Singapore's+Industrial+Development

__**Singapore's Industrial Development (after separation/1965)**__

After gaining independence, Singapore sensed the need for immediate international recognition of its sovereignty. **Singapore faced the danger of being attacked by Indonesian military or forcibly reabsorbed into the Federation of Malaysia on disadvantageous terms**. With the support of the Malaysian and British governments, Singapore became a member of the United Nations on September 21, 1965, and the Commonwealth in October that year. Besides the issue of sovereignty, the **pressing problems were unemployment, housing, education, lack of natural resources and land**.

The unemployment rate ranged between 10–12% and it threatened to create civil unrest. There was a ** loss of access to the Malaysian hinterland market **. A large portion of the population **lacked formal education**, even when this statistic counted Chinese schools which the British did not recognize. Entrepot trade, the main use of Singapore's port and the original reason for Singapore's success in the 19th century, was **no longer sufficient to support the large population**.

Singapore invested heavily to promote economic growth. The Economic Development Board was set up in 1961, and national economic strategies were formulated to promote Singapore's manufacturing sector. **Industrial estates were set up, and government ministers, including Lee Kuan Yew, toured the world in order to try to attract foreign investors**. Singapore's port gave her an advantage over her neighbouring countries, being a **favourable spot for efficient exports of refined goods and imports of raw material**. This meant that industries in Singapore found international markets easily, and cheaper prices for raw goods. Singapore's growing industrialisation meant that **entrepot trade had been extended into processing of imported raw materials into exported finished products** — leading to higher value-added goods which brought more income to the island. This ended up being a suitable alternative to a common market to the Malaysian hinterland. The service industry also grew at this time, sparked by demand for services by ships calling at the port and increasing commerce. These progress help to alleviate the unemployment problem. With Winsemius's help, **Singapore attracted big oil companies to establish oil refineries in Singapore which became the third largest oil-refining centre in the world by the mid-1970s**.