Does Singapore need Economic Restructuring II?

[weijian]

The last time Singapore tried that in the early 80s, it triggered a recession.

IIRC, the intent back then was to move away from Labour intensive industries like Garment manufacturing and even Electronics (hand assembly type). So, yes, I think they raised the minimum wages to 'force' cos. to improve productivity ie. less labour intensive and more automation. What happened was a recession - many people lost their jobs when factories were forced to close down instead. Those who had a job suffered pay cuts/freeze and no/tiny bonus. I remembered that part cos' I was one of the 'lucky' ones!

First, i have to admit that i was still pretty much a toddler during the early 1980s. But i do read about the 1979 iran oil crisis that accumulated in Paul Volcker increasing interest rates from ~10% to 18% in 1981. That killed the inflation virus but also the US economy.

Would that be linked to the recession in Spore instead? (Since Spore is a open economy, i believe her ups/downs is more closely tied to that of the world's, rather than the actions of her policymakers)