Friday, September 21, 2007

How far do you agree that the need to set up a Common Market was the most important reason for merger between Singapore and Malaya?

I agree to some extent that the need to set up a Common Market was the most important reason for merger between Singapore and Malaya. At that time, Singapore was facing a declining entrepot trade and a growing population which required jobs. Furthermore, the Malayan government introduced import and export tariffs on goods traded between two countries. With this new tax, people of Singapore who wanted to trade with Malaya would earn less profit. The PAP government felt that a merger with Malaya would bring about rapid economic growth and a Common Market would support Singapore's new industries. Within this Common Market, goods could be bought and sold freely without being taxed. This would increase trade, expand industries and create more jobs. In addition, Malaya was not interested in the merger because they only wanted to work out the details of the Common Market after the signing of the Malaysia Agreement whereas Singapore wanted inclusion of Common Market terms in the Malaysia Agreement.

However, Singapore had been struggling for independence since 1945, the end of World War Two. The PAP government saw that Singapore's best hope for complete freedom was through a merger with Malaya. Singapore could ride on Malaya's independence. If Singapore merged with Malaya, British would be more willing to grant independence. The Malayan Prime Minister Tunku Abdul Rahman wanted the merger for security and not for economic reasons. Tunku felt that the communists might be too strong for the young PAP government to handle. Feared that Singapore might be used as a base to spread communist to Malaya. With a merger, the two countries could work together to curb communists' activities.

In conclusion, I do not think that the need to set up a Common Market was the most important reason for merger between Singapore and Malaya.