After the return of British rule, the CPM continued its armed insurrection, this time against the British colonial government, via its new militant wing, the Malayan Races Liberation Army (MRLA). Rashid was entrusted by CPM leader Chin Peng to lead the MRLA's Malay-dominated 10th Regiment. In 1947, he was one of the representatives from CPM to attend a council communist party meeting in London. This meeting was participated by communist parties in the colonial country to discuss about the strategy to fight against colonialism for the right of independence. CPM's armed insurrection led the British to declare a state of emergency, which lasted between 1948 and 1960. in July 1948, he was caught by the British in Sungai Manik, Perak. He was put in jail for 3 and a half years. In the early 1952, he managed to free himself. After that in late 1952, Rashid met Abdullah CD in Pahang. Then in 1953, together with 10th Regiment, he retreated to the borders of Malaysia-Thailand. He was wounded on his leg during the battle against the British.