- SG also gained importance as port for the collection of good from East & distribution of manufactured goods from West.
ii. Improvement in communications:
- With arrival of steamships, Asians in SG also used them to transport their foods between SG & other ports in region.
- Letters from Euro to SG arrived in 5 weeks instead of 5 months
- Such improvement in speed of communications meant that letters & documents could be delivered in much shorter time & brought SG closer to rest of world.
- OPENING OF SUEZ CANAL IN 1869
- Why there was need to have alternative route for trade
- Before opening of Suez Canal (SC), ships travelling between Europe & Asia had to take long route round the Cape of Good Hope in southern Africa
- Cape route was long & often dangerous & sailing ships took 120 days to sail from London to SG
- French engineer, Ferdinand de Lesseps, came up with plans to shorten sea route around Africa by cutting long canal to link Mediterranean Sea with Red Sea
- Took 10 years & double amount of money originally intended to construct canal
- Became one of busiest waterways in the world
- Need for raw materials & new markets to sell good caused many merchants to seek shorter route to East
- How the opening of Suez Canal benefitted SG
i. Increase in trade:
- With advent of steamships & opening of Suez Canal, journey from London to SG shortened from 120 days to 50 days
- Mail & cargo from SG to Europe took shorted time to arrive
- Cost of shipping goods reduced because of savings in distance & time
- Traders could get goods from Europe faster & cheaper
- There was increase in the speed & volume of ships passing the Straits of Melaka
- SG’s importance as port of call & as trading centre increased as more traders called at port to refuel & collect food supplies
- SG operated as collection & distribution centre in the region
ii. Improvement in port facilities:
- With expansion in trade & arrival of steamships, Old Harbour became overcrowded
- The Old Harbour was small & short of modern facilities such as dry docks or ship repairing as well as sufficient warehouses along the banks of the river
- In 1852, the New Harbour was built in the strait between the southern coast of SG Island and two smaller islands – Pulau Brani & Pulau Blakang Mati (present-day Sentosa)
- In 1900, it was renamed Keppel Harbour
- New Harbour had deep waters allowing sailing ships & steamships to sail right up to the harbour
- The 2 smaller islands sheltered the New Harbour from strong winds & big waves
- In 1912, the govt set up SG Harbour Board to make new improvements to the port
- New wharves, docks, storehouses & machine shops were built
- Modern machinery such as forklifts, cranes & tractors used for loading & unloading of goods
- Railway system set up to link port to other parts of Malaya
- Improvements provided better & faster services in handling goods from ships which called at the port
- As volume of goods & number of ships coming into SG Harbour increased, SG became one of busiest ports in Asia
- War in Europe
- Countries in Europe divided themselves into 2 opposing groups in 1914
- Germany, Austria-Hungary & Ottoman Empire belonged to one group called the Central Powers
- Britain, France, Italy & Russia formed another group called the Allied Powers
- Situation in Europe was very tense & any spark would have torched a war
- So when Archduke of Austria-Hungary, Franz Ferdinand was murdered in 1914, European countries took sides in a war that erupted into World War I with the Central Powers fighting the Allies
- Effects on SG
- There was frantic rush to buy food when news of war broke out
- Even traders from neighbouring islands stocked shops with food from SG
- Prices of food soared
- Govt stepped in to forbid exports of large amounts of foodstuff to neighbouring countries
- Govt also increased imports of rice from Siam & Vietnam so as to assure people that there was enough food for everyone
- Few weeks after outbreak of war, things returned to normal
- Prices of food came down & trade resumed to normal
- EMDEN & ITS EFFECTS ON SG
- Emden, a German warship, arrived in the East in Sept 1914
- Started to attack British trading ships in the Indian Ocean
- Although it did not attack SG, SG’s shipping & trade were threatened by presence of Emden
- Menace to SG trade was removed after Emden was destroyed by Australian warship, Sydney, in Cocos Island
-
THE SEPOY MUTINY (aka MUTINY OF 5th NATIVE LIGHT INFANTRY) & ITS EFFECTS ON SG
- With German naval threat removed, the Brit ordered the sepoy regiment stationed in SG to depart for Hong Kong in Nov 1914
- Sepoys heard rumours that they might be sent to Europe or Turkey to fight Muslims
- In Feb 1915 when sepoys received orders to sail to HK, some decided to rebel
- On 15 Feb 1915, sepoys rose up against Brit and went round killing Europeans
- Rebellion became known as Sepoy Mutiny
- It was put down after 10 days
- 56 mutineers, 3 Chinese, 2 Malay civilians & more than 40 Europeans of whom 18 were civilians died in the mutiny
- 41 mutineers were sentenced to be shot & 126 others were sentences to jail
- Mutiny caused anxiety in SG but failed to gain support from local population
- Majority of Indeans & those in sepoy regiment did not participate in mutiny or help the sepoys
- Sikh police also remained loyal to govt throughout mutiny
- Alerted the Brit govt that it could afford to be careless about SG’s defence
- Highlighted that threats to SG’s peace could come from both inside & outside country
- THE GREAT DEPRESSION (effects on Singapore & its people)
(The Great Depression)
- Early 1920s, companies in America made huge profits & share prices rose. Buying shares became way to make quick money
- In 1929, many companies losing money as they were unable to sell their goods. As result, many people decided to sell their shares. This caused share prices to fall & more people decided to sell of shares
- On 24 OCT 1929, rapid plunge of share prices led to collapse of New York Stock Exchange located on Wall Street, which became known as the Wall Street Crash
- Many people who bought & sold shares on credit had to sell their possessions to pay banks what they owed
- Many tried to withdraw savings but banks did not have money to pay them. Even banks were forced to close down
- As a result, many people lost their savings
- With the increase in number of poor people, demand for goods fell because people could not afford to buy goods
- As American companies no longer making profits, workers were laid off or workers’ wages were cut
- The Great Depression was not confined to America; it affected other countries that traded with America, including SG
- It was only in 1934 that business conditions in America & other countries improved & exports from SG began to increase again
(Effects on Singapore)
- SG’s economy depended largely on overseas trade & it was affected as demand for certain commodities including tin & rubber dropped
- Many companies in SG suffered losses. To cut costs, companies retrenched workers. Many companies also went bankrupt
- Hardship & unemployment was rife
- Even govt had to cut down on number of workers & reduce pay of remaining workers
- Unemployed had to depend on friends or relatives or return to their homeland when their relatives could no longer support them
- To try to improve situation, govt passed a law in 1930 to impose quota on number of immigrants coming into SG. Number of Chinese immigrants dropped from 242000 in 1930 to less than 28000 in 1933
- Govt also sent large number of unemployed Chinese & Indians back to their homelands
*Questions to think about:
i. How did the Industrial Revolution affect Singapore?
ii. Why was there a need to build a New Harbour & what are the new facilities in the New Harbour?