- World War I
- Great Depression
The Great Depression started off in America. It was a time when there was a great decrease in business activities with widespread of unemployment around the world. Many lives were affected as people were living in poverty.
The Great Depression also affected Singapore's economy as it depended largely on overseas trade. The Great Depression caused companies in Singapore to suffer losses. They had to cut expenses by retrenching workers. Conditions were so poor that many businessmen who depended largely on overseas trade lost their wealth or became bankrupt. Thus, there was widespread of unemployment and hardship. Singapore had to take drastic measures by reducing and restricting the number of immigrants coming to Singapore and some had to return to their homeland. As there was limited jobs, whenever there was a job vacancy, hundreds would rush to apply for it. Those with jobs have to take a pay cut. Thus, many people suffered from hardship due to the Great Depression. Many live in poverty.
However, World War I was also a problem because it did affect the lives of people of Singapore.
World War I took place in Europe when countries in Europe had divided themselves into two opposing groups. One group called themselves the Central Powers which consisted of Germany, Austria-Hungary and the Ottoman Empire and the other group with Britain, France and Russia called themselves the Allied Powers. The war eventually involved about 30 countries in Europe and approximately 10 million people died as a result of the war.
Although the war did not happen here in Singapore, it did affected the people as there was a rush for food. Many people in Singapore bought food and this caused the price of food to soar. People became worried. The government had to step in by forbidding the export of food to neighbouring countries and increase the import of rice from Siam and Vietnam. This assured the people that there was enough food for everybody. Singapore's trade was also affected for a short period when the German warship, Emden was stationed outside Singapore's waters. This affected Singapore's trade as British trading ships were attacked. But once the warship was destroyed by the Australian warship, trade went back to normal.
