Singapore

Singapore is considered a capitalist haven. After separating from the federation it shared with Malaysia in 1965, the Republic of Singapore had to start anew. For the first time, it was perfectly clear just how poor the place was as the the whole area consisted mainly of marsh and jungle. Due to the high birth rates and immigration, the population grew tremendously.

The People's Action Party was elected with Lee Kuan Yew as the prime minister. The problems then was mainly how to shape the new economy, plagued by massive unemployment and miserable living conditions. In order to ease unemployment, the first industries were labor-heavy ones. By 1970, the industries took a turn to capital-intensive projects and in 1980s, high technology and "brain services" were stressed.

The free port of Singapore also boosted the economy, with companies given tax incentives if they export their goods.

The government mainly supplied the appropriate infrastructure and business climate. The transport system then was already excellent, and supplemented by a mass rapid transit system.

Many undertakings were left to private sectors as well as local entrepreneurs. Yet, the problem was the were unwilling to enter the manufacturing industry which was more needed and more promising.

Thus, Singapore turned the trade currents to its own advantage by letting local merchant house manufacture goods on their own. These included the beverages, textiles, etc. Another important aspect is in the petroleum refining industry, where international oil companies sent oil to Singapore to be refined before exporting again. It was indeed a miracle that Singapore survived to thrive as an island on its own.