The British Reign
   The arrival of Europens in the Strait of Melaka marked a major turning point in Malaysian history. The first British expedition reached western Java in 1601, shortly after the Dutch. But over the next 20 years the Dutch proved the stronger power in the area, and the British withdrew.
  During the 1600's and early 1700's, the Malays developed their maritime trade. Ships from Europe visited ports like Kuala Kedah, Kuala Selangor, Riau and Kuala Terengganu. In the mid-1700's the British traders(who lived in Asia) established contact with these Malay ports. They sold opium and bought tin and other local produce, offering better prices than the Dutch.
  By the late 1700's, the British East India Company controlled much of India and the Indian ocean, and was extending it's activities to China. The company began looking for a suitable post in Southeast Asia. It made unsuccessful attempts to establish bases in the islands of Palembang and Labuan off the coast of Borneo. Finally, the company chose the island of Penang.
  In 1786, Francis Light gained control of Penang. Penang opened up as a port, and British influence on trade in the Malay Archipelago became increasingly powerful. Penang soon began to service the ports in the western side of the peninsula.
  Through the efforts of Sir Stamford Raffles, the British occupied Singapore in 1819. The peninsula ports then began to declineas a result of Singapore's more strategic location to sevice ships. While the western ports began to have direct links with Penang and Melaka, the eastern ports became commercial dependencies on Singapore. The Straits Settlement
  The British eventually succeeded where the Dutch failed. British offered incentives instead of using force. The established the port of Penang to act as a center of entreport trade(where goods are deposited, stored and redistributed). It grew into a major collection point for produce from China, India.
  Penang also served as a port from which small Malay vessels and country traders could distribute British goods throughout the archipelago. The most important of these products were woolen goods, cotton cloth, and iron as well as opium privately purchased from the East Indian Company sales in Bengal. But Singapore was more successful as an entreport than Penang.
  By then the British took over Melaka from the Dutch after the signing of the Anglo-Dutch treaty in 1824. The treaty divided the Malay Archipelago into 2 spheres of influence. The British consolidated themselves into the North of the equator and the Dutch to the south. In 1826 the British formed Penang, Singapore and Melaka into one administrative unit, called the Colony of the Straits Settlements. The East India Company administered it as part of India.

Part 4 - Colonial Rule

The Rise of Johor | British Reign in Malaysia | Colonial Rule in Malaysia | World War II in Malaysia| Important Historical Dates |