1. Merger And Separation

5. Road to Merger However the Tenku changed his mind later and proposed that Singapore be included into Malaysia because Communist Fear Did not want Singapore to become a second Cuba whereby Singapore becomes a communist base Racial Balance The racial equation could be solved by including the people of Sabah and Sarawak as Malays Other benefits large reserves of Singapore Additional territory from Sabah and Sarawak Revenue from Singapore-40 % taxes

7. Road to Merger But the communists were totally opposed to the idea of merger. Reasons The Malayan government was vehemently anti- communist If the merger goes ahead, the communists will be finished as the federal government will mobilise all resources to eradicate them. Thus the PAP was split into two groups. Pro-communists called as Barisan Sosialis and The PAP that was against the communists As a result of this the PAP was further weakened.

8. Road to Merger Referendum Thus in order to solve the issue of whether to merge or not with Malaya, the PAP came out with a referendum. All citizens of Singapore were asked to vote on the issue. There was intense propaganda between the two groups, with the communists and the PAP both trying to convince the voters to make the right choice. However in the end the PAP was successful in the referendum with 71% of the people voting for merger. Thus Singapore was merged with Malaya.

9. Road to Merger Merger as a marriage of convenience Both Malaya and Singapore had different views with regard to the merger and separation. Singapore wanted the merger badly because it would be the best way to solve her economic problems and to gain independence. Malaya on the other hand wanted to go with the merger because she did not want a strong communist country at her doorstep and so she saw the merger as a convenient way of getting rid of the communist problem. Thus merger was doomed to fail from the start itself.

10. Road to Merger Points of dispute Common Market Singapore wanted to confirm the common market first and then go ahead with the merger, but Malaya wanted the merger first and then settle the common market issue later. In the end a compromise was agreed upon whereby the common market would be established in stages.

11. Road to Merger Revenue Singapore wanted to pay a lower revenue and Malaysia wanted a higher amount. Both sides agreed that Singapore would pay 40 % of its annual revenue to the Federal Government Pioneer certificates Pioneer certificates were to be granted to certain types of new industries which would exempt them from taxes for between five and ten years. Both sides agreed that KL would grant these certificates after Malaysia was formed.

12. Road to Merger Points of dispute Borneo Loan Malaysia wanted a gift of 50 million dollars. Singapore insisted that it would give a loan and not an outright gift. In the end Singapore was to provide a loan of M$ 150 million. The loan was to be repaid in 15 years without charging any interest for 100 million dollars.

13. Road to Merger Constitutional matters Singapore was to have 24 seats But she was given only 15 seats Singapore wanted full control over education and labour policies.

14. Road to Merger Citizenship issues Singapore citizens would retain their citizenship and become nationals of Malaya They will not be allowed to vote Malaysian elections and vice-versa. However political parties from both sides could continue to take part in the elections provided the candidates must be citizens of the respective countries.

15. Road to Merger Malay rights Special privileges enjoyed by the Malays in Malaya would be extended to Singapore Privileges to be extended to Malays and their special indigenous position would be recognised Free education to Malays until their university level In July 1963 the Malaysia Agreement was signed by Malaya, Singapore, Sabah and Sarawak. Brunei did not join and Indonesia and the Philippines opposed the formation as a neo-colonial plot.

16. Reasons for Separation 1963 Singapore GE UMNO contested in the Singapore elections Tenku came to support to garner support for the SA. But the SUMNO or SA did not win a single seat 1964 Federal election The PAP sent 17 candidates to participate in the Federal elections The Alliance saw the PAP as a direct challenge PAP won only one seat of the contested 14 seats UMNO leaders were unhappy with the PAP and stepped up their criticism. Ruined the relationship between the two countries

17. Factors Responsible for Separation Personality Special rights or Meritocracy Common Market Import duties Increased Revenue Racial Riots 63,64 Elections Malayan Solidarity Convention Political Economic Ideological Social

18. What were the advantages of separation? We could follow our own policies of meritocracy We could promote racial harmony and equality among races. We also became independent What were the disadvantages of separation? Loss of hinterland Loss of common market Disharmonious relationship between the two countries. Can you think anymore aspects on this issue?