Separation between Singapore and Malaysia was inevitable due to both economic and political reasons. Economically, delays in establishing a common market and imposition of new taxes on Singapore hindered its development. Politically, the PAP and Alliance parties in Malaysia had growing rivalries. Racial tensions were also exacerbated by the Malaysian Malaysia campaign and racial riots in 1964. In 1965, the PAP joined other opposition parties in Malaysia, further angering UMNO leaders. Finally, on 9 August 1965, Lee Kuan Yew announced Singapore's independence after Tunku Abdul Rahman decided to expel it from Malaysia.

1. Chapter 9 Separation of Singapore from Malaysia