Why Singapore separated From Malaya In 1965?
On August 7, 1965, Prime Minister Tunku Abdul Rahman, seeing no alternative to avoid further bloodshed, advised the Parliament of Malaysia that it should vote to expel Singapore from Malaysia. Despite last-ditch attempts by PAP leaders, including Lee Kuan Yew, to keep Singapore as a state in the union, the Parliament on August 9, 1965 voted 126-0 in favour of the expulsion of Singapore, with members of Parliament from Singapore not present. On that day, a tearful Lee Kuan Yew announced that Singapore was a sovereign, independent nation and assumed the role of prime minister of the new nation. His speech included this quote: "For me, it is a moment of anguish. All my life, my whole adult life, I have believed in merger and unity of the two territories. Hence, Singapore became the only country in the history of the modern world to gain independence against its own will.
Under constitutional amendments passed in December of that year, the new state became the Republic of Singapore, with the Yang Di- Pertuan Negara becoming President, and the Legislative Assembly becoming the Parliament of Singapore. These changes were made retroactive to the date of Singapore's separation from Malaysia. The Malaya and British Borneo Dollar remained legal tender until the introduction of the Singapore dollar in 1967. Before the currency split, there was a discussion about a common currency between the Malaysian and Singaporean Governments.

A union between Singapore and Malaysia between 1963 and 1965 proved too unhappy as a result of the bloody communalistic race riots between the indigenous Malays and the Singaporean Chinese. Because of that and other irreconcilable differences, Singapore was requested to leave the Federation of Malaysia. It became an independent state on Aug. 9, 1965.

Lee Kuan Yew is often referred to as the chief