The semi-professional FAS Premier League was founded in 1988, but had failed to find support amongst the local communities and media.

The Football Association of Singapore invited applications for clubs to compete in the newly formed league.

Geylang United defeated Singapore Armed Forces FC in the end of season championship Playoff to be crowned the 1st S.League champions.

The rest were clubs drawn from the amateur National Football League: Police, Singapore Armed Forces, Tampines Rovers, Tiong Bahru United and Wellington Football Club, who renamed themselves Woodlands Wellington.

This was the first Singaporean representation in the Asian Club Championship since 1991–92, when Geylang International participated in 1st Round qualifying.