Singapore economic development journey was not paved. Today Singapore vibrant economy is considered short of a miracle. Despite the many obstacles facing them, Singapore managed to attain prosperity in a short span of time.
The island city has some four million residents. Also considered as the smallest nation in the entire Southeast Asia, most Singaporeans live in high-rise buildings and commute using public transport.
In 1819, Europeans settled in Singapore. The British East India Company, managed by Sir Stamford Raffles, created a post for spice trading. Singapore became a commercial and military center of the British Empire in Southeast Asia.
After World War II, Singapore experienced marked changes in technology and in politics. The small island-state decided to implement industrialization in the 1950s. The Singaporeans decided that it is time to separate from their role as entrepot.
The government came up with the policy to join the industrial revolution which had affected countries at that time. The economic development plans mostly revolve around providing employment opportunities to the people.
The island nation skilled workforce was a huge contribution to Singapore vibrant economy. In the 1960s, unemployment was virtually eradicated when Singapore posted the lowest unemployment rates in Asia at that time.
Singapore attained independence from Britain in 1963. Singapore merged with Malaya, Sabah, and Sarawak to be part of Malaysia. But two years later, Singapore became an independent republic.
In the 1970s labor skills and technology became the main focus of the government initiatives. Modern industries became the primary focus of the government thrust such as petrochemicals, electronics and precision machinery. Foreign ventures also began pouring in at that time, making the industrial transition faster.
The government introduced some changes in 1979. Its policy geared towards low-wage earners was changed to accommodate capital-intensive industries. The 1980s saw the growth of foreign invested industries such as computers, electronics and automotive, pharmaceuticals, optical and other growing industries.
When recession hit in 1985 to 1986, the government turned its attention to making Singapore a manufacturing and communications hub for foreign corporations.
The focus of Economic Development Board (EDB) during the 1960s was industrialization. This was based on the plans made by Dutch economist Albert Winsemius. But a shift happened towards 1990s. The Strategic Economic Plan (SEP) in 1991 was more bent on pursuing education and human resources development in order to encourage export. EDB is still focusing on the growth of the business sector in this country.
Singapore standard of living has grown tremendously through the years specifically after they achieved independence from European settlers. The foreign investments and Singapore government thrust to implement industrialization helped established a modern economy in this island state.
Currently, Singapore ranks fifth wealthiest country in the world as per GDP (PPP) per capita. The official reserves of Singapore as of January 2009 was pegged at US$170.3 billion.
Modern Singapore is definitely a marked improvement from what it used to be. It achieves milestones in its economy which provided its people the financial security they need. Singapore economic development is a product of the people vision and their determination to succeed.
