Competition and crises Oil shocks and nearby infrastructure growth proved challenging in the 1970s southern Chinese port locations as sites of possible future development. Perhaps the major challenge to both Singapore as a nation and PSA in the 1970s was the 1973 oil crisis, which by its end in 1974 had seen the price of a barrel of oil rise from $3 to $12. Between 1965 and 1973 Singapore’s annual average real GDP growth was 12.7%; inflation was generally low and prices stable. However, the high
T
degree of Singapore’s manufacturing he 1970s were to see some of the
Pagar Container Terminal was paying
industry that was foreign owned and/
worst crises to face global trade
off for PSA – those Hitachi cranes were
or invested and the policy of boosting
and the global shipping industry
working day and night.
exports at all costs had the effect of
in the second half of the 20th century.
Goh Chok Tong, who was to go on
exposing Singapore to the oil price
Yet, Singapore initially powered on. By
to become Singapore’s second prime
shocks of the decade. The 1973 oil
the mid-1970s the length of highways,
minister, was managing director of NOL
crisis did put a dent in trade and GDP
streets and rural roads illuminated with
and expanding the line precipitously
growth, down to an average of 8.7%
streetlights had almost tripled from
– embracing the coming wave of
between 1973 and 1979. However,
892 km at independence to 2,281 km;
containerisation as well as cementing
what made the global recession more
planning had begun for Singapore’s
NOL’s (and by extension Singapore’s)
manageable for Singapore than for most
second power station at Senoko even as
position in the Europe-Asia trade
regional economies in the 1970s was its
the new Jurong Power Station was still
through joining the ACE Consortium
traditional position as a transhipment
under construction; work began on an
with partners OOCL, K Line, Cosco and
centre and as an entrepôt economy. Oil
entirely new passenger airport at Changi
Franco-Belgian Services. ACE quickly
may have quadrupled in price but it
while also expanding the old airport
became known as the ‘third force’ in the
was still in demand and still needed to
at Paya Lebar as a dedicated air cargo
global container shipping business.
be shipped and that invariably meant
hub. New manufacturing centres were
via Singapore from the Middle East to
being established in Jurong, Redhill and
country to attempt to revive its economy
oil hungry nations with no domestic
Tanglin.
through expanding low cost production.
reserves such as Japan.
PSA was still expanding Singapore’s
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But Singapore was not the only Asian
The 1970s was the start of the same
The combination of the global shock
port infrastructure too. It took over the
process for many regional nations
to the system of the oil crises of 1973,
former British naval base at Sembawang
that would, with Singapore, emerge as
and then again in 1979 following the
and established the Sembawang Wharves
the Asian Tigers of the 1980s. Taiwan,
outbreak of the Iranian revolution, and
handling breakbulk and specialised
South Korea and Hong Kong were all
the rise of regional competitors, both as
cargoes including heavy equipment,
attempting similar strategies. Malaysia
export-oriented economies and potential
steelworks, and cables. In part this
was attempting to reduce its reliance
transhipment hubs, meant Singapore
equipment was needed to support
on Singapore’s terminals by developing
had to be radical in its thinking once
Singapore’s massive construction boom
Port Klang as the country’s national
again. And it was. Singapore looked at
that saw the city transform from low-
load centre, and Tanjung Pelepas
where the world was shifting after a
rise to high-rise by the mid-1980s. A
as a regional transhipment centre;
tumultuous decade and decided, against
new terminal was also built at Jurong
Hong Kong was ramping up its port
the popular consensus, that perhaps it
to support the development of the new
infrastructure and Hong Kong-based
was just possible that the long dormant
Jurong Industrial Estate (JIE). The far-
port operators were already, by the
Chinese dragon was about to awaken
sighted decision to build the Tanjong
end of the 1970s, starting warily to eye
from three decades of Maoist slumber.
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