I agree to a large extent. At that time, Singapore lacked natural resources and was also facing a declining entrepot trade. In addition to that, the growing population of Singapore caused an increase in the demand for more jobs. Also, the Malayan Government had decided to introduce import and export tariffs on goods that were traded between the two countries. This meant that taxes were to be collected on the goods that were going in and out of the country. Because of the tariffs, Singapore had to also pay taxes to Malaya if they were to trade, and that would cause Singapore to lose money as well.
Thus, the PAP government thought that the best way to settle Singapore's economic problems, which was a huge problem, was to merge with Malaya. The government also thought that by merging with Malaya, their economic problems will be solved, thus bringing a rapid economic growth as tariffs will no longer have to be paid. Also with this merger, Singapore hoped that a Common Market would be set up to support Singapore's companies. With a Common Market, goods could be bought and sold freely without paying taxes. This would not only increase trade, but would also expand industries and thus create more jobs.
Although there might be other reasons like breaking free from the British completely by riding on Malaysia's indepence, the PAP government thought that since Singapore's economic problems could be solved by setting up a Common Market, it was still one of the best reasons for merger with Malaya.
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4 comments:
it may be the best way to solve unemployment problem or the economic problem by setting up a Common Market, but do you think that this solution which is to set up a Common Market will last long of couse without knowing that the merger will end two years later? other countries may also introduce tariffs for example china for instance? do you also think that setting up a Common Market to solve the unemployment problem is a panacea?
maybe setting up a Common Market won't solve all the economic problems after 2 years, but at least when the problems are solved at the moment, and trade gets better, demand for jobs improve, Singapore might not have to rely on the Common Market for as an only source for economic purposes. Thanks.
Nice use of vocab. :D
I agreed! however, there are other reasons are proved to be important too.
i agree with you that it was the most important reason sis. way to go!
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