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However, Singapore was now a recognised state. Fort Canning hill centre was home to its ancient and early colonial rulers. Singapore Changi Airport was opened in and Singapore Airlines was formed. The British, on their part, were prepared to gradually increase self-governance for Singapore and Malaya.
Singapore was not yet fully independent, as the British still controlled external affairs such as the military and foreign relations. Given Singapore's limited size and lack of natural resources, it was felt integrating with Malaya would provide a route to stronger economic development. Japanese newspapers triumphantly declared the victory as deciding the general situation of the war.
Lee Kuan Yew's emphasis on rapid economic growth, support for business entrepreneurship, and limitations on internal democracy shaped Singapore's policies for the next half-century. There was also a shortage of food leading to malnutrition, disease, and rampant crime and violence.
Unfortunately, it was a base without a fleet. The situation escalated to such an intensity that talks soon broke down and abusive speeches and writing became rife on both sides. Its renowned Long Bar is home to the Singapore Sling cocktail.
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It was subsequently re-occupied by British, Indian and Australian forces following the Japanese surrender in September. It was thought that the merger would benefit the economy by creating a common market which will support new industries, thus solving the ongoing unemployment woes in Singapore. However, the Sultanate was weakened by factional division and Tengku Abdu'r Rahman and his officials were loyal to Tengku Rahman's elder brother Tengku Long who was living in exile in Riau. In retaliation, Singapore did not extend to Sabah and Sarawak the full extent of the loans agreed to for economic development of the two eastern states.
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