section_path: History/Within Malaysia
section_name: Within Malaysia
paragraph_text: Within Malaysia
  
  PAP leaders believed that Singapore's future lay with Malaya, due to strong ties between the two. It was thought that reuniting with Malaya would benefit the economy by creating a common market, alleviating ongoing unemployment woes in Singapore. However, a sizeable left-wing faction of the PAP was strongly opposed to the merger, fearing a loss of influence, and hence formed the Barisan Sosialis, after being kicked out from the PAP. The ruling party of Malaya, United Malays National Organisation (UMNO), was staunchly anti-communist, and it was suspected UMNO would support the non-communist factions of PAP. UMNO, initially sceptical of the idea of a merger due to distrust of the PAP government and concern that the large ethnic Chinese population in Singapore would alter the racial balance in Malaya on which their political power base depended, became supportive of the idea of the merger due to joint fear of a communist takeover.
  
  On 27 May 1961, Malaya's prime minister, Tunku Abdul Rahman, made a surprise proposal for a new Federation called Malaysia, which would unite the current and former British possessions in the region: the Federation of Malaya, Singapore, Brunei, North Borneo, and Sarawak. UMNO leaders believed that the additional Malay population in the Bornean territories would balance Singapore's Chinese population. The British government, for its part, believed that the merger would prevent Singapore from becoming a haven for communism. To obtain a mandate for a merger, the PAP held a referendum on the merger. This referendum included a choice of different terms for a merger with Malaysia and had no option for avoiding merger altogether. On 16 September 1963, Singapore joined with Malaya, the North Borneo, and Sarawak to form the new Federation of Malaysia under the terms of the Malaysia Agreement. Under this Agreement, Singapore had a relatively high level of autonomy compared to the other states of Malaysia.
  
  Indonesia opposed the formation of Malaysia due to its own claims over Borneo and launched Konfrontasi ("Confrontation" in Indonesian) in response to the formation of Malaysia. On 10 March 1965, a bomb planted by Indonesian saboteurs on a mezzanine floor of MacDonald House exploded, killing three people and injuring 33 others. It was the deadliest of at least 42 bomb incidents which occurred during the confrontation. Two members of the Indonesian Marine Corps, Osman bin Haji Mohamed Ali and Harun bin Said, were eventually convicted and executed for the crime. The explosion caused US$250,000 (equivalent to US$ 2,494,456 in 2024) in damages to MacDonald House.
  
  Even after the merger, the Singaporean government and the Malaysian central government disagreed on many political and economic issues. Despite an agreement to establish a common market, Singapore continued to face restrictions when trading with the rest of Malaysia. In retaliation, Singapore did not extend to Sabah and Sarawak the full extent of the loans agreed to for economic development of the two eastern states. Talks soon broke down, and abusive speeches and writing became rife on both sides. This led to communal strife in Singapore, culminating in the 1964 race riots. On 7 August 1965, Malaysian prime minister Tunku Abdul Rahman, seeing no alternative to avoid further bloodshed (and with the help of secret negotiations by PAP leaders, as revealed in 2015) advised the Parliament of Malaysia that it should vote to expel Singapore from Malaysia. On 9 August 1965, the Malaysian Parliament voted 126 to 0 to move a bill to amend the constitution, expelling Singapore from Malaysia, which left Singapore as a newly independent country.