BRITISH COLONIAL RULE IN MALAYA

Did the British intervene in Malaya only because of economic benefits?

Background to British intervention policy in Malaya
The main reason that British had come to Southeast Asia was initially for trade. By the 1800s, the British had established an empire in India,
and set up trading bases along the main trade route between India and China. Trading bases were ports, which served as gateways for trade in the
region. Goods from Malay states and the surrounding regions were brought to these ports and were exported to other places like Europe, China and
India. The British need to establish their own bases along the trade route between China and India to prevent the Dutch, their main European
competitor then, from monopolizing trade in Southeast Asia. To have a competitive edge, the British need to establish new bases. The British therefore,
established trading bases in Penang, Melaka and Singapore. In 1826, the Penang, Melaka and Singapore were put under a unified administration
known as Straits settlement.
Administration of the Straits settlement: In the Straits Settlement, the British set up an administration where an Executive council and a
Legislative council assisted the Governor of the Straits settlement. Initially, the Straits Settlement was under the British administration in India. However,
this administration was slow to respond to the problems. This situation caused the merchants and important people in the Straits Settlement to request
for the Straits Settlement to be governed directly by the Colonial office in London. Finally on 1 April 1867, the Straits Settlement was made a Crown
Colony and the governor of the Straits Settlement reported directly to the Colonial office in London. British administration of the Straits Settlement aimed
to promote a peaceful, safe and fair environment for trade. The British would administer and maintain laws, which governed trade, and would settle local
disputes if these threatened trade. The welfare of the people, however, was not the main priority.
Policy of non-intervention in the Malay States: The Malay Peninsula, although regarded as a region in its own right due to its geography, a
shared language and dominance of the Islam, was not a unified country at the time. Several Malay rulers who ruled territories with fairly distinct
boundaries controlled it. In these Malay states, the British signed treaties with the indigenous rulers who permitted them to trade or establish trade
settlements. While the Straits settlement were in British possession and the Malay States were under their sphere of influence, the British did not rule
over these territories. The British generally avoided being drawn into the local affairs of the Malay States, as they feared that it would be too costly to
administer these territories directly. They therefore adopted a policy if non-intervention in the rest of the Malay States.
Reasons for British intervention
From 1874, the British shifted from a policy of non- intervention to one of intervention. The British began to take a more active role in the politics of the
Malay States with the introduction of British advisors. They gradually move towards direct control of the Malay Peninsula. This process through which
the British tightened and increased their control over Malaya is known as the Forward Movement. That process increased in momentum until by 1930,
the British had extended control over the Malay states.
Political factor

To build an British Empire

One factor that led the British to embark on the Forward Movement was the threat they faced from the other European powers. A politically
united Germany was created after the Franco-Prussian war in 1870. It was a powerful new state that changed the balance of power in Europe. France
in particular, suffered significant losses in the war with Germany and sought to regain its status and prestige through imperialism. Since Germany had
entered the race of colonies at a late stage, it was also determined to take over any areas that were left. The Dutch, having established a foothold in
Indonesia since the 17th century, had long been a competitor of the British. Anglo-Dutch rivalry in Southeast Asia intensified as the race of colonies grew
fiercer. As Britains power and standing was challenged by these changes, the British wanted to maintain their edge over other European nations by
building an overseas empire. Acquiring colonies would allow Britain to exploit these territories to its own economic advantage. Thus, the years after
1870 saw Britain, along with other European powers, intensifying its involvement in Southeast Asia.
Economic factors

Need for raw materials

Advancements in technology brought about the Industrial Revolution, which fuelled a dramatic increase in the productivity of British factories.
This meant a greater demand for raw materials. The Malay Peninsula was especially valuable for its rich deposits of tin, and later in the 19 th century, for

the production of rubber.

