Separation: Why Singapore Left the Federation of Malaysia

# Political Differences and Composition of Political Parties

The People's Action Party (PAP) represented a multiracial approach, seeking to protect and represent the interests of all races equally.
In contrast, the Alliance Party in Malaya was composed of three communal, race-based parties designed to look after the specific interests of their respective ethnic communities:
- United Malays National Organisation (UMNO) for the Malays.
- Malayan Chinese Association (MCA) for the Chinese.
- Malayan Indian Congress (MIC) for the Indians.
The federal government of Malaysia expected Singapore to adopt this communal political system.
The PAP government in Singapore hoped that Malaysia would transition toward a multiracial approach.
Neither side was willing to compromise, leading to a strained relationship characterized by conflicts, tensions, and distrust between the two governments.

The Singapore government operated on the principle of meritocracy, defined as a system of rewarding a person based on their talent and ability. The belief was that everyone, regardless of race, should be given an equal opportunity to succeed.
Malaysia implemented the bumiputera (‘son of the soil’) policy. This policy dictated that Malays, as the natives of Malaya, be given special privileges and rights in areas such as employment, business, and education to improve their standard of living.
Specific examples of these privileges included:
- Reserving a certain number of government jobs specifically for Malays.
- Giving Malays priority when purchasing houses.
At the time, the Malay community in Singapore was reportedly unhappy because they saw little improvement in their own economic position compared to the privileges granted in Malaya.
The fundamental ideological conflict was summarized as Malaysia wanting a ‘Malay Malaysia’ while Singapore advocated for a ‘Malaysian Malaysia’.
In the 1964 Federal Election, the PAP took part and campaigned on the promise of a ‘Malaysian Malaysia’. This was viewed as a direct challenge to the Alliance Party and a threat to Malay special rights.
PAP also questioned the Alliance Party’s methods of governance, while UMNO leaders used news articles (such as in Utusan Melayu) to accuse the PAP of neglecting Malay interests and focusing excessively on Chinese education.

Prior to the merger, Singapore and Malaya had agreed to establish a common market. A common market is intended to increase trade, expand industries, and create more jobs, which was seen as vital for Singapore’s long-term economic survival.
Without a common market, trade would decrease, and industries in Singapore would struggle to expand. This would worsen the job situation, as Singapore already faced high unemployment, leading to a decline in the standard of living.
There was a significant delay in setting up the common market because the federal government saw Singapore as a competitor. Consequently, taxes continued to be imposed on Singapore-made goods to protect certain Malaysian industries.
The PAP government saw their hopes for economic collaboration dashed, which further strained the relationship between the two governments.

Revenue is defined as the total income collected by a country.
It was initially agreed that Singapore would collect its own revenue and send a specific, agreed-upon sum to Kuala Lumpur.
However, the federal government increased Singapore’s required contribution from 40% to 60%.
The federal government justified this increase by citing the rise in Malaysia’s defense spending due to Konfrontasi (Confrontation).
The Singapore government viewed this as unfair because the local economy was already struggling and the common market had been delayed.
The federal government remained unwilling to compromise, negatively affecting Singapore's economy and profits.

In July 1964, Prime Minister Lee Kuan Yew and PAP minister Othman Wok met with over 100 non-political Malay organizations to assure them the government would support Malays in education, employment, and housing.
On the occasion of Prophet Muhammad’s birthday at the Padang, a riot broke out after a Chinese man threw a bottle at the crowds. This led to Malays assaulting Chinese individuals, resulting in a large-scale riot between the two races.
Conflicting views on the cause emerged:
- Malaysia believed the riot was instigated by the Chinese and that Singaporean Malays were discontented with the PAP.
- Singapore believed UMNO was behind the riots to justify exerting greater political control over the island.
The July riots resulted in deaths, injuries, property damage, and the imposition of a curfew.
In September 1964, a second riot occurred following the murder of a Malay trishaw rider at Geylang Serai, which prompted retaliatory violence against the Chinese.
This second riot also resulted in deaths, injuries, property damage, and the imposition of another curfew.
To restore harmony, Goodwill Committees consisting of leaders from various racial groups were formed. They were tasked with listening to resident concerns and fostering better relations to calm tensions.
Both governments publicly blamed Indonesians (as part of Konfrontasi) for causing the riots.

Following the riots, the Alliance Party and the PAP agreed not to raise racial matters or challenge each other in elections for two years.
The Alliance Party broke this agreement by announcing they would participate in Singapore’s 1967 elections.
In response, the PAP and other Malaysian opposition parties formed the Malaysian Solidarity Convention (MSC) to campaign for a ‘Malaysian Malaysia’.
The Alliance Party felt betrayed and upset by the formation of the MSC.
UMNO leaders continued to use Utusan Melayu to stir anti-PAP sentiment, accusing the party of favoring the Chinese and treating Malays unfairly.

Tunku Abdul Rahman eventually realized that the numerous economic and political disagreements could not be settled.
He concluded that it was best for Singapore to leave Malaysia, a decision the PAP government agreed to.
On 9 August 1965, Prime Minister Lee Kuan Yew made an emotional announcement on television stating that Singapore was no longer part of Malaysia.
The Independence of Singapore Agreement was signed, officially separating Singapore from Malaysia.
Yusof bin Ishak became the first President of the newly independent nation of Singapore.