Building the economy

IN THE early 1960s, Singapore had only a small manufacturing base with very mediocre infrastructure, minimal domestic capital and scant foreign investment. Post-independence, the Republic lost its source of raw materials - which came mainly from Malaysia - as well as a domestic market for its goods.

To strengthen the economy, the government shifted its focus towards export-oriented industries by attracting foreign investors to Singapore to develop both the manufacturing and financial sectors. Fast forward five decades and manufacturing is now one of the key growth drivers of the Singapore economy, accounting for about a fifth of the country's gross domestic product (GDP).

Pick up any IT gadget such as a mobile phone, laptop or vehicle navigation system and chances are that parts of it were designed or made in Singapore. About one in six people in the Republic's labour force work in the manufacturing sector which is now broad-based and cuts across many different industries.