Tin: Tin was very much in demand as the canning industry was becoming very profitable in Europe. Canning factories were set up in Britain
and different types of meat, vegetables and fruit were packed into tin cans for storage, Britain tin, however were becoming too costly to produce. The
discovery of large tin deposits in Malay States provided the British with opportunities for greater profits. Hence, the British felt it was to their advantage

to extend control over these tin-rich states so to ensure steady supply of tin.
Rubber: Rubber was introduced into the Malay Peninsular in 1877. The British found that rubber trees grew well in most parts of the Malay
Peninsula because of its fertile land and warm, wet climate, in 1896, the first rubber plantations were established in Malaya. When the automobile
industry began to grow, worldwide demand for rubber rose. Consequently, more rubber plantations were established. Malaya eventually became a

major rubber producer for the world. To manage the growing rubber industry, the British had to exercise control over the interior of the Malay Peninsula.
Need for new markets
Now that British factories could mass-produce goods, they needed new markets to sell these goods they had manufactured. Rumors were
particularly rife in1873 that Germany was negotiating for bases in Pulau Langkawi and Northern Malaya to serve as trading ports. The British had to

intervene in the rest of the Malay States to ensure that they had access to the markets before the other European powers obtained a foothold there.
Need for new bases
The opening of the Suez Canal in 1869 brought an increase in the volume of trade to Southeast Asia. Sailing from Britain to Malaya now took
6 weeks instead of 4 months before the canal was constructed. The Straits of Melaka, which had long been an important waterway in this region,
became even busier than before. This was because with the opening of the Suez Canal, the Straits of Melaka became the shortest route to travel from
Europe to Asia. The British needed to establish new bases to serve as outposts for the British ships, which patrolled the waterways to combat piracy as

the existing bases in the Straits Settlements, were no longer adequate to fend off the pirates that plied the busy Straits.
Socio-Economic Factor
The British sometimes had to intervene in order to deal with the chaos created by local conflicts, which greatly disrupted trade.
Wars among tin-miners
The Larut wars among tin miners were one example of a chaotic situation, which required intervention. When rich deposit of tin were
discovered in Perak and Selangor, large number of Chinese immigrants were recruited to work in tin miles. The laborers were usually managed by
Chinese secret societies, which gave aid, settled disputes or negotiated waged for them. At that time, there was no proper land survey to demarcate the
various tin mines and the Chinese miners often fought over control of tin mines and watercourse. The fiercest rivalry occurred between the Ghee hins
and the Hai Sans in the mining territory of Larut in North Perak. The years between 1861 and 1873 saw a series of secret society wars fought between
them, known as the Larut wars. These conflicts overflowed into the Straits Settlement. In one instance in 1865, 1000 Ghee Hins members from Larut
fled to Penang after an attack by the Hai Sans. The Straits officers, as well as the Chinese and British merchants, were very concerned about the chaos

in Perak and appealed to the government in London for British intervention

Succession Disputes
The Malay States experienced frequent conflicts due to succession disputes. The Malays did not have hard and fast rules about who should
succeed a deceased ruler. If a candidate can show that he was a blood relation of the ruling house, that he commanded the respect and support of the
ruling class, had ability and prestige, and enjoyed the support of powerful allies, he was a potential candidate who could claim the throne. Succession
was not the automatic right of the first-born son. This was partly because rulers often had many wives. The sons of rival wives, often with the support of
their family, competed for the right to the throne. Since the rules of succession were flexible, practically any male relation of the deceased ruler had a
claim to succeed him. Succession disputes caused tensions and conflicts that often drove a state into chaos. In the case of Perak, for instance, when
Sultan Ali died in 1871, three claimants Raja Abdullah, Raja Ismail, and Raja Yusuf fought to take the vacant throne. At times, the power struggles
between the Malay chiefs intensified when combined with the disorder of the secret societies, as was the case in Perak. The merchants, unable to

tolerate the chaos brought about by these wars, made strong demands for British intervention to protect their investments in tin.
Desire of merchants, businessmen and local officials for British Intervention
The influential people who had investments and businesses in Malaya, such as merchants and local businessmen, wanted the British to
colonize Malaya. They wanted the British to impose law and order in the Malay states so that business could be carried out in a stable and safe
environment. When chaos broke out in the Malay states, these people petitioned the British government to colonize the Malay States. For instance,
when Perak erupted into civil war over who should succeed as sultan in 1871, the chaos that resulted in disrupted trade, and the local merchants and
businessmen appealed to the British to intervene and restore order. British officials stationed in Malaya (man on the spot) were in favor of colonization
and wanted the British government to intervene and take control of the chaotic local affairs. These officials sometimes went beyond what they were
instructed by their cautions home government to do. In the case of the British intervention in Malaya, the man on the spot was Sir Andrew Clark, the
governor of the Straits Settlements idevln 1873.

