In the 1960s, Singapore was a third world country with a GNP per capita of less than US$320. Infrastructure was poor, there was little capital; the handful of industries produced only for domestic consumption. Low-end commerce was the mainstay of the economy, and there was little or no direct foreign investment.

There was massive unemployment and labour unrest following the withdrawal of the British troops.

Creating jobs was the priority, and this meant attracting labour-intensive industries. But first, there had to be an environment conducive to industrial development.

Thus, Jurong Industrial Estate was born. A swampy area along the west coast of the island, Jurong was transformed into Singapore's first industrial estate. The Singapore Economic Development Board (EDB), formed in 1961 with a budget of $100 million, set about the challenge of convincing foreign investors that Singapore was a good place for business.

Singapore's industrialisation programme began with factories producing garments, textiles, toys, wood products and hair wigs. Along with these labour-intensive industries were capital and technology-intensive projects from companies such as Shell Eastern Petroleum and the National Iron and Steel Mills.

The expulsion of Singapore from Malaya in 1965 meant the loss of a vast hinterland from which to draw raw materials, as well as a large domestic market to absorb finished goods. The new challenge for Singapore was to develop export-oriented industries. EDB opened its first overseas centres in Hong Kong and New York to be better placed to woo foreign investors.