Despite the momentous event, Lee did not call for the parliament to convene to reconcile the issues that Singapore would face immediately as a new nation. Without giving further instructions on who should act in his absence, he went into isolation for six weeks, unreachable by phone, at
Changi Cottage. According to then-deputy prime minister
Toh Chin Chye, the parliament hung in "suspended animation" until the sitting in December that year. on 21 October 1967: Seen here, from left:
Abdul Rahim Ishak, Minister of State for Education of Singapore; Prime Minister Lee Kuan Yew; Secretary-General
U Thant;
S. Rajaratnam, Minister of Foreign Affairs of Singapore; and Ambassador
Wong Lin Ken, Permanent Representative of Singapore to the United Nations. In his memoirs, Lee said that he was unable to sleep and was prescribed tranquilizers from doctors. Upon learning of Lee's condition from the
British High Commissioner to Singapore, John Robb, the British prime minister,
Harold Wilson, expressed concern, in response to which Lee replied: Lee began to seek international recognition of Singapore's independence. Singapore joined the United Nations on 21 September 1965, and founded the
Association of Southeast Asian Nations (ASEAN) on 8 August 1967 with four other South-East Asian countries. Lee made his first official visit to Indonesia on 25 May 1973, just a few years after the
Indonesia–Malaysia confrontation under
Sukarno's regime. Relations between Singapore and Indonesia substantially improved as subsequent visits were made between the two countries. Singapore has never had a dominant culture to which immigrants could assimilate, even though Malay was the dominant language at that time. Together with efforts from the government and ruling party, Lee tried to create a unique Singaporean identity in the 1970s and 1980s—one which heavily recognised racial consciousness within the umbrella of
multiculturalism. Lee and his government stressed the importance of maintaining religious tolerance and racial harmony, and they were ready to use the law to counter any threat that might incite ethnic and religious violence. For example, Lee warned against "insensitive evangelisation", by which he referred to instances of Christian proselytising directed at Malays. In 1974 the government advised the Bible Society of Singapore to stop publishing religious material in Malay.
Defence The vulnerability of Singapore was deeply felt, with threats from multiple sources, including the communists and Indonesia with its confrontational stance. Adding to this vulnerability was the impending withdrawal of British forces from
East of Suez. As Singapore gained admission to the United Nations, Lee quickly sought international recognition of Singapore's independence. He appointed
Goh Keng Swee as
Minister for the Interior and Defence to build up the
Singapore Armed Forces (SAF) and requested help from other countries, particularly Israel and Taiwan, for advice, training and facilities. To be discreet and not upset Malaysian's Muslim majority any further, Singapore officially designated Jewish Israeli military advisors as "Mexicans". In 1967, Lee introduced conscription for all able-bodied male Singaporean citizens 18 years of age to serve National Service (NS) either in the SAF,
Singapore Police Force or the
Singapore Civil Defence Force. By 1971, Singapore had 17 national service battalions (16,000 men) with 14 battalions (11,000 men) in the reserves. In 1975, Lee and Republic of China premier
Chiang Ching-kuo signed an agreement permitting Singaporean troops to train in Taiwan, under the codename "
Project Starlight".
Economy One of Lee's most urgent tasks upon Singapore's independence was to address high unemployment. Together with his economic aide,
Economic Development Board chairman
Hon Sui Sen, and in consultation with Dutch economist
Albert Winsemius, Lee set up factories and initially focused on the manufacturing industry. Before the British completely withdrew from Singapore in 1971, Lee also persuaded the British not to destroy their dock and had the British naval dockyard later converted for civilian use. Eventually, Lee and his cabinet decided the best way to boost Singapore's economy was to attract foreign investments from
multinational corporations (MNCs). By establishing First World infrastructure and standards in Singapore, the new nation could attract American, Japanese and European business. By the 1970s multinational corporations like
Texas Instruments,
Hewlett-Packard, and
General Electric began turning Singapore into a major
electronics exporter. Workers were frequently trained to familiarise themselves with the work systems and cultures of foreign companies. The government also started several new industries, such as steel mills under 'National Iron and Steel Mills', service industries like
Neptune Orient Lines, and the
Singapore Airlines. Lee and his cabinet also worked to establish Singapore as an international financial centre. Foreign bankers were assured of the reliability of Singapore's social conditions, with top-class infrastructure and skilled professionals, and investors were made to understand that the Singapore government would pursue sound
macroeconomic policies, with
budget surpluses, leading to a stable valued Singapore dollar. Throughout the tenure of his office, Lee placed great importance on developing the economy, and his attention to detail on this aspect went even to the extent of connecting it with other facets of Singapore, including the country's extensive and meticulous tending of its international image of being a "Garden City". The 1967 "Garden City" planning initiative included prominent roadside greenery along the
East Coast Parkway (ECP) highway connecting
Singapore Changi Airport with
Singapore Central Area.
