In 1961, Singapore launched her first Development Plan with the main purpose to bring rapid economic growth to the small island. Singapore also needed to generate a large scale economy to satisfy its own domestic needs as well as the needs of the global market. The merger with Persekutuan Tanah Melayu (PTM) or the Malayan Federation enabled her to gain access to plenty of natural resources available in Malaya and also guaranteed Singapore a reliable source of water needed for its industrial activities. The confrontation that had occurred between Indonesia and Malaysia, combined with internal political problems, fastened Singapore's wish to merge with the Malayan Federation. This study revealed that Singapore had always wanted a peaceful environment and quick conflict resolution in order to ensure the development and prosperity of the state. As a small state, Singapore had no choice but to be wise and careful in handling issues related to its sovereignty and in conducting relations with its neighbouring countries. In conclusion, Singapore has always worked hard to overcome any obstacle to its economic development and handle conflicts with its neighbouring countries with care to ensure its national interests and survival in the Southeast Asia region.