Self-governance of Singapore
Encyclopedia
The self-governance of Singapore was carried out in several stages. After the British joined Singapore once more and started, without much success, dealing with post war problems, Singapore already was not happy with the British as their leaders. Since Singapore's founding in 1819
Founding of modern Singapore
The founding of modern Singapore in 1819 by Sir Stamford Raffles paved the way for Singapore to become a modern port and established its status as a gateway between the Western and Eastern markets....

, Singapore had been under the colonial rule
Colony
In politics and history, a colony is a territory under the immediate political control of a state. For colonies in antiquity, city-states would often found their own colonies. Some colonies were historically countries, while others were territories without definite statehood from their inception....

 of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. The first local election
Election
An election is a formal decision-making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century. Elections may fill offices in the legislature, sometimes in the...

s on a limited scale for several positions in the government of Singapore
Government of Singapore
The Government of Singapore is defined by the Constitution of the Republic of Singapore to mean the Executive branch of government, which is made up of the President and the Cabinet of Singapore. Although the President acts in his personal discretion in the exercise of certain functions as a check...

 started in 1948 following an amendment to the Constitution of Singapore
Constitution of Singapore
The Constitution of Singapore is the supreme law of Singapore and it is a codified constitution.The constitution cannot be amended without the support of more than two-thirds of the members of parliament on the second and third readings . The president may seek opinion on constitutional issues...

. This was further amended with the Rendel Constitution, strengthening local representation. Singapore was granted full internal self-government in 1959, but the colonial administration still controlled external relations and shared control of several key internal policies such as internal security
National security
National security is the requirement to maintain the survival of the state through the use of economic, diplomacy, power projection and political power. The concept developed mostly in the United States of America after World War II...

.

In 1963, Singapore joined Malaysia
Singapore in Malaysia
On 16 September 1963, which was also Lee Kuan Yew's 40th birthday, Singapore merged with the Federation of Malaya alongside Sabah and Sarawak to form Malaysia...

, relieving it of colonial rule and becoming an autonomous state in the Malaysia. After a fallout in the relations
PAP-UMNO relations
The sometimes turbulent relationship between the People's Action Party and United Malays National Organisation , which were, and still are, the ruling parties respectively of Singapore and Malaysia, has affected the recent history of both states.-Origins:Both parties have common roots, being...

 between United Malays National Organisation
United Malays National Organisation
The United Malays National Organisation, is Malaysia's largest political party; a founding member of the National Front coalition, which has played a dominant role in Malaysian politics since independence....

 (UMNO) and the People's Action Party
People's Action Party
The People's Action Party is the leading political party in Singapore. It has been the city-state's ruling political party since 1959....

 (PAP), the ruling parties
Ruling party
The ruling party or governing party in a parliamentary system is the political party or coalition of the majority in parliament. Within a parliamentary system, the majority in the legislature also controls the executive branch of government, thus leaving no possibility of dueling parties...

 of the Federation and Singapore respectively, full independence came about with Singapore's expulsion from Malaysia in 1965.

Yearning for independence

Following the end of the Japanese Occupation of Singapore
Japanese Occupation of Singapore
The Japanese occupation of Singapore in World War II occurred between about 1942 and 1945 after the fall of Singapore on 15 February 1942. Military forces of the Empire of Japan occupied Singapore after defeating the combined Australian, British, Indian and Malayan garrison in the Battle of Singapore...

 during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the British returned to power in Singapore. On 1 April 1946, the Straits Settlements
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...

 was dissolved and Singapore became a separate Crown Colony
Crown colony
A Crown colony, also known in the 17th century as royal colony, was a type of colonial administration of the English and later British Empire....

 with a civil administration headed by a Governor. In July 1947, separate Executive and Legislative Council
Legislative Council
A Legislative Council is the name given to the legislatures, or one of the chambers of the legislature of many nations and colonies.A Member of the Legislative Council is commonly referred to as an MLC.- Unicameral legislatures :...

s were established and the first local election for six members of the Legislative Council
Legislative Council of Singapore
The Legislative Council of Singapore was a Legislative Council in Singapore that assisted the Governor in making laws in Singapore. It officially came into existence in 1946, when the Repeal Act abolished the Straits Settlements, and Singapore became a Crown Colony on its own that would need its...

 was held in the 1948 Legislative Council elections
Singapore general election, 1948
The Legislative Council General Elections was the first election to be held in Singapore, taking place on 21 March 1948 when six of the 22 seats on the Legislative Council were open for popular voting, albeit only for British subjects. The election was announced on 1 February, and nominations were...

