After the Pangkor Agreement which was signed on 20 January 1874, the British intervention in the Malay States was most distinctly. However, the British intervened in the politics of Malay States can be turn back to an earlier period, like the occupation of Penang and Singapore and the Anglo-Dutch Treaty of 1824.
From the late of 18th century, the British started to expand their power over the Malayan Archipelago situated in Southeast Asia through trade. The intervention in the Malay States was started by the British East India Company (BEIC) which the purpose is to promote and protect its lucrative trade route between India and China. The Anglo-Dutch Treaty of 1824 gave the British control over the Straits of Malacca and created the contemporary boundary between Indonesia and Malaysia
When the British come to Malayan Archipelago at the late of 18th century, Sir Francis Light reached the island of Penang. However, Sir Francis Light was not a representative of the British governmen , he was no powers to act on behalf of the government. Sir Francis Light was a captain in the Honourable East India Company, the chartered company that established British rule in India.
Sir Francis Light went to Penang in April 1771, he was representing the firm of Jourdain, Sulivan and de Souza to seek trade and was to seek the Sultan of Kedah’s permission to open up trade to British company. Sir Francis Light met the Sultan of Kedah who was the Sultan Muhammad Jiwa stated that he hoped to find a suitable site for setting up a trading port in 1771.The sultan proposes a trade settlement in return for the British help and protection. However, the missions were failed as for Kedah the company was unwilling to give any promises that might involve military commitments and the Sultan fears Siamese reaction to his possible treaty with the English.
In 1780, Sir Francis Light met the Governor General of the Straits Settlement (SS), made presentation for a British settlement in Ujung Salang, but his suggestion was rejected by Warren Hastings, the Governor of India.In 1784, Francis Light met Sultan Abdullah of Kedah, who was the father of Sultan Muhammed Jiwa. Sultan Abdullah faced political conflict when he agreed to the proposal, but he argued that military aid from the British East India Company would help if the Siam attacked on Kedah. The Sultan Abdullah was paid 30000 Spanish Dollars as compensation. The sultan agreed for the establishment of a trading port in Penang. Sir Francis Light gained the permission to establish a trading port on the Island of Penang upon the promise that The British East India Company will help the Sultan of Kedah in the event of attack by Siam .On 11 August 1786, Francis Light raised the Union Jack in Penang.

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