SINGAPORE

British Reluctance to Grant Independence

Communist Threat
- Communism is influential among Singapore Chinese
- Demonstrations, strikes were common

Defense of British Interests
- British Naval Base in Singapore
- Protection of British trade

Economy
- Singapore’s ability to survive was doubted
- Lack of natural resources

Reasons for Merger and Points of Discussion

Communist Threat
- Malaysia was anti-communist and did not want a communist neighbor
- Tunku Abdul Rahman was afraid of the communists using Singapore as a base for communist activities
- PAP showed internal weakness by losing elections to the Barisan Sosialis

Common Market
- Free trade without tax
- Provision of employment
- Singapore to increase contribution to Kuala Lumpur from 39% to 40%
- Malaysia saw Singapore as a competitor and was reluctant

Pioneer Certificates
- To be provided to new industries
- Tax-free 5 to 10 years

Borneo Loan
- Malaysia wants Singapore to give M$50 million as an outright gift
- M$150 million as loan to be repaid in 15 years.
- First M$100 million tax-free
- 50% of the labor used in Sabah and Sarawak to come from Singapore

Constitutional Matters
- 24 seats given to Singapore
- Reduction to 15 seats due to autonomy in labor and education

Citizenship
- Singaporeans to maintain Singapore citizenship while becoming Malaysian nationals
- Both sides could not participate in local voting

Malay Rights
- Both sides agreed that Malay privileges in Malaya would not be extended to Malays in Singapore
- Malays in Singapore given free education up to university level

External Pressures

The Philippines
- Saw Sabah as part of its territory
- Broke off diplomatic relations with Malaysia

Indonesia
- Saw merger as an attempt by the British to maintain its power in South East Asia
- Rejected UN survey of people in Sabah and Sarawak
- The Confrontation




Trouble in Malaysia

The 1963 Singapore General Election
- Singapore Alliance (SA) told PAP not to contest in regions where it was contesting
- Wanted to have a hand in governing Singapore
- PAP disagreed
- SA did not win a single seat
- SUMNO lost 3 predominantly Malay constituencies to PAP

1964 Federal Election
- PAP called for a non-communal approach in Malaysian politics
- PAP criticized the MCA as a poor representative of urban Chinese in Malaysia
- Criticism made SA more united
- PAP won only one seat by Devan Nair in the Bungsar Constituency near Kuala Lumpur

Communal Problems
- UMNO leaders played on communal politics
- Insisted that PAP’s relocation program was anti-Malay
- In actual fact out of the 2500 affected, only 200 were Malays
- The only building not pulled down was the Fatimah Mosque
- UMNO organized meeting before PAP’s meeting on July 19th 1964

Utusan Melayu
- Jawi script familiar only to the Malays
- Anti-PAP campaign held in print

Race Riots
- Prophet Muhammad’s birthday celebration
- Fight broke out between a Chinese policemen and a group of Malays
- July 21st 1964
- Curfew was implemented
- Riots occurred again in September

Malaysian Solidarity Convention
- Alliance Party announced re-organization of SA branches in Singapore
- PAP formed Malaysian Solidarity Convention
- Approach was for a ‘Malaysian Malay’
- Seen as direct attack on Malay rights and privileges and the communal politics of UMNO

Few Pioneer Certificates
- Out of the 69 applicants, only 2 were approved
- One was rejected due to the numerous restrictions

No Common Market
- Singapore goods were more heavily taxed
- Foreign investors were given attractive financial packages

Proposed Increase in Singapore’s Contribution
- A rise from the current 40% to 60%

Closing of the Bank of China
- On the grounds that the funds were allegedly given to the communists fighting in the jungles
- Bank of China an important part in promoting trade with China

Communism no longer a Threat
- Many communists leaders were detained under ‘Operation Cold Store’ in February 1963