Chapter 9 Part I: Merger between Malaya & S’pore

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Glossary

• Federation = a group of states united with one central govt. However each state has its own state govt to deal with local matters

• Tariffs = taxes collected by a government on goods coming into or going out of the country

• Common Market = an agreement between countries allowing goods produced in one country to enter another country without having to pay taxes

• Radicals (in this context) = party members who supported the Communists or their actions

Glossary

• By-election = an election held between general elections to fill a seat left vacant because a member has resigned, been expelled or died during a government’s term in office

• Referendum = a direct vote by the people of the country to decide on a particular issue, instead of having the govt make the decision

• Grant = money given by the government for a particular purpose. The money does NOT have to be repaid

Abbreviations

• ASEAN = Association of Southeast Asian nations

• United Nations = international organisation which tries to get all countries to work together in maintaining peace and dealing with international problems

• Cobbold Commission (1962) = made up of 3 British and 2 Malays from Sabah & Sarawak; led by former governor of Bank of England, Lord Cobbold

Objectives: • Reasons for the merger with Malaysia • Reaction towards the formation of Malaysia in

▫ Britain ▫ Singapore ▫ Sabah, Sarawak and Brunei ▫ Indonesia and the Philippines

• The formation of Malaysia

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Situation before merger: Singapore just gained full Internal self-government

PAP was the ruling party and had to take over the responsibility of looking after the welfare of the people

PROBLEMS!!

1. Unemployment

2. Poor housing

3. Education

4. Pressure from the communist faction

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Situation before merger: MOST PRESSING PROBLEM!!!

UNEMPLOYMENT

Reason:

No longer can depend on entrepot trade

Singapore market unable to support new industries as it was too small

Reasons for Merger!

Singapore’s reasons:

•More Trade and Job Opportunities

• To gain independence from the British

• For PAP’s political survival

Malaya’s reasons:

• For security against the communists

Britain’s reasons:

• Colonial policy

•Lack of confidence in an independent Singapore

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Malaya’s reason

Supporting details

For Security

Wanted to prevent the communists from gaining control of Singapore

Malaya feared that PAP could not handle the communists

Feared that the communists could use Singapore as a base to spread communism throughout Malaya should they capture power in Singapore

Merger = ability of Malaya to help the PAP curb communism = remove Tunku’s fear of the communists using Singapore as a base to spread communism in Malaya

Singapore’s reasons Supporting details

1. For trade and job opportunities

- S’pore lacked natural resources

-- Declining entrepot trade

- Rising unemployment rate

- Malayan govt imposed trade tariffs on goods imported & exported between S’pore & Malaya; decreased S’pore’s revenue earned

Malaya was rich in natural resources > S’pore could tap on them to support its growth

A bigger market was needed to sell Singapore produced goods > Malaya was the ideal market

Merger could mean a Common Market (tax free market) > goods can be traded freely at cheaper prices => more profits

Common Market = increase trade, expand industries and create more jobs

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What can you tell about the problems facing the new government in 1959?

Singapore’s reasons Supporting details

2. For independence

- British lacked confidence because they feared S’pore would fall under the hands of the communists

PAP hoped that by merging with an anti-communist Malaya British fears of a communist takeover could be removed

Merger = help from Malaya to suppress the Communist threats in S’pore

3. For PAP’s political survival

- PAP had promised that it would help S’pore gain indep during the 1959 elections

Merger = fulfill Lee Kuan Yew’s electoral promise to the people of Singapore who had placed their trust in the PAP in the 1959 elections.

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British’s reasons Supporting details

1. Colonial Policy

A traditional British policy towards its colonies and protectorates is known as the policy of closer association > to improve the administrative efficiency, economic development and security.

“greater Malaysia” = long-term aim of bringing their colonies in the region together in a federation before they were given independence.

2. Lack of confidence in an independent Singapore

- reluctant to give Singapore indep because they feared that Singapore would fall to the communists.

Merger with a strong anti-communist Malaya = help S’pore curb communist threat = increase the confidence the British had into giving Singapore its independence.

THE ANNOUNCEMENT!!

• Date: 27 May 1961

• Event: Tunku Abdul Rahman’s visit to Singapore

• Suggested the creation of a new federation to be

called Malaysia

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REACTIONS!!!

