Background Notes: Singapore
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: May 15, 19905/15/90
Category: Country Data
Region: Southeast Asia
Country: Singapore
Subject: Cultural Exchange, Resource Management,
Military Affairs, History, Trade/Economics,
International Organizations
[TEXT]
Official Name: Republic of Singapore
PROFILE
Geography
Area: 620 sq. km. (239 sq. mi.). Cities: Capital-Singapore (country
is a city-state). Terrain: Lowland. Climate: Tropical.
People
Nationality: Noun and adjective-Singaporean(s). Population (1988):
2.6 million. Annual growth rate: 1.3%. Ethnic groups: Chinese 76%,
Malays 15%, Indians 7%, others 2%. Religions: Buddhist, Taoist,
Muslim, Hindu, Christian. Languages: English, Mandarin and other
Chinese dialects, Malay, Tamil. Education: Years compulsory-none.
Attendance-94%. Literacy-87.1%. Health: Infant mortality rate-
7.4/1,000. Life expectancy-71 yrs. male, 76 yrs. female. Work
force (1.3 million): Agriculture-1.1%. Industry and commerce-
58.1%. Services-33%. Government-8.1%.
Government
Type: Parliamentary democracy. Constitution: 1965. Independence:
August 9, 1965. Branches: Executive-president (chief of state, 4-
yr. term); prime minister (head of government). Legislative-
unicameral 81-member parliament (maximum 5-yr. term). Judicial-
High Court, Court of Appeal, Court of Criminal Appeal. Political
parties: People's Action Party (PAP), various opposition parties.
Suffrage: Universal and compulsory. Central government budget
(1986): $10 billion. Defense (1988): 5% of gross domestic product.
National holiday: August 9. Flag: Two equal horizontal sections, red
over white, with a white crescent and five stars in the upper left
corner.
Economy
GDP (1988): $23.9 billion. Annual growth rate (1988-in real
terms): 11%. Per capita income: $8,782. Avg. inflation rate (1988):
1.5%. Natural resources: None. Agriculture (0.4% of real GDP):
Products-poultry, orchids, vegetables, fruits. Industry (17% of real
GNP): Types-petroleum products, electrical and electronic
products, shipbuilding and ship repair, food and beverages, textiles
and garments, chemical products. Trade (1988, excluding Indonesian
trade, which is not reported by Singaporean authorities): Exports-
$39 billion: petroleum products, electronics equipment, electrical
and nonelectrical machinery, telecommunications apparatus,
garments. Major markets-US, Malaysia, Japan, European Community
(EC). Imports-$44 billion: crude oil, machinery, manufactured
goods, foodstuffs. Major suppliers-US, EC, Malaysia, Japan. Official
exchange rate (avg. 1988): Singapore $2.01=US$1. Fiscal year: April
1-March 31.
Membership in International Organizations
UN and some of its specialized and related agencies,
Commonwealth, Association of South East Asian Nations (ASEAN),
Five Power Defense Arrangement, Asian Development Bank (ADB),
Colombo Plan, INTELSAT, Nonaligned Movement, Group of 77.
GEOGRAPHY
Singapore is located in Southeast Asia at the southern tip of
the Malay Peninsula and is separated from Malaysia by the Strait of
Johore, which is traversed by a 1.2-kilometer (3/4-mi.) causeway
carrying a road and a railway. The Singapore Strait separates the
country from Indonesia. Singapore is a focal point for Southeast
Asian sea routes. Its total land area includes one large island and
about 55 nearby islets. The diamond-shaped main island is 41
kilometers (26 mi.) at its broadest from east to west, and 22
kilometers (14 mi.) from north to south.
Much of Singapore is lowland and originally consisted of
swamp and jungle. Now mainly urban and industrialized, its
geographical features are small in scale-the highest point on the
main island, Bukit Timah (Hill of Tin), is only 177 meters (581 ft.)
above sea level; the longest river is 14 kilometers (9 mi.) long. A
central plateau of about 31 square kilometers (12 sq. mi.) contains
a water catchment area and nature preserve. The main urban area
lies on the southern part of the island, primarily on land reclaimed
from swamp and sea.
Singapore's climate is characterized by warm temperatures,
high humidity, and copious rainfall. Virtually no seasonal
temperature variation exists. The average maximum temperature is
31 C (88 F); the average rainfall is 158 centimeters (62 in.).
Singapore has no pronounced wet or dry seasons.
