt free and low taxation country to attract investors. The country's citizens had to compromise their freedom and accept an autocratic government to make this possible. The government introduced many strict measures. For example, anyone caught operating a drug trade or deep corruption can be punished by death.

Lee's People's Action Party (PAP) suppressed all independent labour unions and consolidated an umbrella group called the National Trade Union Congress (NTUC). It was controlled directly by the PAP. People are paid for national, political or corporate unity without due process.

The country's strong but business-friendly laws are very beneficial for investors. Unlike his home country, the world political and economic climate is unpredictable, while Singapore is very stable. Moreover, with its advantageous location and established port system, Singapore will be shown to be an ideal location for goods manufacturing.

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Securing Investors

By 1972, shortly after independence, a quarter of Singapore's manufacturing companies were foreign-owned or joint venture companies. Interestingly, the United States and Japan are not seen as major investors. As a result of Singapore's stable climate, favourable investment conditions, and the rapid expansion of the world economy from 1965 to 1972, the country's GDP registered annual double-digit growth. Singapore's human resources and infrastructure are vital to the country's development. Technical colleges were established throughout the country, and electronics, petrochemicals, and computer technology companies paid unskilled individuals to work there.

Industrial jobs were not available in this region. Thus the labor-intensive, non-tradeable services were provided by the government. Multinational employees are earning incredible dividends owing to Singapore's labour laws. Textiles, apparel, and fundamental electronics were available in Singapore as early as 1970. In the 1990s, industries such as wafer manufacture, logistics, biotech research, pharmaceuticals, integrated circuit design, and aerospace engineering were all affected favourably by Singaporean policy.

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Singapore Creating a Market Economy

• Singapore has developed into a modern and vibrant society with a focus on international trade.
• The Port of Singapore has become the world's largest transshipment port. It surpasses Hong Kong and Rotterdam.
• The country attracts millions of international tourists each year.
• Singapore is known for its integrated casino resorts like Marina Bay Sands and Resorts World Sentosa.
• The banking sector has experienced significant growth, with assets shifting from Switzerland to Singapore.
• Singapore has attracted pharmaceutical manufacturing plants and has a successful biotech industry.
• Oil refining is also a key part of Singapore's economy.

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Transportation and Urban Mobility in Singapore

• Singapore has a well-developed transportation system that promotes efficiency and sustainability.
• The Mass Rapid Transit (MRT) system is a key component of Singapore's public transportation network.
• The government encourages the use of public transport. It offers affordable fares, extensive coverage, and integration with other modes of transport.
• Singapore also promotes walking and cycling by providing pedestrian-friendly infrastructure.
• The city-state has implemented various measures to manage road congestion. This includes Electronic Road Pricing (ERP) and a comprehensive road network planning system.
• Singapore is actively exploring smart mobility solutions. This includes autonomous vehicles, smart parking systems, and real-time traffic management technologies.

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How Has Singapore Grown?

With a total land area of only 433 square miles and a small population of 3 million people, Singapore can produce a GDP as high as $300 billion annually, more than three-quarters of the world. Apart from this, life expectancy is 83.75 years, the third-highest in the world. It is not a matter of hair that Singapore has to stay on the earth because of all the best things.

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Current and Future Projects in Singapore

Singapore is continually undertaking various projects to enhance quality of life for its residents.

• Some ongoing projects include the development of new residential and commercial areas, such as Marina Bay and Jurong Lake District.
• The government is also investing in sustainable urban planning. This includes the implementation of green buildings and renewable energy initiatives.
• Singapore is known for its commitment to research and development. Many projects focus on sectors like biotechnology, artificial intelligence, and smart city technologies.
• The city-state is actively exploring innovative solutions for urban challenges. This includes water management, waste management, and transportation.

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Conclusion

Singapore Case Study concludes that by adopting globalization, free market capitalism, education, and pragmatic policies, this country has overcome its geographical disadvantage and become a leader in global commerce. 

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