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British:

Did not object to the proposal

Felt that its colonies would not be able to survive if they were granted independence.

In the opinion of the British, merger with Malaya would bring about stability to its colonies (Singapore, Sabah and Sarawak)

REACTIONS IN SINGAPORE Pro-merger Anti-merger

Lee Kuan Yew and most of the PAP leaders

Believed that Singapore’s economic position could only be improved through merger

Pro-communists members of PAP

Knew that if Singapore joined Malaya, the anti-communism government in Kuala Lumpur would crack down on communist activities in Singapore and communists would be arrested

Lim Chin Siong (prominent trade union leader) tried to capture PAP leadership with the help of 13 Legislative Assemblymen so that they could reject merger BUT failed.

These Legislative Assemblymen were expelled from PAP. Formed Barisan Sosialis (Socialist Front)

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Outcome – The Referendum

• Barisan Sosialis started a campaign calling people to reject merger

• PAP held a referendum to find out which type of merger the people wanted

• On Referendum Day, 71 percent of the population voted in favour of the government’s plan to join Malaysia (option A)

• SIGNIFICANCE: Showed that the majority of the population supported the government

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Sample Voting Slip for Referendum

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REACTIONS IN SABAH, SARAWAK AND BRUNEI

Sabah and Sarawak

The Malayan and British governments set up the Cobbold Commission in 1962 to find out if people of Sabah and Sarawak were in favour of joining Malaysia

Only 1/3 of the people were NOT in favour of joining Malaysia

Brunei Talks were held between Malaya and Sultan of Brunei

Both sides could not agree on the terms of entry

Brunei did not join Malaysia

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REACTIONS IN INDONESIA AND PHILIPPINES

Indonesia Launched a policy of CONFRONTATION against the formation of Malaysia because:

President Sukarno felt that Sabah and Sarawak should join Indonesia

Influenced by the Indonesian communist party which was against the anti-communist government in Malaysia

Distract people’s attention from the hardships they faced as a result of Indonesia’s economic problems

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REACTIONS IN INDONESIA AND PHILIPPINES…continued

Philippines Objected to the formation of Malaysia

Claimed that Sabah belonged to Philippines

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• After the signing of the Malaysia agreement, Indonesia and Philippines were extremely unhappy.

• To find a peaceful solution, a United Nations mission was sent to Sabah and Sarawak to find out whether the people were in favour of joining Malaysia

• Indonesia and Philippines were happy with the decision as they believed that the people would reject

• However, based on the findings of the UN, majority of the people in Sabah and Sarawak were in favour of joining Malaysia

REACTIONS IN INDONESIA AND PHILIPPINES… OUTCOMES

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• Indonesia and Philippines broke off relations with Malaya

•Turned to violence

Some Terms of Agreement Between Malaya and Singapore

• Singapore would have its own state government

• Singapore could hold elections to elect its own state government

• Singapore would have control over education and labour

• Singapore would leave control of the armed forces, police and dealings with foreign governments to the Central government in Kuala Lumpur

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Which of the above terms of agreement would upset the communists?

Differences between Singapore and Malaya

1. Common Market

2. Money issues with regards to Sabah and Sarawak

3. Collection of revenue

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Differences between Singapore and Malaya

Malaya wanted:

Details of the Common Market to be worked out after the signing of the Malaysia Agreement

Singapore wanted:

Inclusion of Common Market terms in the Malaysia Agreement

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Outcome:

The Common Market would be established in stages

Differences between Singapore and Malaya

Malaya wanted:

A $50 million grant from Singapore for the development of Sabah and Sarawak

Singapore wanted:

To provide a loan of $150 million for the development of the two territories instead of giving a grant

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Outcome:

Singapore would provide a $150 million loan for the development of Sabah and Sarawak

Differences between Singapore and Malaya

Malaya wanted:

To collect revenue in Singapore and then give Singapore what it needed to run the state

Singapore wanted:

To collect its own revenue and then send an agreed sum of money each year to Kuala Lumpur as taxes

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Outcome:

Singapore would collect its own revenue and pay Kuala Lumpur an agreed sum of money as taxes

Formation of Malaysia

• Malaysia was formed on 31 August 1963 with the signing of Malaysia Agreement in London

• Malaysia was made up of 14 states

• Each state had its own state government

• Central government of Malaysia was located in Kuala Lumpur

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