Singapore separated from Malaysia in 1965 for both economic and political reasons. Economically, Malaysia imposed tariffs on Singapore's goods and treated Singapore as an economic rival. Politically, the two countries had different approaches to forming political parties along racial lines versus being multiracial. Racial tensions rose and riots broke out in 1964. The Prime Minister of Malaysia decided that separation was the best solution to prevent further conflict. On August 9, 1965, Lee Kuan Yew announced that Singapore had gained independence after separating from Malaysia.