Singapore Global Economy Essay

1037 Words5 Pages
Singapore’s Global Economy Under the authoritarian rule prior from the breaking up of Malaysia and Singapore where Lee Kuan Yew, former President of Singapore shed his tears publicly for the first time marked the history. He struggled to uphold Singapore’s economy as they were separated from Malaysia the rice bowl of natural resources. “A wonder created out of a tear drop” is an apt way to describe what Singapore is today compared to what it was just over forty years ago in 1965 when Singapore was thrown out of the Malaysian Federation (Abeysinghe, 2007). Currently, Singapore ranks as the top Asian country with the highest standard of living. About 90% of Singaporeans live in proper houses with modern facilities, while the city itself is virtually slum-free (Yuen, 1998). It is also a base of more than 3000 multinational companies from the developed world (Yuen, 1998). After being separated from Malaysia, Singapore faces its biggest challenge of to leverage their economy. Singapore started to develop as a trading port and open up the market to foreign trade, investment and labor. Rastin (2003) asserted that “forced to by all means to find work for their people, the leaders of Singapore…show more content…
During the 1960s the government focused on labour intensive industrialization, resulting in full employment in relatively low value-added factories (Sudha Venu Menon, 2007). Emphasis after 1965 was on exporting to the world market. Labour shortages became evident in the 1970s (Sudha Venu Menon, 2007). In order to control the need for foreign labour and increase the value of industrial production, the government began shifting manufacturing toward high technology, capital intensive industries, and high-value services for worldwide export (Sudha Venu Menon,
Open Document