.

The Singapore Progressive Party, a political party
Political party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...

 with a progressive
Progressivism
Progressivism is an umbrella term for a political ideology advocating or favoring social, political, and economic reform or changes. Progressivism is often viewed by some conservatives, constitutionalists, and libertarians to be in opposition to conservative or reactionary ideologies.The...

 platform of working with the British for gradual reform and self-governance, won half of the seats. This was technically a plurality, as independent candidates won the other three: the SPP became the ruling party of the local representation. The majority of seats were still appointed by the colonial administration.

The period after the war saw a political awakening amongst the local populace and the rise of anti-colonial and nationalist
Nationalism
Nationalism is a political ideology that involves a strong identification of a group of individuals with a political entity defined in national terms, i.e. a nation. In the 'modernist' image of the nation, it is nationalism that creates national identity. There are various definitions for what...

 sentiments, epitomised by the slogan Merdeka
Merdeka
Merdeka is a word in the Indonesian and Malay language meaning Independent or freedom. It is derived from the Sanskrit Maharddhika meaning "rich, prosperous and powerful". In the Malay archipelago, this term had acquired the meaning of a freed slave...

, or "independence" in the Malay language. The British, on their part, were prepared to embark on a program of gradually increasing self-governance
Self-governance
Self-governance is an abstract concept that refers to several scales of organization.It may refer to personal conduct or family units but more commonly refers to larger scale activities, i.e., professions, industry bodies, religions and political units , up to and including autonomous regions and...

 for Singapore and Malaya.

In 1953, a British Commission, headed by Sir George Rendel
George William Rendel
Sir George William Rendel was a British diplomat. Rendel, the son of the engineer George Wightwick Rendel was educated at Downside School and at Queen's College, Oxford, graduating in Modern History in 1911....

, proposed a limited form of self-government for Singapore. A new Legislative Assembly
Legislative Assembly of Singapore
The Legislative Assembly of Singapore was the legislature of the government of Singapore from 1955 to 1965 and the predecessor of the Parliament of Singapore. The Rendel Constitution, proposed in 1953, sought to give the local population more self-governance as the Merdeka independence movement grew...

 with twenty-five out of thirty-two seats chosen by popular election would replace the Legislative Council, from which a Chief Minister
Chief Minister
A Chief Minister is the elected head of government of a sub-national state, provinces of Sri Lanka, Pakistan, notably a state of India, a territory of Australia or a British Overseas Territory that has attained self-government...

 as head of government
Head of government
Head of government is the chief officer of the executive branch of a government, often presiding over a cabinet. In a parliamentary system, the head of government is often styled prime minister, chief minister, premier, etc...

 and Council of Ministers as a cabinet
Cabinet (government)
A Cabinet is a body of high ranking government officials, typically representing the executive branch. It can also sometimes be referred to as the Council of Ministers, an Executive Council, or an Executive Committee.- Overview :...

 would be picked under a parliamentary system
Parliamentary system
A parliamentary system is a system of government in which the ministers of the executive branch get their democratic legitimacy from the legislature and are accountable to that body, such that the executive and legislative branches are intertwined....

. The British would retain control over areas such as internal security
National security
National security is the requirement to maintain the survival of the state through the use of economic, diplomacy, power projection and political power. The concept developed mostly in the United States of America after World War II...

 and foreign affairs
Foreign policy
A country's foreign policy, also called the foreign relations policy, consists of self-interest strategies chosen by the state to safeguard its national interests and to achieve its goals within international relations milieu. The approaches are strategically employed to interact with other countries...

