After the establishment of Singapore as a Strait Settlements port, many buildings along its southern shoreline were directly facing the sea.

The idea of constructing a wooden jetty near the godowns of A. L. Johnston & Co. was first mooted to the municipal committee on 26 March 1853 for the convenience of the commercial and shipping interests in Singapore.

After consulting the government surveyor, the municipal committee approved the construction of a stone ghaut on 20 July 1853 to be used as a public landing place instead of the wooden jetty as originally intended.

[1] The Engineer Captain Ronald MacPherson officially announced its completion to the Resident Councillor and Chairman of the municipal committee on 13 March 1856, the pier was named after a prominent Scottish businessman Alexander Laurie Johnston, one of the earliest European settlers who had arrived in Singapore in 1819 and established the first merchant firm A. L. Johnston & Co. there in 1820.

[2] A male pier-keeper was hired at a salary of S$6 per month for the maintaining of the crane as well as lighting and cleaning of the lamps at the pier.