Founding of Singapore as a Free Port
The founding of Singapore as a free port began on February 6, 1819, when Stamford Raffles of the British East India Company signed a treaty to set up a trading post that charged no port duties and was open to ships of all nations.
What happened and why it matters
Singapore's founding shows how low duties and an easy port can pull trade toward a location, the same logic behind today's free trade zones and transshipment hubs. Raffles chose a site at the southern end of the Strait of Malacca and ran it without port duties, a policy formalized in the early 1820s, and within about five years Singapore had become a regional entrepot where goods were landed, stored, and re-exported. Foreign-trade zones and bonded warehouses in the US apply a similar idea, letting importers store or process goods and defer or reduce duties until the goods enter US commerce.
Related events
Sources
- Sir Stamford Raffles britannica.com
- 1819 Singapore Treaty en.wikipedia.org
- Raffles's landing in Singapore eresources.nlb.gov.sg