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Year 2 HACA Notes 2018FYE EDITIONContentPage No.Singapore’s Cultural History2Immigration2Tourism14Food19Singapore’s Economic History20Economic Theories (Free Trade)20Four Economic Post-Independent PoliciesLabour-Intensive IndustriesCapital-Intensive IndustriesService-Oriented EconomyKnowledge-Based Economy2222262932Singapore’s Political History35Four Stages of Governance Independence from BritishNew GovernmentMergerSeparation and Independence3536424755Political Leadership62ImmigrationDefinitionsPastImmigration Factors The Raffles Town PlanImmigrants’ ContributionsThe Modern DayStaying OpenChallengesPrivileges and RightsDefinitions:ImmigrationTo enter and settle in a country or region to which one is not nativeTouristOne who travels for pleasure and usually stays temporarily in a foreign landRefugeeA person who flees for refuge or safety, especially to a foreign country, in a time of conflict (political upheaval, war)*A subset of immigrants, which can be illegal or legalImmigrantA person who migrates to another country, usually for permanent residence.Cultural AssimilationA process of integration whereby immigrants or other minority groups are “absorbed” into an established, generally larger community Loss of many characteristics of the minority race*a phenomenon called melting potPluralismSmall groups within a larger society maintaining their unique cultural identities, which coexist and embrace the qualities of other groups as traits worth having Accomplished through protection of cultural communities by law and the acceptance into the larger society Essential for a flourishing and peaceful democratic society, where there is a need for tolerance and respect for other cultures and ethnic diversityMulticulturalismAn ideology of equal status for all, with society including distinct cultural and religious groupsForeign TalentPeople born outside of their country of residence who have skills that can add value to their adopted country E.g. Sporting talent, entrepreneurial and professional knowledgeE.g. Khaw Boon Tiam, Minister of Transport was from Penang, Malaysia, Olivia Lum, president of Hiflux, was from Kampar, Malaysia There are several policies/permits that are involved in taking in foreign talent:Work PermitA 2-3-year contract that includes more menial labour like:Coffee shop assistant, Construction workers or domestic helpersEmployment Pass (Professionals Managers Executives Technical S)Involves foreign professionals like:Engineers, accountants, doctors, lawyers, venture capitalistsAlso a 2-3-year contract that has higher salary of at least $3600Foreign Talent Sports SchemeTo boost local sporting standards by importing sporting expertiseFootball, tennis, table tennis etc.E.g. Daniel Bennett, an English defender brought in to strengthen national football team (Still better than Arsenal)Brain DrainAn emigration of trained and talented individuals/human capital to other nations due to factors such as conflicts, lack of opportunity, health hazards and discriminationE.g. Brain Drain from MalaysiaMalaysia has a discrimination policy like bumiputera or “sons of the Earth” which gives privileges to MalaysiansThey are given preferences for government posts, housing and education, limiting prospects for talented Chinese and Indians and causing a massive brain drain to neighbouring countries, especially Singapore1 million people emigrated from Malaysia due to Brain Drain over the last 40 yearsCitizenshipThe political rights of an individual within a society Political AsylumA judicial notion, of which a person is persecuted for political opinions or religious beliefs in his country may be protected by another foreign country On a case-by-case basis E.g. Karl Marx (Communism, went to Russia), Albert Einstein (Jew, protected in US)Immigration FactorsPush FactorsPull FactorsChineseNatural disasters (Yangzhe river’s frequent flooding or droughts destroyed crops, by extension a year’s income, affecting the livelihood of farmers)Lack of fertile land (moving was not an option as ancestral grounds were not to be vacated)External wars like Opium Wars vs British resulted in severe loss of money and land to opposing country, which was taken from the peopleInternal wars like the toppling of the Qing Dynasty by the Kuomintang, causing political instability and turmoilOppressive government caused dissatisfaction and many rebellions and revolutionsWars also threatened to destroy farmlandsOverpopulation and unemploymentJob opportunities; due to recent industrial revolution and inventions like the steamship, people could travel from the West to the East to sell goods and obtain raw materials more easily Singapore’s excellent geographical location made it a centre for collection of raw materials from the East and selling of manufactured goods from the West Singapore’s position at the midpoint between China, India and Britain made it ideal for merchants to replenish food supplies and trade goods Made Singapore a one-stop location created many jobs to serve the large influx of tradersFree Immigration Policy; In the early days of Singapore as a British port, Sir William Farquhar had to come up with new strategies to appeal to foreign traders to come to Singapore. Among these methods was the Free Immigration policy, which made it extremely easy to enter Singapore, as long as in good health. The fact that one could enter and leave Singapore freely without paying for immigration passes and papers was especially appealing to poorer immigrants and traders who benefitted from this flexibility and affordabilityIndianOverpopulation leading to unemployment Drought affecting crop yield and food supplyJob opportunities (same as above)Better work conditions (for the same amount of work, they were paid significantly more in Singapore than in India and were thus able to sustain themselves)Free Immigration policy (same as above)MalayInternal conflicts like the Bugis clan war for kingshipExternal conflicts such as power struggle between Dutch and British over the colonisation of some areas in Southeast Asia after the Napoleonic Wars, resulting in some armed clashesJob opportunities (same as above)Free Immigration policy (same as above)Missed relatives in SingaporeEuropeansHad to look for new markets due to oversaturation of the same manufactured goods like cotton or cans (everyone was making the same thing and selling to one another)Trade prospectsThe prospect of a new, exotic life in Singapore (many were convicts looking for a fresh start)The Raffles Town PlanThe new immigrants arrived and congregated at the mouth of the Singapore RiverRaffles took note of the haphazard organisation of the buildings in the vicinity and appointed Lieutenant Philip Jackson to draw up a new arrangement in 1822Different races were segregated and run by a “kapitan”The Raffles Town plan was put in place for several reasons:To prevent conflict between the different races, with each race having their “own area” such as Chinese in Chinatown and Malays in Bugis Kampong, misunderstandings between races of each other’s religions and racial traditions can be kept to a minimum.For better land use. The business centre was planned close to the Singapore River which allowed the business community to be in close proximity to each other, as well as convenient access to their warehouses and ships.To allow easier administration. Kapitans like Eunos and Aljuneid spoke the same language and shared the same culture as those who were under their control, allowing for better communication. These kapitans would also run internal meetings in community halls.Immigrants’ ContributionsIn the past, immigrants took up a variety of roles and jobs. Some races had a greater affinity to certain jobs (Just need to know a few for SBQ):Common OccupationsProminent CitizenChineseMostly unskilled labourMiddlemen (spoke sufficient English, Malay and local dialects to communicate with clients, who were traders around the Malay Archipelago)CooliesServantsRickshaw pullersMerchantsCarpentersBarbersTan Tock Seng contributed a large amount of money to Tan Tock Seng Hospital and underwrote funerals for the poorMalayMostly engaged in providing basic necessities, hunting or constructionBoat buildersSailorsOfficersPolicemen (as Malay was the most common language)WatchmenSyed Omar Aljunied founded the Masjid Omar Kampong Melaka Mosque for the Muslim communityIndianMilkmenShopkeepersChettiarsPolicemenGovindsamy Pillai founded the Indian Chamber of Commerce and founded the Ramakrishna Mission, a worldwide spiritual and wellbeing organisationEuropeanMerchantsGovernment OfficialsJudgesAlexander Guthrie founded Guthrie and Company, business specialising in trading British and Straits produce and was chairman of the Singapore Chamber of CommerceStaying OpenSingapore has since adopted an open immigration policy, mainly for the following reasons:Sporting TalentTo boost local sporting standards by importing sporting expertiseBy bringing in young talent from neighbouring countries and grooming them, we develop world-class talents capable of competing with other nationsWith a much smaller population compared to other nations, we have a lower chance of having locally-born talentsWhile these sportsmen were not born here, they carry our nation’s pride and have chosen Singapore as their homeE.g. Feng Tianwei, who was born in Harbin, China, but went on to win the World Team Table Tennis Championships in Moscow against ChinaBoostingEconomyWith a small population, we require reinforcements to grow our economy and create better jobs for SingaporeansWith greater foreign manpower, our workforce is supplemented and enable us to grow successful companiesE.g. SembCorp and Keppel are elite and globally acclaimed companies that are formed through the partnership between Singaporeans and foreignersWhile the majority of 15000 members are professional foreign workers, the skills and abilities of 5000 Singaporeans are required to organise a systematic approachThe foreigners provide the base and manpower required to run the large-scale companyThis synergy is the prime example of how important it is for both foreigners and Singaporeans to work together to make the economy prosperIncrease PopulationTo curb the booming population at the time, in 1965, the Two Child Policy was introducedHowever, this initiative proved too effective severely reduced birth rates to this dayWith the initial “baby boomers” aging and the new generations less incentivized to reproduce (with a TFR of 1.2, much lower than the healthy 2.1), coupled with increasing life expectancies (82 for men, 84 for women) due to technology, we face an aging populationThis means that the smaller population of younger generations have to work to support the larger aging population – these younger people are the ones being taxed which goes to eldercare subsidiesThus, foreigners have to be brought in to supplement the young generations and potentially increase the Total Fertility RateChallengesCompetitionAs numbers of immigrants increase Singaporeans begin to fear for lowering salaries or being displaced by the new immigrantsInsecurity and starts to take hold on the labour pool and interrelations between Singaporeans and immigrants may be compromised with direct competition on the job marketTo combat this, the government