economic challenges Flashcards
economic challenges faced by singapore
- limited access to malaysian hinterland
- threat of unemployment
elab on economic vulnerability as an economic challenge faced
- trade between 2 countries was limited
- malaysia increased tariffs on singapore goods to limit competition
- reduced volume of exports to singapore. began to process and export materials directly from its own ports
elab on threat of unemployment as a economic challenge faced
- more than 70000 unemployed out of a 700000 person labour force + large number about to finish schooling
- entrepôt trade was declining amid growing competition, source of job creation was diminishing
- british closed military bases
solutions to economic challenges
- economic diversification: finding varied sources of economic growth instead of being overly dependent on one source for economic growth, make economy more likely to grow and ensure sufficient jobs
- development of export-oriented industrialisation
- formation of JTC
- development of infrastructure
elab on development of export-oriented industrialisation
- establishment of economic development board to promote industrial development by attracting MNCs to set up factories
- adopted export-oriented economy to export majority of goods produced in sg worldwide
- transformed 70sqkm of land in jurong to first industrial estate
- established JTC to take over challenging task of building and managing industrial estates so that EDB could focus on attracting foreign investment
effect of development of export-oriented industrialisation
- focused efforts on investment promotion and industrial development
- manufacturing activity increased significantly, 150000 jobs created
- econmic growth rates exceed 10% every year
appeal of singapore to MNCs
- lower tax rates, making sg financially attractive to set up operations in new industries in
- safe and secure environment due to low crime rates
- large young growing labour force supported by trade unions partnered with government and bosses to achieve higher productivity and stronger economic growth
- sizeable amount of land for development of industrial estates
how singapore benefitted from MNCs
- employment for thousands of people
- valuable technical training and work experience for workforce
- greater access to modern tech to keep us globally competitive
- increased exports of locally manufactured goods to overseas markets
how did formation of JTC help sg overcome economic challenges
- assigned responsibility of accelerating industrialisation to specialist agency
- managed and develop sg’s industrial estates and provided facilities to improve quality of life (gardens, bird park)
what infrastructure was developed to attract MNCs and facilitate growth of manufacturing industries
- telecommunications
- banking and finance
- public utilities
- transport facilities
elab on development of telecommunications
- singapore telephone board installed new telephones at rapid pace to boost connectivity among industries and households
- doubled original network size in 5 years
elab on development of banking and finance
- expanded to meet needs of MNCs and other companies
- dbs established to finance industrialisation and other development projects
elab on public utilities
pub set up and was responsible for providing public utilities and water, electricity and gas
- improved living conditions for thousands
elab on transport facilities to help sg overcome challenges
- paya lebar airport expanded to handle more passenger + cargo traffic
- replaced airport with changi airport due to insufficient space
- port of singapore authority formed to manage port operations
- set up facilities to cater to rise in cargo traffic
- roads constructed to connect industrial areas to housing estates
- expressway built to reduce time needed to travel around island