PEOPLE
With a population density of 4,231 persons per square
kilometer (10,961 per sq. mi.), Singapore is one of the most densely
populated countries in the world. The annual growth rate has fallen,
however, from 2.5% in 1965 to 1.3% in 1988. Health standards are
high for the region, with about 1 physician for every 837 people (US
has about 1 to 700).
Singapore has a varied linguistic, cultural, and religious
heritage. Malay is the national language, but Chinese, English, and
Tamil also are official languages. English is widely used in
professions, businesses, and schools.
The government mandated that English would be the primary
language used at all levels of the school systems by 1987, and aims
to provide at least 10 years of education for every child. Primary
and secondary school students total almost 470,000, or nearly 18%
of the entire population. Enrollment at the National University of
Singapore is 14,972 and 13,753 at Singapore Polytechnic. The
practical engineering-oriented Nanyang Technological Institute,
founded in 1981, now has 3,940 students. The overall literacy rate
is 87% and is more than 90% for Singaporeans under 35.
Singapore has religious freedom. Almost all Malays are
Muslim; other Singaporeans are Hindus, Sikhs, Taoists, Buddhists,
Confucianists, and Christians.
HISTORY
Although Singapore's history dates from the 11th century,
little was known about the island until the 19th century, when in
1819, Sir Thomas Stamford Raffles arrived as an agent of the
British East India Company. In 1824, the British purchased
Singapore Island, and by 1825, the city of Singapore had become a
major port, with trade exceeding that of Malaya's Malacca and
Penang combined. In 1830, Singapore, Penang, and Malacca were
combined as the Straits Settlements to form an outlying residency
of the British East India Company; in 1867, the Straits Settlements
were made a British Crown Colony, an arrangement that continued
until 1946.
The opening of the Suez Canal in 1869 and the advent of
steamships launched an era of prosperity for Singapore as transit
trade expanded throughout Southeast Asia. In the 20th century, the
automobile industry's demand for rubber from Southeast Asia and
the packaging industry's need for tin helped make Singapore one of
the world's major ports. It is now second largest in the world in
terms of annual tonnage.
In 1921, the British constructed a naval base, which was soon
supplemented by an air base. The Japanese captured the island in
February 1942, however, and it remained under their control until
September 1945, when it was recaptured by the British.
In 1946, Penang and Malacca were united in a single British
Crown Colony called the Federation of Malaya; Singapore remained a
separate colony. In 1959, Singapore became self-governing, and, in
1963, it joined the now-independent Federation of Malaya, Sabah,
and Sarawak (the latter two former British Borneo territories) to
form Malaysia.
Indonesia adopted a policy of "confrontation" against the new
federation, charging that it was a "British colonial creation," and
severed trade with Malaysia. The move particularly affected
Singapore, since Indonesia had been the island's second largest
trading partner. The political dispute was resolved in 1966, and
Indonesia resumed trade with Singapore.
After a period of friction between Singapore and the central
government in Kuala Lumpur, Singapore separated from Malaysia on
August 9, 1965, and became an independent republic.
GOVERNMENT
According to the constitution, as amended in 1965, Singapore
is a republic with a parliamentary system of government. The
president, the ceremonial chief of state, is elected every 4 years by
parliament. Political authority rests with the prime minister and
the cabinet. The prime minister is the leader of the political party
or coalition of parties having the majority of seats in parliament.
The unicameral parliament consists of 81 members (80 of
whom are from the governing People's Action Party-PAP) elected on
the basis of universal adult suffrage. Up to 3 opposition candidates
are invited to become nonconstituent members of parliament after
any general election in which less than three opposition candidates
are elected. Nonconstituent members may debate but may not vote
on constitutional amendments or on bills requiring the expenditure
of funds. After the last general election (September 1988), two
members were named, one of whom subsequently was disqualified.
The maximum term of any one parliament is 5 years. Voting has
been compulsory since 1959.
Judicial power is vested in the High Court and Court of Appeal.
The High Court exercises original criminal and civil jurisdiction in
serious cases as well as appellate jurisdiction from subordinate
courts. Its chief justice, senior judge, and six judges are appointed
by the president. Appeals from the High Court are heard by the
Court of Appeal. Further appeal can be made in certain cases to the
Judicial Committee of the Privy Council at London.
