It depends on the states around it. Monaco is independent because it managed to switch loyalties just right to avoid being conquered for long enough for it to become a bad look to unilaterally annex another state. Singapore is independent because it had too many Chinese people in it, so Malaysia kicked them out of the country. Not the Chinese, they kicked out Singapore.
History Matters has great videos explaining this topic for both [Monaco](https://www.youtube.com/watch?v=gPkZefBA7v8) and [Singapore](https://www.youtube.com/watch?v=sSI0WSCVHnU).
I’d love to explain any other territorial anomalies you might wonder about. The answer to “Why is this microstate still independent?” is usually “Circumstance and a lot of luck”.
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