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The Tunku was shocked when PAP (people action party, leading party in Singapore at that time) lost an by-election in the Hong Lim constituency in April 1961 to Ong Eng Guan. This shows internal weakness within PAP. The party is further weakened when they lose another by-election in Anson July 1961 to David Marshall of the Workers' party.The Tunku thought that if The PAP goverment lose in the next election,the communists may be the next government in Singapore so he decided to merge with Singapore.
As for the fear that Malays will be outnumbered,the Tunku solved the problem by including the Sabah,Sarawak into the proposed Federation of Malaysia.