[5][6] Malaysia and Singapore sharing similar historical and cultural roots and as well as cross-border familial ties, are some of the reasons for the huge community of Malaysians in the country.
[7][8][9] Other reasons include the country's proximity to Malaysia[10] and the high exchange rate of the Singapore dollar over the Malaysian ringgit.
[8] On September 16, 1963 Malaysia was formed by the merger of the Federation of Malaya with the former British colonies of North Borneo, Sarawak and Singapore.
Singapore experienced rapid industrialisation and Malaysians has been the main source of foreign unskilled labour for the Singaporean workforce, especially in the manufacturing and service sectors.
[3][13] In the early 1970s, the government of Singapore focused on developing its electronics industry and services sector and most Malaysian workers were concentrated in those areas.