, as well as veto
Veto
A veto, Latin for "I forbid", is the power of an officer of the state to unilaterally stop an official action, especially enactment of a piece of legislation...

 power over legislation.

The 1955 election for the Legislative Assembly held on 2 April 1955 was a lively and closely fought affair, with several newly formed political parties joining the fray. Unlike previous elections, voters were automatically registered, expanding the electorate to around 300,000. The SPP was soundly defeated in the election, winning only four seats. The newly formed, left-leaning Labour Front
Labour Front
The Labour Front was a political party in Singapore. It was founded before the 1955 legislative council elections by David Saul Marshall, Singapore's first chief minister in 1955 and Lim Yew Hock, Singapore's second chief minister...

 was the biggest winner with ten seats and it formed a coalition government with the UMNO
United Malays National Organisation
The United Malays National Organisation, is Malaysia's largest political party; a founding member of the National Front coalition, which has played a dominant role in Malaysian politics since independence....

-MCA
Malaysian Chinese Association
Malaysian Chinese Association is a uni-racial political party in Malaysia that represents the Malaysian Chinese ethnicity; it is one of the three major component parties of the ruling coalition in Malaysia called the Barisan Nasional in Malay, or National Front in English.Along with the largest...

 Alliance, which won three seats. Another new party, the leftist
Left-wing politics
In politics, Left, left-wing and leftist generally refer to support for social change to create a more egalitarian society...

 People's Action Party
People's Action Party
The People's Action Party is the leading political party in Singapore. It has been the city-state's ruling political party since 1959....

 (PAP), won three seats.

Partial internal self-government (1955–1959)

The leader of the Labour Front, David Marshall
David Saul Marshall
David Saul Marshall was the leader of the Singapore Labour Front and became the first Chief Minister of Singapore in 1955....

, became the first Chief Minister of Singapore. He presided over a shaky government, receiving little cooperation from either the colonial government or the other local parties. In May 1955, the Hock Lee Bus Riots
Hock Lee bus riots
The Hock Lee bus riots occurred on May 12, 1955, in Singapore. 4 people were killed and 31 injured in the violent and bloody riot.-Strikes begin:...

 broke out, killing four people, and seriously discredited Marshall's government. The Chinese Middle School riots broke out in 1956 among students in schools such as The Chinese High School
The Chinese High School
The Chinese High School , formerly Singapore Nanyang Overseas Chinese Middle School was an independent school in Singapore offering secondary education. The school was founded by Tan Kah Kee on 21 March 1919 and it merged with Hwa Chong Junior College on 1 January 2005 to form Hwa Chong Institution...

, further increasing the tension between the local government and the Chinese students and unionists who were perceived as having communist sympathies.

In April 1956, Marshall led a delegation to London to negotiate for complete self-rule in the Merdeka Talks
Merdeka
Merdeka is a word in the Indonesian and Malay language meaning Independent or freedom. It is derived from the Sanskrit Maharddhika meaning "rich, prosperous and powerful". In the Malay archipelago, this term had acquired the meaning of a freed slave...

, but the talks fell through due to British concerns about communist influence and unrest and labour strikes
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...

 from workers and from trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

s which were undermining Singapore's economic stability. Marshall continued to pressure the British, before declaring that if the British did not give Singapore self-rule, he would resign. However, the British were unrelenting and wanted to retain important control over Singapore's internal security. Marshall resigned following the failure of the talk. His successor as Chief Minister, Lim Yew Hock
Lim Yew Hock
Lim Yew Hock , later renamed Haji Omar Lim Yew Hock, was Singapore’s second Chief Minister from 1956 to 1959. He is known for suppressing the communist movements and leading the all-party delegation that won internal self-government for Singapore....

, launched a crackdown on communist and leftist groups, imprisoning many trade union leaders and several pro-communist members of the PAP under the Internal Security Act
Internal Security Act (Singapore)
The Internal Security Act of Singapore is a law that allows the Singapore government to investigate security threats like international terrorism, foreign subversion, espionage and acts of violence or hatred using race or religion...