seeks to regulate the numbers of incoming foreigners, to prevent an uncontrolled scenario when Singaporeans are swamped by the influx of foreigners, through dependency ratiosWhen a Singaporean hires a foreigner, the employer pays the foreign worker a levy to discourage him from hiring another foreignerIntegrationAs foreigners come from different countries, their cultures, social norms and language is different from Singapore’s In addition, as they may have grown up in a background different to Singapore, they may not identify Singapore as their homeland but simply a workplaceDue to these differences, foreigners are prone to discrimination and misunderstanding among our societyThe government is thus spending USD $7 million to helping immigrants to integrate, including free English coursesAlso, by increasing the number of foreigners, discrimination is reduced as they become a greater presence in the society, encouraging understanding to live with themCongestionIn land-scare Singapore, there is a worry that there will not be sufficient space and facilities for both foreigners and SingaporeansEducationThe government aims to ensure that enough of these institutions and universities are set up and the education system is upgraded to ensure holistic education for everyoneTransportWith a greater population density, Singapore becomes increasingly prone to congestion – transport infrastructure has to be improved to accommodate the larger populationThe government is investing enormously to expand the rail network, planning to spend about $60 billion to double the rail network over the next decadeHousingWith the demand for houses rising, the prices for housing has increased drasticallyThis reduces the affordability of houses, which in turn is connected to the risk of reduced salaries due to foreigners, further increasing tensionNational ServiceWhile national service is in great demand, it is not practical to force foreigners to participate as:It will make coming to Singapore extremely unattractiveThe foreigners will still have loyalties to their homeland and may not stay to fight for Singapore when the time comesPoor interactions between foreigners and Singaporeans make for a disjointed militaryThis brings across a sense of carrying a heavy burden among Singaporeans However, the government has combatted this to some extent by forcing second generation PRs to take part in NS, when they are more likely to be integrated into societyPrivileges and Rights (Not so important, just know a few)CitizensPermanent ResidentsForeignersPoliticalCan vote and stand for electionsNILNILFamily Tax Breaks Parenthood tax rebateWorking mother’s child relief (WMCR)Handicapped child reliefNILNILHousingNew HDB flats with subsidyResale HDBRent HDB at subsidised ratesResale HDBNILGrantsCPF HousingMain and lift upgrading programme (MUP/LUP) subsidies and concessionary ratesMortgage loans from banksMortgage loans from banksMortgage loans from banksHealthcareSubsidies of up to 65% for Class B2 and up to 80% in Class CSubsidies of up to 65% for Day surgery and 50% for specialist outpatient clinicSubsidies of up to 40% for Class B2 and up to 55% in Class CSubsidies of up to 40% for Day surgery and 25% for specialist outpatient clinicNILEducationfees/yearPrimary: FreeSecondary: $60Pre-University: $72Independent Secondary: $2.4-3.6kIndependent Pre-University: $3.6-4.8kITE: $300-536Polytechnics: $2250University: $7.5k-22kEdusavePrimary: $480Secondary: $660Pre-University: $960Independent Secondary: $2.9k-5.4kIndependent Pre-University: $4.8-5.8kITE: $4k-7kPolytechnics: $4.5kUniversity: $ 10k-29kNo EdusavePrimary: $4kSecondary: $5.6kPre-University: $9kIndependent Secondary: VariableIndependent Pre-University: VariableITE: $10k-17kPolytechnics: $7.5kUniversity: $14k-40kNo EdusaveTourismDefinition and HistoryTourism in SingaporeIntroductionTimeline of DevelopmentsEffects of DevelopmentSingapore – Real or Fake?The Paradox of Tradition vs ProfitDefinition and HistoryGeneral Definition: Tourism is a social, cultural and economic phenomenon which involves the movement of people to countries or paces outside their usual environmentWorld Tourism Organisation (WTO) Definition: Tourists are people travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposesBackground (not important but good to know)The Grand Tour in the 16th Century was for young English elites, lasting for 2-4 years for them to learn language, architecture, geography and culture to assume the responsibilities of an aristocrat. It was ended with the French Revolution in 1789The invention of rail and the rise of the middle class brought about the idea of “leisure time” and resulted in excursions being organised, most notably by Thomas Cook in 1841What started as a single rail journey from Leicester to a temperance meeting in Loughborough grew into continental, American and “round-the-world” toursIntroductionTourism contributes about 4% to Singapore’s GDP (about $27 billion)To promote an image of Singapore as a tourist destination, huge investments in the tourism industry have been made since 1964Singapore is an attractive tourist destination due to the following factors:Cultural attraction coupled (multicultural society, British colonial history etc.) with natural and heritage conservation programmes and eco-tourism (mangroves in Pulau Ubin, nature walks, Botanic Gardens, Museums etc.)Low crime and convenient transport system (Interconnected transport network and security allows tourists to move around to attractions safely and easily)Common language – English, the lingua franca of the world (easy communication with locals, business partners and services makes Singapore an ideal place for a service centre)Timeline of DevelopmentsPrior to tourism development, Singapore’s economy was very dependent on trade with neighbouring countries and was seeking new ways to diversifyIn 1964, the Singapore Tourist Promotion Board (STPB) was established to promote Singapore as a tourist destinationMain goal: To coordinate the efforts of hotels, airlines and travel agents in promoting the overall image of SingaporeThis initiative paid dividends, with tourism arrivals increasing by 500% in the subsequent 5 years and ultimately rising from 99000 in 1965 to over 15 million in 2015The programme was revised in 2003 to have three areas of focus:Strengthening Singapore’s position as a leading convention and exhibition city in Asia with a strong and dynamic business environmentDeveloping Singapore as a leading Asian leisure destination enriching experience that is uniquely Singaporean (high-class shopping districts in Orchard)Establishing Singapore as the services centre of Asia where visitors come to enjoy high-end quality services such as healthcare and education services (Singapore has the highest concentration of international schools in the world)The success of this programme was dependent on the development of the following aspects:Food and BeverageCruiseEventsMeetingsIncentive Travel (cheaper flights out of Singapore to other nations after staying in Singapore)ConventionsExhibitionsHealthcare ServicesHere is a timeline of significant developments in Singapore’s tourism history1960s-1970sInvestment in infrastructural development like hotels and tourist attractions like Jurong Bird Park and the resort island of Sentosa1970sMarketing Singapore as a venue for conventions and organised events to draw visitors1980s$1 Billion Tourism Product Development Plan to save historic districts like Chinatown, Little India, Arab Street and the colonial hub, as well as the rejuvenation of the Singapore River1997STPB remodelled into Singapore Tourism Board (STB) to reflect the expansion of its role beyond simply promoting tourism but having an active part in it2003Review of strategies from the STB (as stated above)2002-PresentFurther development of attractions targeting the global market including:Marina Barrage and SG Flyer in 2008Casinos in RWS and MBS in 2010RWS, MBS and Gardens by the Bay in 2012Singapore – Real or Fake?In efforts to promote Singapore as tourist destination, the STPB created many images of Singapore, each showcasing the best and perhaps exaggerated traits of Singapore, including vibrant culture, connection to greenery and as a bustling business centreWhile these images worked well to attract tourists from across the globe, it did have some negative effects: (just need to know 2)The images reflected some untruth-only highlighting positive features of the city, and “hiding less desirable” areas of Singapore, such as strict/draconian laws and regulations that the country has such as the ban of chewing gum in public transportations and civil buildings, giving a false impression of Singapore.When tourists come to Singapore, they realised that these images are merely created and not real. For example, he portrayal of Singapore as a clean and green city is not justified by the litter found, some tourists may realise that these are usually taken up by cleaners constantly at work.The exhibits tend to be biased and exaggerated. Singapore’s scenery may not be as good. Negative points are purposely left out and the positive side of things are portrayed, thus a false impression of Singapore is spread (E.g. The MBS blocking the view of the business district was photoshopped to create a more scenic picture in the “Do more than just business in Singapore” poster)The Paradox of Tradition vs ProfitAs Singapore’s tourism industry flourished, the STB increasingly expanded its target to the global marketBy hosting international events that garner a variety of supporters or tourists (E.g. 2009 World Gourmet Summit, 2010 YOG), Singapore increased its focus on modernity and commercialismSome people came to Singapore just for this showcaseSingapore’s increasing focus on commercialism is encapsulated in the return of the casinos in 2010 in MBS and RWSThis was against traditional Asian values and civic and religious groups opposed to the projectThis deviates from Singapore’s primary cultural advertising and instead targets a global audience on the universally-known attraction of gambling instead of promoting Singapore’s less-known cultureHowever, the government did not allow gambling to get out of hand by taking the following measures:Pre-emptively setting up the Casino Regulatory Authority in 2008, which was responsible for ensuring that the management and operation of the casinos in Singapore remains free of criminal use or exploitationEstablishing the National Council on Problem Gambling in 2005 to tackle problem gambling (severe addiction)A steep entrance fee of $100 per entry or $2000 per year to curb gambling addiction or regular gambling as one would already be at a deficit solely by entering the facilityExclusion order whereby a family or guardian applies for members to be denied access to casinosCasinos are not allowed to extend credit to the local population“Integrated Resorts” were put into place to divert attention away from the casinos – RWS has USS and other attractions which makes it more of a family destination rather than a gathering ground for gamblers/MBS has glamorous hotels, Gardens by the Bay and high-end leisure facilities to push it a notch up, rather than a mere gambling facilityAll in all, Singapore has taken the direction of developing attractions according to the tastes of the