Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0092.TXT

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National Trade Data Bank
ITEM ID     : ST BNOTES SINGAPOR
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - SINGAPORE

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | SINGAPORE

US DEPARTMENT OF STATE
BACKGROUND NOTES:  SINGAPORE
RELEASED:  MAY 1990

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. [phone]).


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. [phone]).


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.