Singapore #2: Three Shocks

Due to its location, Britain considered Singapore a vital part of its empire. They fortified it with a naval base and were ready to fight Japan over it during World War II. But British plans and defenses were based on naval war, and they didn’t stand a chance when the Japanese came via land (Malaysia) instead!

“That surrender was the largest in British history.”

It was the first shock of Singapore, the realization that Britain couldn’t protect them (reminds me of the Gulf States in the Iran war). Singapore demanded and got self-government in 1959 from Britain. Its first Prime Minister was the now famous Lee Kuan Yew.

“Lee's government knew the island was too small to survive on its own. This led Lee to secure Singapore's entry into the new Federation of Malaysia in September 1963.”

 

But the union with Malaysia had a major sticking point. Malaysia constitutionally favoured Malays in all areas; which left Singapore’s Chinese and Indian populace in the lurch. This friction continued without resolution. Ultimately:

“The Malaysian prime minister… chose to remove Singapore from the federation. The Malaysian parliament voted 126-0 to expel Singapore on 9 August 1965. Lee announced the separation on television in tears.”

This was the second shock.

 

With no prospects (no natural resources, too tiny), at the mercy of its larger neighbours, Singapore had to try something very different. So unlike most newly independent colonies, which seized foreign companies, Singapore did the opposite! It invited foreign companies to set up factories.

 

Then came the third shock. Britain announced its troops would leave by 1971.

“Those British bases produced about a fifth of Singapore's national income and tens of thousands of jobs. The deadline forced Singapore to make in just four years the kind of decisions that normally take 25 or 30 years.”

Singapore converted the British naval dockyard into a commercial ship-repair yard. It would add a container ship terminal later. Singapore abolished tax on foreigners’ bank deposits, attracting foreign investments. Texas Instruments came and set up semiconductor manufacturing plants.

“Singapore made decisions quickly and enforced them strictly.”