In 1819, Sir Stamford Raffles founded colonial Singapore as a trading post of the East India Company; after the establishment of the British Raj, the islands were ceded to Britain and became part of its Straits Settlements in 1826. During World War II, Singapore was occupied by Japan. It gained independence from Britain in 1963, by federating with other former British territories to form Malaysia, but was expelled two years later over ideological differences. After early years of turbulence, and despite lacking natural resources and a hinterland, the nation developed rapidly as an Asian Tiger economy, based on external trade and its human capital.
In 1819, Thomas Stamford Raffles arrived and signed a treaty with Sultan Hussein Shah of Johor, on behalf of the British East India Company, to develop the southern part of Singapore as a British trading post. In 1824, the entire island, as well as the Temenggong, became a British possession after a further treaty with the Sultan. In 1826, Singapore became part of the Straits Settlements, under the jurisdiction of British India, becoming the regional capital in 1836.