tourists which may conversely affect our traditional valuesThis is called the commercialisation of Singapore’s traditional culture (E.g. The reconstruction of Chinatown and other historical sites to be more appealing to tourists results in the loss of original character and authenticity of the place)As a multicultural society and with such a rich history, yet a globally competitive nation, we have to strike a balance between traditional values and commerce FoodAs a multiracial society, different races share their cultures and traditions, in particular, food!While our colonial masters sought to divide us with methods such as the Raffles Town Plan which segregated the different races, different factors like value added through shared sacrifices during the Japanese Occupation, the trials of National Service or a shared education have united us as one peopleWith our forefathers and even us today hybridising ourselves, we have forged a combination of all our identities into a shared on as SingaporeansThis identity transcends “racializing” by our colonial masters or even by the STB that different cultures are of different entities (A Chinese person does not just have to eat Chinese food and Indians don’t just have to speak Tamil)This is best represented by our food, which describes our shared identityOur food is classified as Chinese, but often consists of a base from one culture and is supplemented or garnished by ingredients or condiments from other cultures and executed using other techniques, forming our hybrid cuisineExamples:DishBaseCondimentsTechniquesHokkien MeeYellow Noodles (Chinese)Lime and sambal belacan (Malay)Cooked in a wok (Chinese)Curry FishheadFish HeadCurry spice, ladies fingers (Indian)Cooked in a claypot (Chinese)Hainanese Chicken RiceChicken Kechap Manis (Malay)Poached in Chinese StyleEconomic Theories (Free Trade)Defined as a self-regulating market system that automatically satisfies the economic needs of the populace (E.g. when the supply goes down, the demand will proportionally go up)The “invisible hand” is a metaphor that maintains equilibrium between the supply and demand of resourcesThis term was given by Adam SmithFree Trade in SingaporeNo imposition of tariffs on goods bought or sold in SingaporeNo intervention from the government on any goods imported or exported from Singapore (excluding cigarettes, alcohol and cars, with 100% taxes)One lieutenant officer would be appointed by William Farquhar to be stationed on St. John’s Island to regulated ships moving in and out of the portSome messages sent to Melaka seeking settlers and supplies (due to land constraints, Singapore could not be self-sustainable in terms of food supply good business for hawkers from Melaka, who could sell food at higher prices as there were no other alternatives)Many people were prepared to defy Dutch Law of trading with the Dutch by trading in Singapore as they H.A.T.E.D the DutchReasons for hating the Dutch:European Traders:High port fees for use of portOnly allowed trade in BataviaHigh taxes on goods sold or boughtAsian Traders:Every Asian trading boat had to purchase and fly the Dutch flagNeeded a Dutch permit to passOnly allowed to trade at Dutch-controlled portsResults of Free Trade by 1821 (within 600 days) (E.X.P.A.T):Export and import trade totalled more than $8 Million ($5 million from Asian traders, $3 million from European traders)XXX 3000 vessels came to Singapore (average of 5 a day)Population increased from 1000 to 5000 (with greater diversity compared to Orang laut and Chinese, with people coming from as far as Arabia)Attracted traders from beyond the Malay ArchipelagoTook over as headquarters of the Bugis TradeSingapore’s success led to the formation of the Straits SettlementPost-Independence Economic Policies1st Period: Labour-Intensive Industries (1965-Early 1970s)Problem/CircumstanceSevere unemployment due to:Competition in entrepot trade (importing basic products, modifying and selling again)Existing factories only employed 5-20 workers eachBritish withdrawal from Singapore (which employed 10% of population)SolutionSet up labour-intensive manufacturing industries (E.g. assembly plants that employed 100s-1000s) Included assembling electronics, textiles, Setron black and white televisions and Amoy Canning food productsThese jobs required relatively little skill provided jobs to a large number of peoplePoliciesAttracting investments to create jobsOpen policy to Multi-national-corporations (MNCs)Singapore welcomed foreign investors to set up factories in SingaporeLarge companies like MNCs were willing to do so due to cheap labour created huge employment for localsLabour was cheap as there was a surplus of workers high demand for jobs employers can afford to pay lower wagesMNCs are huge foreign companies that do business in different countries (E.g. Philips)Incentives for foreign investorsEconomic Development Board (EDB) set up in 1961 to attract foreign investors from Japan, Europe and America to set up companies in SingaporeOn top of cheap labour, the government included incentives like Pioneer Certificates for companies that manufactured new or inadequately produced products to satisfy demandsPioneer Certificates granted the company exemption from tax of 40% of profits for up to 5 years or moreE.g. Textile and electronic industries Other incentives included training subsidies and duty-free imports of equipment and raw materialsOther Policies to Make Singapore Attractive (Good to know)Peaceful Workforce and IndustriesIn the 1960s, there were widespread work stoppages by workers under the communists factories and shops unable to operate due to workers on strikeDisruption in production of goods and services To promote industrial peace and ensure a good working relationship between workers and employers, a new labour law was passed in 1968National Wage Council (NWC) formed in 1972 to make recommendations on wages based on Singapore’s economic needs, fostering good working relationships between employers and workers when they agree on wagesSkilled Workforce and IndustriesTo ensure an adequate supply of relevantly trained workers to meet rapid industrialisation and to work in the newly established factories, technical education was introduced to schools in 196912 training institutes in metal, woodwork, electronics, electrical and tourism industries in 1975Countries like Japan and Germany sent experts to train local workforceProviding Locations to Accommodate FactoriesEDB was initially in charge of building industrial estatesIn 1968, Jurong Town Corporation (JTC) started to develop these estates and provide basic infrastructure like roads, drains and sewersGreatly reduced time needed for foreign companies to set up factories with existing basic infrastructureCompanies could start production just months after moving to Singapore almost immediately provided jobs for localsLight industries like electrical and textile industries with less pollution and low space occupancy put in flatted factories to combat land constraints (E.g. Ayer Rajah and Tiong Bahru Industrial Estates)Heavy industries like iron and steel making and shipbuilding occupied large areas of land needed large amounts of raw materials and were generally noisy were located near the sea for easy import of raw materials and export of manufactured productsSupport FacilitiesPort of Singapore Authority (PSA) appointed in 1964 to control port operations like cargo-handling services upgrade shipping servicesExpansion of port facilities to cater to large ships Keppel terminal and Tanjong Pagar terminal able to efficiently handling increasing volumes of cargoAllowed companies to obtain raw materials and export manufactured products efficientlyGrowth of air traffic lead to expansion of international airport in Paya LebarSingapore became a major telecommunications centreTo provide financial and banking services for companies, Development Bank of Singapore (DBS) was founded in 1968 to provide loans for manufacturing and other industriesTwo Child PolicyThe end of WWII gave rise to a “Baby Boom” due to couples holding back on having babies during the warHowever, Singapore was still in its fledgling years and could not cope with such a sharp and sudden population increaseTwo-child policy was put into place to curb this rise, including no maternity leave, higher hospital fees, no income tax deductions and low education priorities for 3rd child or moreThis proved to be too effective, though, and continued to reduce Singapore’s workforce over the subsequent yearsEffectsBetter Quality of LifeWith higher incomes, people could afford better food and medical services decrease in deaths of new born babies and higher life expectanciesMore schools set up to educate locals increase in literacy ratePollutionIn the 1970s, Singapore’s rivers and sea were polluted due to careless dumping of industrial wasteAir pollution due to release of sulphur dioxide from major oil refining centresLaws were put in place like forcing factories to install pollution control equipment to reduce air and water pollutionOnly clean industries like electronics were allowed to be set up near water catchment areas2. 2nd period: Capital-Intensive Industries (Late 1970s-1980s)Problem/CircumstanceSerious Labour ShortageIn the previous period, Singapore had insufficient job – now, it had an insufficient workforceWith a small population, there were insufficient workers, leading to a labour shortage and low demand for employment to entice workers to join the company, employers had to increase wagesTo combat this, foreigners were allowed to work in Singapore to make up for our lack of numbers as early as 1968Unskilled foreign workers joined labour-intensive industries while professionals took up technical and managerial rolesExternal CompetitionIn the 1970s, countries like Indonesia and Malaysia were industrialising as wellWith larger populations, they had a surplus of workers, allowing them to maintain low labour costsHigh labour costs in Singapore discouraged further investing in SingaporeSingapore’s productivity was markedly lower than competitors like Taiwan and South Korea workers could outmatch Singapore’s in quality and quantitySolutionMovement from labour-intensive to capital-intensive industries more machinery and skilled labour and less labour to make up for lack of numbersShift from low to high value-added industries (E.g. Aerospace and petrochemical [processing fuel sources] industries) (ST Aerospace)PoliciesHigher WagesTo encourage employers to move towards high-technology industries and machinery, the NWC recommended higher wages between 1979 and 1981This would put pressure on companies to use machines to manage labour more efficiently (so that they would either have a higher productivity rate or reduce number of workers for other companies to employ)Employers would find it more worthwhile to mechanise, automate and computerise as they would be more cost effective and productive than the workers with increased wageIn the 1980s, the government encouraged workers to take pride in their work and be more productive in form of newsletters and advertisementsFocus in Education and Skills TrainingFrom 1979 onwards, there was great development in training institutes to upgrade the abilities of the workforceSuch institutions included the National University of