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Chap 6: Separation (Events that caused tension (Participation in Each…
Chap 6: Separation
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Reasons for Separation
Economical
Disagreements regarding taxation: SG wanted to collect its own revenue, and send back a sum back to Federal Govt, but MY wanted collect all of SG's revenue and only provide the money needed to run the state
Eventually, MY decided to allow SG to collect their own revenue and send money back as taxes, but the amount was later increased from 40% to 60%, making SG feel unfair
Disagreement over common market: SG wanted to form common market with MY, but MY feared the competition from SG if the common market formed, as the goods from SG would no longer be taxed. Thus, MY delayed the formation of the common market
Political
Clash in Political Beliefs: The Alliance Party consisted of the UMNO, MCA and MIC. They sought to represent the interest of the respective communities. However, PAP sought to represent interests of communities regardless of race.
Privileges for the Malays: Federal Govt wanted to give special privileges to Malays (eg free education, reserving government jobs for them). However, the PAP focused on providing free education for Malays to enable them to get better opportunities in employment