The aftermath of the Pacific War in 1945 had created severe social and
economic dislocations for the people of Singapore. Although the British rulers
reclaimed control of the trading port, the halo of British invincibility was totally
shattered. The people now clamoured for political freedom and economic
opportunities. There were frequent industrial strikes and unrest which forced the
closure of many British firms and, subsequently, an exodus of British capital out
of Singapore. The population grew from about 960,000 in 1948 to about 1.6
million in 1954 but the colonial administration was slow in reviving the economy
and in providing enough jobs. There was high unemployment and an acute
shortage of public housing. Many squatter colonies sprouted out throughout the
suburban and rural areas. In the 1950s, racial integration did not exist and within
the plural society the main ethnic groups considered themselves as Chinese,
Malays and Indians, rather than as Singaporeans. Religious differences, if
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exploited, could lead to communal trouble, and this became a reality in the
infamous Maria Hertogh riots.