Name: __________________________ ( ) Class: 2__

Date: ________________

What led to separation?

Lesson Objectives
After this lesson, students will be able to
● Explain why Singapore separated from Malaysia

Pair Work: You will be assigned 1 problem to examine in detail in your pairs. Using your
textbook and the additional information provided on the next page, discuss and plan your
response in the space provided below.
Guiding Questions
Point: What is this problem? What type of problem is this? (political, economic)
Elaboration: What is this problem about?
Evidence: What are some specific incidents, events or statistics to support this problem?
Link: How did this problem lead to separation? (How did this problem affect people’s thoughts,
feelings, actions?)

One economic/political reason why Singapore separated from Malaysia was ___________

_______________________________________________________________________.

This was ________________________________________________________________

________________________________________________________________________

________________________________________________________________________
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_______________________________________________________________________________

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As a result, this caused _____________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

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________________________________________________________________________[4 marks]

Feedback Checklist
Is the problem specified in the response? (Y/N)
Has the problem been classified accurately? (Y/N)
Are relevant details included to describe the problem further? (Y/N)
Did the response include specific examples or statistics to further support the point? (Y/N)
Is there an explanation on how the problem led to separation? (Y/N)
Additional Information

Created by Toh Jopescu, 2021

1. Disagreements Regarding the Common Market
Both Malaya and Singapore wanted an expanded domestic market for their new industries,
and this was one of the economic benefits merger was supposed to bring. However, Singapore
was unwilling to abandon her free port status, while the Federation did not want to reduce its
taxes for Singapore industries. Furthermore, the industries in Singapore benefited from
tax-free raw materials coming from Malaya.
After merger, the Central Government still saw Singapore as an economic rival, as both
economies were not complementary. Tariffs was imposed on Singapore goods sold to Malaysia.
With the high taxes on Singapore goods, investors were not keen to set up their factories in
Singapore and found Malaysia to be a better option. The common market did not happen.

2. Disagreements Regarding Revenue Contribution

Under the merger agreement, Singapore would collect its own tax revenue and send an agreed
sum to the Central Government as taxes.
In November 1964, Singapore’s Finance Minister Goh Keng Swee had an argument with the
federal Finance Minister Tan Siew Sin over proposed new taxes. The new taxes would be a
heavy burden for Singapore businesses. Also, Singapore was required to contribute 40 percent
of its tax revenue even though its population was just 17 percent of the total population of
Malaysia. Tan warned that Singapore’s contribution to federal funds would be raised from 40
per cent to 60 per cent.

3. Differences in Composition of Political Parties

The Alliance Party formed the Federal Government in Malaysia in 1951. It was made up of
race-based organisations (UMNO, MCA, MIC) that were focused on the interests of their own
communities. The PAP government in Singapore, on the other hand, believed in representing
the interests of all communities regardless of race. The political differences in both parties
became obvious in the 1963 state election in Singapore and the 1964 Federal election. In the
1964 Federal election, PAP’s campaign went against how the Alliance Party governed Malaysia.
In May 1965, PAP and four other Malaysian parties formed the Malaysian Solidarity
Convention which declared to build a Malaysian Malaysia – that would not think along racial
lines. This went against the racial policies by the Alliance Party.

4. Differences in Treatment of Races

The Federal Government believed that special privileges to the Malays in employment,
business and in education was necessary to improve the social and economic positions of the
Malays.
The PAP government promised to safeguard Malay political, educational, religious, economic
and cultural interests, but it did not intend to adopt the system of privileges other than
providing financial benefits in education. There was some disappointment among Singapore
Malays, who had expected to receive the same privileges that applied in the Federation.

Created by Toh Jopescu, 2021