From the time of independence from British colonial rule in 1962 and of separation from the Federation of Malaysia in 1965, Singapore has undergone a most remarkable economic transformation. At the time of independence the economic prospects were dismal. Separation from Malaysia severed Singapore from its hinterland. Britain’s decision in the early 1970s to give up their naval base in Singapore, which had accounted for a significant proportion of the country’s GNP, aggravated the economic problems further