 Despite their successes in governing Singapore , the PAP leaders , including Lee and Goh , believed that Singapore 's future lay with Malaya . They felt that the historic and economic ties between Singapore and Malaya were too strong for them to continue as separate nations . Furthermore , Singapore lacked natural resources , and faced both a declining entrepôt trade and a growing population which required jobs . It was thought that the merger would benefit the economy by creating a common market , eliminating trade tariffs , and thus supporting new industries which would solve the ongoing unemployment woes . 
