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Formation of Malaysia
Established on 16 September 1963, included Malaya, Singapore, Brunei, North Borneo (Sabah), and Sarawak.
Common Market Delays
Singapore expected a common market to ensure economic stability, but delays by the Federal Government caused discontent.
Separation Announcement
On 9 August 1965, Prime Minister Lee Kuan Yew announced Singapore's independence from Malaysia.
Revenue Contribution Issues
Singapore's contributions to the Federal Government increased from 40% to 60%, straining relations.
Tension between Singapore and Malaysia
Economic disparities and political differences led to growing tensions despite initial excitement.
Malaysian Solidarity Convention (MSC)
Formed to promote equal rights for all races, aggravating UMNO leaders in Malaysia.
Political Party Composition
PAP aimed for multi-racial representation, while the federal alliance was predominantly ethnic-specific.
Racial Treatment Policies
PAP promoted equality, while the Federal Government implemented special privileges for Malays.
Key Points from Merger Terms
Singapore would have its own Head of State, elections, and manage its education and labor matters.
Contributions to Federal Services
Singapore would collect its own taxes and share a determined sum with Kuala Lumpur for federal services.