The Malayan Emergency was declared on 18 June 1948, after three estate managers were murdered in Perak, northern Malaya, by guerrillas of the Malayan Communist Party (MCP), an outgrowth of the anti-Japanese guerrilla movement which had emerged during the Second World War. Despite never having had more than a few thousand members, the MCP was able to draw on the support of many disaffected Malayan Chinese who were upset that British promises of an easier path to full Malayan citizenship had not been fulfilled. The harsh post-war economic and social conditions also contributed to the rise of anti-government activity.
The Malayan government was slow to react to the MCP at first and did not appoint a director of operations to counter the insurgency until March 1950. The new director planned to address the underlying economic, social, and political problems facing the Chinese community while, at the same time, bringing government control to the fringe areas where the MCP received much of its support. Before this plan was fully implemented, however, the situation deteriorated further with the assassination of the British High Commissioner in October 1951. The attack galvanised British resolve to meet the threat posed by the MCP; the Malayan government, in turn, stepped up counter-insurgency measures. Prolonged operations were undertaken against the communists in an effort to destroy their base of support in local communities and to drive them into the jungle, where it would be difficult for them to receive supplies from supporters.
Australia's involvement began in 1950 with the arrival of RAAF aircraft and personnel in Singapore. Dakotas from 38 Squadron were deployed on cargo runs, troop movements, and paratroop and leaflet drops in Malaya, while six Lincoln bombers of 1 Squadron provided the backbone of aerial operations. As the capacity of army and police units operating against the communists improved, however, the need for air power decreased, and by 1952 Lincolns were increasingly used as part of combined air-ground assaults against the communists. One of the major military successes of the conflict was one such coordinated operation in July 1954, east of Ipoh, in Perak state. In Operation Termite, as the exercise was known, five RAAF Lincolns and six from a RAF squadron made simultaneous attacks on two communist camps, followed by paratroop drops, a ground attack, and further bombing runs ten days later. The operation destroyed 181 camps and killed 13 communists; one communist surrendered.