The British returned to find their colonies in sad shape. Food and medical supplies were dangerously low, partly because shipping was in total disarray. Allied bombing had taken its toll on Singapore's harbor facilities, and numerous wrecks blocked the harbor. Electricity, gas, water, and telephone services were in serious disrepair. Severe overcrowding had resulted in thousands of squatters living in shanties, and the death rate was twice the prewar level. Gambling and prostitution, both legalized under the Japanese, flourished, and for many opium or alcohol served as an escape from a bleak existence. The military administration was far from a panacea for all Singapore's ills. The BMA had its share of corrupt officials who helped the collaborators and profiteers of the Japanese occupation to continue to prosper. As a result of the inefficiency and mismanagement of the rice distribution, the BMA was cynically known as the "Black Market Administration." However, by April 1946, when military rule was ended, the BMA had managed to restore gas, water, and electric services to above their prewar capacity. The port was returned to civilian control, and seven private industrial, transportation, and mining companies were given priority in importing badly needed supplies and materials. Japanese prisoners were used to repair docks and airfields. The schools were reopened, and by March 62,000 children were enrolled. By late 1946, Raffles College and the King Edward Medical College both had reopened.

Food shortages were the most persistent problem the weekly per capita rice ration fell to an all-time low in May 1947, and other foods were in short supply and expensive. Malnutrition and disease spawned outbreaks of crime and violence. Communist-led strikes caused long work stoppages in public transport, public services, at the docks, and at many private firms. The strikers were largely successful in gaining the higher wages needed by the workers to meet rising food prices.

By late 1947, the economy had began to recover as a result of a growing worldwide demand for tin and rubber. The following year, Singapore's rubber production reached an all-time high, and abundant harvests in neighboring rice-producing countries ended the most serious food shortages. By 1949 trade, productivity, and social services had been restored to their prewar levels. In that year a five-year social welfare plan was adopted, under which benefits were paid to the aged, unfit, blind, crippled, and to widows with dependent children. Also in 1949, a ten-year plan was launched to expand hospital facilities and other health services. By 1951 demand for tin and rubber for the war in Korea had brought economic boom to Singapore.

By the early postwar years, Singapore's population had become less transitory and better balanced by age and sex. The percentage of Chinese who were Straits-born rose from 36 percent in 1931 to 60 percent by 1947, and, of those born in China, more than half reported in 1947 that they had never revisited and did not send remittances there. Singapore's Indian population increased rapidly 7ab y in the postwar years as a result of increased migration from India, which was facing the upheavals of independence and partition, and from Malaya, where the violence and hardships of the Emergency (see Glossary) caused many to leave. Although large numbers of Indian men continued to come to Singapore to work and then return to India, both Indians and Chinese increasingly saw Singapore as their permanent home.

In 1947 the colonial government inaugurated a ten-year program to provide all children with six years of primary education in the language of the parents' choice, including English, Malay, Chinese, and Tamil. Seeing an English education as offering their children the best opportunity for advancement, parents increasingly opted to send their children to English-language schools, which received increased government funding while support for the vernacular schools declined. In 1949 the University of Malaya was formed through a merger of Raffles College and the King Edward Medical College.

Data as of December 1989