The People’s Action Party (PAP) became the dominant
governmental party after Singapore’s independence in 1965. In order to boost
the economy, PAP implemented numerous export-oriented policies.  The goal of these implementations was to change
the nation from a sole dependence on entrepôt trade
and towards industrialization. An entrepôt is also known as a transshipment port, where goods can be imported,
exported, stored or traded. In order to improve the high unemployment rate, the
state has invested and bought many enterprises, and also encouraged foreign
investment in Singapore.  It became a
requirement for public listed companies to report and audit its financial
details. The incentive was to create financial transparency for all shareholders
and in result provide more domestic and foreign investments.  The independence on foreign trade is
one of the main fundamental aspects that has shaped the structure of
Singapore’s economy and its institutions (Carney, 2015).