.
The British government approved of Lim's tough stance against communist agitators, and when a new round of talks was held beginning 11 March 1957, they were amenable to granting almost complete self-government, only retaining control over external security, and allowing internal security to be an area of shared responsibility between the local government and them. When the talks concluded on 11 April, it was agreed that a State of Singapore would be created, with its own citizenship, consisting of persons born in Singapore or the Federation of Malaya
Federation of Malaya
The Federation of Malaya is the name given to a federation of 11 states that existed from 31 January 1948 until 16 September 1963. The Federation became independent on 31 August 1957...

, British citizens of two years' residence, and others of ten years' residence. The Legislative Assembly would be expanded to fifty-one members, entirely chosen by popular election, and the Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...

 and cabinet would control all aspects of government except defence and foreign affairs. The British-appointed Governor was replaced by a Yang di-Pertuan Negara
Yang di-Pertuan Negara
Yang di-Pertuan Negara, meaning "Head of State" in Malay, was used as an official title at various times in Sabah, Singapore and Brunei.-Singapore:...

or head of state
Head of State
A head of state is the individual that serves as the chief public representative of a monarchy, republic, federation, commonwealth or other kind of state. His or her role generally includes legitimizing the state and exercising the political powers, functions, and duties granted to the head of...

.

Full internal self-government (1959-1963)

Elections for the new Legislative Assembly
Singapore general election, 1959
The 1959 Singapore legislative assembly general election was a general election held in Singapore on 30 May 1959 to choose the members of the Legislative Assembly of Singapore...

 were held in May 1959. This time round, the PAP swept the election, winning forty-three of the fifty-one seats. They had accomplished this by courting the Chinese-speaking majority, particularly those in the labour unions and radical student organizations. The leader of the PAP, Lee Kuan Yew
Lee Kuan Yew
Lee Kuan Yew, GCMG, CH is a Singaporean statesman. He was the first Prime Minister of the Republic of Singapore, governing for three decades...

, became the first Prime Minister of Singapore.

The PAP's victory was viewed with dismay by foreign and local business leaders. Although Lee and the other leaders of the PAP hailed from the "moderate" wing of the party, many of the other members were staunchly pro-communist. Many businesses promptly shifted their headquarters from Singapore to Kuala Lumpur. Despite these ill omens, the PAP government embarked on a vigorous program to address Singapore's various economic and social problems. The plan for the economy was overseen by the capable Goh Keng Swee
Goh Keng Swee
Goh Keng Swee was the second Deputy Prime Minister of Singapore between 1973 and 1984, and a Member of Parliament for the Kreta Ayer constituency for a quarter of a century. Born in Malacca in the Straits Settlements into a Peranakan family, he came to Singapore at the age of two years...

, the new Minister of Finance, whose strategy was to encourage foreign and local investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...

 using a wide variety of measures, ranging from low tax rates and tax holiday
Tax holiday
A tax holiday is a temporary reduction or elimination of a tax. Programs may be referred to as tax abatements, tax subsidies, tax holidays, or tax reduction programs. Governments usually create tax holidays as incentives for business investment...

s to the establishment of a new industrial estate in the Jurong
Jurong
Jurong is the largest town in the western part of Singapore, consisting of 11 residential precincts, 14 industrial districts, 1 military zone and 1 Waterfront district. It resembles Woodlands, the largest town in the northern part of Singapore, which is smaller in size, has smaller industrial area...

 area. At the same time, the education system was revamped with the goal of suiting the workforce to the needs of employers; more technical
Technical school
Technical school is a general term used for two-year college which provide mostly employment-preparation skills for trained labor, such as welding, culinary arts and office management.-Associations supporting technical schools:...

 and vocational school
Vocational education
Vocational education or vocational education and training is an education that prepares trainees for jobs that are based on manual or practical activities, traditionally non-academic, and totally related to a specific trade, occupation, or vocation...

s were established, and the English language
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...

 was promoted over the Chinese language
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...

 as a language of instruction. The long-standing problem of labour unrest was suppressed by consolidating existing labour unions, sometimes forcibly, into a single umbrella organization, the National Trades Union Congress
National Trades Union Congress
The National Trades Union Congress , also known as the Singapore National Trades Union Congress , is the sole national trade union centre in Singapore...

