Stamford Raffles, a British statesman, arrived at the island of Singapore in January 1819. He was on a mission for the British East India Company to establish a strategic trading post to expand British influence in Southeast Asia. Upon his arrival, Raffles noted the island's advantageous geographical location, situated at the southern tip of the Malay Peninsula and providing a key maritime route for ships traveling between India and China. Recognizing these opportunities, Raffles sought to negotiate terms with the local ruler, Sultan Hussein Shah, to secure a place for British trade operations.

After initial discussions, Raffles and the Sultan signed a treaty, establishing Singapore as a British settlement under the protection of the East India Company. This agreement allowed the British to develop trade and commerce on the island, which was sparsely populated at the time. Raffles wasted no time in initiating the establishment of the port facilities and encouraged settlers, traders, and immigrants from various parts of Asia to come, fostering a multicultural environment. The rapid growth in trade led to Singapore emerging as a vital shipping hub.

Raffles’ vision for Singapore was not only focused on trade but also on creating an efficient administrative system and urban plan. He implemented policies that attracted a diverse population, which contributed significantly to the island's economic development in the years that followed. The foundation laid by Raffles marked the beginning of Singapore’s transformation into a leading global financial and trading center, with foundations built on principles of free trade and mutual cooperation among communities.