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Singapore and Malaysia, HI, formation of a new federation including other…

- - - - Singapore gave everyone equality regardless of race
      - Malaysia gave special privileges in employment, business and education were given to their economic and social positions.
    - - Singapore's major political parties such as PAP, were multiracial and sought to represent the interest of all communities
      - The federal government was formed by the alliance party, which comprised of race-based parties such as the UMNO, MCA, MIC and sought to look after the interest of thier respective ethnic communinties
  - - - Singapore expected a common market to be set up between Malaysia and Singapore for economic survival. However, there was a delay in setting it up.
      - Singapore expected tariifs on production of Singapore to be removed but the federal government insisted on imposing the tariff to protect Malaya industries.
    - - Singapore would want to contribute 40% of its revenue to the federal government. However the federal government increased the contribution to 60% to fund defences against the Konfrontasi.
        This made Singapore feel that the decision was unfair and Singapore's contribution of 40 % was sufficient