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Modern Singapore
In the 1959 general elections the People's Action party (PAP) won control of the government and continued in power after winning the 1963 elections. Under the policies of Prime Minister Lee Kuan Yew, Singapore's economic base was strengthened and a greater degree of social and cultural homogeneity was achieved. With the establishment in the 1960s of the Economic Development Board, the Development Bank of Singapore, and the International Trading Company and the subsequent influx of foreign investment, Singapore's industrial base was diversified, expanded, and modernized. Following a referendum (1962), Singapore merged (Aug., 1963) with Malaya, Sarawak, and Sabah to form the Federation of Malaysia. Frictions soon arose, however, and Singapore was, by mutual agreement, separated from the federation in Aug., 1965, becoming an independent republic. The exclusion of Singapore was largely due to Malay fears of Singapore's Chinese majority and its potential economic domination in the federation.
Singapore has remained in the Commonwealth of Nations, and it joined the United Nations in 1965; it was one of the founding members of the Association of Southeast Asian Nations (ASEAN) in 1967. Close strategic ties to the United States are reflected in an agreement that provides access to Singapore's naval base by American warships. Prime Minister Lee Kuan Yew was the dominant figure in Singapore's authoritarian political environment until his resignation in 1990 after 31 years in office. Singapore experienced steady economic growth and diversification during his tenure, but the country was criticized internationally during the 1980s and 1990s for severe treatment of political dissidents and a harsh system of justice. In 1990, Goh Chok Tong became prime minister, but Lee retained considerable governmental influence, staying on as senior minister. In 1993, Ong Teng Cheong, former chairman of the PAP, became Singapore's first directly elected president. Despite the government party's overwhelming victory at the polls during the 1997 legislative elections, there were indications of growing popular opposition. Following an economic downturn in 1998, Singapore cut wages and allowed its currency to adjust downward, but it solidified its position as a world financial center. Sellapan Ramanathan Nathan, running unopposed as the PAP's endorsed candidate, was elected president in 1999. In legislative elections in 2001, the PAP again was swept into office, as a fragmented opposition failed to field candidates in 65% of the constituencies.
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