Process of British Intervention in Malaya

Residential system
Through the Pangkor Treaty, the British introduced the Residential system in Perak. The Sultan retained his position as the king over the people, while
the British Resident acted as his advisor, whose advice was to be consulted and accepted. For this reason, the Residential system was a form of
indirect colonial rule. The British found it necessary to retain the sultans, in order to make British rule more acceptable to the Malays. Though the British

retained the sultans, the Residential system took away most of the powers traditionally enjoyed by them.
Traditional view about the sultans
Traditionally, the Malays regarded the sultans as an absolute ruler, responsible to no one. According to Malay beliefs, the sultan had
supernatural powers to rule given by God, and was Gods representative on earth. A hierarchy of chiefs, from regional or district chiefs to the village
headman assisted the sultan. To the Malays, the business of governing was the sole responsibility of the sultan and his chiefs. The sultan had absolute
power to collect duties, demand loyalty and own slaves. The sultan could also punish, fine, or demand labor from his people. The sultan generally did
not govern according to recorded laws, governance was dependent on each sultans capabilities.
The residential system had its limitations.
Resident
Duties of the Resident

Maintain justice and order

Collect states revenue and decide how it is spent

Develop states resources

Administer the state

Issues faced by the Resident

No specific guidelines given for his role

No police force or army on the ground at his disposal to enforce order or compliance

Must not give the impression that he is running the affairs of the state instead of the sultan

No formal authority to run the state, and needed to be seen as merely an advisor to the sultan
Sultan
Duties of the Sultan

Remained as the ruler of the state

In charge of matters related to Malay customs and traditions

Took Centre stage at all state occasions

Issues faced by the Sultan

Lost the power to make or enforce laws

Had to heed advice of residents

Not involved in running the affairs of the state as the British Residents were the real administrators of the state

Only had status as ruler, but no real political power

Gave up traditional means of income no longer able to collect revenues but in exchange, given a generous allowances to fund lavish

lifestyle
Perak war
After the Pangkor treaty was signed, trouble soon arose due to two main causes
Differing interpretations of the treaty terms
To the British, the term protection in Abdullahs letter was interpreted to mean rule
Also, the term advice in the Pangkor treaty meant instruction
The British wanted to modernize the administration of the state and to establish a strong influence in Perak to prevent further disputes
To Abdullah, the term protection meant help from the British against his rivals
He had little interests in taking the Residents advice or allowing the Resident to modernize the state
Personality of British Resident James Birch
The second cause was the personality of the first British Resident appointed to Perak James Birch. Being the first resident, Birch had no
predecessor to follow. Impulsive and stubborn, he easily offended the Malay chiefs. Some historians attributed problems to Birchs impatient efforts to
control the administrations of Perak. He acted too quickly to relieve the Malay chiefs of their power to collect revenue, which naturally upset them. Other
historians attributed the problems to Birchs insensitivity to and ignorance of Malay culture and customs. One such custom was the practice of debt
slavery. Traditionally, people of means and status owned slaves and regarded them as part of their property. Birch disapproved of their practice and
even gave shelter to slaves who escaped from their asters, some of them who included the Malay chiefs.
After the Perak war, British adopted a more tactful approach to indirect rule. Hugh Low, who became the second resident of Perak in 1877, was careful
to pacify the unhappy locals. He was always willing to meet with the people and insisted that his officials treated the locals with consideration. He knew
the best way to deal with the Malays was through their chiefs. Hence, he established a State council in which the sultan and Malay chiefs had
representation, and where the proceedings were conducted in Malay. In reality, the residents advice still had to be acted upon and the sultan took little

