External

Development
No. 3
The Great Depression -
1929
 Lesson Agenda

By the end of the lesson, you would

be able to:
 Identify the characteristics of the
Great Depression and its impact
globally.
 The specific ways it impacted
Singapore.

This Photo by Unknown Author is licensed under CC BY-SA

 Events leading to the Great
Depression
 In the early 1920s, companies in the US – making
huge profits. Prices of shares rose
 Many people bought shares to make quick money
 By 1929, many companies were losing money – not
able to sell their goods as the companies had
produced more than they could sell.
 Many people decided to sell their shares – caused
share prices to fall – this in turn caused more people
to sell their shares
Caused the share prices to decrease rapidly
This Photo by Unknown Author is licensed under CC BY

 Events leading to the Great Depression
 Those who had borrowed money to buy shares had to sell their
belongings – to pay banks

 Tried to withdraw their savings from the bank:

 some banks did not have the money to pay them

 Were forced to close down – people lost their entire life

savings.

 With economic hardship – spending on goods fell drastically –

Companies in the US were no longer making profits This Photo by Unknown Author is licensed under CC BY-SA

 These companies had to cut the wages of workers – many were

laid off and unemployment rose
 Great Depression on a Global Scale
 The Great Depression – not confined to the United
States

 …had an impact on countries that traded with it –

which was practically the whole world

 Singapore was affected as the demand for certain

commodities:
 For example : Tin and Rubber dropped drastically.
 Impact of the Great Depression on
Singapore
 Singapore – hit badly by Great Depression – highly dependent on international trade.

 Demand for tin and rubber dropped – prior to the Great Depression prices of rubber and
tin were relatively high

 As a result, too much tin and rubber was produced:

 oversupply and demand fell

 This meant that price also fell drastically

Impact on Malaya
and Singapore  Great Depression worsened the lives of people in
different communities in Singapore

 Companies in Malaya and Singapore:

 Suffered losses

 Had to cut expenses by re-trenching workers

 Many businessmen lost their wealth or became bankrupt

 Widespread unemployment and hardship was

commonplace.
 Impact on ordinary people in Singapore
 Rise in Unemployment:
 Difficult for people to find jobs – whenever there was a job vacancy hundreds would apply

 Even the colonial government had to cut the number of its workers and reduce the pay of
those who remained

 Many had to depend on friends and relatives

 Many migrants had to return to their homelands – when friends and relatives could no
longer support them.
 Impact on ordinary people of Singapore
 Restrictions on Immigration:

 Colonial govt – imposed immigration ordinances that reduced and restricted the
numbers of immigrants coming to Singapore

 This was especially for those who were unskilled male labourers

 Chinese immigration dropped:

 1930: 242, 000 to 28,000 in 1933

 Colonial govt also arranged for large numbers of unemployed Chinese and Indians to
return to their homelands
 1934…

 It was only when business conditions improved in the United States

and western countries that exports from Singapore began to grow
and…

 Singapore’s economy improved slowly…