The Economic Development Board (EDB) served as the main agency to plan and implement industrialisation. It promoted investment, supported factory development, and helped shift the economy from reliance on entrepôt trade (re-exporting goods) toward manufacturing. This institution became a core tool for coordinating policy, land, and incentives.
Jurong Industrial Estate was developed as a purpose-built manufacturing zone with land, utilities, and factory space to attract firms. Early investor response was cautious, but the project created a physical platform for industrial employment and later expansion. Jurong’s development linked industrial planning with housing and town services for workers.
Jurong Shipyard was established to repair and build ships, supporting Singapore’s export-oriented economy and maritime sector. Building a commercial shipyard also developed technical skills and higher-value industrial work. This fit the broader strategy of moving from basic manufacturing into more complex industrial services.
The Port of Singapore Authority (PSA) was created to take over port functions and modernise port operations. Efficient, reliable shipping services were critical for an export-oriented industrial strategy because factories needed low-friction access to global markets. Strong port performance supported investor confidence in Singapore as a production base.
Jurong Port began operations to serve bulk and general cargo linked to the Jurong industrial area. This expanded logistics capacity beyond the main city port area and reduced bottlenecks for growing industrial output. Port development and industrial estate development reinforced each other in Singapore’s planning model.
Singapore separated from Malaysia and became an independent country. Leaders faced high unemployment and little natural resources, so economic survival depended on creating large numbers of jobs quickly. This set the direction for a state-led industrial strategy that welcomed foreign investment while building local capabilities.
Singapore enacted the Economic Expansion Incentives (Relief from Income Tax) Act to support industrial investment through tax relief. Such incentives helped attract multinational companies and encouraged upgrading into higher-value activities. Over time, these tools became a major part of Singapore’s investment-competition strategy.
The Jurong Town Corporation (later JTC Corporation) was formed to take over industrial estate development and management from the EDB. This let the government expand the model of planned industrial land and flatted factories across Singapore. Separating promotion (EDB) from industrial land development (JTC) sharpened implementation capacity.
The Development Bank of Singapore (DBS) was incorporated to take over industrial financing responsibilities from the EDB. Access to long-term credit supported factory investment, equipment purchases, and industrial expansion. Building strong local financial institutions complemented the industrial strategy by funding growth domestically.
Singapore established the Monetary Authority of Singapore (MAS) as the central bank and financial regulator. Stable money and a well-regulated banking system lowered risk for investors and supported Singapore’s goal of becoming a trusted business hub. This strengthened the policy foundations behind export-led growth and international finance.
The National Wages Council (NWC) was formed to give wage guidelines through a tripartite approach involving government, employers, and unions. This helped reduce industrial conflict and aligned wage growth with productivity and competitiveness. It also supported the broader promise to investors of a stable labour environment.
A container berth opened at Tanjong Pagar, marking a major step into containerisation (shipping goods in standard containers). Container handling reduced costs and improved speed and reliability for trade. This strengthened Singapore’s position in global supply chains, supporting manufacturing exports and investment.
The NWC adopted a three-year corrective wage policy with strong wage increases to encourage firms to move away from low-skill, labour-intensive activities. Higher labour costs created pressure to automate, invest in skills, and shift into higher value-added production. This was a deliberate attempt to upgrade the economy’s industrial structure.
After almost two decades of strong growth, Singapore entered its first recession in 1985. External demand weakened and domestic costs had risen, reducing competitiveness in some industries. The downturn forced a reassessment of policies, especially labour costs, productivity, and the next stage of upgrading.
In March 1985, the government formed an Economic Committee to study the recession and propose recovery measures. Its work linked short-term stabilisation (cost and wage measures) with long-term restructuring toward higher-value manufacturing and services. The committee’s recommendations shaped policy adjustments heading into the late 1980s.
The Economic Committee published the report "The Singapore Economy: New Directions" in 1986. It recommended measures such as CPF contribution cuts, wage restraint, and tax reductions to restore competitiveness, alongside continued movement up the value chain. These steps helped set the transition from earlier labour-intensive industrialisation toward more technology- and skill-intensive growth going into the late 1980s.
Singapore's Nation-Building Industrial Strategy (1965-1990)