.Sunday, September 23, 2007@ 5:05 PM Y
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 a great extent although political reason like gaining complete freedom would be one of the important reason. I think the setting up of a Common Market was the main and the most important reason for a merger because it was thought to be able to bring about a rapid economic growth in Singapore and the PAP government felt that Singapore's survival as an independent state would be difficult due to the lack of natural resources, the declining of entrepot trade and the growing population which required jobs.
Morever, Malayan government introduced import and export tariffs, taxes that are collected by government on goods coming into or going out of the country, on goods traded between the two countries. Besides, the setting up of a Common Market which is an agreement between countries allowing goods produced in one country to enter another country without having to pay taxes would help to support Singapore's new industries. Goods could be then bought and sold freely without being taxed. This would in turn increase trade, expand industries and create more jobs for people in Singapore.
Although there was political reason like independence for merger, it was not seen as the priority, unlike the economic reasons such as the setting up of the Common Market. PAP government saw that Singapore's best hope for complete freedom was through a merger with Malaya because there was still areas like defence and internal security under British control.
Therefore, i think the setting up of a Common Market was the most important reason for a merger.
