Singapore's Threat Perception: The Barter Trade Crisis and Malaysia's Decision to Use Military Force against Singapore, October–December 1965

This article examines the barter trade crisis between Singapore and Malaysia from October to December 1965. Singapore separated from Malaysia on 9 August 1965 after acrimonious relations during the merger period. After the separation, both parties experienced difficulties in their relations with each other, which at times led to tensions. Singapore's attempt to resume barter trade with Indonesia immediately after the separation drew a sharp response from Malaysia. Drawing on archival materials, this article examines the events surrounding the barter trade crisis, an under-researched area within the literature of Singapore's defence policy and history. The barter trade crisis was significant because the Malaysian political leadership had clearly and unequivocally declared their intent to use military force against Singapore for the first time since the separation. As a result of the Malaysian military threat, Singapore abandoned the barter trade proposals. The event arguably left an enduring impact on Singapore's threat perceptions against Malaysia.