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.