Since her separation from the Federation of Malaysia in August 1965 to become an independent republic, Singapore has sought various strategies to ensure her political and economic viability. Unlike many other developing countries, Singapore is in many ways a city-state. Restricted to a territorial area of 585 square kilometres and with a population of two million, Singapore does not have any significant hinterland. As most of her people live in the urban area, employment and income must thus be largely generated from non-agricultural activities. Traditionally Singapore's role has been that of performing entrepot and dis tributive services for Southeast Asian countries. This role has declined in importance over the last two decades, mainly because of the deliberate policies of economic nationalism (and direct trading) of neighbouring countries. Since the People's Action Party (PAP) took over power in 1959, there has been the deliberate restructuring of the economic base from entrep?t to industrial. The activities of the Economic Development Board and the rapid development of infrastructural facilities in new industrial sites thus began in earnest. The merger with Malaya and the British colonies in Borneo to form the Federation of Malaysia in 1963, too, represented an attempt to seek long-term economic viability through a larger political and economic framework. The separation from Malaysia in 1965 did not remove the need to embark on accelerated industrialization; in fact, separation reaffirmed the over whelming importance of avoiding becoming hostage to the vicissitudes of regional events. Industrialization and an economy oriented to a global, as opposed to a regional, market would constitute key features of Singapore's survival exercise. Since separation, the government has embarked on an even more intensive campaign to induce a greater flow of foreign investments. Between 1965 and 1971, the amount of foreign investments rose tenfold from SS157 million to SS1,572*5 million. Partly facilitated by the tightening of labour and industrial relations regula tions (the Employment Act and the Industrial Relations (Amendment) Act of 1968 helped to ensure industrial peace), foreign investments were regarded as important from three aspects. Firstly, such investments (partly because they come from well established multinational corporations) meant that ready export markets for locally produced industrial products would be available. Singapore could also benefit from technology-transfer and the results of research and development of these
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