Goh Keng Swee by Tan Siok Sun

Author:Tan Siok Sun [Tan Siok Sun]
Language: eng
Format: epub
ISBN: 9789814260596
Publisher: Editions Didier Millet Pte Ltd
Published: 2011-07-14T16:00:00+00:00

On a collision course

In fact, for all the skirmishes over political issues, the “truce” declared between the PAP and the Tunku was breached on the economic front. One of the PAP’s main incentives for a merger with Malaysia was the lure of a common market. GKS knew that Singapore’s own market was much too small to sustain any large industrial base. A combined market of Peninsular Malaysia and Singapore would not only provide a much larger market and support more industries, it would also result in lower costs and more efficient industries. And that was why GKS had felt that the idea of a common market was central to the merger negotiations.

Unfortunately, the concept of a common market was stillborn. Shortly after the 1964 Malaysia General Election, the Malaysian Finance Minister, Tan Siew Sin, a second cousin of GKS, attempted to raise Singapore’s revenue payment to the Federal Government from 40 per cent to 60 per cent of the state’s revenue. When this attempt failed, Tan hinted that unless Singapore was prepared to pay more, the common market would take much longer to materialise.

GKS felt Tan had been against the idea of a common market right from the start – he felt that Singapore would have “the advantage of low costs” and that if the “Malaysian industries would be uncompetitive, the advantage would be overwhelmingly on Singapore’s side”. GKS did try his best to salvage the common market idea and approached a number of external experts for assistance. The World Bank eventually sent two officials; one of these was a Frenchman, Leonard Rist, who had been a political advisor to the World Bank President Robert McNamara. GKS would remember Rist for his perceptiveness, especially on the future of the common market. He said:

And I spoke to Leonard Rist, I said, “Look, we’re placing our faith in the hands of Kuala Lumpur – in the hands of the Finance Minister in Kuala Lumpur. Supposing he does not play the game and the common market does not get off the ground. What happens?” And Leonard Rist’s remark struck me as very profound and prophetic. He said,“In that event, Mr Minister, it’s not the common market which should be in danger; the whole concept of Malaysia will be in danger.” Very profound and prophetic statement.

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