History · Secondary 3 · Survival and Sovereignty (1965–1970) · Semester 2

Export-Oriented Industrialisation Strategy

Singapore's economic shift from import-substitution to attracting multinational corporations (MNCs) and developing industrial estates like Jurong.

• MOE Syllabus Outcomes
• MOE: Challenges of an Independent Nation - S3

About This Topic

Singapore's economic strategy of Export-Oriented Industrialisation (EOI) was a bold and successful response to the limitations of its small domestic market. This topic explores how the government, led by Dr. Goh Keng Swee, moved away from 'import-substitution' and instead focused on attracting Multi-National Corporations (MNCs) to set up factories in Singapore.

For students, this is a lesson in economic innovation and risk-taking. It covers the creation of the Jurong Industrial Estate, once dismissed as 'Goh's Folly', and the role of the Economic Development Board (EDB) in marketing Singapore to the world as a stable and efficient manufacturing hub.

This topic comes alive when students can engage in collaborative problem-solving to 'pitch' Singapore to a foreign investor, helping them understand the competitive advantages the government had to create.

Key Questions

1. Analyze why Dr. Goh Keng Swee championed the 'Jurong Folly' as a critical economic strategy.
2. Explain how Singapore successfully attracted foreign investors despite its small size and lack of natural resources.
3. Evaluate the crucial role played by the Economic Development Board (EDB) in driving industrialisation.

Learning Objectives

• Analyze the economic rationale behind Singapore's shift from import-substitution to export-oriented industrialisation.
• Explain the strategies Singapore employed to attract foreign direct investment despite its limited resources.
• Evaluate the effectiveness of the Jurong Industrial Estate as a cornerstone of Singapore's industrialisation strategy.
• Identify the key roles and contributions of the Economic Development Board (EDB) in implementing the EOI strategy.

Before You Start

Singapore's Early Challenges Post-Independence

Why: Understanding the context of limited resources and a small domestic market is crucial for appreciating the necessity of the EOI strategy.

Principles of Trade and Economics

Why: Students need a basic understanding of concepts like imports, exports, and domestic markets to grasp the shift from ISI to EOI.

Key Vocabulary

Export-Oriented Industrialisation (EOI)	An economic strategy focused on producing goods for export to international markets, rather than for domestic consumption.
Import-Substitution Industrialisation (ISI)	An economic strategy that seeks to reduce a country's dependence on foreign imports by developing domestic industries.
Multinational Corporations (MNCs)	Large companies that operate in multiple countries, often establishing manufacturing facilities in nations offering specific economic advantages.
Jurong Industrial Estate	A large industrial area developed in Singapore, transforming swampland into a hub for manufacturing and attracting foreign investment.
Economic Development Board (EDB)	A government agency established to promote and manage Singapore's industrial development and attract foreign investment.

Watch Out for These Misconceptions

Common Misconception

MNCs came to Singapore just because labor was cheap.

What to Teach Instead

While labor was affordable, MNCs were also attracted by Singapore's political stability, strategic location, and efficient infrastructure. A 'why they came' ranking activity helps students see that 'stability' was often the most important factor for investors.

Common Misconception

Singapore's economic success was guaranteed after independence.

What to Teach Instead

It was a massive gamble that required radical changes in policy and a lot of hard work. Using a 'before and after' comparison of the economy helps students appreciate the scale of the transformation and the risks involved.

Active Learning Ideas

Simulation Game: The EDB Pitch

Students act as EDB officers in the 1960s. They must create a 'pitch' to a major MNC (like Texas Instruments or Rollei) to convince them to build a factory in Jurong instead of another country.

50 min·Small Groups

Inquiry Circle: Why Jurong?

Groups are given a map of Singapore in 1960. They must identify the pros and cons of choosing Jurong (a swampy area far from the city) for an industrial estate and explain why it was eventually a success.

40 min·Small Groups

Think-Pair-Share: From 'Folly' to Success

Students reflect on why people called Jurong 'Goh's Folly.' They share with a partner what this tells us about the importance of long-term vision and risk-taking in government.

20 min·Pairs

Real-World Connections

• Students can research current manufacturing hubs in Southeast Asia, such as those in Vietnam or Malaysia, and compare their strategies for attracting foreign investment to Singapore's historical approach.
• The development of Jurong Island, a massive land reclamation project housing petrochemical and pharmaceutical companies, is a modern-day continuation of Singapore's industrialisation vision, demonstrating the long-term impact of strategic planning.
• Professionals in economic development agencies worldwide, like the Korea Trade-Investment Promotion Agency (KOTRA), use similar strategies to attract foreign companies by highlighting infrastructure, skilled labor, and favorable business policies.

Assessment Ideas

Discussion Prompt

Facilitate a class debate using the prompt: 'Was the 'Jurong Folly' a necessary gamble for Singapore's survival?' Encourage students to cite specific evidence from the EOI strategy and its outcomes to support their arguments.

Exit Ticket

Ask students to write two key reasons why foreign investors chose Singapore in the 1960s and 70s, and one challenge the EDB had to overcome to attract them. Collect these to gauge understanding of investor motivations and government efforts.

Quick Check

Present students with a short case study of a hypothetical MNC looking to set up a factory in Asia in the 1960s. Ask them to list three specific incentives or advantages Singapore offered that would appeal to this company, based on the EOI strategy.

Frequently Asked Questions

What is Export-Oriented Industrialisation (EOI)?

EOI is an economic strategy where a country focuses on producing goods to be sold in the global market rather than just for its own people. For Singapore, this meant attracting foreign companies to build factories here and export their products to the rest of the world.

Why was Jurong Industrial Estate called 'Goh's Folly'?

It was called a 'folly' because many people thought it was a waste of money to build an industrial zone in a remote, swampy area. They doubted that any foreign companies would ever want to move there, but Dr. Goh Keng Swee's vision eventually proved them wrong.

How can active learning help students understand economic strategies?

By 'pitching' Singapore to investors, students learn to identify and articulate the factors that make a country attractive for business. This active approach helps them understand that economic growth is not accidental but is the result of strategic planning, marketing, and creating a conducive environment for investment.

What was the role of the Economic Development Board (EDB)?

The EDB was the government agency responsible for attracting foreign investment. Its officers traveled the world to meet with business leaders, offering them incentives and promising a stable, strike-free environment to convince them to choose Singapore.