Form 3 Lesson 2: The Straits Settlements

Overview

• Mainly introduces the three Malaysian states: Penang, Malacca, and Singapore.
• These states are coastal and can avoid monsoons, becoming hotspots for foreign merchants.

18th Century Trade Background

• Westerners came to Malaysia for trade to increase their income.
• The British occupied Penang, Singapore, and Malacca to meet trade and security needs.

Characteristics of Each State

Penang (Pulau Pinang)

• The early port Batu Uban was the gathering place for Arab merchants and Sumatra Malays.
• The British used Penang as a strategic location to meet their trade and military needs.

Malacca (Malacca)

• Occupied by the Portuguese in 1511 and by the Dutch in 1641.
• It was a trade hub, becoming a center for various commodities.

Singapore (Singapore)

• Managed by Temenggong Abdul Rahman, attracted Malays and Chinese for Gambir production.
• Occupied by the British through manipulation of succession and other tactics.

Agreement between British and Dutch

• London Agreement: Exchange between the Dutch and British in different regions to better rule their areas.
• Reasons include cost saving, unified systems, fast economic development, etc.

Purpose of Establishing the Straits Settlements

• To better manage and develop Malaysia's economy.
• Attract more foreign labor and investors, improve trade systems.

Relationship with Other Malay States

• Collaborate through trade and economic relations.
• The British hoped to compete with the Dutch through this.

British Administration Structure

• Initially managed by SHTI, later transferred to the Indian headquarters.
• Due to poor management by the Indian headquarters, later moved to the Malay Peninsula.

Examination Focus

• Memorize the trade and historical background of Penang, Malacca, and Singapore.
• Understand the details and impact of the London Agreement.
• Comprehend the reasons for establishing the Straits Settlements and its impact on economic development.