The rents of pre-war properties were controlled and, in effect, frozen. As the Arab wakafs were mostly pre-war properties, the income of the Arab families correspondingly diminished. The decline of income from the wakafs resulted in Arab economic influence diminishing. The development in Singapore since the 1960s has made it difficult for the Arabs to compete. The third factor was the Land Acquisition Act.
Land is scarce in Singapore and it is government policy to have complete control over land usage.
The Land Acquisition Act empowered the government to acquire land required for urban renewal and compensation is paid on a predetermined formula. The compensation amounts were significantly lower than the prevailing market value. The government embarked on a major acquisition campaign in the 1970s and 1980s. Pre-war properties were the major target for acquisition as Singapore underwent a modernisation programme. These pre-war properties were subject to rent control and had tenants that could not be removed.