 (NTUC), which was closely affiliated with the government. On the social front, an attack was launched on the long-standing housing problem by an aggressive and well-funded public housing
Public housing
Public housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...

 program, overseen by the Housing and Development Board (HDB). Headed by the banker and industrialist Lim Kim San
Lim Kim San
Lim Kim San ; was a Singaporean politician. He was credited for leading the successful public housing program in the Southeast Asian city-state during the early 1960s, which eased the acute housing shortage problem at that time....

, the HDB constructed more than 25,000 high-rise, low-cost apartment
Apartment
An apartment or flat is a self-contained housing unit that occupies only part of a building...

s during its first two years of operation.

Campaign for Malaysia

Despite their successes in governing Singapore, the leaders of the PAP, including Lee and Goh, believed that Singapore's future lay with Malaya. They felt that the historical and economic ties between Singapore and Malaya were too strong for them to continue as separate nations, and campaigned vigorously for a merger. On the other hand, the sizeable pro-communist wing of the PAP were strongly opposed to the merger, fearing a loss of influence; the government in Kuala Lumpur, headed by ruling party United Malays National Organisation
United Malays National Organisation
The United Malays National Organisation, is Malaysia's largest political party; a founding member of the National Front coalition, which has played a dominant role in Malaysian politics since independence....

, was staunchly anti-communist, and would support the PAP in such an event against them. The UMNO leaders were also skeptical of the idea; there was some distrust of the PAP government, and some were concerned that a merger with Singapore, with its large urban Chinese population, would alter the racial balance on which their political power base depended. The issue came to a head in 1961, when Ong Eng Guan
Ong Eng Guan
Ong Eng Guan is a former minister and politician of Singapore. A staunch anti-communist, he was a Chinese-educated orator who was one of the pioneer members of the People's Action Party Ong was well-known among the Chinese community in Singapore, In the 1957 City Hall Elections, he was elected...

, a long-standing member of the PAP, stormed out of the party and beat a PAP candidate in a subsequent by-election
By-election
A by-election is an election held to fill a political office that has become vacant between regularly scheduled elections....

, a move that threatened to bring down Lee's government. Faced with the prospect of a takeover by the pro-communist wing of the PAP, UMNO did an about-face on the merger. On May 27, Malaya's Prime Minister, Tunku Abdul Rahman
Tunku Abdul Rahman
Tunku Abdul Rahman Putra Al-Haj ibni Almarhum Sultan Abdul Hamid Halim Shah, AC, CH was Chief Minister of the Federation of Malaya from 1955, and the country's first Prime Minister from independence in 1957. He remained as the Prime Minister after Sabah, Sarawak, and Singapore joined the...

, mooted the idea of Malaysia, comprising the existing Federation of Malaya, Singapore, Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...

 and the British Borneo territories of Sabah
Sabah
Sabah is one of 13 member states of Malaysia. It is located on the northern portion of the island of Borneo. It is the second largest state in the country after Sarawak, which it borders on its southwest. It also shares a border with the province of East Kalimantan of Indonesia in the south...

 and Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...

. They held to the idea that the additional Malay population in the Borneo territories would offset Singapore's Chinese population.

The Malaysia proposal ignited the long-brewing conflict between the moderates and pro-communists in the PAP. The pro-communists, led by Lim Chin Siong
Lim Chin Siong
Lim Chin Siong was an influential leftwing politician and trade union leader in Singapore in the 1950s and 1960s.-Early life:Born in Telok Ayer Street, Lim studied first in Johor, before entering Singapore’s Catholic High School and Chinese High School in 1949 and 1950 respectively...

, left the PAP to form a new opposition party, the Barisan Sosialis
Barisan Sosialis
The Barisan Sosialis is a former Singaporean left-wing political party formed in 1961, by left-wing members of the People's Action Party and led by Dr Lee Siew Choh and Lim Chin Siong.-Formation:...

 (Socialist Front), to campaign against entry into Malaysia under the conditions that the PAP wished. In response, Lee called for a referendum on the merger, to be held in September 1962, and initiated a vigorous campaign in advocation of their proposal of merger, possibly aided by the fact that the government had a large influence over the media.

