Singapore Economy Case Study

1297 Words6 Pages
Clement Zhe Xuan Yew

Singapore Economy 1960-1970 (10 years period)

Singapore is a country that without any natural resources, but the years between 1960-1984 annual GDP Growth 9%, and let it became one of the Asian economic "tigers". The factor made Singapore economy growth is because the government has played a very important role in the development of Singapore from a small island to a "tiger" in the Asian economy nowadays. During that time Singapore was Colonial Rule by England, also Singapore is a single economic structure, only entrepot trade, and doesn’t have any basic industries. After World War 2, Singapore's entrepot trade has fallen sharply. The Singapore famous economist stated that: We can't longer depend on entrepot trade, the first problem Singapore need to solve is unemployment, the second problem is to get rid of the over-reliance on entrepot trade settlement economic structure. Therefore, Singapore must take the path of industrialization. In 1960, Prime Minister Lee Kuan Yew and the finance minister formulated the economic direction: Maximize the performance of the existing entrepot trade and
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In addition, in 1961 the government issued the other decree [Economic extension reward law] which means the investment expansion has been approved by the government, the bigger the investment, the more tax-free. These two policies encouraged foreign country came to invest. In early 1960s, outside investor starting pour into Singapore, the number and scale of investment facilities are growing rapidly. In the year of 1965, it has been built more than hundred enterprises, employment more than fifty thousand employees, initially shaped industrialization foundation in
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