The+Merger+With+Malaysia+(+1962+-+1965+)

The Merger With Malaysia ( 1962 - 1965 ) The merger with Malaysia was thought to be the solution to resolve unemployment, a stagnating economy and the security threats posed by revolutionary elements in the period. This would be done by forming a new nation, eliminating trade taxes and therefore allowing a common, free market to open up, solving economic and unemployment woes. London also approved of the Merger. About a year after the two countries were merged as one, much racial tension arose. They were f ueled by Barisan 's tactics of stirring up communal sentiment as the pro-communist party sought to use desperate means to survive against the crackdown by both the government of Singapore and the Federal Government. The malays and Chinese thought there was no fair treatment in the country, and started riots. In the end, they ended up separating and back to two individual countries again.