An island state now linked to the southernmost tip of the Malay Peninsula by a causeway, Singapore ("lion city") was largely uninhabited until the 19th century. In 1819, an official of the British East India Company, Stamford Raffles, recognized the island's strategic position on key trade routes, and established a trading settlement. Today, Singapore remains one of the most important entrepôts in Asia.

Singapore is dominated by the Chinese – the old-established English-speaking Straits Chinese and newer Mandarin speakers – who make up almost 80% of the community. Indigenous Malays are generally the poorest group, but today there is little overt ethnic tension. There is also a significant foreign workforce in Singapore.

Long-term plans to stabilize the population structure included the announcement in mid-2000 of cash bonuses for families with more than one child. Society is highly regulated and government campaigns to improve public behavior are frequent.

Strengths

Massive accumulated wealth is derived from success as an entrepôt and as a center of high-tech industries. Singapore is a major producer of computer disk drives. Huge state enterprises, such as TAMESEK, with over 450 companies, have proved highly flexible in responding to market conditions. World leader in new biotechnologies.

Weaknesses

Dependence on Malaysia for water. Almost all food and energy imported. Skills shortages, notably in engineering. Fluctuations in world electronics market caused recession in 2001. Lack of land.

Singapore is a multiparty democracy, although the ruling PAP effectively controls all parts of the political process and much of the economy. There are plans to create a national ideology ("shared values") based on Confucian traditions. In 1993, Ong Teng Cheong became the first president to be directly elected. The veteran politician, Lee Kuan Yew, prime minister for more than 30 years until his resignation in 1990, still exercises influence.

The PAP maintains its grip on power, having given Singaporeans one of the highest living standards in the world, based on a free-market economy. The first antigovernment rally was permitted in 2001, but the PAP secured reelection in November even before the ballot, as the opposition contested less than half of the seats. To improve debate in the new parliament, the PAP formed an internal opposition faction.

Singapore has established diplomatic relations with China while continuing to maintain close economic ties with Taiwan. In 1995, after 15 years of talks, Singapore and Malaysia finally agreed their territorial water boundary. The country became the beneficiary in 2001 of Japan's first free trade agreement.

Despite Singapore's small size, its armed forces have a total strength of over 60,000.

Singapore has no strategic resources and has to import almost all the energy and food it needs. Its main resources, on which its wealth as a center of commerce has been built, are its strategic position and its people.

There is a small green belt around the causeway. Singapore sees itself as a world leader in providing the perfect urban environment. There is no litter, thanks to instant heavy fines; chewing gum is banned by law.

The Mass Rapid Transit System (subway), completed in 1991, is among the world's most efficient. Space for new roads has run out and monthly auctions are held to sell certificates entitling people to buy from a quota of new cars. The massive port at Pasir Panjang is being expanded on reclaimed land.

Singapore has an efficient modern health system. Incentives exist, aimed at preserving the extended family, so that the elderly are cared for at home.

Schooling is not compulsory, but attendance is high. Education is seen as the key to a good salary, especially among the Chinese community.

Crime is limited and punishment can be severe. The Triads are no longer a problem; the main issue is intellectual piracy.

Apartments are generally modest, despite the high standard of living. The 2001 "Singapore Share" scheme promised to give Singaporeans a share in the country's economy.

The buildings of Chinatown, recognized as a picturesque tourist asset, are being restored. A Singaporean consortium is involved in developing a resort on Indonesia's Bintan island, some 45 km (28 miles) across the Strait of Singapore.

In 1819, Sir Stamford Raffles set up a trading post in the village of Singapore; by 1826 it was Britain's colonial center in southeast Asia.

• 1965 Independence.
• 1990 Lee Kuan Yew resigns as prime minister.
• 1993 Ong Teng Cheong first directly elected president.
• 2001 PAP, in power since independence, wins elections.