Singapore (NUS) which expanded in 1979 and the Nanyang Technological Institute which was set up in 1982These institutions concentrated on engineering to allow students to operate machinery or create new machinery in the future for the industriesThe government set up a fund to upgrade workers’ skills and retrain workers who had lost their jobs and provided financial assistance like subsidising worker’s training and interest-free loans to companies to purchase new machineryEmphasis on Research and Development (R&D)To remain competitive, Singapore’s manufacturing industry had to be capable of improving existing products and developing new onesAreas of focus included electronics, computer hardware and chemicalsTo promote R&D and high-technology industries, the JTC developed the Singapore Science Park next to the National University of SingaporeThis close proximity encouraged collaboration between the industry and university and imparting students with knowledge from progressive firmsTo encourage R&D, tax incentives were given to involved companies and funds to local companies that carried out R&DNew and Improved Industrial FacilitiesTo encourage investments in high-technology industries, the JTC built special industrial buildings and facilities (E.g. Loyang Industrial park which was used for aerospace and mineral exploration industries)Upgrades to factories in Tiong Bahru and Redhill included high-technology industrial parks with industrial, commercial and office facilitiesThis allowed companies to manufacture, sell and distribute goods in the same area, increasing efficiency and decreasing transportation costsWafer fabrication parks were built in places like Pasir Ris, which encouraged the high-technology and clean industry As there was a growing demand for land for the petrochemical industry, a cluster of islands were reclaimed to form Jurong Island, where these industries were relocatedBetter Support ServicesThe government sought to develop the service industry in transport, telecommunications and banking to support manufacturing industries and make Singapore a business centre for Southeast AsiaChangi Airport opened in 1981 to cater for air travel, with a huge air cargo complex which allowed handling of increased volumes of high-value exportsTransport system within Singapore consisting buses, taxis and MRT were constantly being developed to support other industriesUpgrading of telecommunications annually allowed travel reservations and arrangements to be made easily by businessmenBanking, accounting and advertising continued to be expandedIn short, everything improved lah ?3rd Period: Service-Oriented Economy (1980s to 21st Century)Problem/CircumstanceContinued Labour ShortageResulted in increasingly high pressures on workers’ wagesLed to Singapore losing competitiveness in the manufacturing sector to neighbouring countries due to the lower wages there.Singapore was forced to shift its focus to higher value-added industries.Workforce had to upgrade its employment skill level those who failed acquire skills needed in the new industries were structurally unemployed.Post-Asian Financial CrisisEconomic recession hit Singapore which saw its GDP contract by 1.4% in 1998. Led to rising unemployment and falling wages due to companies closing down or retrenching staff.SolutionShift from having productions that need abundance in low-skilled labour to one that requires more skilled labour in high-tech industries.PoliciesManufacturing and Services as Twin EnginesDiversification to focus on manufacturing and service industries reduce vulnerability to a single industry broader economic base.Manufacturing remained integral; Singapore is positioned as a base to manufacture high value-added products and provide manufacturing related services (e.g. HQ services) to companies locally and in the region.Services industry (e.g. financial services, international trading, transport and logistics, exhibition management and tourism) was strengthened and expanded to include new growth areas in healthcare, education, media, communications and information technology services, e-commerce and direct marketing.Human and Intellectual Capital as Key Competitive EdgeNeed to develop human and intellectual capital to maintain global competitiveness.Creation of a national framework and system for continuing education and training (CET) to promote life-long employability through life-long learning.Refinement of education system to cater for knowledge-based economy. Multi-faceted ranking system comprised both academic and non-academic (e.g. science, sports, arts, humanities) criteria. Encouraged creative thinking and entrepreneurial spirit among students.Leveraging on Science, Technology and InnovationNational Computer Board established in 1981 to promote good knowledge and training of workers in IT-related industries and oversaw the development of IT as part of the growing infostructure in Singapore. Development of Science Hub allowed Singapore to upgrade existing industries and business clusters and shift activities towards higher innovation and technology content.Launch of Masterplan to position Singapore as a global IT hub in the Asia-Pacific region.Role of the Government as Business Facilitator (Economic Development Board, EDB)EDB extended pioneer status beyond manufacturing firms to include financial service providers; also provided schemes for benefits and tax incentives for MNCs who wished to set up HQ in Singapore. High government spending S$2billion from 1991 to 1995 and S$4billion from 1996 to 2000 to develop high-technology plans.Clustering of high technology institutions through high technology parks (e.g. NUS, NTU, Institute of Systems Science and other tertiary institutions).Deepened level of technological research through NUS global cooperation programmes with institutions in the US, Australia and Europe.Economic integration with the formation of the Singapore-Johor-Riau (SIJORI) triangle to relocate Singapore investments in manufacturing to nearb areas of Johor and Bintan and Batam islands in Riau to leverage on the cheaper labour there. Singapore acted as the main financial centre while Johor and Riau provided labour force for manufacturing.4th Period: Knowledge-Based Economy (21st Century)An economy in which activities are driven by information and knowledge rather than by material resources.Offers sustainable growth growth that does not deplete or waste resources which the country’s present and future growth depends on.Characteristics:More emphasis on quality rather than quantityWorkers usually highly educated; jobs involve critical thinking and expertiseHeavy emphasis on IT and knowledge infrastructureProducts and services more technology and knowledge intensiveProblem/CircumstanceInternal constraints and vulnerabilitiesSmall and open economy limited resources such as land and skilled labour (due to smallness) and dependent on imported material and technology (due to openness).Racial vulnerability (e.g. riots etc.)Environmental pollutionShortage of waterExternal factorsCompetition from other countries (diversion of foreign investments to low-wage neighbouring countries)Slowdown in other countries buy less of Singapore exports slowdown in Singapore growth and rise in unemployment.Unrest in other countries terror attack in US affect airlines and travel industries.Regional environmental issues oil spill affecting fishing industry, haze from Indonesia affecting tourism and disrupted daily activities.SolutionShift to knowledge-based industries.PoliciesNurture local entrepreneurship and technopreneurshipProvide grants to budding entrepreneurs and assist in business networking etc.Introduced courses to teach technopreneurship skillsOrdered the building of an IT infrastructureMaster Plan 1: Building the foundation (i.e. ICT infrastructure and support for all schools, teacher training in ICT, using internet for teaching curriculum and acquire development of digital learning resources)Master Plan 2: Seeding the innovation (i.e. ICT funds for schools; baseline ICT standards for students)Master Plan 3: Strengthening and scaling (i.e. teachers have capacity to plan and deliver ICT lessons, ICT infrastructure, students as effective ICT users).Worldwide investments (regionally and globally)$1.3billin investment in a liquified natural gas block in Tanzania in 2014.$7.3 billion investment for 25% of Watsons in 2014.Ranked as the 2nd largest foreign investor in Vietnam with investments of US$28.3 billion in 1164 projects in 2013.Lure foreign talentsTarget foreigners with experience (e.g. industrialists, entrepreneurs, bankers, scientists, engineers, academics, artists)Long term: create business opportunities, establish overseas connections, raise standards of goods and services.Short term: fill immediate needs in high-tech industries.Also target foreign students: offered places in local education institutions to raise competitive levels of local students and contribute to national talent pool.Elevate worker skillsFunding for various skills courses through Singapore Workforce Development Agency (WDA)Continuing Education and Training (CET) masterplan.Develop into a regional service centreCompanies whose HQ is in Singapore: P&G, Rolls Royce etc.Grow technological-intensive, higher value-added manufacturing sectorReduce dependence on single industry or marketEncourage research & developmentReduce reliance on imported technology or talentLocal partnerships between firms with universities and research institutionsInternational partnerships between local firms and other foreign countries like China, Germany and ernanceDefinitions4 StagesIndependence from BritishNew GovernmentMergerSeparation and Independence DefinitionsTermDefinitionDemocracyA political system governed by the people or their representativesThe government is elected and voted by popular representationCommon features:Elections, Rallies and Election CampaignsPolitical PartiesFreedom of Speech and PressFreedom Choosing One’s GovernmentLegislative CouncilA group of people who makes or creates the law of a country (requires the executive council to approve)Executive CouncilA group of people who has the power to enforce the law and holds supreme political powerSelf-GovernmentThe local people being able to control the governing of their own countryLimited Self-GovernmentThe local people being to control some areas of government in their own countryCommon MarketFeaturesGoods that can be bought and sold freely between countriesNo tax placed on goods increased trade greater employment No import or export tariffs across bordersConstitutionA set of laws the government followsReferendumA vote in which people in a particular country are all asked to say whether they agree over a particular policyStage 1: Independence from BritishThe failure of the British to protect Singapore during WW2 destroyed its credibility as an infallible ruler to the local peopleThe local people were outraged as they felt the British had abandoned Singapore, and felt that by enduring the war, they deserved to run the country independentlyThe people also wanted more influence to manage key areas, like external relations with other countries and be direct representatives for their nation, because:Even in international relations, the British represented SingaporeThis desire was epitomised by the slogan “Merdeka”, which symbolised the local people’s desire for freedomHowever, the British had their reservations: The looming communist threat caused the British to doubt Singapore’s ability to defend itself from external parties or even internal communists that were part of the Malaya Communist Party, which even had an armySingapore was still an important asset to the British, as an important military base as a means to control the region and its trade, and as an important trading port for British goodsThe British did not believe that the people were loyal or united to Singapore, as many were immigrants who only saw Singapore as a workplace to earn money, viewing their birthplace as their homeland and not SingaporeThus, the British were reluctant to give Singapore full self-government but decided to slowly include limited self-government over time, as they were open to letting their colonies gradually gain local participation in the governmentRoad to Self-GovernmentBefore 1948The British government in Singapore only nominated members who were:BusinessmenEnglish-speakingPro-BritishTradersThe British governor headed two councils – the Legislative and Executive Councils1948 (Singapore’s First Election)Only those born in Singapore allowed to voteVoting was not compulsory, and 13800 people votedResult: Singapore Progressive Party (SPP) won 3 out of 6 elective seats in Legislative CouncilThe SPP was made up of English-educated members who worked closely with British as the only party in the councilIntroduced CPF to provide security for unfit or retired workersBelieved in gradual local participation in the governmentDid not think that Singapore was ready for self-government due to:Insufficient educated peopleMany problems only solvable by British1953 (The Rendel Commission)Led by George Rendel in 1953 to:Review ConstitutionIncrease local participation in the governmentPushed and recommended Singapore be given limited self-governmentIntroduced in 1955 which made the following changes:Some areas of the government were now controlled by locals, such as:Trade and IndustryHousingHealthEducationThe government would now have:1 Chief Minister3 British Ministers6 Local MinistersLegislative Assembly2286039758200The whole government would still be headed by the governor, who could veto (reject) from the Legislative Assembly*While the areas the British took charge of were still more significant than those controlled by the locals, it was a big step towards self-government. This also showed the British’s unwillingness to give up power1955 (1955 Elections)An exponential increase in number of voters from 13800 to 160000New main competitors:Labour Front (LF)People’s Action Party (PAP)Led by David MarshallLed by Lee Kuan YewBoth led by lawyersBoth criticised the SPP due to the lacking of the BritishBoth Anti-ColonialistBoth sides campaigned fiercely with house-to-house visits, distributing newspapers and pamphlets and organising rallies and speechesOn 2nd April 1955, 5000 people gathered at Empress Place Result: LF won SPP by a small margin, shocking the SPP and the British Government that endorsed themFirst Chief Minister: David MarshallNot given respect as he was seen as only a figurehead and was disliked by the British Government because:His party was not the one that they had supported to win the electionsHis party had only won the 1955 elections by a small marginSuspected David Marshall and his government harboured a pro communist stance David Marshall had failed to deal with the Hock Lee Bus riots effectively and seemed reluctant to arrest and imprison the communist offendersThis was because David cared for the people and did not want to resort to violence by calling the internal police, instead trying to reason with the communists (quite obviously a bad move)Despite this, David Marshall and the LF continued to push for more self-government1956 (First Merdeka Talks)David Marshall went to London to demand full self-governmentHe wanted local ministers to control all matters concerning Singapore, including defence and external affairs (key areas)However, talks failed due to the reasons above, especially due to David’s inability to deal with the Hock Lee Bus riotsDavid Marshall resigned and was succeeded by Lim Yew HockSecond Chief MinisterLim Yew Hock was much more orienteered towards effectiveness This pleased the British as they saw how he swiftly dealt with communist riots and strikes by force and imprisoned them quickly1957 (Second Merdeka Talks)When Lim Yew Hock led Singapore in the Merdeka Talks for the second time, the British were very pleased with his success in dealing with the communist threatAs such, they granted Singapore full self-government, which would first take effect in the 1959 elections1959 (Singapore’s first fully democratic election)The May 1959 elections saw the all-time highest number of voters in 520000, because:The Citizenship Ordinance in 1957 enabled the immigration population to become citizens easilyVoting was made compulsory for citizens aged 21 and aboveIn total, 13 parties and 194 candidates participatedResult: PAP won 43 of 51 seats in the Legislative Assembly, making LKY Prime Minister at 36 and Yusof Bin Ishak “dipteran Nigara” (Head of State)In 3 June 1959, Singapore gained full internal self-governmentPAP won due to:VisionVision for Singapore was clear and seemed to be concerned about the people’s livesBrought up vital issues like housing and educationIncorruptible and HonestThe PAP members presented themselves as honest and incorruptibleThey symbolised this by wearing “pristine” white attire and their rallying cry for a “corrupt-free”, democratic governmentUnited Compared to Other PartiesCompared to other parties, the PAP had significantly less in-fighting due to personal agendasThis gave the impression of solidarity and that its members were working toward a common goalTremendous SupportLarge support from student and worker unionsPrimarily due to offices in every constituency, showing their commitment and ambition to run the country as a wholeAlso gave them a platform to rally on all frontsOffices in Every ConstituencyLinked to “Tremendous Support”Raised Important IssuesLinked to “Vision”Summary of Key Events:1st Election (1948) SPP WinRendel ConstitutionBig step towards greater self-government2nd Election (1955)First time Rendel Constitution was in effectShock Win by LF David Marshall as first Chief Minister1st Merdeka Talks (1956)Failure resulted in David Marshall’s resignationReplaced by Lim Yew Hock2nd Merdeka Talks (1957)Lim Yew Hock’s success in gaining full self-government3rd Election (1959)First fully democratic electionPAP Win LKY as PM, Yusof bin Ishak as Head of StateStage 2: New GovernmentProblems for PAP Government to ResolveWhile Singapore had achieved self-government, they were still a British colony and had not been granted independence like Malaya because:Communist ThreatWithout British protection, Singapore would be prone to communist threatDemonstrations, strikes and riots by Chinese workers and students, with leaders linked to communistsThe British were highly anti-communist and did not want any of their colonies to fall to communistsBelieved that Singapore did not have enough civil or military defence to combat threatEspecially with threats like the Malayan Communist Party, which had armed forcesDefence of British InterestsSingapore was still a vital military base and trading port for British goods due to its ideal locationBritish naval presence in Singapore ensured control in the region and protected their trading interestsWith Singapore’s self-government, the British were concerned that they might not be allowed to use the naval baseThe British were also worried that an anti-British party would gain power in SingaporeEconomyThe British doubted Singapore’s ability to survive economically as: Singapore had no large-scale industries or a strong agriculture industryUnlike Malaya which had an abundance of natural resources to support their industriesSingapore would have no economic supportLoyalty of LocalsThe British did not believe that the local population were loyal to united to SingaporeMany were immigrants who came to Singapore only to find jobs and return to their home-country once they earned enough moneyThe British thought that these immigrants saw Singapore as a workplace but not a home (regarded China, Malaya etc as homeland instead of Singapore)In addition, there were some internal issues:Due to couples holding back on babies during the war, there was now a post-war population explosion, resulting in a lack of:Schools (Young generation more of a liability due to their inability to contribute to the economy immediately – extra cost to invest in their future)Houses (Houses had to be built quickly to accommodate growing population)Jobs (Increased population greater demand for jobs)Pushing for MergerIn an effort to solve some of these problems, the PAP wanted to merge with Malaya, for the following reasons: (MERG + ER)CommonMarketMerger would allow selling of Singapore’s goods and services to Malaya without being taxedSingapore would benefit economically as the common market would allow businesses to save on tax These businesses would then channel these savings into expanding their businesses in SingaporeThe common market would allow Singapore businessmen to have access to a larger marketAll this would lead to increased trade and sales, increasing profits and causing businesses to expandWith this expansion, more workers will be needed, creating jobsEmploymentRaw MaterialsMerger would allow Singapore to gain access to Malaya’s rich natural resources which Singapore lacked to sustain expanding businessesThe high supply of these raw materials in Malaya resulted in lower cost for these goodsThis would lead to lower production cost of goods and higher profit, further promoting business growth and attracting new businessesSuch materials include:Tap rubberPalm oil (used in machinery and chemicals)Tin (used in cans)Finally, due to the lack of tariffs and taxes, Singapore businesses would not only be able to get these materials more cheaply, but also more easilyGovernmentWhile Singapore’s leaders and the locals wanted independence from the British since WW2, wanting to run their own country…….Singapore’s independence would never have been granted by the British, and even the citizens doubted the nation’s ability to stand on its own politically or economically, or its ability to withstand communist influenceHowever, by merging with anti-communist Malaya and gaining defence, economic and political stability, the British would allow Singapore to gain independence*Features of the common market listed in definitionIn addition, Malaya also had their own reasons for merging……EnemyLike the British, Malaya doubted Singapore’s ability to contain the communist threat by itselfMalaya, which was strongly anti-communist, was concerned that if Singapore fell to the communists, they would have an enemy neighbour at their doorstepBy having control over Singapore, Malaya would also have full control over the communist threatRevenueWith Singapore under their control, Singapore could depend on Singapore as a source of revenue through added trade and taxation, outside the common marketThis revenue could be used to build better infrastructure on less developed parts