Principal Government Officials
President-WEE Kim Wee
Prime Minister-LEE Kuan Yew
First Deputy Prime Minister-GOH Chok Tong
Second Deputy Prime Minister-ONG Teng Cheong
Ministers- Communications and Information-YEO Ning Hong
Community Development-WONG Kan Seng
Defense-GOH Chok Tong
Education-Tony TAN
Environment-Ahmad MATTAR
Finance-Richard HU Tsu Tau
Foreign Affairs-WONG Kan Seng
Health (Acting)-YEO Cheow Tong
Home Affairs-S. JAYAKUMAR
Labor-LEEYock San
Law-S. JAYAKUMAR
National Development-S. DHANABALAN
Trade and Industry-LEE Hsien Loong
Ambassador to the United Nations-CHAN Heng Chee
Ambassador to the United States-Tommy KOH Thong Bee
Singapore maintains an embassy in the United States at 1824
R Street NW., Washington, D.C. 20009 (tel. 202-667-7555).
POLITICAL CONDITIONS
The ruling political party in Singapore (in power since 1959)
is the People's Action Party (PAP), headed by Prime Minister Lee
Kuan Yew. In the 1963 general elections, the PAP won 37 of the 51
seats in parliament. In October 1966, the opposition Barisan
Sosialis Party (Socialist Front), a left-wing group that split off
from the PAP in 1961, resigned from parliament, leaving the PAP as
the sole representative party. In the April 1968 general elections,
the PAP won all 58 seats-51 without opposition.
In the general elections of 1972, 1976, and 1980, the PAP won
all of the seats in an expanding parliament. In an October 1981 by-
election, the PAP lost a seat to the Workers' Party Secretary
General J.B. Jeyaretnam, the first time an opposition party had won
a seat since 1963.
In the 1984 elections, the PAP polled 62.9% of the popular
vote, a 12% drop from 1980 returns, and lost a second seat. In
1988, the PAP polled 61.9% of the popular vote to win 80 of 81
seats.
Following the 1988 elections, Prime Minister Lee Kuan Yew
indicated that in 1990 he would retire as head of government but
not from politics. First Deputy Prime Minister Goh Chok Tong has
been designated to assume the office of prime minister as part of a
transition process to a new generation of political leaders.
ECONOMY
Singapore's strategic location and industrious population have
given the country an economic importance in Southeast Asia out of
proportion to its small size. Following independence, its economy
expanded rapidly. Average annual growth in gross domestic product
(GDP) during the 1970s was close to 10%, and for 1980-84 it was
8.5%. Following a recession in 1985-86, the economy steadily
recovered and registered an impressive 11% GDP growth rate in
1988. The 1988 per capita income, $8,782, is the third highest in
Asia after Japan and Brunei. At the end of 1988, official foreign
exchange reserves stood at $16.6 billion.
Singapore began as an entrepot (warehousing and
transshipment) center for the region but began to industrialize and
modernize its infrastructure after independence. The marine and oil
services and processing industries were among the leaders in the
important manufacturing sector. The late 1970s and early 1980s
brought an increasing emphasis on high technology high-value-added
goods and services, which made Singapore an electronics and
regional banking center. Government policy, aimed at providing
modern housing for most of the population by 1990, spurred public
and private building, creating a construction and property boom in
the early 1980s.
However, by 1984, the government's accelerated construction
program was nearly concluded, and there was a massive oversupply
of new buildings. Property values tumbled. At the same time, there
was a near-collapse of marine and petroleum-related industries
worldwide, a shakeout in the US electronics market, and worsening
economic conditions in Malaysia and Indonesia. The net result was
Singapore's first recession after 21 years of sustained growth.
Real GDP growth plummeted to -1.6% in 1985, began to show the
first signs of recovery in mid-1986, and has been remarkably
buoyant since.
Singapore continues to upgrade worker skills and to search for
new products and markets to drive its export-led economy. One
major effort is to become a complete business center, offering
multinationals a manufacturing base, a developed financial
infrastructure, and excellent communications to service regional
and world markets.
Trade In the past, about two-thirds of Singapore's imports and
exports consisted of entrepot trade. With rapid industrialization,
however, the relative importance of this sector has declined. The
trade pattern reflects a shift toward importing capital goods and
raw materials for industry and exporting locally manufactured
products.
In 1988, the United States was Singapore's largest trading
partner. Major exports to the United States consisted of crude
rubber, electronic equipment, electrical machinery, and textile
products; major imports from the United States were machinery and
other manufactured products.
