After Singapore's separation from Malaysia, fears arose that Alsagoff might stage a coup, causing Lee and his family to move to a guarded residence.
Lee was also fearful that Brigadier Alsagoff might be persuaded by Syed Ja'afar Albar to stage a coup months after Singapore's separation from Malaysia.
General Syed Mohammad jokingly told Lee Kuan Yew in private that he could have had him arrested and shot and kept Singapore for himself.
[citation needed] Lee Kuan Yew didn't take too kindly to this and systematically dismantled the properties and holdings of the Alsagoff family in Singapore through the acquisition of land via the Urban Renewal Act.
[citation needed] The whole of Geylang Serai, then known as The Perseverance Estate - a 50-acre plot of land - also was acquired via the URA for a measly $260,000 in the late 70's.