Chapter 10 WS1 Flashcards
What is the meaning of hinterland?
An area supplying raw materials and goods, especially trade goods, to a port.
What is the meaning of Gross Domestic Product (GDP)?
The total value of goods and serviced produced in a country in a year.
The higher the value of the total value of goods and serviced produced, the higher the income and therefore better Standard of living
What is the meaning of industrialisation?
Process of developing manufacturing in an economy on a large scale, usually through the adoption of technology and machinery.
What is the meaning of inflation?
Rise in prices of most goods and services of daily or common use (reduction in value of money)
What is the meaning of labour force?
All the people in a country who are either working or looking for work.
What is the meaning of multinational corporations (MNCs)?
A company that operates in more than one country.
hire workers locally— creation of jobs
Sell to global customers for profit
What is the meaning of tariff?
A tax imposed by a government on goods entering or leaving the country.
What economic challenges did Singapore face upon independence?
Limited trade with Malaysia as Malaysia increased tariffs.
To limit competition to its own industries, Malaysia increased tariffs on Singapore’s exports, thus raising their prices. This lowered the demand for Singapore-made goods in Malaysia, as Malaysian-made goods became more affordable in comparison. This reduced the profits earned by the Singapore’s companies.
Malaysia also reduced the volume of its exports, such as raw tin and rubber, to Singapore. Previously, these were often stored or processed in Singapore before being re-exported worldwide. But Malaysia now sought to process and export them directly from its own ports. This reduced Singapore’s entrepot trade. This was amid growing competition from other ports in the region. Thus, its importance as a source of job creation was diminishing.
Malaysia processed and exported raw materials from its own ports and lowered the demand for Singapore-made goods.
Rapid population growth
More than 70000 unemployed persons out of a total labour force of over 700000. Large number of school leavers joining labour force. Declining entrepôt trade amidst growing competition from other ports.
British military withdrawal— accounted for 20% of SG’s GDP 70000 jobs. This was a substantial portion of the economy, and its sudden removal would create a significant economic gap.
These bases were a major source of employment for Singaporeans, with the livelihoods of over 40 000 people dependent on supplying goods and services to British servicemen stationed here.
Why did Singapore pursue a strategy of export-orientated industrialisation in the 1960s and 1970s
Economic diversification— different types of industries/sectors— seek new and varied sources of economic growth and get only from more streams, thus improving the resilience of the economy — address the challenges of unemployment and declining entrepôt trade
Creating different types of jobs with different types of skill set
Export different types of goods—different types of services to be provided
Development of Infrastructure— industrialise— aim to attract multinational corporations (MNCs) to set up factories in Singapore.— possessed capital to invest in Singapore’s infrastructure and networks to access the global markets— a significant economic gap google and apple.—provide knowledge and technology transfer to local companies— attract more people to buy from Singapore—more profits
Attract investors—> quality of SG manufacture goods will increase and the buyers from all around the world will have more trust in Singapore’s goods given b the fact that, there are so many Multinational Corporations in Singapore, it shows the economic development, prosperity and good quality of manufactured goods.
What were the different beliefs and goals to diversify the economy before merger and independence and after independence?
Even before merger and independence, the government believed industrialisation was key to diversifying Singapore’s economy. The establishment of Economic Development Board (EDB) was focused on attracting multinational corporations (MNCs) and sold goods mainly in Singapore and Malaysian hinterland.
After independence, they realised the impracticality of this, thus, they adopted an export-oriented economic independence, where the majority of goods produced would instead be exported worldwide.
What were the four things that the MNCs sought and what the Singapore provided?
Land Sizeable amount of land set aside for the development of industrial estates equipped with adequate facilities for factories and space for their future expansion.
Profits Lower tax rates, which made it more financially attractive for MNCs to set up operations in new industries in Singapore
Human Resources Large, young and growing labour force supported by trade unions that partnered the government and company bosses to achieve higher productivity and stronger economic growth
Safety
What were some of the key industries that developed in Singapore?
Electronics
Petroleum Refining
Ship building and repair
Garments and Textiles
What was the evidence of success after independence after diversifying the economy?
Almost 150 000 jobs were created between 1967 and 1973 alone. Up until 1973, its economic growth rates, measure din terms of gross domestic product GDP, exceeded 10 per cent every year.
Unemployment rate fell from 8.9% to 4.5%
To support the diversification of the economy after independence, the government also developed the ______ in Singapore. What was the reason behind this and what are some examples?
To support the diversification of the economy after independence, the government also developed the proper infrastructure in Singapore. This would not only help to attract MNCs and other foreign investors, but also facilitate the growth of Singapore’s manufacturing industries.
Some examples include: Telecommunications, banking and finance, public utilities and transport.
What was the Singapore’s first HDB town?
Toa Payoh
What was the evidence of success of HDBs?
By end 1970, 36% of total population were living in flats.
By 1976, HDB flats housed more than half of the population.
Expanded to more than 80% by 1989. Role of HDB has grown overtime.
The role of HDB has grown overtime. (Expand the facilities and utilities, elder care centre, playground which foster a sense of community spirit and also a sense of belonging)
What were the conditions like in slums like Bukit Ho Swee? State both positive and negative phrases/words that you can think about. Why did people continue to live there despite these terrible conditions?
Unhygienic
Overcrowded
Messy
Lack of proper planning and modern amenities
Sense of community
Freedom (since law-enforcement was weaker, lesser commitments, simpler pleasures)
People continue to live there despite these terrible conditions:
Convenience (factories, workplace nearby), simpler lifestyle (relaxing), financial circumstances (cannot move to a more comfortable house), lack of housing opportunities developed at this time.
Tell me all about the Housing Development Board (HDB).
The HDB was set up in 1960 to replace the Singapore Improvement Trust, the organisation responsible for urban planning that was established by the British government. The main aim of the HDB was to provide affordable public housing for Singaporeans, through building high-rise flats as quickly as possible.
What was the difference between housing before 1964 and after 1964?
Previously, people have to rent before 1964.
1964: Home ownership for the people scheme
Locals, especially middle-low income could now buy their own flats instead of renting. Ensured affordable housing for all.
Why does the government want people to own a house?
This is because it improves the standard of living of the people living in Singapore since the houses are made of concrete material which makes it more durable, safe, clean and hygienic. By ensuring that there is affordable housing for all, it would ensure that people would still stay in Singapore and this would increase the stake in Singapore as more locals are inclined to stay in Singapore and contribute back economically. This also builds their national identity.
What did the government implement in 1968?
The government allowed the use of money from Central Provident Fund (CPF) to support the purchase of a flat. The meaning of CPF is where there are money input every year, which save money for retirement so that when you are old, you can take care of yourselves and the government don’t need to spend too much money on taking care of elderly.