US Investment and Assistance
The United States is the largest source of foreign investment
in Singapore, with more than one-third of all private foreign
investment and a quarter of total investment. US private
investment played a leading role in Singapore's rapid economic
expansion, particularly in general manufacturing, electronics, and in
modernizing regional distribution facilities. US activities also
include oil refining, shipping, banking, hotels, insurance, and
importing and exporting. The resident US business community,
including dependents, was estimated at about 5,000 in late 1988.
Total US investment in Singapore at the end of 1988 stood at $3
billion, with investment flows continuing at a brisk pace.
The United States has a small military training assistance
program with Singapore but provides no other bilateral aid.
Industry
The government's development policy from independence has
emphasized industrialization. Separation from Malaysia removed
any semblance of a large domestic market, leading naturally to
emphasis on manufacturing for export. To support this policy, the
government introduced new and remarkably successful financial
incentives for export-oriented industry and provided efficient
infrastructure for manufacturing. Singapore opened its economy
and has pursued a vigorous free-trade policy ever since. Labor
legislation enacted in 1968 reduced labor unrest and gave
employers more flexibility in hiring and firing. By the early 1980s,
Singapore had become a relatively high wage locale by Asian
standards, but the government moved in 1985 to restrain wage
increases and reduce other costs with a view to making Singapore
more competitive.
Several institutions played a key role in carrying out the
industrialization policy. The Development Bank of Singapore was
responsible for industrial financing. The Jurong Town Corporation
was charged with developing industrial estates. Its major
achievement, the Jurong Industrial Estate, is a government-planned
satellite community devoted to manufacturing, which had more than
1,400 factories in production in the early 1980s and many others in
various stages of completion. The government's Economic
Development Board has organized a massive program to promote
foreign investment in Singapore and has set up a network of offices
in Europe, Japan, and the United States (in New York, Los Angeles,
Boston, Chicago, and Houston).
These efforts resulted in a dramatic increase in the level of
foreign and local investment. From 1962 to 1974, the
manufacturing sector grew an average of 20% per year and
registered an annual average increase of more than 10% through
1981. After a pause in 1982, growth resumed in 1983.
Manufacturing increased as a percentage of total economic activity
from 17% in 1960 to 29% in 1988. Extensive petroleum refining
operations make that industry-in terms of total value of
production-the largest in Singapore. It is closely followed by
electronics, transportation equipment and marine services-
including ship repair-textiles, electrical machinery, and food
industries. The manufacturing sector contracted because of the
recession, but the prospects for high- tech manufacturing are still
bright.
Construction was the cutting edge of the economy in the early
1980s, providing as much as 30% of total growth. Although the
frenzied pace of construction in that period left a massive surplus
of offices, hotels, and warehouses, the program also resulted in
modern housing for most Singaporeans and an up-to-date system of
ports, airports, and roads. Construction of a 66.8-kilometer (41.5-
mi.) rapid transit system is underway. The first stage was
completed in December 1987.
Agriculture
Singapore's limited agrarian land is devoted primarily to
intensive cultivation of vegetables, some poultry and pork, and
other food crops. Although rice is a dietary staple, it is not grown
domestically. All the island's other food requirements are
imported. Singapore is a major exporter of orchids and tropical
fish.
Labor
Singapore has a work force of about 1.3 million. The National
Trades Union Congress, the sole trade union federation, has 209,000
members or about 98% of total organized labor. Extensive
legislation covers general labor and trade union matters. The
Industrial Arbitration Court handles labor-management disputes. In
recent years, few incidents have occurred to ruffle the generally
harmonious state of labor-management relations.
Singapore enjoyed virtually full employment in the early
1980s with an unemployment rate of only 3%. The 1985 recession
drove the jobless figure to more than 6% in mid-1986, but with the
recovery, it dropped back to 3.3% in mid-1988. Spot labor shortages
persist, however, in some growth areas, such as electronics and in
industries, such as construction, where foreign workers
predominate.
Transportation and Communications
Situated at the crossroads of international shipping and air
routes, Singapore is a center for transportation and communication
in Southeast Asia. The world's second most active port (after
Rotterdam), Singapore handled 153 million tons of cargo in 1988.
Singapore is a regional aviation hub served by 50 international
airlines. Changi International Airport, opened in 1980, is being
expanded. The country also is linked by road and rail to Malaysia
and Thailand.