part in the day-to-day government affairs. It was usually the non-Malay representatives who spoke in the state council. Like Birch, Low introduced a
centralized system for taxation. However, unlike Birch, he made sure that Malay chiefs who lost their privilege to collect revenues were compensated;
these Malay chiefs became paid employees of the colonial government and had to follow British policies. Centralized taxation allowed the British to
collect surplus revenues and was a success in the formerly debt-ridden state. The first Resident in Perak, James Birch, was murdered while trying to
handle the situation in Perak while Hugh Low experienced some success as the Resident of Perak. This highlights that the Residential systems
success depended not just on the structure, but also on the personality and actions of the Residents.
James Birch

Formerly Colonial Secretary in Ceylon and the Straits Settlement

Could not speak Malay and had never worked in this region before

Insensitive of and ignorant of Malay culture

Wanted to take over tax collections

Did not consult with Malay chiefs before reaching and implementing decisions

Had to deal with Sultan Abdullah who interpreted the Pangkor Treaty differently from the British

Had to contend with hostile Malay chiefs who lost their power and wealth
Hugh Low

Last appointment as Colonial Secretary in Borneo for 30 years

Spoke fluent Malay

Had good knowledge of Malay culture

Preserved the status of the sultan and allowed chiefs to participate inn passing of laws

Sultan Yusuf who replaced Abdullah was easier to deal with

Remaining chiefs were not as hostile against the British

Further tightening of British control: Formation of the Federation
The British soon found that the diversity of administration and legal systems in Perak, Selangor, Negeri, Sembilan and Pahang made these states more
difficult for the British to manage. It also created confusion for investors, merchants and business people. The British also thought that by bringing the
protected states under a central administration, they could ensure uniformity and greater efficiency of administration. It could also allow the revenues of
wealthier states such as Perak to be used to help poorer ones such as Negeri. This scheme to create a single administration unit was proposed by the
Resident of Selangor, Frank Swettenham, as early as 1893. In 1896, the British brought these 4 states together as the Federated Malay States under a
federal government. Indigenous Malay rulers and their Residents remained but now came under a Resident General based in Kuala Lumpur. Public
administration departments in charge of areas like police, public works, telegraph and railways now came under the central authority of FMS directors.
The laws and judicial systems of the state were unified to make it easier for trade and commerce to be carried out. Swettenham convinced the Malay
rulers to accept this plan by explaining that the Resident General would curb the Residents power in the individual Malay states, while allowing the
sultans to retain their positions within the State Council. In reality, however, the sultans became less involved in the government of their states, as the
Federal Government was in charge of most matters. Furthermore, the federal government was more concerned about the interests of the FMS as a
whole than the individual states.
How did the locals in Malaya respond to British colonial rule?
Response of the Malay chiefs
The Malay chiefs saw no real need to challenge British intervention and chose instead to cooperate with them. This was because the British Residents
after Birch were careful to make a show of preserving the sultans power and demonstrate tact in the formulation and implementation of policies and
practices. While the scope of their power was greatly reduced, the sultan positions actually became more secure since they were backed by British
power against rivals. They also enjoyed elaborate palaces and regular incomes given by the British.
In addition, members of the Malay aristocracy were able to receive western education and obtain minor positions in the colonial administrations. They
were given positions in the civil service, the police and the local military units. Though traditional powers were reduced, their positions in the colonial
administration and salaries ensured that they did not totally lose their authority and means of wealth.
The sultans of the UFMS on the other hand, refused to join the federation knowing that they would lose their power if they did so. British power in the
UFMS were less prominent than in the FMS and the British advisors there usually limited themselves to giving advice since the northern Malay states
were not as economically important as the FMS.
Response of the Indigenous Malays
The implementation of the Residential System did not encounter much resistance from the indigenous Malays because at village level, the peasants
were ruled by the Malay chiefs and village headmen. The Malays barely came into contact with the British, and experienced minimal British interference.
Response of the Chinese
The Chinese workers were willing to cooperate with the British to maintain peace as that meant a more secure livelihood. Disturbances among the
Chinese controlling the tin mines had been a key factor that brought British intervention in Malaya.

