Monday, September 24, 2007

How far do you agree that the need to set up a common market was the most important reason for merger between Singapore and Malaya?

I agree to an extent, that the need to set up a common market was the most important reason for merger between Singapore and Malaya.

It was thought to be able to bring about a rapid economic growth in Singapore and the PAP government felt that Singapore's survival as an independent state would be difficult due to the lack of natural resources, the declining of entrepot trade which was affecting it's economic growth, and a growing population which would have to be fed and fed with limited jobs.

The PAP government believed that if the merger occured, a common market would be set up to support Singapore's new industries. This way, goods could be bought and sold freely within the 2 countries without having to pay taxes and tariffs, trade in Singapore would increase, industries would expand, & new jobs could be offered.

By merging, the 2 countries could benefit as malaya would not require to Singapore when goods were transported from Singapore to Malaya.

All said.