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, was staunchly anti-communist, and would support the PAP in such an event against them. The UMNO leaders were also sceptical 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, a long-standing member of the PAP, stormed out of the party and beat a PAP candidate in a subsequent by-election, 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 27 May, Malaya's Prime Minister,
Tunku Abdul Rahman, mooted the idea of
Malaysia, comprising the existing Federation of Malaya, Singapore,
Brunei and the British Borneo territories of
Sabah and
Sarawak. 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, left the PAP to form a new opposition party, the
Barisan Sosialis (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. 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 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 fulfilment 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.
Referendum on joining Malaysia 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 orders from Prime Minister Lee Kuan Yew,
Operation Coldstore was carried out in Singapore on 2 February 1963 with the arrest of more than 150 journalists, labor and student leaders, and members of political parties who opposed Lee's People's Action Party (PAP). On 9 July 1963, the leaders of Singapore, Malaya, Sabah, Sarawak and the United Kingdom signed the
Malaysia Agreement to establish
Malaysia, which was planned to come into being on 31 August. Tengku Abdul Rahman later changed the date to 16 September to allow the United Nations to complete a survey with the people of Sabah and Sarawak on the merger. On 31 August, Singapore declared its independence from the United Kingdom, with Yusof bin Ishak as the head of state (Yang di-Pertuan Negara) and Lee Kuan Yew as prime minister; sixteen days later, Singapore would join the Federation of Malaysia. Singapore held polls for a general election as a state of Malaysia five days after the merger in the
1963 state elections on 21 September 1963. The PAP won 71% of the seats, defeating the Barisan Sosialis, but their popular vote had slipped to 46.9%.
The difficulties of merger Due to worsening
PAP-UMNO relations, 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, which gave the government of Malaysia power to enforce special social and economic privileges for the
Bumiputra, which were ethnically and religiously defined. The PAP called for a
Malaysian 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 was not granted between Singapore and other states of Malaysia. Following these difficulties, Lee Kuan Yew reluctantly signed a separation agreement on 7 August 1965, after
the Parliament of Malaysia voted for Singapore's expulsion from the Federation. Singapore officially left Malaysia on 9 August 1965. == References ==