Anti-corruption measures Lee introduced legislation giving the
Corrupt Practices Investigation Bureau (CPIB) greater power to conduct arrests, search, call up witnesses, and investigate bank accounts and income-tax returns of suspected persons and their families. Lee believed that ministers should be well paid in order to maintain a clean and honest government. On 21 November 1986, Lee received a complaint of corruption against then Minister for National Development
Teh Cheang Wan. Lee authorised the
CPIB to carry out investigations on Teh, but Teh committed suicide before any charges could be pressed against him. In 1994, he proposed to link the salaries of ministers, judges, and top civil servants to the salaries of top professionals in the private sector, arguing that this would help recruit and retain talent to serve in the public sector.
Population policies In the late 1960s, fearing that Singapore's growing population might overburden the developing economy, Lee started a "
Stop at Two"
family planning campaign. Couples were urged to undergo
sterilisation after their second child. Third or fourth children were given lower priorities in education and such families received fewer economic
rebates. By the late 1990s the birth rate had fallen so low that Lee's successor
Goh Chok Tong extended these incentives to all married women, and gave even more incentives, such as the "baby bonus" scheme. As a result of such efforts, Singapore has achieved self-sufficiency with its water supply since the mid-2010s. Under Lee
tree planting was pursued, in 1963 he began a tree-planting campaign which aimed to plant 10,000 saplings a year and in 1971 a 'Tree-Planting Day' was established. One of the goals of this was to increase rainfall. He also made efforts to clean Singapore's waters for collection and use.
Environment Lee envisioned Singapore as a
garden city, declaring that "no other hallmark of success will be more distinctive than that of achieving our position as the cleanest and greenest city in
Southeast Asia". He later said that "
greening is the most cost-effective project I have launched". Lee set up an 'Anti-Pollution Unit' stating that its importance resided in giving citizens "respite from city centres" and in the small size of Singapore which made it necessary to "preserve a clean and gracious environment for rich and poor alike". In 1995 Lee declared "I have always believed that a blighted urban landscape, a concrete jungle, destroys the human spirit. We need the greenery of nature to lift our spirits". Lee saw this as a means of attracting tourists and businesspeople to the city. He wrote that "without a word being said, they would know that Singaporeans were competent, disciplined, and reliable, a people who would learn the skills they required soon enough". After independence Lee sought for "some dramatic way to distinguish ourselves from other Third World countries. I settled for a clean and green Singapore" because "if we had
First World standards then business people and tourists would make us a base for their business and tours of the region". Lee considered
air conditioning the most important invention of the 20th century for Singapore. Air quality relates to work quality and as such Lee made sure air conditioning was installed in the offices of the Singaporean civil service in the 1960s.
Foreign policy Malaysia and Mahathir Mohamad Lee looked forward to improving relationships with
Mahathir Mohamad upon the latter's promotion to Deputy Prime Minister. Knowing that Mahathir was in line to become the next
Prime Minister of Malaysia, Lee invited Mahathir to visit Singapore in 1978. The first and subsequent visits improved both personal and diplomatic relationships between them. Then
UMNO's Secretary-General Mahathir asked Lee to cut off all links with the
Democratic Action Party (DAP); in exchange, Mahathir undertook not to interfere in the affairs of
Malay Singaporeans. In June 1988, Lee and Mahathir reached an agreement in
Kuala Lumpur to build the Linggui dam on the
Johor River. Lee said he had made more progress solving bilateral issues with Dr Mahathir from 1981 to 1990 than in the previous 12 years with the latter's two predecessors.
