Consulted Dr. Albert Winsemius, a Dutch economist.
He recommended Singapore concentrate on manufacturing of low-value products like clothes, textiles and toys.
New factories were set up in Jurong, Redhill and Tanglin.
Factories were equipped with ready supply of electricity and water.
Economic Development Board (EDB) was set up in Aug 1961.
To encourage American, Japanese and European companies to set up factories in Singapore.
Had branches in America, Japan and Europe to provide information and assist international companies to set up factories in Singapore.
Foreign companies were given tax holidays – did not have to pay taxes for a few years while they continued operations in Singapore.
Other roles of EDB
Helped small industries expand.
Provided loans to new industries.
Conducted studies on new types of industries to be set up.
To develop and manage industrial estates. (Role was handed over to Jurong Town Corporation in 1968).
Support for industries
Government continued to expand the international airport at Paya Lebar in the 1960s so that it could handle more cargo and bigger aircrafts.
Port of Singapore Authority was set up in 1964 to supervise, manage and develop port operations.
Late 1960s, a container port was built to deal with container ships arriving from other countries.
Building the infrastructure
Public Utilities Board (PUB) Established to co-ordinate the supply of water, electricity and gas to the people in residential and industrial areas in Singapore.
Telecommunications were improved so people in Singapore could reach out to people overseas. This enabled business contacts overseas to be established.
Banking facilities of 35 major banks were improved. Money were lent to businesses to start new factories.
Communication betw workers and employers
Industrial Relations Ordinance 1960
Arbitration Courts to settle disagreements.
New labour laws were introduced to ensure fair treatment of workers.
National Trade Union Congress (NTUC) formed.
Government helped to set up market for sale of goods produced in Spore.
Competition. What should we do?
1970s our competitors for low-value products were HK, Taiwan & S Korea. We switched to producing high-value products like
electronics industries that produced TV, calculators, medical instruments and computer parts.
aircraft industry that produced aircraft parts and components.
oil rig industries that built oil rigs.
Workers needed very specialised skills to produce these high-value products. Companies with technical know-how were encouraged to provide training to the workers. They were given tax holidays and other financial incentives in return.
New schools and vocational institutes were set up to provide education and technical training.
Training institutes were jointly set up by the government and international companies. For example, the French-Singapore Institute and German-Singapore Institute.
The Polytechnics, National University of Singapore and Nanyang Technological University were expanded to provide training for technicians and engineers.
Jurong Industrial Estate (JIE)
July 1960 Minister of Finance, Goh Keng Swee introduced an idea of developing Jurong as an industrial estate.
Located away from any built-up area and close to Malaysia, our hinterland.
Deep water that is suitable for building a harbour.
Was an area of jungles, swamp and old rubber estates as well as a small fishing village.
Communication lines were laid.
Roads, railway tracks and a network of telephone lines, a power station and a reservoir were constructed.
JIE - Continuation
Jurong had own port with wharves and modern facilities so that ships from overseas could bring in raw materials and manufactured goods could be exported.
1963 The National Iron and Steel Mills was the first factory to be set up in Jurong. Soon more factories followed.
1967 1 st phase of development was completed.
1968 there were 300 factories and 21,000 workers in Jurong. Factories in Jurong produced clothes, textiles, toys, woods products and beverages.
JIE – Continuation II
Jurong grew fast in the first 2 decades.
It became one of the largest industrial estates in Asia.
End 1970 Jurong had 1400 factories, providing jobs for 112 000 workers.
By 1968 JIE and other industrial estates came under newly formed Jurong Town Corporation(JTC).
JTC developed Kallang basin, Sims Avenue and Redhill which are near residential areas.
External Developments and effects on Singapore
1960s world trade was flourishing and most international companies were willing to invest in Singapore. Our economy grew.
1970s rise of oil prices affected world economy. This resulted in world-wide recession. Singapore was able to pull through because of the hard work of the people and it had a strong economic foundation.
Reasons for Our Success in building a Strong Economy
Located at the meeting points of the east and the west.
Contribution of leaders in Singapore
Leaders were far sighted and made careful decisions.
Contribution of older generation in Singapore
Hardworking, disciplined and willing to work together.