Merger And SeparationMerger And Separation

Merger and Separation

•Singapore’s reason for Separation•Malaysia’s reluctance•Malaysia’s willingness to take Singapore•Points of negotiation•Reasons for Separation•Analysis of merger and separation.

Road to Merger

•Singapore’s reason for Separation

1959 elections PAP promiseIndependence from BritishUnemployment problemLarge HinterlandCommon MarketSo the PAP did everything to give Singapore a Malayan outlook

•Malay was promoted as the national language•A Malay Singaporean, Yusof Ishak was made the head of state in Singapore

Road to Merger

Although the PAP made these overtures, yet Malaysia was not very keen on taking Singapore in.

ReasonsMalays will lose their dominant position in Malaysia

•Chinese in Malaya and Singapore-3.6 million•Malays in Malaya and Singapore-3.4 million

Communist threatStrong communist influence in SingaporeSecond China that had very strong links with china rather than as a part of SEA.

Road to Merger

However the Tenku changed his mind later and proposed that Singapore be included into Malaysia becauseCommunist FearDid not want Singapore to become a second Cuba whereby Singapore becomes a communist base Racial BalanceThe racial equation could be solved by including the people of Sabah and Sarawak as MalaysOther benefitslarge reserves of SingaporeAdditional territory from Sabah and SarawakRevenue from Singapore-40 % taxes

Road to Merger

Singapore’s response

•Welcomed the proposal•The Malayan hinterland and the raw materials were thought to

be beneficial for Singapore’s economy•Through Merger Singapore will gain independence from the

British•Singapore’s unemployment problem also would be solved if the merger goes ahead due to the large market

Road to Merger

But the communists were totally opposed to the idea of merger.

Reasons

The Malayan government was vehemently anti-communist

If the merger goes ahead, the communists will be finished as the federal government will mobilise all resources to eradicate them.

Thus the PAP was split into two groups.

Pro-communists called as Barisan Sosialis andThe PAP that was against the communists

As a result of this the PAP was further weakened.

Road to Merger

Referendum

Thus in order to solve the issue of whether to merge or not with Malaya, the PAP came out with a referendum. All citizens of Singapore were asked to vote on the issue.

There was intense propaganda between the two groups, with the communists and the PAP both trying to convince the voters to make the right choice.

However in the end the PAP was successful in the referendum with 71% of the people voting for merger. Thus Singapore was merged with Malaya.

Road to Merger

Merger as a marriage of convenience

Both Malaya and Singapore had different views with regard to the merger and separation.

Singapore wanted the merger badly because it would be the best way to solve her economic problems and to gain independence.

Malaya on the other hand wanted to go with the merger because she did not want a strong communist country at her doorstep and so she saw the merger as a convenient way of getting rid of the communist problem.

Thus merger was doomed to fail from the start itself.

Road to Merger

Points of dispute

Common Market

Singapore wanted to confirm the common market first and then go ahead with the merger, but Malaya wanted the merger first and then settle the common market issue later.

In the end a compromise was agreed upon whereby the common market would be established in stages.

Road to Merger

Revenue

Singapore wanted to pay a lower revenue and Malaysia wanted a higher amount.

Both sides agreed that Singapore would pay 40 % of its annual revenue to the Federal Government

Pioneer certificates

Pioneer certificates were to be granted to certain types of new industries which would exempt them from taxes for between five and ten years.

Both sides agreed that KL would grant these certificates after Malaysia was formed.

Road to Merger

Points of dispute

Borneo Loan

Malaysia wanted a gift of 50 million dollars.

Singapore insisted that it would give a loan and not an outright gift.

In the end Singapore was to provide a loan of M$ 150 million.

The loan was to be repaid in 15 years without charging any interest for 100 million dollars.

Road to Merger

Constitutional matters

Singapore was to have 24 seats

But she was given only 15 seats

Singapore wanted full control over education and labour policies.

Road to Merger

Citizenship issues

Singapore citizens would retain their citizenship and become nationals of Malaya

They will not be allowed to vote Malaysian elections and vice-versa.

However political parties from both sides could continue to take part in the elections provided the candidates must be citizens of the respective countries.

Road to Merger

Malay rights

Special privileges enjoyed by the Malays in Malaya would be extended to Singapore

Privileges to be extended to Malays and their special indigenous position would be recognised

Free education to Malays until their university level

In July 1963 the Malaysia Agreement was signed by Malaya, Singapore, Sabah and Sarawak. Brunei did not join and Indonesia and the Philippines opposed the formation as a neo-colonial plot.

Reasons for Separation

1963 Singapore GE

UMNO contested in the Singapore elections

Tenku came to support to garner support for the SA.

But the SUMNO or SA did not win a single seat

1964 Federal election

The PAP sent 17 candidates to participate in the Federal elections

The Alliance saw the PAP as a direct challenge

PAP won only one seat of the contested 14 seats

UMNO leaders were unhappy with the PAP and stepped up their criticism.

Ruined the relationship between the two countries

Political Economic Ideological Social

Factors Responsible for Separation

Personality

Special rightsor Meritocracy

Common Market

Import duties

Increased Revenue Racial Riots63,64 Elections

Malayan SolidarityConvention

What were the advantages of separation?

We could follow our own policies of meritocracy

We could promote racial harmony and equality among races.

We also became independent

What were the disadvantages of separation?

Loss of hinterland

Loss of common market

Disharmonious relationship between the two countries.

Can you think anymore aspects on this issue?