The Notable Singapore Economic Development History

The Notable Singapore Economic Development

Singapore economic development did not come easy. The progressive economy that Singapore is enjoying now is the fruit of continuous struggles against adversities. Even though a number of setbacks occurred, Singapore emerged victorious in the end.

The island nation is home to around 4 million residents. Being the littlest nation in Southeast Asia, Singaporeans live in small, high-rise apartments and take the public transport to get around.

In 1819, Europeans came to Singapore. The British East India Company owned by Sir Stamford Executive used the country as the center for spice trading. Singapore served as a commercial and military point of the British Empire in Asia.

When World War II, the island city adapted the technological and political changes. Singapore take part of the industrialization movement in 1950s. They want to create an image separate from the entrepot image associated to them.

The government wanted to turn Singapore into an industrialized economy. Their first priority to attain economic development was to help people find employment.

Fortunately, the island state had a huge number of skilled workforce that made Singapore competitive. In the 1960s, the efforts of the government to erase unemployment paid off when the unemployment rate in this country dwindled significantly compared to other Asian countries.

The freedom that Singapore enjoyed from its European settlers in 1963 made it decide to become part of Malaysia. Singapore joined forces with Malaya, Sabah and Sarawak to be merged to Malaysia. But the merger ended two years later when Singapore chose to become a separate republic.

Skilled labor and technology were central to the government plans in the 1970s. They also shifted their focus to the rising industries at that time such as petrochemicals, electronics and precision machinery. As more foreign investments entered the country, industrialization became a distinct reality.

The government created additional changes in 1979. A new policy was instituted to replace focus on low wage earners and encourage huge, money-making industries. The 1980s provided for the entry of foreign investments to the country in the areas of computers, electronics and automotive, pharmaceuticals, optical and other growing industries.

When recession occurred in 1985 to 1986, Singapore concentrated on turning the country into an important manufacturing and communications center for investors.

The Economic Development Board (EDB) main goal in 1960s was to attain industrialization. The efforts followed the strategies delineated by Dutch economist Albert Winsemius. The Strategic Economic Plan (SEP) in 1991 geared its efforts in encouraging the education and human resources sector in this country to make export grow. EDB still focuses its efforts on business development in the island state.

Singapore cost of living had improved drastically in these last few years particularly after they gained independence from Britain. Foreign investments and the government efforts to push industrialization turned the island nation to a progressive country now.

Today, Singapore economy is considered one of the wealthiest all over the entire world on the basis of GDP (PPP) per capita. The Singapore official dollar reserves reached an all time high of US$170.3 billion in January 2009.

Contemporary Singapore has reached heights beyond expectations. The huge success it attained help people enjoy prosperity and financial security. Singapore economic development is the result of people persistence and unwillingness to let go when faced with adversity.