Management Of International Placement
Management Of International Placement
Capital: Singapore
Population: 4,253,000 (2003)
Official language: English, Chinese (Mandarin), Malay, Tamil
Time: GMT plus 8hr
Currency: Singapore Dollar
Web domain: .sg
Major religions: Taoism, Buddhism, Islam, Christianity
International dialling code: +65
Overview: Singapore originally built its prosperity as an entrepot and as an importer of its neighbours' raw materials for processing. At independence in 1965, there was a basic electrical assembly industry and some oil refining. During the 1960s these two sectors took off rapidly. There was a huge expansion of oil refining, and in 1967, attracted by tax incentives, Texas Instruments set up a semiconductor plant. Other electronics companies soon followed, and Singapore swiftly became a world player in the electronics industry. Pharmaceuticals subsequently developed, then financial services and tourism stimulated the economy generally.
Singapore has a high level of government intervention, a strong currency, relatively low inflation and a track record of outstanding growth. GDP grew by 6.7% p.a. 1980-90. Substantial inward investment has stimulated rapid economic development and in the 1990s outward investment increased. Since the latter 1990s policy has aimed to increase the innovative, research and development aspects of electronics, biotechnology and other high-tech sectors, so that Singapore would become a centre where new ideas are born rather than one for executing them through skilled and efficient manufacturing.
In the wake of the Asian economic crisis investment and exports (but also imports) were depressed and growth fell sharply from 8.6% in 1997 to -0.9% in 1998, but recovered sharply in 1999-2000, when there was continued heavy investment in new infrastructure. The stock market was liberalised and banking restrictions were eased to allow more competition from foreign institutions. But the economy plunged into recession in 2001 - shrinking by 1.9% - and remained sluggish in 2002 and 2003 as export markets for electronics products collapsed, only resuming strong growth of over 8% in 2004.
Trade: Manufactured exports (including re-exports) account for 85% of total merchandise exports (2003). Main exports are electronics (including computer and other office equipment, radio and TV components), oil and refined products, pharmaceuticals, chemicals and manufactured products. Imports comprise a wide range of industrial raw materials, machinery and equipment, oil, manufactured goods and food. Chief trading partners, both for imports and exports, are Malaysia, the US, China, Japan, Taiwan, Thailand, Germany and Saudi Arabia.
Singapore was known to the Javanese as Temasek (' Sea Town') in the late 1300s, when Siam ( Thailand) and the Majapahit Empire of Java were contending for control of the Malay Peninsula. In 1390 Prince Parameswara, in flight from Majapahit, briefly set himself up as prince of Temasek, but was driven out and fled to Malacca. In the early 1400s Temasek was ruled by Siam, but the Malacca sultanate soon took control of the island. The Portuguese took Malacca in 1511, and the Malaccan admiral established himself in Temasek, or Singapura, building a capital which he called Johor Lama.
In 1587 the Portuguese took and destroyed Johor Lama. They made another punitive expedition to Singapore in 1613, destroying a town at the river-mouth. The island, henceforth sparsely populated, remained partly the property of the Sultan of Johor, partly that of the Temenggong (the Malay ruler of the island). In 1819 these two rulers, for a financial inducement, permitted Sir Stamford Raffles, Lieutenant Governor of Bencoolen, to establish a British trading post on the island. Raffles was impressed by the magnificent harbour, and the island's suitable position for both Far East and local trade.
By 1824 Raffles's move was paying off so well that Britain bought the island from its two rulers. In 1826 it was united with Malacca and Penang as the Straits Settlements, which were made a Crown colony in 1867. In 1869 the Suez Canal was opened, increasing the amount of shipping calling at Singapore. Its prosperity increased further after the 1870s, when Malaysian rubber became one of its important exports.
From the mid-19th century, there was considerable immigration from all over the region. In the early 1920s Britain began constructing a great naval base, suitable for the biggest ships, in the Johor Straits. The base was finished in 1938. From February 1942 until August 1945 Singapore was occupied by the Japanese army. In 1946, separated from the Straits Settlements, Singapore became a colony with a provisional advisory council.
In 1955 Singapore became partially internally self-governing, with a legislative assembly with 25 elected members out of a total membership of 32, and a council of ministers. A speaker presided in the assembly. In 1959 it became a state with its own citizenship and complete internal self-government. The first prime minister was Lee Kuan Yew.
In September 1963 Singapore was incorporated into the Federation of Malaysia. But in August 1965 Singapore left the Federation, by mutual agreement, after months of dispute between it and the federal government, over a variety of issues, including ethnic affairs. On 9 August 1965, Singapore became a separate independent state and joined the Commonwealth. In December 1965, it became a republic with a non-executive president.
The People's Action Party (PAP) was first elected in 1959 and was continuously in power for the rest of the century, in many elections winning every seat. In 1981 the Workers' Party won one seat in a by-election. Two opposition members were returned in the 1984 elections, one in 1988, and four in 1991.
During this period, Singapore developed a highly sophisticated economy with extensive social services and one of the world's highest rates of GNI per capita.