of the Malayan Federation like Sabah and Sarawak, which had:No electricityImproper roadsNo lampposts (pitch black at night)No hospitals1961 (Tunku’s Proposal) On 27 May 1961, Tunku Abdul Rahman, the Malayan PM, made a proposal to allow Singapore to join Malaya because: (CCC)Chinese ProblemPrior to the proposal, Tunku had been reluctant to merge with Singapore due to the Chinese Majority thereWith the delicate balance of races in Malaya, Singapore would have this balanced tipped, and Tunku did not want to disrupt the Malay demographic A Malay minority would also reduce the political power and position of the United Malays National Organization (UMNO) in MalayaTunku had just succeeded in including Sabah, Sarawak and Brunei (did not join eventually), which would help to maintain the Malay’s majority populationBy the time these other arrangements were made, there would be about 4 million Malays compared to 3.7 million Chinese in the possible FederationCommunist ProblemTunku saw Singapore at its most vulnerable to communism, with popular figure Ong Eng Guan resigning from the PAP, causing public unrestThe communists had seen an opportunity to fault the PAP and LKY in the process and the citizens of Singapore would be more easily swayed than beforeThe PAP was especially weak due to radicals in the party leaving and forming the Barisan Socialis party (BS) to prevent merger and allow for Communism to take overThis was compounded by shock losses to Ong Eng Guan and David Marshall’s Workers Party (WP) in two separate by-election just 3 months apartTunku decided it was better to keep Singapore under Malaysian control than let it fall to communism, as: If Singapore became a communist state, Malaya would face the threat of the communists in Singapore using it as a base to overthrow the Malayan government Chinese LoyaltyMany Chinese in Singapore were still loyal to the People’s Republic of China, a communist countryIn Tunku’s words, the “predominantly Chinese population in Singapore almost made the island a little China” and thus some sections would be inclined toward their “political thinking”Taking control of Singapore would grant Malaya the ability to control possible communist activities by:Imposing laws and civil and military defences against communist activities Stage 3: MergerNegotiating MergerBrief Outline (Just for understanding)After Tunku’s Proposal, many parties came into play:British (in favour)Viewed the Federation as strong and stableSingapore (Undecided, then in favour)Internal opposing campaigns between PAP and BS on whether to merge referendumEventually decided to mergeSarawak and Sabah (In favour)In favour of joining MalayaBrunei (In favour, then in opposition)Also in favour of joining Malaya, but pulled out laterUN (Neutral, then in favour)Evaluating Sarawak and Sabah’s willingness to mergeEndorsed the resultsPhilippines and Indonesia (In opposition)Objected the merging of Sabah and Sarawak to Malaysia due to territorial claimsBritishConsidered the proposal attractive as by joining the Federation of Malaysia, Singapore, Brunei, Sabah and Sarawak would form a strong and stable FederationThis would allow these colonies to stand independently economically, politically and against the communism threat with their collective force and resourcesBy this point, the British had lost their ambition to colonise due to losses and depleted resources suffered during WW2As such, the British would be able to end colonial rule in these territories without fearing these former colonies being controlled by another powerSingaporeAfter receiving Tunku’s proposal, there was a huge split within the PAP, resulting in the communist radicals forming the Barisan Socialis Party on 13 August 1961:PAPBSMade up of PAP moderatesMade up of expelled PAP pro-communist radicalsPAP only had a one-seat majority in the Legislative Assembly by 16 August 1961Supported Merger Welcomed Tunku’s proposalWould provide Singapore’s industries with raw materials and market for manufactured goodsProtection from communist forces as Malaya would not tolerate communist activitiesIndependence and economic growth Opposed Merger Objected Tunku’s ProposalSupported communism and knew that joining Malaya would greatly weaken communist influence in SingaporeDiminished chance for Communist SingaporeConducted rallies, radio talks and held discussions about mergerPrinted booklets on benefits of mergerExhibition on merger in MalaysiaCreated banners to combat BS propagandaLKY in particular was fluent in many languagesOrganised Labour strikes and student demonstrationsAppealed to labour and student unions to protestConducted rallies to spread communist propagandaTerms Agreed in 1961 (Constitutional Matters)Singapore would have its own self-governmentSingapore could hold elections to elect its own state governmentSingapore would have control over education and labourSingapore would leave control over armed forces, police and dealings with foreign governments to the Central Government in Kuala Lumpur1962 (Referendum)After garnering support from the citizens, the PAP decided to hold a referendum on 1 September 1962They were extremely forceful about merger, giving three options all resulting in merger and only allowing citizens to choose what type of merger they wanted (only way to say no was to blank)The options were (in descending order regarding control over Singapore)Option AAutonomy in Labour and EducationOwn State flag (meritocracy, the opposite of the bumiputera policy)Option BMerge as one of the 11 other states of the Federation of MalayaSingapore would have a state government but not full controlFirst language would be Bahasa MelayuOption CMerge with the same conditions given to Sabah and SarawakFirst language would be Bahasa MelayuLeast controlResult: 71% voted from option A, 0.9% for option B, 25% for option C and 1.4% blankWith the citizens clearly supporting merger, it was now down to the PAP government to negotiate the best possible terms for merger with MalaysiaNegotiations for MergerNegotiations for Merger were long and arduous, with both parties having conflicting views on economic and political terms. These were the final points of agreement (5 Cs)PointPerspectivesExplanationCommon MarketSGWanted the common market to be included in the merger agreementWould promote industry growth, trading and employment, making it very important to Singapore’s economySingapore saw the establishment of the common market as extremely beneficial to the economy This would help to solve the job crisis, boost the economy and attract businessesConsidering Malaya’s reservations, a 40% share of revenue would help build up the competitiveness of Malaya’s businesses so that they would not be greatly affected by competition from Singapore’s businesses but instead promote mutual developmentMalayaWanted the common market to be set up only after the mergerReluctant as this would cause Malayan industries to face competition and Malaya wanted to protect their companiesAgreementMalaya would set up common market gradually Singapore to give 40% of earnings to the central government in Kuala LumpurPioneer certificates issued by KL would grant new industries privileges like not being taxed for 5-10 years Cash (Borneo Loan)SGWas willing to help develop Sabah and SarawakCould not grant $50 million as an outright gift as it required funds for its own developmentProposed a $150 million loanAs relatively undeveloped areas, Malaya wanted to develop Sabah and SarawakThis loan would mean that they would not need to spend additional funds for this developmentThe interest on the last $50 million, though, allowed Singapore’s firms to benefit partially from these fundsBy providing 50% of labour, Singapore would secure a substantial number of jobs for its citizensMalayaWanted to develop Sabah and Sarawak due to the lower developments thereWanted Singapore to provide $50 million as a gift AgreementSingapore to lend $150 million to be repaid over 15 years, with no interest charged for the first $100 millionSingapore to provide 50% of labour used for this developmentCash (Revenue for Singapore)SGWanted to collect its own revenue and then send an agreed sum of money each year to Kuala Lumpur as taxes Singapore wanted this so that it could achieve economic growth and just not receive funds to surviveBy keeping a fixed sum, Singapore would be able to grow economically rather than simply receiving funds just to surviveBy collecting such a large amount from Singapore, Malaya would be able to maintain the army, among other areas, which would in turn protect Singapore from communist threatsMalayaTo collect revenue in Singapore and then give it what it needed to run the stateThis would allow for a more flexible agreement than leaving a fixed sumAgreementSingapore would collect its own revenue and pay KL an agreed sum of money of 40% as taxesConstitution (Malay Rights and Seats in Parliament)SGWanted equal rights for all citizens in Singapore (meritocracy)Entitled to 24 seats in the Malaysian Federal Parliament based on populationWanted to control labour and education policies due to contrasting views to Malaya (Bumiputera)Also needed to control these areas due to strong communist influence there, as shown by the student and labour unionsThe Singapore government would be better equipped to control these areas simply due to the close geographical distanceAdopting bumiputera policy would also upset the Chinese majority, who might protest against mergerSingapore strongly believed in meritocracy and wanted equality for all racesHowever, this was not possible due to the influence Malaya would have over this ideologyAs such, a compromise was made due to Singapore’s Chinese majority, with the Malayans being given limited privilegesFor example, free education up to university level would improve the Malay economic and social positionSingapore also wanted to control its labour and education, not only to defend against communism influence but also to prevent special privileges for the Malays and following the Malayan policiesThis would result in Chinese unhappiness, especially if Bahasa Melayu was adopted as the common languageThus, another compromise was made, with Singapore retaining control over labour and education polices while sacrificing 9 seats in parliamentMalayaWanted special privileges to be enjoyed by Malays in Singapore Special privileges include special business licenses, reserved lands and jobsWanted Singapore to adopt Malaya’s labour and education policiesAgreementLimited privileges would be given to MalaysMalays would be recognised as indigenous people of SingaporeFree education for Malays up to universityIn exchange for control over labour and education policies, Singapore would only be given 15 seats in the Malaysian Federal ParliamentCitizenshipSGWanted locals to retain citizenship while become nationals of MalayaCould not vote in Malaysia’s Federal electionsLocals were not to take part in Malaysia’s Federal elections so as not to allow the large number of Chinese voters in Singapore to interfere with the Malays’ political control in MalaysiaHowever, the agreement on Political Parties was unclear as there was no rule saying that one could not speak on behalf of the local candidates (E.g. Malaysian Parties talking about Singapore Parties)Also, for example, Singapore citizens