I agree to a certain extent that the need to set up a Common Market was the most important reason to a merger between Singapore and Malaya but I believe that gaining independance from the British was also another reason. After the elections, some areas of the government was still under the British. To get rid of the British, Singapore needed to merge with Malaya
The PAP government wanted to eliminate all barriers to movement of both goods and factors among Singapore and Malaya, which they can import natural resources to Singapore without tarrifs because Singapore does not have any natural resource.
With the merger, Singapore would not have to pay taxes when goods were either sold or bought. This would create more jobs and the trade industry will expand.
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