Significance of Pangkor Engagement
• Beginning of Residential System
[= indirect rule] in Malaya
• An official change of policy of intervention
• Sultan remained head of state but had to accept the
advice of a “Resident” in all matters of
administration & government
• British Residents appeared in Selangor, Negri
Sembilan & Pahang
• British merchants were very pleased with the
possible benefits of safety and more trading
opportunities
ROLE OF THE RESIDENT
• Set up a good system of taxation & collection of revenue
which would be used to develop the state
• Restore peace and set up a system of law & order
• Develop the tin mines and other resources of the state
• Persuade the Malay chiefs & people that change is
beneficial
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To be diplomatic
Not to offend the dignity of the Sultan
Not to appear to be ruling
Not to criticise the local customs & practices
Would not be supported by an army or police force
Dependent on relationship/rapport with the Sultan
STRUCTURE OF THE RESIDENTIAL SYSTEM
British Government
Governor of Straits Settlements
Sultan
Resident
Assistant Resident
Malay chiefs
[a] JAMES BIRCH
• Worked in Sri Lanka and Straits
Settlements as Colonial Secretary
before new posting
• Proposed changes/Goals:
[1] reorganise revenue collection
[2] put an end to debt-slavery
[3] introduce new set of Civil &
Criminal Laws
• How were [1] & [2] done before Birch
arrived?
• What problems would Birch face?
• What characteristics should he
possess to succeed in his work?
Without permission from London, Jervois decided that the Resident’s
power should be increased - be called the Queen’s Commissioners
and rule Perak directly on behalf of the Sultan
It was decided that there
should not be direct British
rule in Perak and the other
states.
Sir Hugh Low
Approach
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Consultative
Tolerance & understanding
Trust and confidence in Malay leadership
Friendly relationship between Resident and
Malay chiefs
• Sincere and keen in developing the state
Reforms
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State Council
Removal of debt slavery
New System of Public Revenue
Establishment of system of justice
development of infrastructure eg roads,
railways
Results
• peace and stability
• Paid off debt of $160,000
• Surplus of $1.5 million
Benefits of Residential System
• Political stability
- end of Larut wars & succession disputes
• Building of infrastructure
- system of roads & rail to link mining
areas to ports eg first rail built in 1885
linking Taiping to Port Weld
Benefits of Residential System
• Development of natural resources
- tin mining encouraged, source of revenue for
Perak and Selangor
• New crops introduced
- pepper, sugar cane, gambier, tobacco, rubber
- rubber most successful – 1877 in Perak by
Hugh Low
Benefits of Residential System
• Growth of towns
- Taiping, Ipoh – tin mining towns
• Population
- need for labour : availability of jobs in tin
mines and rubber plantations – influx of
migrants from China & India
Benefits of Residential System
• Higher standard of living
- improved health facilities
- provide infrastructures eg rail, road, water
supplies, electricity
• Education
- western & Chinese education
- schools built
Why Federated Malay States
• Different developments
- developed own systems of law, justice,
taxation
- differences in prosperity - large revenue in
Perak & Selangor but not in Pahang & Negri
Sembilan
- lack of co-ordination in development of
communications
→ states drifting apart, difficult to co-operate
Why Federated Malay States
• FMS : greater uniformity & efficiency in
administration
- cut costs
- level up weaker states like Pahang
- inter-state communication links
- reduce differences
• Support for poorer states
- common treasury
Durbar
Benefits of FMS
• Prosperity
- revenue rose from $8.5 million (1895) to $24
million (1902)
• Economic development
- growth of tin and rubber industries
- Rubber Research Institute established
- tin smelting plants in Singapore &
Butterworth (Penang)
• Infrastructure
- roads & rail built between states