Ex-PAP Minister Ong Eng Guan was terminated from his ministerial post and expelled from the party after several open disputes with his Cabinet colleagues, including over the abolishment of the City Council of which he was the last Mayor. He filed the famous "16 resolutions" in the LA against the PAP government, resigned his Hong Lim seat and issued a challenge to PAP to defeat him there. Another two PAP Assembly Members joined his faction and resigned from party but stayed on in their seats. After Ong's successful recontest and victory, the PAP government's majority in the legislature was slashed from 17 to 14. Also, in 1959, Farrer Park AM A. P. Rajah and Joo Chiat AM Koh Choon Hong swapped political affiliations with the former joining and the latter resigning from SPA.

Writ of election: 2 March 1961 [Thu]
Nomination day: 11 March 1961 [Sat]
Polling day: 29 April 1961 [Sat]
Member swearing-in: 24 May 1961 [Wed]

Eligible voters: 11,892
Voter turnout: 10,818 (91.0%)

Election deposit: $500

Hong Lim
Total seats = 1