Written by: Dato Dr. Mohd.

Ajib Anuar

TRA SCE DI G BOU DARIES COMMEMORATI G 50 YEARS OF MALAYSIA-UK PART ERSHIP

The partnership between Malaysia and the United Kingdom had a significant historical beginning in the early decades of the 20th century when British capitalists brought significant foreign direct investments (FDI) and technology transfer to the tin mining industry of the Federated Malay States (FMS), as Malaysia was known then, during the period from 1900 to 1930. The British made significant capital investments in high

capacity and low cost dredging operations with advanced engineering technologies in exploration, geology, mining, mineral processing as well as in mechanical and electrical maintenance facilities, which subsequently positioned Malaysia as the worlds largest integrated producer of tin metal in the second half of the 20th century. As tin metal reached every corner of the world, Malaysia also became a vital international trading nation. Subsequent reinvestments in other tin producing countries also made Malaysia an important player in globalisation of business. At the peak of Malaysias production of tin metal in the 1960s and 1970s, the number of large capacity tin dredges operating in Malaysia controlled by British Investment Houses would have a valuation of more than RM3 billion at current market replacement prices. The investments were subsequently Malaysianised through open capital market during the middle of the 1970s resulting in the creation of a large Malaysian based international tin and minerals resources company.

Prior to the British entry into the Malaysias tin industry, mining activities were primarily in the hands of the Malays and subsequently the Chinese Two significant developments

occurred in the 19th century which resulted in the Chinese gaining over control to replace the Malays as the dominant miners. First was the establishment of the Straits Settlement by the British in 1826. The Straits Settlement consisted of Penang, Malacca and Singapore. This establishment of the Straits Settlement had encouraged the influx of Chinese immigrants. If the Chinese previously ventured into the Malay States did so with the intention of remaining only for a while, but when the Straits Settlement was established, they chose to reside permanently under the protection of the British.

Second was the discovery of rich tin deposits in the Malay States, especially in Perak, which further encouraged Chinese immigration. From about 1850 to 1900, the development of the tin mining industry was dependent almost entirely on Chinese capital, labor and enterprise. The contribution by the British then was negligible.

Adapting the lombong mining technique that originated from the Malays, and introducing new digging tools such as the changkol and devices for draining water out of the mine pit, the Chinese succeeded where the Malays failed in developing an efficient mining system.

In 1900, European mines contributed only about 10 per cent of the total tin output of the FMS. The rest came from Chinese mines. One British miner who was successful during that period was F. Douglas Osbourne who operated The Gopeng Tin Mining Company. This company was the first in the FMS to introduce hydraulic sluicing, and the first British company to compete successfully in the then Chinese dominated tin mining industry.

However, during the period from 1900 to1930, significant expansion of British investment in Malaysias tin mining industry began to take place. This came at a time when, with the exhaustion of the richer and more easily accessible deposits, mining called for a more advanced technical method to be employed. With the introduction of heavy mining machinery such as dredging equipment and gravel pump, the British began to show steady progress.

The high tin output produced by the dredging method raised the share of the British in the industry and reduced that of the Chinese. From 1929 onwards, the British had produced more tin than the Chinese. The dredging technology introduced by the British
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was an integral reason for the emergence of Malaysia as the worlds leading tin producer before the tin market crash in 1985. As for the gravel pump method, it was widely adopted by the Chinese miners even until today.

Describing the change from the magical world of the Malay miners to the intensive industry of the Chinese miners, which in turn was superseded by the impersonal exploitation of European technology, a British geologist, Harry Scrivenor wrote; No poetry, no pawangs (Malay medicine man) charm, no beautiful idea of animism can survive in the baneful presence of a bucket-dredge.

The development, ownership and control of the Malaysian tin mining industry took place in several stages. Beginning with the Malays to the Chinese in the 19th century, and then to the Europeans, mainly British in the 20th century. Gradually, it was the British that exerted majority control over the Malaysian tin mining industry.

Besides technology, the British was credited for bringing order and organisation to the mining industry in Malaysia. The laws and regulations they introduced on land management and mining operations in all the Malaysian states have, by and large, been in use with some modifications in line with the Federal Constitution until today.

The formation of the Malaysian Chamber of Mines was also due to the initiative of the British. Even though the Malaysian Chamber of Mines was formally incorporated in 1914, the foundation for its establishment probably began in 1901 when representatives of the European community met in Ipoh. Chaired by J.B.M Leech, the meeting resolved to form the Perak Chamber of Mines.

The Perak Chamber of Mines organised its first major mining conference in Ipoh from 23 September to 6 October that year. Miners and Government officials met to discuss on how to promote and regulate mining operations, as well as ways and means to improve the Mines Department to meet the needs of the ever changing mining industry. Extensive suggestions and proposals from the conference were drawn up, which

resulted in the passing of the Federal Mining Enactment and the Mineral Ores Enactment in 1904. In 1914, the Perak Chamber of Mines was expanded into a powerful Federated Malay States Chamber of Mines. On 10th December 1914, the Chamber was formally

incorporated under the Federated Malay States Chamber of Mines Incorporation Enactment No. 25 of 1914. In the early years, the FMS Chamber of Mines was very much in the control of the miners in Perak who also had mining interests in the other states. The Chamber changed its name from the FMS Chamber of Mines to the States of Malaya Chamber of Mines via the Federated Malay States Chamber of Mines Incorporation (Amendment) Act 1965, which was gazetted on 30th June 1965. Then, on 8th September 1988, the States of Malaya Chamber of Mines Incorporation (Amendment) Act was gazetted to give effect to a change of name from the previous States of Malaya Chamber of Mines to the present Malaysian Chamber of Mines. The Malaysian Chamber of Mines is the only Chamber in Malaysia to have been established by an Act of Parliament.

Post Independence Although by the middle of the 20th century, the ownership of the tin mining companies, especially the tin dredging companies, were in the hands of the British, but after Malaysia gained independence in 1957, there was a significant change in their ownership. The British companies began to transfer their ownership to the local individuals and corporations.

At the same time, through government initiative, locals were trained as administrators, mining engineers, and accountants to prepare them to take over the mining operations from the British.

This seamless transition to the local people under the so called Malaysianisation Programme had no doubt helped the country to maintain its dominant position as the worlds leading tin producer for another two decades before the tin market crash in 1985. The control and ownership of the British over Malaysias tin resources during preindependence had somewhat helped the country to grow, economically and politically, into a developed and modern nation. And even though a great deal of our tin resources were exploited and exported from the country, Malaysia was also opened-up to the world trade. Meaning that Malaysia has had the benefit of globalisation as early as the 19th century.

The British indeed invested heavily in Malaysia in realising the value of our natural resources. They were not simply exploiting but also developing and opening the tin industry in the country to the outside world. Whilst the British had benefited in the development of the countrys mineral wealth, so have Malaysia which have prospered as a result to become a developed nation within so short a period after independence, and the envy of many in this part of the world.