September 1, 2023

As Singapore approaches its Presidential Elections, questions surrounding Singapore’s reserves have emerged in mainstream discussions. To demystify and expand on Singapore’s reserves, Channel NewsAsia has published an Online Special titled ‘Singapore Reserves Revealed’ (August 2023) that provides a holistic overview of our reserves and how they came to be.

Given her expertise on the history of the British Empire in Asia, Dr Donna Brunero (NUS History) is featured in the second episode of ‘Singapore Reserves Revealed’, where she discusses the role of the British in relation to Singapore’s reserves.

Paying attention to the Swinging Sixties, Dr Brunero highlights that although the period is viewed as a time of great cultural expansion, the British economy was doing poorly, and was no longer as competitive as before. The pound was weakening, and British goods were in relatively low demand, causing ex-colonies, like Singapore, to diversify their reserves by keeping them in other currencies instead. This inflamed the economic problems faced by the British and resulted in tensions between Singapore and Britain.

Dr Brunero then mentions that the British sought to cut their defence budget, where they had expanded their finances by keeping troops in former colonies such as Singapore. The extensive British military presence in Singapore was withdrawn, which had ramifications on Singapore’s economy given that the British military had previously stimulated local businesses and provided many jobs. Their sudden departure meant economic setbacks for the newly independent Singapore.

Dr Brunero thereafter underscores the foresight of Singapore’s leaders during this tumultuous period of our history. Despite the potential economic fallout from the British military’s withdrawal and the tensions over reserve diversification, Singapore’s leadership remained steadfast in its commitment to ensuring financial stability. As the video highlights, the establishment of the Government of Singapore Investment Corporation (GIC) in 1981 is a testament to this very commitment.

On the whole, Dr.Brunero’s insights offer a nuanced understanding of Singapore’s reserves and their historical context. As discussions about Singapore’s reserves continue in public discourse, it is essential to remember the historical decisions that have contributed to Singapore’s wealth today.

Watch the documentary episode here.