Lecture Notes: The Rise of Singapore

Introduction

• Singapore in 1965: Widespread poverty, unemployment, high crime rates, drug problems, riots, overpopulation, illiteracy.
• By 1990: Highly developed, high-income country, one of the Top 5 Richest Countries, extremely clean, minimal corruption and crime.
• Transformation led by Prime Minister Lee Kuan Yew.

Geographic and Demographic Overview

• Tiny country, hard to spot on a map.
• Separated from Malaysia by the Strait of Johor.
• Area: 710 km²; Population: ~5.7 million; Population density: 8028 people/km² (3rd most densely populated country).
• Name origin: From Sanskrit 'Singh Pura' meaning 'The Lion City'.
• One of the four Asian tigers (South Korea, Hong Kong, Taiwan, Singapore).

Ethnic and Religious Diversity

• Diverse ethnic and religious composition.
• Major ethnic groups: Chinese (74.5%), Malays (13.5%), Indians (9%), others (3%).
• Various religions represented including atheists.
• Original inhabitants: Orang Laut.
• Unity in Diversity now but not historically.

Historical Context

• Early trading hub for Malay, Thai, Indian, Arab, Japanese, Chinese traders.
• Occupied by Indonesian, Portuguese, Dutch, British (bought by Thomas Raffles in 1819).
• Free Port status under British led to trading boom.
• Suez Canal (1869) increased shipping traffic, Singapore became a rubber-processing hub.
• Dark side: Opium processing center, resulting in addiction and crime.

World War II and Aftermath

• Japanese occupation (1942-1945) brought destruction, poverty, unemployment, disease, crime.
• British reclaimed control post-WWII, leading to Self Governance.
• Elections held in 1948, 1955, 1958; Full elections in 1959 won by Lee Kuan Yew (PAP).

Lee Kuan Yew's Leadership

• Initially merged with Malaysia (1963), but due to tensions, Singapore became independent (1965).
• British troops withdrew by 1971; Lee Kuan Yew had to stabilize the nation.

Key Policies and Initiatives

Defense and Stability

• Founded ASEAN (1967) for regional cooperation.
• Introduced National Service for defense.

Education

• Compulsory Primary Education, high-quality public education, nearly free.
• Focus on vocational training.

Ethnic Integration

• Ethnic Integration Policy: Fixed housing ratios by ethnicity to promote harmony.
• Maintenance of Religious Harmony Act (1990), Racial Harmony Day.

Cleanliness and Urban Planning

• Launched 'Keep Singapore Clean' campaign (1968).
• High fines for public littering, spitting, smoking.
• Development of high-rise public housing, relocation of slum dwellers.

Healthcare and Public Services

• Affordable public and private healthcare.
• Programs like Medi Safe, Medi Shield, Medi Fund.

Transportation

• High taxes on car ownership to discourage private vehicles.
• Affordable, clean, and safe public transport.

Fiscal Policies

• Government-owned companies like Temasek Holdings, profitable and well-managed.
• High taxes on vehicles, property, GST, but low income tax (2%-24%).
• Central Provident Fund for savings.

Economic Development

• Large-scale government spending on infrastructure (ports, airports, housing).
• Attracting foreign investment by reducing red-tape, lowering taxes, and eliminating corruption.
• Ranked No. 2 globally for ease of doing business.
• Least corrupt Asian country.

Environmental Initiatives

• Tree Planting Day (1972) leading to urban greenery and tourism.

Skill Development

• Focus on technical education and skill development.
• Skill Development Levy for workforce training.

Lee Kuan Yew's Governance Style

• High salaries for government officials to deter corruption.
• Independent Corrupt Practices Investigation Bureau.
• Focused on development rather than personal glorification.
• Criticized for lack of press freedom, but maintained accountability.

Conclusion

• Lee Kuan Yew's policies transformed Singapore from a struggling nation to a developed, prosperous country.
• Importance of practical policies, fiscal discipline, and inclusive governance.