This question is on the Federated Malay States.

4. Explain why the Federated Malay States was set up in 1896. [O LEVEL 2019] [8]

The Federated Malay States was set up to rectify the weakness of the Residential system whereby
Residents became more powerful at the expense of the Sultans. Residents were answerable to
the Governor in Singapore but had little contact with him as he was too far away to know affairs
of the states, hence they were left unchecked. The State Council was set up to give powers to the
Sultans but eventually the Sultan had little say as most powers were given to the Resident due to
their eagerness to get things done, deciding and implementing laws without consulting. Hence, the
Federated Malay States was formed to check the increasing power of the Residents by appointing
a Resident-General and Federal headquarters in Kuala Lumpur, closer to the Malay States.

The Federated Malay States was set up to rectify the weakness of the Residential system as it
lacked coordination in administration as the roles of the Residents were not specifically told,
depending on their resourcefulness, initiative and influence to work out effective measures for
economic success. Important matters in each state like laws, taxes and mining were differently
addressed in each state due to little communication between Residents to share successful
ideas. Thus, the Residents carried out matters in their own way which led to duplication of efforts in
doing similar tasks and thus inefficient resource usage. Hence, the Federated Malay States would
coordinate important matters of state, develop communication lines to enhance economic
development. Thus it was formed due to the lack of coordination in the Residential System.

The Federated Malay States was set up to rectify the weakness of the Residential system as there
was unequal economic progress due to the independent nature of Residents. By 1890, Perak and
Selangor developed rapidly due to rich raw materials and skills of Low and Swettenham while
Pahang and Negri Sembilan were poor. Administration of Pahang was very costly as expenditure
exceeds revenue for a state with little resources, leading to a debt of $1 million. The British believed
that Pahang’s wealth could be tapped by linking it to the coasts of Perak and Selangor as they
could help Pahang’s development by borrowing money. Retaining control of Pahang meant British
influence in the southern Malay Peninsula would stretch from West to East Coast. Hence, the FMS
was formed to solve the financial problems of Pahang unchecked by the Residential System.