by Lim Yew Hock in 1956, and after further negotiations Britain agreed to grant Singapore full internal self-government for all matters except defence and foreign affairs. During the subsequent May 1959 elections, the People's Action Party (PAP) won a landslide victory. Governor Sir William Allmond Codrington Goode served as the first Yang di-Pertuan Negara (Head of State). Within Malaysia PAP leaders believed that Singapore's future lay with Malaya, due to strong ties between the two. It was thought that reuniting with Malaya would benefit the economy by creating a common market, alleviating ongoing unemployment woes in Singapore. However, a sizeable pro-communist wing of the PAP was strongly opposed to the merger, fearing a loss of influence, and hence formed the Barisan Sosialis, splitting from the PAP. The ruling party of Malaya, United Malays National Organisation (UMNO), was staunchly anti-communist, and it was suspected UMNO would support the non-communist factions of PAP. UMNO, initially sceptical of the idea of a merger due to distrust of the PAP government and concern that the large ethnic Chinese population in Singapore would alter the racial balance in Malaya on which their political power base depended, became supportive of the idea of the merger due to joint fear of a communist takeover. On 27 May 1961, Malaya's prime minister, Tunku Abdul Rahman, made a surprise proposal for a new Federation called Malaysia, which would unite the current and former British possessions in the region: the Federation of Malaya, Singapore, Brunei, North Borneo, and Sarawak. UMNO leaders believed that the additional Malay population in the Bornean territories would balance Singapore's Chinese population. The British government, for its part, believed that the merger would prevent Singapore from becoming a haven for communism. To obtain a mandate for a merger, the PAP held a referendum on the merger. This referendum included a choice of different terms for a merger with Malaysia and had no option for avoiding merger altogether. On 16 September 1963, Singapore joined with Malaya, the North Borneo, and Sarawak to form the new Federation of Malaysia under the terms of the Malaysia Agreement. Under this Agreement, Singapore had a relatively high level of autonomy compared to the other states of Malaysia. Indonesia opposed the formation of Malaysia due to its own claims over Borneo and launched Konfrontasi (Confrontation in Indonesian) in response to the formation of Malaysia. On 10 March 1965, a bomb planted by