could be used to by Malaya to run for Singapore elections with Malayan ideals (E.g. SAP)This turned out to be a main source of dispute later onMalayaCould not vote in Malaysia’s Federal electionsAgreementWhile citizens could not vote in Malaysia’s Federal elections, political parties could continue to take part in election within both sides, provided candidates were citizens of the respective territories (E.g. to run for Singapore government, you must be Singapore Citizen)Philippines and Indonesia However, strong objection came from the Philippines and Indonesia over Sabah and Sarawak joining Malaya because:The PhilippinesIndonesiaClaimed that Sabah rightfully belonged to Philippines due to strong Filipino tradition thereBroke off relations with Malaysia in 1963Cut ties with ambassadorsClaimed Sabah and Sarawak rightfully belonged to Indonesia due to sharing of borders with KalimantanBroke off trade and diplomatic trade relations with Malaysia in 1963Cut ties with ambassadorsSaw the merger as a British attempt to maintain control over SEA as British bases would remain in Singapore even after Malaysia was formedSpearheaded by President SukarnoLosing power as he could not solve housing, poverty and economic development, and wanted to blame it on the mergerLaunched policy of konfrontasi on 20 January 1963Conducted armed raids in Sabah and Sarawak to disrupt utilities and water suppliesIndonesian agents set off bombs around Singapore When Tunku met with the Presidents of both the Philippines and Indonesia, both countries agreed to let the UN conduct the Cobbold Commission (next section)However, Indonesia rejected the results and konfrontasi turned violent and continued until 1966, when Sukarno was removed from power, allowing ties to be restoredSabah, Sarawak and the UNTo find if the people of Sabah and Sarawak wanted to join Malaysia, the Malayan and British governments conducted the Cobbold Commission It was found that 2/3 or 70% of the people in Sarawak and Sabah wanted to join Malaya, which the UN endorsedMalaysia was to be formed on 31 August 1963BruneiBrunei did not join the merger in the end as it was unable to agree on economic terms with MalaysiaFinally, Merger!Despite the delay to 16 September 1963, 14 States including Sarawak, Sabah and Singapore joined to become MalaysiaSingapore was no longer a colony of BritainThis day would be marked as Malaysia DayStage 4: Separation and IndependenceDespite having achieved merger, the relations between Malaya and Singapore were not the bestDue to Singapore’s many demands during the Malaysia Agreement, Malaya had seen Singapore as a “rebel” state that would not easily comply with their wishes, in particular the bumiputera policyThe Central Government, or The Alliance, wanted to preserve the old order, old traditions and old class privilegesThe Singapore State Government, or the PAP, however, wanted to social reforms to create a more just and equal societyThis resulted in tension between the two territories, which only got worse……Rising Tensions: Reasons for Separation zMalaysian Solidarity Convention (Political)CauseThe PAP aimed to build a society based on equality, in contrast to the UMNO’s view that the Malays should be favoured (UMNO was the main political party in Malaya and member of the Alliance)To fight for equal treatment of all races, the PAP united opposition parties in Malaya, Sarawak and Sabah to form the Malayan Solidarity Convention in May 1965Had the slogan “democratic Malaysian Malaysia”Aimed to end communal politics and win political affiliationEffectThe Alliance leaders were incensed by PAP’s conflicting stand and saw the convention as an indirect attack on their party and their government methodsExtremely unhappy with LKYExtremists even demanded LKY’s arrest and accused him of being communistWanted Central Government to take over radio and television services in SingaporeElections – 1963 SGE and 1964 MFE(Political)Cause1963 Singapore General ElectionsThe Alliance leaders wanted Malays in Singapore to gain more seats in the Singapore Legislative Assembly Set up the Singapore Alliance Party (SAP), a well-financed party that was supported by the Alliance, to contest the 1963 Singapore General ElectionsPrimarily to push for special rights for Malays in Singapore and give KL a say in governing of Singapore with SAP governmentBefore the elections in September, Tunku called upon Singapore Malays to vote for SAPResult: PAP won all 37 seats contested, with SAP winning none and even losing seats formerly held by the UMNO This shows that the PAP was gaining support in largely Malay areas and the Malays in Singapore were no longer interested in communal politicsThe UMNO was afraid that this would spread to MalaysiaThe Alliance leaders were bitter about the defeat, with Tunku even visiting Singapore again to express his disappointment and accusing the Malays of being traitors1964 Malaysian Federal ElectionsThe PAP, believing that it could have a role to help build a prosperous and peaceful Malaysia, announced that it would be taking part in the MFE in March 1964Assured Malaysian government that PAP did not aim to oppose Tunku or take control, but only desired a larger role in building Malaysia, deciding to contest 17 seatsOn 15 March 1964, LKY offered to be UMNO’s partner in winning the support of the Chinese, infuriating the Malaysian Chinese Association (MCA)To pacify MCA, the UMNO pledged to continue partnership with the MCA and Malaysian Indian Congress (MIC)Tunku also accused the PAP of not keeping its promise to keep out of the federal electionsHowever, this did not stop the PAP from garnering large support from Malays and Chinese during rallies, promoting a just and equal societyResult: PAP won the singular important seat of Bangsar (where many people of influence lived)EffectThe Alliance’s and PAP’s intrusion in each other’s election caused further strained tension between both sides, as they had renegaded on a promise not to contest each other’s electionsPAP’s ability to not only deny the UMNO of support from Malays from Singapore, but also gain support in Malaysia itself represented a threat to Malay supremacy and political dominanceThis caused the PAP to not only become a political enemy, but also a threat to the position of the MalaysPioneer Certificates (Economic)CausePioneer Certificates that were part of the Malaysia Agreement were only given out sparingly to Singapore firms as:Kuala Lumpur wanted to protect the industries and economic interests in Malaysia, with Singapore firms seen as rivalsOnly 2 out of 69 applications approved, compared to 92% of Malay companies approvedEffectHampered Singapore’s industrialization programmeGave Singapore firms the image of rivalsCaused Singapore to lose attractiveness to businesses due to the low chance of receiving Pioneer Certificates, causing businesses to instead go to Malaysia, affecting Singapore’s economic progressAnti-PAP Campaigns (Political)CauseAfter the 1964 MFE, the UMNO leaders criticized the PAP for not looking after the interests of MalaysLaunched an anti-PAP campaign through the Malay Press, especially through the Utusan Melayu, which:Criticized PAP’s decision to redevelop the Crawford, Kampong Glam and Rochor areasClaimed that Malays were badly affected by the resettlement (when only 200 of 2500 families were Malays)Made fiery speeches with UMNO Secretary-General Syed Ja’afar Albar, criticizing PAP’s lack of concern for the MalaysWhile Lee Kuan Yew met Malay representatives on 19 July 1964, promising to help the Malays in education, employment and housing, the Utusan Melayu continued to spread misleading articles on how the PAP was ill-treating the MalaysEffectPAP’s responses criticising the KL government for giving special rights to Malays further enforced the divide in ideologies between the two sidesResulted in further tension, coupled with fiery arguments between the governmentsWithin Singapore, many Malays were becoming increasingly anti-PAP, creating racial tension and unrestThis was one factor that resulted in the Racial RiotsRacial Riots (Social)CauseTo further spout anti-PAP sentiments, anti-PAP radicals planned a riot on Prophet Mohammed’s birthday, an important occasion for MalaysThe riot, on 21 July 1964, served to release the pent-up tension and dissent among races, especially the MalaysThe Chinese were upset that the Malays were still receiving several privileges in education and other areasThe Malays harboured tension toward the PAP, with the anti-PAP campaigns and having been denied special privileges like preferential quotas in employment opportunitiesOver 23 dead and 454 injured, with a curfew established until 2nd August 1964A second riot occurred in September, showing the persistent tension among racesEffectFurther turmoil engulfed Singapore, exposing the PAP’s inability to uphold its own ideology of racial equalityThis cast doubt into the local people and supporters of the PAP, as well as the whole idea of meritocracyThe fact that Singapore did not have the means to crush the riot but had to wait for the Federal government’s security forces to intervene placed further questions over the competence of the PAPTaxes (Economic)CauseThe Federal government had imposed several taxes on certain goods produced by Singapore industries that had not been previously discussed before mergerImposition of duty on imports of light bulbsThis occurred just before an electric light bulb factory was about to start production in Singapore, making cost production higher and profits lower, affecting this particular industryThis came as the Central Government’s bid to protect Malaysian industries, in this case the light bulb industryQuotas on TextilesLower quota granted to Singapore for textile goods exported to Britain compared to the rest of MalaysiaThis disrupted and ended the prospects of 50 more factories that could have been set up in Singapore, denying 10000 potential jobsGoh Keng Swee threatened to boycott all British products in protest, but this upset the Central GovernmentThe Federal government also wanted Singapore to impose other taxes ranging from corporate to personal income taxes to boost revenue, of which 40% would be contributed to the Federal governmentEffectThe Central Government’s ire showed that Singapore could not decide directions for its economy within the merger, where the Federal government held all the powerThis would stunt Singapore’s future economic prospects, as such policies would not only affect existing industries, but also deter other companies from setting up in SingaporeIncrease in Revenue Contribution (Economic)CauseIn December 1964, the Federal Minister of Finance called for Singapore’s contributions to the Central Government to rise from 40% to 60%, diverting from what was agreed before mergerHe also threatened to divert new industries from Singapore to Malaysia and hinted that a delay in the Common Market would follow if Singapore did not complyHowever, the PAP also refused to agree as they felt Singapore was bearing its fair shareEffectThis was on the back of tension due to the Borneo loan, with Malaysia again pressurising Singapore to contribute funds for the running of the federationCaused more tension as UMNO was frustrated with Singapore’s stubbornness while the PAP was upset that the UMNO was demanding an unfair