The history of the Republic of Singapore began when Singapore was expelled from Malaysia and became an independent republic on 9 August 1965. After the separation, the fledgling nation had to become self-sufficient, however was faced with problems including mass unemployment, housing shortages and lack of land and natural resources such as petroleum. During Lee Kuan Yew's term as Prime Minister from 1959 to 1990, his government curbed unemployment, raised the standard of living and implemented a large-scale public housing programme. The country's economic infrastructure was developed, racial tension was eliminated and an independent national defence system was established. Singapore evolved from a third world nation to first world nation towards the end of the 20th century. In 1990, Goh Chok Tong succeeded Lee as Prime Minister. During his tenure, the country tackled the economic impacts of the 1997 Asian financial crisis and the 2003 SARS outbreak, as well as terrorist threats posed by the Jemaah Islamiah (JI) post-9/11 and the Bali bombings. In 2004, Lee Hsien Loong, the eldest son of Lee Kuan Yew, became the third prime minister. Singapore in Malaysia Singapore became part of Malaysia on 16 September 1963 following a merger with Malaya, North Borneo, and Sarawak. The merger was thought to benefit the economy by creating a common, free market, and to improve Singapore's internal security. However, it was an uneasy union. Disputes between the state government of Singapore and the federal government occurred on different issues, especially the federal policies of affirmative action, which granted special privileges to the Malays guaranteed under Article 153 of the Constitution of Malaysia. Singapore Prime Minister Lee Kuan Yew, and other political leaders began advocating for equal treatment of all races in Malaysia, with a rallying cry of "Malaysian Malaysia!" Racial tensions between the Chinese and Malays increased dramatically, resulting in numerous racial riots.