It should be noted that the referendum did not have an option of objecting to the idea of merger because no one had raised the issue in the Legislative Assembly before then. However, the method of merger had been debated, by the PAP, Singapore People's Alliance
Singapore People's Alliance
The Singapore People's Alliance was a political party in Singapore founded in 1959 that was drawn from the abandoned political party Labour Front and has never won any seats in the Parliament of Singapore...

 and the Barisian Sosialis, each with their own proposals. The referendum was called therefore, was to resolve this issue. The referendum called had three options. Singapore could join Malaysia, but would be granted full autonomy and only with fulfillment of conditions to guarantee that, which was option A. The second option, option B, called for full integration into Malaysia without such autonomy, with the status of any other state in Malaysia. The third option, option C, was to enter Malaysia "on terms no less favourable than the Borneo territories", noting the motive of why Malaysia proposed the Borneo territories to join as well.

After the referendum was held, the option A received 70% of the votes in the referendum, with 26% of the ballots left blank as advocated by the Barisan Sosialis to protest against option A. The other two plans received less than two percent each.

On July 9, 1963, the leaders of Singapore, Malaya, Sabah and Sarawak signed the Malaysia Agreement
Malaysia Agreement
The Malaysia Agreement or the Agreement relating to Malaysia between United Kingdom of Great Britain and Northern Ireland, Federation of Malaya, North Borneo, Sarawak and Singapore is the name used for the decolonization of North Borneo, Sarawak, and Singapore which it was union in 1963 with...

 to establish the Malaysia which was planned to come into being on August 31. Tengku Abdul Rahman later changed the date to September 16 to allow United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 to complete a survey with people of Sabah and Sarawak on the merger.

Singapore held polls for a general election as a state of Malaysia five days after the merger in the 1963 state elections
Singapore general election, 1963
The Singapore legislative assembly general election of 1963 was an election that took place in Singapore on 21 September 1963 following five days after the merger with Malaysia and therefore as an autonomous state of Malaysia...

 on September 21, 1963. The PAP won 71% of the seats, defeating the Barisan Sosialis, but their popular vote had slipped to 46.9%.

Due to worsening PAP-UMNO relations
PAP-UMNO relations
The sometimes turbulent relationship between the People's Action Party and United Malays National Organisation , which were, and still are, the ruling parties respectively of Singapore and Malaysia, has affected the recent history of both states.-Origins:Both parties have common roots, being...

, Singapore's status in Malaysia became increasingly tense as time went on. Singapore retained its autonomy, but differences in racial policy concerning issues of racial discrimination affected Singapore. The UMNO backed Article 153 of the Constitution of Malaysia
Article 153 of the Constitution of Malaysia
Article 153 of the Constitution of Malaysia grants the Yang di-Pertuan Agong responsibility for “safeguard[ing] the special position of the ‘Malays’ and natives of any of the States of Sabah and Sarawak and the legitimate interests of other communities” and goes on to specify ways to do this, such...

, which gave the government of Malaysia power to enforce special social and economic privileges for the Bumiputra
Bumiputra
Bumiputera or Bumiputra is a Malay term widely used in Malaysia, embracing indigenous people of the Malay Archipelago. The term comes from the Sanskrit word bhumiputra, which can be translated literally as "son of land"...

, which were ethnically and religiously defined. The PAP called for a Malaysian Malaysia
Malaysian Malaysia
The phrase "Malaysian Malaysia" was originally used in the early 1960s as the rallying motto of the Malaysian Solidarity Council, a confederation of political parties formed to oppose Article 153 of the Constitution of Malaysia...

, that favoured all Malaysians, rather than specific ethnic groups. Singapore was also required to pay the Federal Government a large percentage of its budget, money which would not be necessarily returned as services towards Singapore. At the same time, free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

was not granted between Singapore and other states of Malaysia.

Following these difficulties, Lee Kuan Yew reluctantly signed a separation agreement on 7 August, and Singapore officially left Malaysia on 9 August 1965. Singapore is now fully independent.
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