year 2 chap 10 Flashcards
(97 cards)
what were the 2 reasons that SG was economically vulnerable?
- limited access to the Malaysian hinterland
- threat of unemployment
why was trade between Malaysia and SG limited after SG gained independence?
- they didn’t have a common market
- they didn’t have direct access to the Malaysian hinterland
what did Malaysia do to SG to limit competition to its own industries?
- they increased tariffs on SG’s exports
- this lowered the demand of SG-made goods in Malaysia as Malaysian made goods became more affordable in comparison
besides the increase in tariffs, what’s another impact of limited trade with Malaysia after SG’s independence?
- Malaysia reduced volume of exports such as tin and
rubber to Singapore. - Malaysia sought to process and export these products directly from its own ports instead.
in 1965, how many unemployed people were there out of the total labour force of over 700,000?
more than 70,000 people were unemployed
why was SG’s importance source of job creation diminishing?
- the entrepot trade had been declining since WW2
- this was in the middle of growing competition from other ports in the region
how did the closure of British military bases negatively affect the people?
- the bases were a major source of employment for Singaporeans
- over 40,000 people dependent on supplying goods and services to British servicemen stationed there were now out of jobs
what were the 2 ways that SG addressed its economic challenges?
- economic diversification
- development of infrastructure
when did finance minister (Dr Goh Keng Swee) announce the establishment of the Economic Development Board?
1961
what was the task of the Economic Development Board?
- to promote industrial development in Singapore
- by attracting multinational corporations (MNCs) to set up factories in Singapore
what does a multinational corporation (MNC) mean?
it is a type of company that operates in more than one country
what type of economic policy did SG adopt after independence?
it adopted an export-oriented economic policy where majority of the goods produced would be exported worldwide
what are some examples of MNCs that set up operations in SG?
- Shell oil refinery
- Seiko (manufacturing of watch components)
- Hewlett-Packard (manufacturing of electronic equipment)
what did the MNCs seek in SG in order to set up their corporations here?
- to lower costs and maximise profits
- to operate in a safe and secure environment
- to have a reliable supply of labour
- to have a suitable location for their factories with facilities and space for future expansion
the MNCs sought to lower costs and maximise profits so what did SG provide?
lower tax rates and hence lower costs for MNCs thus making it more financially attractive for them to set up operations in new industries in SG
the MNCs sought to operate in a safe and secure environment so what did SG provide?
by having low crime rates, strengthened defence capabilities and diplomatic relations with countries around the region and world
the MNCs sought to have a reliable supply of labour so what did SG provide?
SG had a large, young and growing labour force supported by trade unions that partnered with the government and company bosses
the MNCs sought to have a suitable location for their factories with facilities and space for future expansion so what did SG provide?
SG had a sizeable amount of land set aside for industrial estates with adequate facilities for future expansion
how did SG benefit from MNCs setting up operations here?
- employment for thousands of people
- valuable technical training and work experience for the locals of Singapore
- greater access to modern technology to help keep SG competitive globally
- increased exports of locally manufactured goods to more overseas markets
when and where did the Economic Development Board set up SG’s first industrial estate?
- in 1961
- almost 70 square km of land in Jurong
when and who took over the task of building and managing industrial estates to allow the EDB to focus on attracting foreign investment?
- in 1968
- the Jurong Town Corporation (JTC)
what were the 4 key industries that SG developed?
- electronics
- petroleum refining
- ship building and repair
- garments and textiles
what were the results of the MNCs setting up corporations in SG?
- almost 150,000 jobs were created between 1967 - 1973
- up until 1973, the gross domestic product (GDP) growth rates exceeded 10 per cent every year
why did SG develop its infrastructure?
- to support diversification of economy
- to attract MNCs and other foreign investors
- to facilitate growth of manufacturing industries