share of fundsOrder to Close Bank of China (Economic)Cause With doubts over the Bank of China’s (BOC) communist dealings, such as channelling funds to communist activities in the region, Tunku ordered the closure of the bankHowever, the PAP refused, as it saw the BOC as an important avenue to trade with China, which would severely affect the nation, especially with the large number of Chinese people thereEffect Singapore’s stubbornness once again angered Tunku and caused further tensionNo Common Market (Economic)CauseThe Common Market held great prospects for Singapore and would have boosted the economyHowever, contrary to what had been agreed during the Malaysia Agreement, the Common Market was never set up This was because the Central Government was convinced of the benefits of such a market and did not want to allow Singapore to prosper, seeing it as an economic rivalInstead, the Federal government tried to lure foreign investors to Malaysia with attractive financial packagesEffectThe PAP was left incensed by Malaysia breaking their promise in failing to set up one of the brightest prospects that came from mergerThis event also showed Malaysia’s apparent unwillingness to cooperate with Singapore for economic progress, instead opting to compete with SingaporeIn summary, this separation occurred due to these main factors:Contrasting ideologies between the Central Government and PAPThe Central Government placing Singapore in tight spots by limiting economic growth only to be frustrated by the PAP’s stubbornness1965 (Separation)After all the conflicts, war of words and quarrels, Tunku decided that the only solution was to separate Singapore from MalaysiaLee Kuan Yew reluctantly agreed on this and signed the Separation Agreement on 7 August 1965On 9 August 1965, Singapore became an independent countryA New Chapter21 September 1965: Singapore becomes 117th member of UN October 1965: Singapore becomes 22nd member of the Commonwealth22 December 1965: The Constitution Amendment Bill and Republic of Singapore Independence Bill were passed Singapore became a fully independent nation8 August 1967: Singapore becomes founding member of ASEAN0215900Political LeadershipStyles of LeadershipExamplesStyles of LeadershipLeadership styles refer the method or direction in the implementation or ideas or programs to influence people to meet a certain objectiveGreat leaders, while with a dominant style, should be able to call upon different styles of leadership to adapt to different situationsThere are three styles, Autocratic, Democratic and Delegative, in decreasing order of the leader’s decision-making powerAutocratic/AuthoritarianDemocratic/ParticipativeDelegative/Laissez-faireFeaturesLeader is only decision-maker (clear line between leader and subordinate)No input from subordinate membersHighly-controlled environmentAssessment of progress is based on individual contributionsLeader shares decision-making process with subordinates but has final say on decision (less defined line drawn between leader and subordinate)Creative input from subordinate membersLess-controlled environmentAssessment of progress is based on group contributionLeader leaves decision-making process to subordinates but still assumes responsibility for decisions made More creative input from subordinate members Much less-controlled environmentAssessment based of progress is based on group contributionLess defined line drawn between subordinates and leader in terms of organizational ability, not hierarchyAdvantagesFocused Task-orientedHighly-productiveMotivated, creative and engaged membersContributions are appreciatedMore ownership and loyaltyHigher-quality productMotivated, creative and engaged membersHighly engaging environmentContributions are valuedMost ownershipHigher-quality productDisadvantagesLittle cohesion, morale and loyalty (due to members being disgruntled just following orders)Low-quality productMay lead to abuse of power due to leader’s dominanceNo creative input from subordinatesMore time is spent on the decision-making process (unsuitable for short-term projects)Less productiveMay lead to counterproductive competitive pressure among subordinatesLess productive, especially when all members are perfectionists and take more time to decide on mattersMay lead to counterproductive competitive pressure among subordinatesLittle cooperation among subordinates as all are for their own ideasPoorly defined roles lack of motivationIdeal SituationsMotivated workersExpert leaderShort-term projectsCritical situations that require immediate action (E.g. firemen, soldiers, football captain)When no single person has access to all knowledge or informationWhen mutual sharing is not seen as a sign of weakness When the time factor is not crucialWhen the process is as important as the productE.g. Democratic GovernmentWhen subordinates are highly knowledgeable and experts in fieldPrioritise organization’s goals over selfMature workforce mutually helping one another to achieve objectivesE.g. Artists, Doctors, MusiciansExamplesLKYAutocratic1962 ReferendumExtremely authoritarian over merger of Singapore and MalaysiaOnly gave citizens the choice of what terms of merger they wanted, with no choice against mergerThe PAP government justified the three options by declaring that all of Singapore's political parties supported merger despite Barisan Socialis Party denying itDid everything possible to promote merger, from slogans to street signs and songsWarned the public against casting blank votes as they would tip the referendum in favour of Option B, which would cause 400,000 citizens to lose citizenshipDemocraticChangi AirportMany experts and conservative reactions within the government against the construction of Changi AirportThey preferred Paya Lebar instead over cost and scale and feasibility to complete it by 1982, expanding PLA by building another runwayLKY wanted to shift to the 5 times larger land for Changi Airport despite PLA already one of the most highly regarded airports at the timeLKY had a long-term visionary plan in mind to create a world-class facility with $1.5 billion dollars over 6 years of intense commitment and work, the most ambitious project at the timeLKY made the final decision with the construction of Changi Airport after considering both sides and expert opinionsDelegativeLKY entrusted the construction and development of the HDB to Lim Kim SanIn the first two year of Lim’s ‘crash’ programme, over 2000 units were built, more than what was built in the previous decadeDuring the Bukit Ho Swee Fire in 1961, 16000 people became homeless.Under Lim's guidance, the relocation and reconstruction of the lost housing was completed in just over four years, and 1200 housing flats were made available to those who lost their homes in the fire.By entrusting this project to a person known for his organizing and planning abilities, LKY was able to solve the large-scale housing problem at the time by simply stepping back and allowing someone more suitable to take the leadMain Contributions:Political Development: CPIB, Hard Stance against Communist-Related StrikesEconomic Development: Securing Air-Routes for SIAEnvironment: Cleaning of Singapore River, Greening of SingaporeGKSAutocraticIf a person wanted to obtain Permanent Residency in Singapore and deposited a million dollars or more with the government, they would be granted immediately this status. He simply ordered his secretary and Civil Service veteran Ngiam Tong Dow to give him a list of all the applicants without having to write any analysis. Goh Keng Swee’s decision was to approve all the names that Ngiam sent. Even though he protested, Goh Keng Swee still went with his decision, even providing the explanation that once Singapore joined Malaysia, the Malaysian government would be immediately notified of the scheme, and they would definitely disapprove everyoneBy being firm in his approach, Goh was able to take the most direct method to dealing with the Malay government’s attempts to complicate the matterDemocraticThe Deputy Prime Minister Goh Keng Swee was tasked to lead a study team to investigate the problems of the education system at that time and then come up with solutions for a reform. Goh Keng Swee and his team had found out various problems in the system such as the high dropout rates, he introduced the streaming system in 1979 to allow students to learn at their own pace and within their own capabilitiesThrough this, we can see that Goh Keng Swee used a democratic style of leadership as he let his team have a say in the report, but he still had the final decision in writing of the reportAs Goh did not have much experience on the first-hand running of the education system, he opted to consult his team on what to do, making for a more balanced and informed decisionDelegativeGoh brought together a team of newly graduated engineers, seized upon their return from scholarships and First-Class Honours from the world’s best universities. A young university lecturer called Dr Tay Eng Soon led their research. Called the Electronic Warfare (EW) Study Group, they were to plot an approach towards secret-edge technology. This was Project Magpie. It was to lay the foundations for defence science in Singapore: developing the skills of its engineers, acquiring the tools and setting up laboratories. ETC was the vital first step in the creation of a new generation of defence R&D professionals and an ideal environment for R&D. Since Goh had very little knowledge in this area, he entrusted the project to Dr Tay and his engineers.Main Contributions:Defence: NS, EWS (above)Economic Development: Jurong Industrial Estate, EDBTourism: Hotel Expansion, Jurong Bird ParkAesthetics: Founding Patron of Singapore Symphonic OrchestraEducation: Streaming and GEP (above)SkillsVisual Inference SkillsFirstly, Source X suggests that…………………………………………………………………as depicted by……………………………………………………………………………………………………………Secondly, Source X suggests that…………………………………………………………………as depicted by……………………………………………………………………………………………………………Thirdly, Source X suggests that…………………………………………………………………as depicted by……………………………………………………………………………………………………………Written Inference SkillsFirstly, Source X suggests that………………(copy paste, paraphrase slightly if needed)…………………………………………………………………………………………………………………..Secondly, Source X suggests that………………(copy paste, paraphrase slightly if needed)…………………………………………………………………………………………………………………..Thirdly, Source X suggests that………………(copy paste, paraphrase slightly if needed)…………………………………………………………………………………………………………………..Fourthly, Source X suggests that………………(copy paste, paraphrase slightly if needed)…………………………………………………………………………………………………………………..ComparisonFirstly, Source X and Source Y are different in…………(BOC)…….. Source X states that “………………………………” while Source Y says that “………………………”Secondly, Source X and Source Y are similar in that both sources agree on…………(BOC)…….. Source X states that “………………………………” and Source Y says that “………………………”Hypothesis Based QuestionsI agree to a larger/smaller extent to the statement.Firstly (PEEL) [Point in Favour]Secondly (PEEL) [Point in Favour]However, to a smaller extent (PEEL) [Point in Opposition]In conclusion (weighed conclusion) [If you do not know how to do a weighed conclusion, find me ?] ................
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