Privatization In Singapore Case Study

Part A: Question 2

1.0. Introduction

Based on the agreement between Malaysia and Singapore on July 9, 1963, Singapore unionized with the Federation of Malaysia which is also consisting of Sabah and Sarawak. Malaysia’s first Prime Minister, Tunku Abdul Rahman and Singapore’s former chief, Prime Minister Lee Kuan Yew were agreed on the Singapore’s autonomy, political representation in Malaysia , the citizenship of Singaporeans, and the income contribution of Singapore to Malaysia in London on July 9, 1963 (Turnbull, 2009). Throughout the union-ship, Singapore encountered various constraints for developing its nation and economy as Singapore does not acquired the pioneer position and common market from the federal government for its industries. Due to the difficult political environment in the federal government and Malaya leaders’ frustration toward Singapore leaders’ disparity on maximizing the revenue contribution in order to overcome the Indonesian Confrontation and financing Sabah and Sarawak for its development, the Malaysian Prime Minister Tunku Abdul Rahman and Singapore Prime Minister Lee Kuan Yew were agreed for the separation of Singapore from the Federation of Malaysia (Turnbull, 2009). The birth of Singapore and the separation of Singapore from the Federation of Malaysia were occurred

Singapore’s transformational approach in its industrial relation practices in both public and private sectors has driven the economy towards the privatization in order to support its nation building. During 1980, the private enterprises in Singapore were experiencing more pressures, biased antagonism, discrimination and favouritism due to the major interventions by the Singapore government officials. Therefore, in order to minimize the government participations in the Singapore’s business activities, the privatization was spearheaded across the country, even with the government-linked agencies (Chwee-Huat,