Singapore (), officially the State of Singapore (), was one of the 14 states of Malaysia from 1963 to 1965. Malaysia was formed on 16 September 1963 by the merger of the Federation of Malaya with the former British colonies of North Borneo, Sarawak and Singapore. This marked the end of the 144-year British rule in Singapore which began with the founding of modern Singapore by Sir Stamford Raffles in 1819. At the time of merger, it was the smallest state in the country by land area, but the largest by population.
The union was unstable due to distrust and ideological differences between the leaders of Singapore and of the federal government of Malaysia. They often disagreed about finance, politics and racial policies. Singapore continued to face significant trade restrictions despite promises of a common market in return for a large proportion of its tax revenues, and retaliated by withholding loans to Sabah and Sarawak. In the political arena, the Malay-based United Malays National Organisation (UMNO) and Singapore-based People's Action Party (PAP), entered each other's political arenas, despite previous agreements not to do so. These resulted in major race riots in Singapore in 1964, which were attributed (at least in part) to instigation by UMNO and its Malay-language newspaper Utusan Melayu for affirmative action for Malays in Singapore.
These culminated in the decision by Malaysian Prime Minister Tunku Abdul Rahman to expel Singapore from the Federation, and on 9 August 1965, Singapore became independent.
Prelude to merger
Singapore politicians, beginning with David Marshall in 1955, repeatedly courted the Tunku Abdul Rahman about merger with the Federation, but were rebuffed repeatedly. Tunku's chief consideration was the need to maintain the racial balance in the Federation, UMNO's position in the Alliance Party, and Malay political dominance. Including Singapore with its large Chinese population would result in the Chinese (at 3.6 million) outnumbering the 3.4 million Malays in the new union, and put it "at-risk".
Balanced against this risk was his even greater fear of an independent Singapore outside the federation, particularly if it fell under the control of an unfriendly government. As part of decolonisation and increasing British disengagement from Malaya, constitutional talks on self-government for Singapore between the British Colonial Office in London and the Singapore Legislative Assembly had already resulted in the 1958 State of Singapore Constitution, and a fully elected and self-governing 51-seat Legislative Assembly in 1959. Tunku worried that the next round of constitutional talks would grant Singapore even more independence and put the island beyond his or Britain's reach; as British officials put it, a 'batik curtain' would descend across the Straits of Johor, beyond which political elements and possibly even a 'communist Cuba' would gather strength. This fear became increasingly real to Tunku after 29 April 1961 when Ong Eng Guan of the left-wing United Peoples' Party trounced the PAP candidate at the Hong Lim by-election.
Tunku was also worried about Indonesia, the other regional Malay behemoth, which under Sukarno's Guided Democracy was becoming increasingly nationalistic and expansionist, undertaking regional actions such as the liberation of West New Guinea and Konfrontasi (also known as the Borneo confrontation).
With these considerations in mind, and although it was not apparent at the time, Tunku had already been considering merger as early as June 1960. At a meeting of Commonwealth Prime Ministers, he mentioned to Lord Perth of the Colonial Office that he was open to a merger if a 'Grand Design' including not just Singapore but also British Borneo could be offered as some sort of package deal. Not only would it greatly benefit the territory, resources and population under his control, but the combination of indigenous Bornean peoples and Peninsular Malays (collectively termed Bumiputera) would counterbalance the increased numbers of Singaporean Chinese.
On 27 May 1961 at the Foreign Correspondents Association of Southeast Asia, Tunku announced that a closer association between Malaya, Singapore and the Borneo territories was a distinct possibility. Furthermore, he was calling not just for a customs union but a full union into a single political entity, the Federation of Malaysia.