Indonesia In March 1967, the
president of Indonesia,
Sukarno, who had initiated the
Konfrontasi, resigned from the presidency under pressure by military general
Suharto amidst the
30 September Movement. A clemency plea by President Suharto for Osman bin Mohamed Ali and Harun bin Said, the perpetrators of the
MacDonald House bombing in March 1965 during
Konfrontasi, was rejected. The Singapore Embassy in Jakarta was occupied on the day of the saboteurs' hanging by 300 students. However,
Bilateral relations between Singapore and Indonesia would improve after 1973, when Lee visited the graves of Harun and Osman in Indonesia (
nyekar) and scattered flowers on them. This was followed by Suharto's visit to Singapore in 1974. From the 1980s, exchanges would sharply increase between the two countries in politics, tourism, defence, business, and
student and community-based exchanges. In 1978, Suharto rallied ASEAN to oppose Australia's newly proclaimed integrated civil aviation policy, which cut
Kangaroo Route air access to Singapore while providing inducements to Indonesia and other countries in the region. Suharto believed that ASEAN should not give in to such tactics and inducements, and Australia relented. According to Lee, this was part of a broader strategy by the United States to influence the political landscape in Southeast Asia during the Cold War. He mentioned that he confronted the CIA's representative in Singapore and demanded an explanation and compensation for this interference. After having two CIA agents arrested, Lee requested 3.5 million dollars in
economic aid in exchange for the covert release of the two agents. The Americans rejected this offer and presented a counter-offer of 3.3 million dollars to be given directly to Lee and the People's Action Party, but the men were later released without any financial exchange. However instead of taking a passive approach, Lee negotiated with the CIA and eventually the US government agreed to pay a sum of 3.3 million dollars in formal economic aid to Singapore, which Lee claimed was to ensure that the U.S. would not interfere in Singapore's internal affairs. Lee revealed this incident in 1965, which led to the Americans to deny it ever occurred; however, Lee later made public a letter of apology from the US Secretary of State
Dean Rusk over the incident. with United States President
Ronald Reagan and his wife
Nancy Reagan on 8 October 1985 at the
White House Lee fully supported the US involvement in the
Vietnam War. Even as the war began to lose its popularity in the United States, Lee made his first official visit to the United States in October 1967, and declared to President
Lyndon B. Johnson that his support for the war in Vietnam was "unequivocal". Lee saw the war as necessary for states in Southeast Asia like Singapore to buy time for stabilising their governments and economies. Lee cultivated close relationships with presidents
Richard Nixon and
Ronald Reagan, as well as former secretaries of state
Henry Kissinger and
George Shultz. In 1967 Nixon, who was running for president in 1968, visited Singapore and met with Lee, who advised that the United States had much to gain by engaging with China, culminating in
Richard Nixon's 1972 visit to China. In the 1980s, closer defence relations between Singapore and the United States enabled Singapore to acquire advanced American weapon platforms and capabilities. The United States provided Singapore with aircraft such as the
F-16 and the
E-2C airborne early warning (AEW) to strengthen its air defences. In October 1985, Lee made a state visit to the United States on the invitation of President Reagan and addressed a
joint session of the United States Congress. Lee stressed to Congress the importance of free trade and urged it not to turn towards protectionism: In May 1988, E. Mason "Hank" Hendrickson was serving as the First Secretary of the United States Embassy when he was expelled by the Singapore government. The Singapore government alleged that Hendrickson attempted to interfere in Singapore's internal affairs by cultivating opposition figures in a "
Marxist conspiracy". Then-First Deputy Prime Minister
Goh Chok Tong claimed that Hendrickson's alleged conspiracy could have resulted in the election of 20 or 30 opposition politicians to Parliament, which in his words could lead to "horrendous" effects, possibly even the paralysis and fall of the Singapore government. In the aftermath of Hendrickson's expulsion, the U.S. State Department praised Hendrickson's performance in Singapore and denied any impropriety in his actions. The State Department's refusal to reprimand Hendrickson, along with its expulsion of the Singaporean diplomat, sparked a rare protest in Singapore by the
National Trades Union Congress; they drove buses around the U.S. embassy, held a rally attended by four thousand workers, and issued a statement deriding the U.S. as "sneaky, arrogant, and untrustworthy".
