In September 1963 the Federation of Malaysia came into existence, merging peninsula Malaya and the British crown colonies of Singapore, Sarawak and North Borneo (Sabah)𝕒. Not quite two years later, in August 1965, the Federation was rent asunder when Singapore abruptly exited the Federation, albeit with some reluctance initially from Singapore but ultimately by mutual consent of the two governments and with (on the surface) little apparent rancour. The reasons for the transitory nature of the Malaysia/Singapore unification lie in the fragility and weaknesses of the new federation’s arrangements at its onset.

What was Kuala Lumpur and Singapore seeking to get out of the merger in the first place?
Significantly, aside from wanting to merge for security from communist expansion, Singapore and Malaya had distinctly different reasons to unify. The original impetus lay primarily with the Singapore side. From as early as 1955 politicians starting with David Marshall (foundation chief minister of Singapore) proposed the idea to Malayan leader Tunku Abdul Rahman. Initially the Tunku refused to countenance the proposal, his principal focus being to maintain the racial balance of the peninsula state in favour of ethnic Malays. By around 1960 Abdul Rahman had changed his mind. Following Singapore’s attainment of self-government in 1959, Kuala Lumpur, fearful that a future independent Singapore might fall under the sway of communist power, was more favourable to merging with the island-state to shore up Malaysian security𝕓. A secondary but undeniably important motivation on Malaya’s part was the economic advantages that Singapore could bring to the Federation𝕔 [‘Merger and Separation’, www.mindef.govt.sg].

Singapore’s incentive to merge
Prime Minister Lee Kuan Yew sold the concept of the union with Malaya to the Singapore electorate by persuading it that the island-state’s political and economic survival depended on unifying. Lee saw the benefits in establishing a federation common market with the opening up of greater Malaysia to Singapore goods. Lee’s push for the merger alienated the radical left wing element of his ruling People’s Action Party (PAP), which split off forming Barisan Socialis (“Socialist Front”)…this helped Lee and the PAP moderates consolidate their hold on Singapore politics by broadening the party’s electoral appeal [Leifer, Michael. “Singapore in Malaysia: The Politics of Federation.” Journal of Southeast Asian History 6, no. 2 (1965): 54–70. http://www.jstor.org/stable/20172797].

Unresolved seeds of disunity
After two years of protracted and difficult negotiations the merger came into effect in September 1963. Neither Malaya or Singapore were ever really satisfied with the compromise agreement. While Rahman by including Sabah and Sarawak in the union was able to roughly retain Malay ethnic parity with the Singapore Chinese, communal tensions within the Federation exacerbated after 1963. The Tunku’s desire to grant special privileges and rights to Malays—to appease the radicals in the mainland’s dominant party UMNO (United Malays National Organisation)—left him at loggerheads with Lee who was determined to fix the federal status of Singapore citizens. Lee counter-campaigned against Malay political hegemony with the slogan “Malaysian Malaysia”, a call for racial equality in the Federation[‘Singapore Separates From Malaysia and Becomes Independent, 9 August 1965’, HistorySG, www.eresources.nib.gov.sg]

1964, pivotal year
With the 1964 federal elections in Malaysia, Lee’s agenda for effecting change crystallised as he sought to redress Singapore’s disproportionate representation of only 15 seats in the federal legislature (the Singapore-Chinese population size warranted at least 25 seats). Lee entered PAP candidates in the mainland elections, hoping to win a foothold in the ruling coalition (Alliance) with UMNO by elbowing aside the Malaysian Chinese Association. The tactic backfired with PAP securing only one new seat and caused resentment and further suspicion from Malays. 1964 also witnessed the outbreak of racial riots in Singapore between the Chinese and Malay communities (with both the Malayan Communist Party and UMNO playing active roles in the fracas). The consequence of which was to widen the gulf between Singapore and the mainland and hasten the eventual break in 1965 [Milne, R. S. “Singapore’s Exit from Malaysia; the Consequences of Ambiguity.” Asian Survey 6, no. 3 (1966): 175–84. https://doi.org/10.2307/2642221].

Distrust across the causeway
By 1965 relations between the Malaysian mainland and Singapore had deteriorated graphically. Divisions were widening with UMNO actively working to destabilise PAP’s position in the island-state. Both governments were dissatisfied with the way the federation was functioning. The Singapore government was frustrated by the paucity of its political clout at the federal level. Equally galling was the failure of the hoped-for economic benefits for the island to materialise. Singapore saw itself having to make a disproportionate contribution to Malaysian finances for very little return. Progress towards a viable common market was negligible, as was the promised pioneer status for Singaporean industries. Singapore retaliated by delaying the loans promised to Sarawak and Sabah, much to KL’s displeasure.

Bilateral tensions and antagonisms played their part in perpetuating division between the two main constituent parts of the Malaysian Federation. Lee Kuan Yew’s personality and tendency towards unilateral action at times didn’t help keep a lid on those tensions, eg, Lee’s decision to unilaterally declare Singapore’s “de facto independence” in August 1963 ahead of the official proclamation by the Tunku didn’t win him friends in either Malaya or Britain.

Endgame: Schism, regrets and relief
The split occurred in August 1965 after a separation agreement had been drafted, the lead-up to the event was kept very hush-hush (even the Malaysian deputy prime minister was not made privy to the process in train). Singapore was hived off from Malaysia in the end in a bloodless but nonetheless dramatic manner. The failure of the Singapore/Malaysia nexus, as Nancy Fletcher observes, ”grew out of differences in intention and expectation bound up in the very concept of Malaysia (shaped by) divergent economic interests, conflicting political ambitions, and brought to the point of conflagration by inter-racial fear” [Nancy McHenry Fletcher, ‘The Separation of Singapore From Malaysia’, Data Paper # 73, South East Program, Cornell University, July 1969, www.ecommons.cornell.edu.

Footnote: ultimately both parties reached the conclusion that the status quo was beyond salvation but that was not completely the end of it. Rahman, prior to initiating the severing of Singapore from the Federation, first proposed to the Singaporese the alternate arrangement of a “confederation”. According to Janadas Devan, the Singapore government after consideration ultimately rejected the confederation idea, apparently on the “no taxation without (national) representation” principle𝕕[‘Singapore could have been ‘one country, two systems’ within Malaysia, not sovereign country’, Janadas Devan, Straits Times, 28-Jan-2015, www.straitstimes.com].

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𝕒 Brunei was originally intended to be part of the new federation but withdrew prior to its formulation
𝕓 a large concern for the Malayan leadership was a hostile Indonesia who were against the whole concept of “Malaysia” as a British “neo-colonial plot” [‘Why Indonesia Opposes British-Made Malaysia’ (1964), www.lib.ui.ac.id], culminating in the Konfrontasi episode between the two countries
𝕔 Singapore was also attractive to the Malay Peninsula rulers for its strategic location and fine natural harbour
𝕕 the British were also opposed to the confederation solution