FOCUS ON THE NEGATIVE IMPACT ON SINGAPORE

1. COMMON MARKET NOT SET UP

1. Singapore separated from Malaysia because of the common market not being set up.
2. The common market was of utmost importance to Singapore’s economic development.
3. During the elections, the PAP government had promised its citizens that through a merger with
Malaysia, it will lead to an establishment of a common market.
4. Through a common market, Singapore is able to have rapid economic growth, because the common
market would create new jobs, leading to more job opportunities for the citizens.
5. It can also provide Singapore with an increased consumer market and greater profits because of
tax reliefs through merger with Malaya.
6. However, after the PAP won and the merger got accepted, Malaysia feared that the common
market would lead to a loss of economic development for them, as through the common market,
there would be a greater competition between Singaporean and Malaysian goods.
7. Malaysia knew that the common market would be more advantageous to Singapore than to itself.
8. Hence, Malaysia saw Singapore as an economic rival and the establishment of the common market
was first delayed by the Malaysian government, and finally abolished.
9. This led to a political difficulty for PAP because it was not able to keep up the promise that it
gave to its citizens regarding a common market.
10. Singapore was not able to create enough jobs for its citizens, causing the unemployment issue to
still remain.
11. Companies in Singapore were also not able to sell its products to an increased consumer market,
causing economic development to continue to take place at slower rates.
12. These disadvantages were enough for the PAP government to face severe problems, because it not
only reduced the number of people following the PAP government, but it also became a good reason
for the opposition parties to overthrow the PAP.

a.
2. PIONEER CERTIFICATES WERE NOT GIVEN BY THE CENTRAL
GOVERNMENT TO SINGAPORE.
3. SINGAPORE WAS ASKED TO INCREASE ITS REVENUE CONTRIBUTION TO
THE CENTRAL GOVERNMENT
4. CLOSURE OF BANK OF CHINA