new ISI policy included batteries, tires and paints. 1960s Formation of Malaysia In September 1963, the Federation of Malaya with the Crown Colonies of Singapore, Sarawak and North Borneo merged to form Malaysia. The merger had granted the latter three states their independence. The new joint Malaysian-Singaporean governments later announced plans to establish an ISI-based national automotive industry, as per the recommendation of advisers from the Colombo Plan. The Malaysian Minister of Commerce and Industry, Lim Swee Aun, would become a key figure in the formation of Malaysia's automotive industry. The 1964 Malaysian automotive policy aimed to accelerate national industrialisation through the local assembly of vehicles and manufacturing of automobile components. The government would issue manufacturing licenses to both foreign and local companies who were interested in setting up automobile assembly plants in any Malaysian state, including Singapore. The government would reduce imports of complete-built up (CBU) vehicles by means of quota regulations and tariffs, and locally assembled (SKD or CKD) vehicles with Malaysian manufactured components would be granted reductions in import duties, making them cheaper and more competitive as a result. By setting up local assembly plants, the government hoped to create more job opportunities and establish a market for Malaysian-made parts (local content) such as tires, paints, batteries, electrical cables, upholstery and other rubber-based goods. The government hoped that the gradual increase of local content and technology transfer over the next decade or two would eventually bring about cars that are fully 'Made in Malaysia'. By May 1964, nineteen firms, both foreign and local, had responded to the government's call for local assembly and parts production. Singapore separates from Malaysia In August 1965, Singapore separated from Malaysia amid escalating political tensions, and both governments began to compete for foreign investment. In 1966, ten automobile firms banded together to establish the Motor Vehicle Assemblers Association (MVAA), and pleaded for a common automotive market between Malaysia and the newly independent Singapore. The MVAA argued that local assembly would prove economically unsustainable if both governments refused to co-operate. The combined markets of Malaysia and Singapore stood at around 33,000 vehicles a year, with Singapore accounting for 25% of sales. However, political differences dominated and the MVAA common market proposal was refused. The Malaysian government later restricted automobile imports from Singapore and revised its automotive policy, forcing investors to choose between the two countries. The Singaporean government later presented its own automotive