Telecommunications and telephone facilities are modern and
comprehensive, providing high-quality communications with the
rest of the world. Radio and television stations are government-
owned and operated. Privately owned daily newspapers are
published in English, Chinese, and Malay.
FOREIGN RELATIONS
Singapore is nonaligned and seeks cordial relations with all
nations. As a small country heavily dependent on world trade, it has
a special interest in maintaining wide international contacts. It is
a member of the Commonwealth and also the United Nations and
several of its specialized and related agencies. Singapore supports
the concept of Southeast Asian regionalism and plays an active role
in the Association of South East Asian Nations, founded in 1967.
DEFENSE
Singapore relies primarily on its own defense forces, which
are continuously being modernized. The Singapore armed forces
comprises 50,000 army, 3,500 navy, and 6,000 air force personnel.
Reserve forces total about 200,000. Singapore is a member of the
Five Power Defense Arrangement-United Kingdom, Australia, New
Zealand, and Malaysia. Designed to replace the former defense role
of the British in the Singapore-Malaysia area, the arrangement
obligates members to consult in the event of external threat and
provides for stationing Commonwealth forces in Singapore.
US-SINGAPORE RELATIONS
The United States has maintained formal diplomatic relations
with Singapore since that country became independent in 1965.
Singapore's efforts to maintain economic growth and political
stability and its support for regional cooperation harmonize with
US policy in the region and form a solid basis for amicable relations
between the two countries. The growth of US investment in
Singapore and the large number of Americans living there enhance
opportunities for contact between Singapore and the United States.
Many Singaporeans visit and study in the United States.
The US Government sponsors visitors from Singapore each
year under the International Visitor Program. The US Government
provides Fulbright awards to enable selected American professors
to teach or conduct research at the National University of Singapore
and the Institute of Southeast Asian Studies. It awards
scholarships to outstanding Singaporean students for graduate
studies at American universities and to American students to study
in Singapore. The US Government also sponsors occasional cultural
presentations in Singapore.
The East-West Center and private American organizations,
such as the Asia and Ford Foundations, also sponsor exchanges
involving Singaporeans.
Prime Minister Lee Kuan Yew has visited the United States
several times. He last official visit was in April 1988.
Principal U.S. Officials
Ambassador-Robert Orr
Deputy Chief of Mission-Arthur Kobler
Economic/Political Counselor-Thomas H. Martin
Political Officer-Edward Dong
Economic Officer-J. Anthony Holmes
Public Affairs Counselor-Richard Gong
Commercial Counselor-George Ruffner
Administrative Counselor-Robert B. Courtney
Defense Attache-Capt. Patrick Cooper, USN
The US Embassy in Singapore is located at 30 Hill Street,
Singapore 0617 (tel. 338-0251).
FURTHER INFORMATION
These titles are provided as a general indication of material
published on this country. The Department of State does not
endorse unofficial publications.
Bedlington, Stanley S. Malaysia and Singapore: The Building of
New States. Ithaca: Cornell University Press, 1978.
Bloodworth, Dennis. The Tiger and the Trojan Horse.
Singapore: Times Books International, 1986.
Chan Heng Chee. The Dynamics of One Party Dominance: The
PAP at the Grass Roots. Singapore: Singapore University Press,
1976.
George, T.J.S. Lee Kuan Yew's Singapore. Great Britain: Andre
Deutsh Limited, 1978.
Goh Keng Swee. The Practice of Economic Growth. Singapore:
Federal Publications, 1977.
Hassan, Riaz, ed. Singapore: Society in Transition. Kuala
Lumpur: Oxford University Press, 1976.
Josey, Alex. Singapore: Its Past, Present and Future. Singapore:
Eastern Universities Press, 1979.
Lim, Chong Yah. Policy Options for the Singapore Economy.
Singapore: McGraw-Hill Book Co., 1988
Nair, C. Devan, ed. Socialism That Works. The Singapore Way.
Singapore: Federal Publications, 1976.
Singapore Year Book. Singapore: Government Publications
Bureau. Available from the Superintendent of Documents, US
Government Printing Office, Washington, DC 20402: American
University. Area Handbook for Singapore. 1977. US Department of
Commerce. Foreign Economic Trends-Singapore. International
Marketing Information Series: Semiannual.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington,
DC -- May 1990 -- Editor: Juanita Adams Department of State
Publication 8240 --Background Notes Series -- This material is in
the public domain and may be reprinted without permission;
citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office,
Washington, DC 20402. (###)