With the Residential System in place, the British government was able to plan townships to separate the different Chinese factions. In Perak, for
example, concessions were allocated to the Hai Sans to mine in Taiping, and to the Ghee Hins to mine in Kamintung. Furthermore, the leaders of the
Hai San and Ghee Hin were given seats in the State Council in Perak and were able to voice their opinions on behalf of their people.
Prominent and wealthy Chinese, such as the leaders of these factions, formed close relationships with the British and the British appointed them to
offices such as Justice of Peace. For instance, Yap Ah Loy, who owned 150 houses in Kuala Lumpur and had substantial mining and plantation interests
throughout Malaya, was made State Councilor and Justice of Peace in Kuala Lumpur.
Response of the local Indians
The Indian community in Malaya was a minority. The British had encouraged migration from India to supply labor for the plantations and mines. India
was a convenient source of labor as it too was a British colony. The Indians kept themselves separate, living within the estates where they worked. They
too did not offer resistance against the British.
To what extent did British colonial rule bring about progress in Malaya?
With control over the FMS from 1896s, the British proceeded to facilitate the growth of the economy. With the taxes collected the British built roads,
leased out tin mines and made land available for plantation agriculture. Malaya was transformed politically, economically and socially. The areas that the
British controlled eventually became the boundaries of modern-day Malaysia. The changes that resulted affected different groups of people in various
ways.
Political impact
Before the British intervened in Malaya, how well each state was administered depended on the capabilities of its sultan and his chiefs. The sultan was
considered the absolute ruler, and his commands were the law. Succession disputes as well as conflicts between miners created chaos in many of the

states. These affected trade and the lives of ordinary people negatively.
Transfer of power from local rulers to British Residents
When the British set up the Residential system, a stable administration was established in the Malay States. Though the sultans and the
chiefs were marginalized, some of these leaders were employed to help in state administration where government policies such as those dealing with
tax collection and currency reforms were initiated in Malaya for the first time. With the formation of the FMS, there were greater standardization of laws
and a better organization of local defense forces. This helped promote greater political stability, as the locals were less likely to challenge a government
that was backed by the British.
Economic impact
Before the British rule, Malayas economy revolved around subsistence farming, fishing, and regional trade in local produce. Most of the farms planted
rice for consumption, and there were no large-scale plantations for export crops. The Malay Peninsular had rich mineral resources such as tin.

Traditional methods of extracting tin were simple and unsophisticated.

Development of tin and rubber industries
British rule encouraged the growth of new industries, the tin and rubber industries became the pillars of the Malayan economy bringing in

most of the revenues.

By the early 20th century, the large companies were in the hands of European entrepreneurs. With large sums of capital, they were able to
purchase the latest and most sophisticated equipments, such as the tin dredge which enabled large amount of tins to be excavated. By 1898, European
capital and Chinese labor had transformed the FMS into the worlds largest producer of tin, with an output of 40000 tonnes up from 6500 tonnes in

1851. Most of the profits were paid out to investors and shareholders, many of whom lived in Europe.
Stable conditions created by the British rule enable the rubber cultivation to grow. The demand for rubber was especially high from the late
19th century onwards due to the growth of the automobile industry. Like the tin industry, the rubber industry, too was funded by European capital.
European capital was invested in large planation estates managed by European planters, while the work of tapping rubber was usually carried out by
Indian Laborers. By the early 20th century, rubber surpassed tin as Malayas most profitable export. Investors in Europe profited from the rubber industry,
nevertheless, enterprising Malay and Chinese smallholders who grew rubber were also able to reap a share of profits. Along with rubber, other cash
crops such as pepper, sugar cane, gambier, tea, coffee and tobacco were also introduced in the Malay states. The British government leased out land

