On 27 May 1961, the Malayan Prime Minister, Tunku Abdul Rahman, proposed a merger to foster closer political and economic co-operation between the Federation of Malaya, Singapore, Sarawak, North Borneo and Brunei.
The main terms of the merger, agreed on by Tunku Abdul Rahman and Singapore Prime Minister Lee Kuan Yew, were to have central-government responsibility for defence, foreign affairs and internal security, but local autonomy in education and labour. A referendum on the terms of the merger, held in Singapore on 1 September 1962, showed the people's overwhelming support for it.
Following that, Malaysia was formed on 16 September 1963 and comprised the Federation of Malaya, Singapore, Sarawak and North Borneo (now Sabah). Brunei however, opted out. Indonesia and the Philippines opposed the merger; President Sukarno of Indonesia further reflected his opposition towards the merger by working actively against it during the three years of Indonesian confrontation.
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