Toward the conclusion of the Second World War Japan was expelled by allied forces from Malaya. Unfortunately a new conflict quickly emerged between Commonwealth Forces and the increasingly powerful Malaysian Communist Party backed by the Peoples Republic of China. This conflict, dubbed the Malayan Emergency, was fought between 1948 and 1960. During the conflict Malaya continued to gain further independence from Britain. In 1953 the Board of Commissioners of Currency expanded to include British North Borneo and in 1957 Malaya gained Independence as the Federation of Malaya. With this move the communist insurrection lost much of its anti-colonial raison d'être. In 1963, Singapore, British North Borneo, Sarawak, and the Federation of Malaya finally merged together to form the Federation of Malaysia.
The Board of Commissioners of Currency, Malaya was expanded to include British North Borneo in 1953. The board's currency continued to be utilised until the Federation of Malaysia began issuing its own currency in 1967. The coins produced by the board after British North Borneo's inclusion were very similar to those produced earlier.
The obverse of the Malaya and British North Borneo coins features the effigy of the new monarch, Her Majesty Queen Elizabeth II and features the legend 'QUEEN ELIZABETH THE SECOND'. The reverse is effectively identical to the British Malaya coins with the denomination in the centre written in a stack (e.g. '20 CENTS'). The denomination is surrounded by a beaded ring and the legend which states 'MALAYA AND BRITISH BORNEO' followed by the date of issue.