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• 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 GovernmentGovernor of Straits Settlements

SultanResident

Assistant ResidentMalay 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’spower should be increased - be called the Queen’s Commissioners and rule Perak directly on behalf of the Sultan

It was decided that thereshould not be direct British rule in Perak and the other states.

Sir Hugh Low

Approach

• Consultative • Tolerance & understanding • Trust and confidence in Malay leadership • Friendly relationship between Resident and

Malay chiefs• Sincere and keen in developing the state

Reforms

• 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