Indonesia–Malaysia confrontation become self-governing in 1959). In May 1961, the UK and Malayan governments proposed a larger federation called Malaysia, encompassing the states of Malaya, North Borneo, Sarawak, Brunei, and Singapore. Initially, Indonesia was mildly supportive of the proposed Malaysia, although the PKI (Partai Komunis Indonesia — Indonesian Communist Party) was strongly opposed to it. In Brunei, it was unclear whether the Sultan Omar Ali Saifuddien III would support Brunei joining the proposed Malaysian state because of the implied reduction of his political office, and Brunei's oil revenues ensured Brunei's financial viability were it to choose independence. Furthermore, a Brunei politician, Dr.
Peninsular Malaysia agreement with Federation of Malaya in forming the Federation of Malaysia. Peninsular Malaysia Peninsular Malaysia also known as Malaya or West Malaysia, is the part of Malaysia which lies on the Malay Peninsula and surrounding islands. Its area is , which is nearly 40% of the total area of the country - - or slightly smaller than England and Java island. It shares a land border with Thailand in the north. To the south is the island of Singapore. Across the Strait of Malacca to the west lies the Sumatra Island (Indonesia) and across the South China Sea to the