After achieving sudden independence, Singapore urgently sought international recognition amid regional and global tensions. With threats from the Indonesian military and factions within Malaysia, the newly-formed nation navigated a precarious diplomatic landscape. Assisted by Malaysia, the Republic of China, and India, Singapore achieved membership in the United Nations in September 1965 and the Commonwealth in October. Sinnathamby Rajaratnam, the head of the newly established foreign ministry, played a pivotal role in asserting Singapore's sovereignty and forming diplomatic ties globally.

With a focus on global cooperation and recognition, Singapore co-founded the Association of Southeast Asian Nations (ASEAN) in 1967. The nation further expanded its international presence by joining the Non-Aligned Movement in 1970 and the World Trade Organization later on. The Five Power Defence Arrangements (FPDA) in 1971, involving Singapore, Australia, Malaysia, New Zealand, and Britain, further solidified its international standing.

Despite its growing international presence, Singapore's viability as an independent nation was met with skepticism. The country grappled with numerous challenges, including high unemployment rates, housing and education issues, and a lack of natural resources and land.^[19] The media frequently questioned Singapore's long-term survival prospects due to these pressing concerns.

The threat of terrorism loomed large over Singapore in the 1970s. Splintered factions of the Malayan Communist Party and other extremist groups carried out violent attacks, including bombings and assassinations. The most significant act of international terrorism occurred in 1974 when foreign terrorists hijacked the ferry boat Laju. After tense negotiations, the crisis concluded with Singaporean officials, including S.R. Nathan, ensuring the safe passage of the hijackers to Kuwait in exchange for the hostages' release.

Singapore's early economic challenges were underscored by an unemployment rate hovering between 10 and 12%, posing risks of civil unrest. The loss of the Malaysian market and the absence of natural resources presented significant hurdles. The majority of the population lacked formal education, and the traditional entrepot trade, once the backbone of Singapore's economy in the 19th century, was insufficient to sustain its growing populace.