China Singapore did not establish diplomatic relations with China until the U.S. and Southeast Asia had decided they wanted to do so in order to avoid portraying a pro-China bias. His official visits to China starting in 1976 were conducted in English, to assure other countries that he represented Singapore, and not a "Third China" (the first two being the
Republic of China (
Taiwan) and
People's Republic of China). In November 1978, after China had stabilised following political turmoil in the aftermath of
Mao Zedong's death and the
Gang of Four,
Deng Xiaoping visited Singapore and met Lee. Deng was very impressed with Singapore's economic development, greenery and housing, and later sent tens of thousands of Chinese to Singapore and countries around the world to learn from their experiences and bring back their knowledge as part of the
reform and opening up beginning in December 1978. Lee, on the other hand, advised Deng to stop exporting Communist ideologies to Southeast Asia, advice that Deng later followed. This culminated in the exchange of Trade Offices between the two nations in September 1981. In 1985, commercial air services between mainland China and Singapore commenced and China appointed
Goh Keng Swee, Singapore's finance minister in the post-independence years, as advisor on the development of
Special Economic Zones. On 3 October 1990, Singapore
revised diplomatic relations from the Republic of China to the People's Republic of China.
United Kingdom Lee developed friendships with Prime Ministers
Harold Wilson and
Margaret Thatcher. However, mounting economic problems in Britain led to a weakening faith in the pound sterling, and the Singapore Government began reducing its sterling holdings from about 90 percent to just 50 percent by November 1967, when the Labour government devaluated pound sterling. Chancellor of the Exchequer
Roy Jenkins, in a letter to Goh Keng Swee, expressed his “regret that [Singapore] did not take [the UK] into their confidence” when diversifying out of Sterling. To which Goh retorted in reply that Singapore sustained losses of about US$157 million as a result of the pound's devaluation. No longer able to afford its military commitment in Southeast Asia, Britain announced in January 1968, the total withdrawal of its troops East of Suez, with the pullout from Malaysia and Singapore to be done by 31 March 1971 – four years earlier than planned. The announcement came as a shock to Singapore, because the British had earlier committed to a phased withdrawal. Singapore acquired a squadron of British
Hawker Hunter planes for its new air force, arriving in Singapore in 1970. To make up for Britain's withdrawal, Singapore's military spending was tripled, and an air force and a navy were added to support the army. When Wilson's Labour government lost the 1970 election to the Conservatives under
Edward Heath, the new Conservative government facilitated the
Five Power Defence Arrangements, comprising the United Kingdom, Australia, New Zealand, Malaysia and Singapore, to give a deterrent message that any attack on Singapore or Malaysia would lead to a potential intervention of British, Australian and New Zealand forces. Although most of the British troops had withdrawn from Singapore by October 1971, a small contingent of British, Australian and New Zealand forces stayed on as a token military presence. The last British soldier left Singapore in March 1976.
Australia Australia, under Prime Minister
Robert Menzies was one of the first countries to recognise Singapore's independence. However, Lee would later clash with Australian leaders
John Gorton and
Gough Whitlam who were inclined to pull Australia back from the Five Power Defence Arrangement (FPDA). Lee clashed fiercely with Whitlam. Whitlam was initially reluctant to take too many of the Vietnamese boat people and tried to make Singapore take the first refugees from the Vietnam War. Lee retorted that Whitlam ‘a very sympathetic Prime Minister who believes the White Australia policy is most deplorable and damnable and here is his chance.’ Singapore-Australia relations improved with Whitlam's successor,
Malcolm Fraser. Lee held him in high regard for his support in confronting communism and defending the FPDA. Upon Lee's death, Hawke said "Lee Kuan Yew was a great friend of Australia, if at times an outspoken one". The Singapore government organised an international campaign to condemn Vietnam and provided aid to the
Khmer Rouge which was fighting against Vietnamese occupation during the
Cambodian–Vietnamese War from 1978 to 1989. In his memoirs, Lee recounted that in 1982, "Singapore gave the first few hundreds of several batches of
AK-47 rifles, hand grenades, ammunition and communication equipment" to the Khmer Rouge resistance forces. ==Senior Minister (1990–2004)==