With the economical rise of Singapore's neighbours in the southeastern region, Singapore's value to multinational corporations (MNC) began to falter, causing fewer MNCs to base their main operations in Singapore. Various nations also began building new trade routes (e.g. Pan Peninsula Railway) that directly passed through theirs, leading to a decline in shipping along the Singapore Strait. 

To promote Singapore as an ideal destination for commerce and industry, the Singaporean government designated Jurong Island as an Economic Exclusive Zone of Singapore and handled the territory's control over to the Jurong Industrial Corporation (a former department of the Jurong Town Corporation). The JIC was given near full autonomy over the Island, allowing it to do anything it saw fit for the sole purpose of once again making Singapore an ideal destination for commerce and industry. This included radical redevelopment, organisational restructuring, law reform, and even the pursuit of defence. It's only condition was that JIC had to report to the government its findings and progress and could be shut down should it have failed. 

The JIC's control has continued for the past hundred and fifty years.

Figure 1.1 - Geographical map of the various islands prior to Jurong Island's formation

Figure 1.2 - Geographical map of the various islands after Jurong Island's formation