 Light bulb industries were taxed heavily because Malaysia wanted to protect its industry  British were afraid because PAP had pro- communist supporters like Lim Chin Siong Additional Information

L3 - Yes. Agrees with statement, explained. OR No. Disagrees with statement but provides alternative reasons, explained. One-sided answer (5-7)

The principle behind the tax-free agreement was to make Singapore’s goods competitive in Malaysia which would allow her to expand her market. But the imposition of high taxes on Singapore’s goods made her goods expensive and affected her industries. Moreover the delay in granting pioneer certificates and the Federal Government’s attractive financial packages to foreign investors made it difficult for Singapore to attract foreign investors to help her growth while making Malaysia attractive to them. (6) Thus, these factors did not help resolve the main aim of the Common Market to be established – resolve the unemployment problem in Singapore. (7m)

The Singapore Alliance not winning any single seat in the 1963 elections denied the Federal Government of a government in Singapore which would be supportive of it thereby allowing it to have a stronghold in Singapore. It also reflected that Singapore was to be governed along non-communal lines and this threatened the Alliance, especially UMNO who saw it as a threat to Malay supremacy. (6m) And the PAP campaigning on non-communal lines in the 1964 elections was viewed as a direct challenge to the Alliance’s ideology of communal politics which threatened to challenge the support MCA had and the Alliance’s dominance in Malaysia. (7m) Thus, given the situation, tensions grew between the two parties which eventually resulted in the separation.

The race riots sowed social discord into the Singapore society and caused Tunku to be concerned. For it not only disrupted the harmony but also economy through the chaos and curfew. The same society existed in Malaysia too, so if the tensions were not contained, they may spread to Malaysia as well. Thus to prevent further riots, Tunku suggested a separation. [6 m]. He also took into account the call for Lee Kuan Yew’s arrest by some UMNO members who blamed him for the riots because of his political ideology of non- communal. To prevent this matter from escalating, the Separation took place on August 9,1965.[7m]

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