cheaply for the cultivation of cash crops. European investors funded most of these plantations.
Creation of an export-oriented economy
In the pre-colonial period, Malayas economy was mainly subsistence-based. Under the British rule, it became export oriented, supplying
cash crops and raw materials to the world. In a subsistence-based economy, the people were fairly unaffected by the prices of goods. In an exportoriented economy, they had to rely on wages or income directly linked to the prices of products, which rose and fell according to world demand. This

later caused Malaya to be affected by world economic crises such as Great Depression when prices hit rock bottom.
Development of infrastructure
Infrastructure such as new roads, bridges, harbors and railways were built to connect the tin mines and rubber plantations. The first railway
line, which opened in Malaya in 1885, connected Taiping in Larut, Perak to Port Weld. By the time the FMS were formed in 1896, four railway lines were
in operation. The formation of the FMS facilitated better coordination of these lines. With all these developments to facilitate the tin and rubber

industries, jobs were also created in industries such as transportations. Other parts of Malaya that were not as important economically did not benefit as

much from infrastructure improvements.

Standardization of currencies
Before the late 19th century, different type of currencies were used in various parts of Malaya, in the Straits Settlements, for instance, the
Spanish dollar was in use since the 19th century, together with local coins such as the Kelantan and Terengganu keping and the Penang dollar. In
addition, private banks issued notes of their own. It was a rather confusing situation. In 1899, the British established a Currency Board to standardize
and regulate the currencies. From then, the issuing of notes could only be done by the Currency Board, and all private banks notes were replaced with
the Currency Board notes. In 1903, the British felt the need for a standard unit of currency for trade, which they could control. Hence, a Straits dollar
was introduced. The Straits dollar was used in Straits Settlement, the FMS, and the UFMS. This had positive effect on trade. After the currency was

standardized, even more foreign capital flowed into Malaya for investments into tin mines and rubber plantations.
Social impact
Marginalization of the indigenous Malays
Since the time of the Melaka Sultanate, and possibly earlier, there had been foreign communities in Malaya. However, a majority of the
indigenous Malays lived in rural villages with few intrusions from outside. During the British rule, a wave of Chinese and Indian immigrants came to
Malaya to work in mines and plantations. People from other parts of the Peninsula also migrated to these areas, seeking work. Settlements and towns
grew around the mines and plantations. The size of Chinese and Indian population grew so large that indigenous Malays became the minority ethnic
group. The British tried to protect the interests of Malays through a Malay Land Reservation system. This system defined lands, which were reserved for
the Malays and could not be sold to non- Malays. This was meant to ensure that Malays did not lose all their lands. Some historians describe the ProMalaya policies of the British as encouraging the division of society along racial lines. It created tension between ethnic groups, which would later flare

in racial riots in the 20th century.

Creation of a plural society
Under the British rule, more Chinese came to Malaya to join the earlier immigrants in the mining towns and cities. Although they wished to
return home after a few years of working in Malaya, many of them eventually stayed on. A few of the Chinese who stayed, such as Yap Ah Loy, went on
to form a wealthy middle class of traders. Immigrant workers from southern India also came seeking work in Malaya. The Indians were usually recruited

to work in rubber plantations or as laborers. Some were traders and merchants, and some eventually become wealthy moneylenders.
Social divide due to limited access to education
The British made little effort to provide education for the common people, hence western education was usually only available to the wealthy
or Malay aristocrats who served in administrative positions. The children of Chinese workers who received any education at all were only able to do so
through the efforts of philanthropists who set up Chinese schools. As for the Indians, plantation owners were usually expected to provide schools for the
workers children but this was usually neglected. Hence, access to western education also created an educated elite that was segregated from the
masses.

Urbanization
Before the British rule, the indigenous people lived in rural villages or small towns. Though there were thriving ports at the coastal areas,
they did not grow into large cities then. Historians have noted that Malaya in the days before the British rule was fairly under-populated. One of the
features of British colonial rule was the creation of cities and towns. These towns were fairly concentrated in the richer states of Perak and Selangor
where most of the developments in tin were taking place. Some towns later grew into fairly large cities. Kuala Lumpur, the capital of FMS, is an example
of cities, which developed under British rule.