On October 1945, The British announced a bold decision to end indirect rule in the Malay States by uniting all the states into a Malayan Union under a Governor with executive powers. It proposed to initiate a Malayan form of citizenship which would give equal rights to those who claim Malaya as their homeland.
	Pulau Pinang and Melaka although parts of the proposed Malayan Union would remained British Settlements. Singapore would remained as a separate colony. The Malayan Union and Singapore would have separate Governors and their individual Executive and Legislative Councils.
	In the Malayan Union, the Malay Sultans would be Presidents in his own State, of a Malay Advisory Council which would be mainly concerned with religious matters. The Malay Sultans would be asked to sign new treaties which would give the British Government jurisdiction in their states. These constitutional proposals actually represented a complete change of policy by the British Government. The Malay States had never been British territories. They were and always have been protected Malay States.
	On October 1945, Sir Harold MacMichael, special envoy to the British Government arrived in Kuala Lumpur to negotiate the new treaties with the Sultans of the Malay States. The Sultans signed under protest and abdicated their sovereign rights and powers to the British Crown.
	Political parties and associations were formed all over the country to fight the Malayan Union proposals which were to come into effect on 1 April 1946 when civil government were to be restored.
	On 1st March 1946, representatives from the 41 Malay associations and organizations formed the United Malay National Organisation (UMNO). Dato’ Onn Jaafar was elected as the first President and the Malays at that time could be said to be more united over a single purpose than they were ever before. UMNO provided the spearhead for the deep and spreading Malay opposition to the Malayan Union. The Malay Unity was a new force to the British and also to the Chinese. UMNO passed a resolution declaring that the agreement signed by the Sultans to be null and void. On 31st March 1945, British Military Administration terminated officially.
	On 1st April 1946, the Malayan Union came into being and Sir Edward Gent was installed Sir Edward was installed as the Governor of the Malayan Union in Kuala Lumpur. However, UMNO called for the abolishment of the Malayan Union and be replaced by the Federation of Malaya The proposed Federation of Malaya consisting of the nine Malay states and two British settlements would replace the Malayan Union. It was also proposed that a High Commissioner and not a Governor would be the representative of the British crown.
	The proposal also stated that apart from Malays, only second generation Chinese, Indians and other races would automatically qualify for the federal citizenship. Thus the Malayan Union was officially terminated on the 31st January, 1948.

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