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Chapter 3:
How did British Rule and

External Developments Affect
Singapore’s Growth as a Port
City from 1819-1942?
● Opening of the Suez Canal
● Expansion of industries
○ Tin
○ Rubber
● The Great Depression
How did British Rule and External Developments Affect
Singapore’s Growth as a Port City from 1819-1942?
● Thriving economy
Country B
Economics 101
Imports = Goods coming in
Exports = Goods going out
Demand = People want this good

Supply = People provide this good
Country A
THE OPENING OF THE SUEZ CANAL (p. 113-115)
● Prior to its opening ships travelling from Europe to Asia took a
longer route around the cape of good hope.
● The journey from London to Singapore took 120 days.
● Using the Suez canal, ships only took 50 days
● Only steamships were used instead of the slower sailing ships as a
result since there were no winds for sailing ships along the Suez
canal throughout the year.
Opening of the Suez Canal
IMAPCT OF THE SUEZ CANAL ON SINGAPORE
● It had a positive economic impact on Singapore as it lowered

shipping cost since the time and distance taken were shortened.
● Consequently, it increased the volume of ships passing through
the Melaka Straits, which meant they would call at Singapore for
refueling and supplies.
IMAPCT OF THE SUEZ CANAL ON SINGAPORE
● As a result, the Melaka Straits became more important than the Sunda Straits
as the main route from Europe to the Far East. This secured Singapore's
dominance in the region.
● As sailing ships could not use the Suez Canal throughout the year, steamships
were preferred. This, again gave Singapore an added role as a coaling station.
● Thus, Singapore became even more important in the trade between Europe
and the Asia Pacific region.
The Suez Canal drew more trade business to
Singapore, allowing Singapore to flourish as
a port city.
Suez Canal blockage,
23 March 2021.
Blockage removed
on 29 March.
Reasons for the expansion of the tin trade
● Spread of British control to parts of Malaya after 1874. This brought peace to
Malaya and facilitated the development of tin mining and the tin trade.
● The canning industry expanded in USA resulting in an increased demand for
tin.
● New machinery and mining methods used made Malaya the fourth largest tin
producer in the world. By 1890s it produced more than half of the world’s tin.
● It then led to the growth of trade between Malaya and the Straits Settlement,
especially Singapore.
Singapore’s role in the tin trade
● From 1890, much of Malaya’s tin was brought to Singapore as tin ore (tin that
had not been purified)
● There was a tin smelting factory on Pulau Brani where the tin ore was smelted
and made into blocks.
● By the early 20th century, this factory had become the leading tin smelter in
the world.
● This increased the general prosperity of Singapore and tin was an important
trade item.
Singapore’s role in the tin trade
● From 1890, much of Malaya’s tin was brought to Singapore as tin ore (tin that
had not been purified)
● There was a tin smelting factory on Pulau Brani where the tin ore was smelted
and made into blocks.
● By the early 20th century, this factory had become the leading tin smelter in
the world.
● This increased the general prosperity of Singapore and tin was an important
trade item.
The tin industry contributed to Singapore’s
growth as a port city as tin was a highly
valued commodity that increased
Singapore’s trade opportunities with the rest
of the world.
Reasons for the expansion of the rubber industry
● Motor car industry created a demand for rubber tyres.
● John Dunlops’ invention of the pneumatic tyre for bicycles and cars
contributed to this boom.
● Supply of rubber from Brazil was insufficient to meet demand hence the price
of rubber spiked.
● European and Chinese traders provided capital to open rubber plantations.
Reasons for the expansion of the rubber industry
● These new companies sold shares (investments individuals put in for part
ownership) to the public in order to raise capital for more plantations.
● In 1911, a Rubber association was set up to organise the sales of rubber in
Singapore making it into an international market. This caused exports of
rubber from Malaya to rise and soon Malaya overtook Brazil as the world’s
biggest producer, most of which was exported through Singapore.
The rubber industry contributed to
Singapore’s growth as a port city as rubber
was a highly valued commodity that
increased Singapore’s trade opportunities
with the rest of the world.
THE GREAT DEPRESSION 1929
● In the early 1920s people bought shares in companies in the USA.
● By 1929 many companies were losing money as they could not sell their goods.
This caused people to sell their shares causing share prices to fall, making
even more people sell their shares perhaps in panic.
● On 24th Oct 1929 share prices decreased rapidly causing the New York Stock
Exchange to collapse. It was called the Wall Street crash since the exchange
was located there.
THE GREAT DEPRESSION 1929
● Many lost life savings Banks closed down.
● When banks could not meet the demands of people wanting to withdraw their
savings, a run on the banks occur.
● Spending on goods fell and companies were no longer making profits, they
had to cut wages of workers or get rid of them-led to rising unemployment.
How did the Great Depression affect Singapore?
● The Great depression may have started in USA but impacted America’s
trading partners. Singapore was affected as the demand for certain goods
decreased- like tin and rubber.
● Singapore’s economy depended on overseas trade, especially export of tin and
rubber to USA .
How did the Great Depression affect Singapore?
● Supply of tin and rubber exceeded demand and their prices plummeted. Eg
the price of rubber fell from 34 cents in 1929 to 4.95 cents in 1932.
● Wealth of many businessmen were lost, companies retrenched staff and there
was widespread unemployment and hardship.
● READ SOURCE 4 PG 122
● WHO WERE MOST AFFECTED?
● HOW DID THEY COPE?
SOLUTIONS BY GOVERNMENT
● Government reduced wages and number of workers in the civil service
● The government passed laws from 1928 to restrict and reduce the number of
migrants entering Singapore, especially unskilled male Chinese labourers.
● They arranged for large numbers of unemployed Chinese and Indians to
return to their homeland.
● The situation improved by 1934.
● Do the summary of content on pg 128

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Chapter 3:

How did British Rule and

How did British Rule and External Developments Affect

Singapore’s Growth as a Port City from 1819-1942?

Imports = Goods coming in

Exports = Goods going out

Demand = People want this good

● It had a positive economic impact on Singapore as it lowered

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