Chapter 1: British Colonisation of Malaya

Early British presence in Malaya

• British East India Company established trading bases

Reasons for intervention

• Economic Opportunities for British trade

  • Industrial Revolution increased demand for tin as machine manufactured goods production increased → British tin too costly → large tin deposits found in Malaya in the 19th century gave British a steady supply of tin

  • Disorder in the mining areas caused British to intervene to protect their economic interests

  • Suez Canal opened in 1869

• Competition with other European powers

  • Long Depression (1873-1896) caused Britain to lose its dominance to newly industrialised countries like Germany → British seized more territories to protect its trade and maintain dominance

  • Other colonisers also expanding towards the region

• Change in British colonial policy 1873

  • Before: They believed in free trade not interested in overseas possessions due to perceived administrative costs

  • After: Aimed to boost British’s prestige and pre-emt possible threats on the country

• Developments in local circumstances

  • Political instability due to succession disputes in Perak

    • rotation system often ignored and positions skipped

    • Raja Abdullah, Raja Yusuf, Raja Ismail

  • Disputes amongst Chinese miners (secret societies) over control of tin-mining areas in Larut

    • No clear boundaries between mines

    • Hai Sans and Ghee Hins

  • These disputes and unrest disrupted the region’s trade

Sir Andrew Clarke was the governor of the straits settlements and wanted to appoint a British resident in the Malay states → catalysed British intervention in Perak and eventually Malaya

pangkor treaty

• Sir Andrew Clarke to decide rightful sultan and settle quarrels between miners

• William Pickering, a Chinese interpreter who was greatly respected by the Chinese was tasked to persuade the Chinese leaders to allow British to settle their quarrels between miners

• Frank Swettenham who could speak Malay to persuade Malay chiefs to attend the meeting to decide the rightful sultan (held on 15 Jan 1874) → only Raja Abdullah was informed and went so he became the sultan

→ Signed treaty on 20 Jan 1874 on a British ship

→ Chinese satisfied with division of labour, disputes settled in Larut and tin production resumed

→ local merchants confident that the British would help them increase protection of trade and open up more busines and trading opportunities

→ allowed a British resident in Malaya

The British gained the trust of many locals → extended control to other Malay states

• First British resident: Birch

  Challenges faced by him: no specific guidelines for his role, no army or police force to reinforce his orders, no formal authority to run the state, difficult to change the Sultan and chiefs’ ways

  Had little knowledge and understanding of Malay customs and traditions

  • When he saw that Malaya had a weak administrative system and in heavy debt, he took on the responsibility of collecting the taxes→ angered local leaders as taxes were their main source of income and symbol of prestige

• Hugh Low - New resident of Perak

  • Established good rapport with the Malays as he spoke their language, understood their culture and believed in winning the friendship and trust of the people

  • Willing to meet with the locals and insisted that his officials treat them with consideration

  • Established the Perak State Council comprising the Sultan, the Resident and Malay, Chinese and British representatives→ restored peace and settled state debt of 800,000 straits dollars in 6 years

  • A surplus balance caused by his actions → became model for British officials in other Malay states

  • The practice of debt-slavery also ended

• Establishment of the Federated Malay States (FMS)

  • There was different rates of progress and administrative methods in Perak, Selangor, Negeri Sembilan and Pahang→ tin-mining states in Perak and Selangor were prosperous and well developed while Pahang had financial difficulties

  • Too much power in Residents’ hands → lack of coordination

    • Eg Transport and communication within a state did not run to other states → hinder economic development

  • Under a federal administration , resources could be pooled together, poorer states could tap a common treasury to help them grow and bring about better administrative efficiency and communications

• Power was now centralised under federal government and in the hands of the Resident-General

• Malay Sultans and chiefs only lok after matters concerning Malay customs and religion

• Unfederated Malay States

  Johor, Northern Malay States, not governed by federal government

Economic Transformation

• Tin Industry

  • By 1898, large tin-mining companies were under rich European businessmen who were able to purchae the latest and sophisticated equipment like tin dredges → increased production of tin

  • Political stability and higher regulatory standards of the FMS allowed foreign captical and technology too com ein

  • Chinese labour provided manpower → some earned a lot of money and became leaders

  • The FMS became the world’s largest tin producer, exports rose from 20666 tons in 1889 to 70000 tons in 1929

• Rubber Industry

  • Demand was high from the late 19th century due to growth of the automobile industry

  • Funded by rich European businessmen like William Sime and Henry Darby who established Sime, Darby and Co

  • Invested in large plantation esttes and introducted modern production methods

  • carried out by Indian labourers

  • By earth 20th century became more important than tin and Malaya’s most profitable export

• Other changes

  • Subsistence-based economy to an export-oriented one

• Development of Infrastructure