Full Internal Self-government (1959-1963)
Elections for the new Legislative Assembly were held in May 1959. This time round, the PAP swept the election, winning forty-three of the fifty-one seats. They had accomplished this by courting the Chinese-speaking majority, particularly those in the labour unions and radical student organizations. The leader of the PAP, Lee Kuan Yew, became the first Prime Minister of Singapore.
The PAP's victory was viewed with dismay by foreign and local business leaders. Although Lee and the other leaders of the PAP hailed from the "moderate" wing of the party, many of the other members were staunchly pro-communist. Many businesses promptly shifted their headquarters from Singapore to Kuala Lumpur. Despite these ill omens, the PAP government embarked on a vigorous program to address Singapore's various economic and social problems. The plan for the economy was overseen by the capable Goh Keng Swee, the new Minister of Finance, whose strategy was to encourage foreign and local investment using a wide variety of measures, ranging from low tax rates and tax holidays to the establishment of a new industrial estate in the Jurong area. At the same time, the education system was revamped with the goal of suiting the workforce to the needs of employers; more technical and vocational schools were established, and the English language was promoted over the Chinese language as a language of instruction. The long-standing problem of labour unrest was suppressed by consolidating existing labour unions, sometimes forcibly, into a single umbrella organization, the National Trades Union Congress (NTUC), which was closely affiliated with the government. On the social front, an attack was launched on the long-standing housing problem by an aggressive and well-funded public housing program, overseen by the Housing and Development Board (HDB). Headed by the banker and industrialist Lim Kim San, the HDB constructed more than 5,000 high-rise, low-cost apartments during its first two years of operation.
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