BETWEEN POLITICS AND ECONOMY: THE ECONOMICS OF DECOLONISATION IN SINGAPORE, 1946-1959

Abstract

This thesis argues that economic and financial problems often worked in tandem with po¬ litical developments of the island to influence the trajectory of Singapore's decolonisation process. Beneath the politics of decolonisation in Singapore lay vital economic and finan¬ cial undercurrents acting as impetus for the process. These undercurrents were first re¬ vealed when the Malayan Union separated the island from its hinterland, bringing to light deep-seated tensions between the two territories. Economic and financial matters proved to be a vital factor that prevented closer cooperation between the two territories. The Emer¬ gency situation that erupted from 1948 pressed Singapore to develop its socio-economic sectors in order to improve the welfare of its inhabitants. This was vital in the broader fight against communism to maintain the stability and security of Singapore. Emergency how¬ ever further complicated the relationship between the two territories as it added another layer of competition, pushing the political trajectories of Singapore and Malaya further apart. By the mid to late-1950s, the divergent trajectories were manifested by Singapore's efforts to become economically viable as a self-governing state. Furthermore when the Federation of Malaya attained independence in 1957, Singapore's economic policies be¬ came increasingly insular and protectionist vis-a-vis Malaya, encapsulating the tenuous relationship between the two territories. This thesis thus examines the broad question of how economic and financial policies interacted with the decolonisation process in Singa¬ pore between 1946 and 1959 and its consequences on the political trajectory of the island vis-a-vis the long-term colonial objective of fusion between Singapore and Malaya.