The Straits Settlements were a collection of territories of the British East India Company in Southeast Asia, which were given collective administration in 1826 as a crown colony, as distinct from the native princely states, some of which later formed the Federated Malay States. Initially, the Straits Settlements consisted of Penang, sometimes officially named Prince of Wales Island, Singapore with about a score of islets of insignificant size lying in its immediate vicinity, the islands and territory of the Dinding, Province Wellesley, the town and territory of Malacca and the islands of Labuan.
In 1867, the Settlements became a British crown colony, making the Settlements answerable directly to the Colonial Office in London instead of the Calcutta government based in India on April 1. Earlier on February 4, a "Letters Patent" granted the Settlements a colonial constitution. This allocated much power to the Settlements' Governor, who administered the colony of the Straits Settlements with the aid of an Executive Council, composed wholly of official (i.e. ex-officio) members, and a Legislative Council, composed partly of official and partly of nominated members, of which the former had a narrow permanent majority. The work of administration, both in the colony and in the Federated Malay States, was carried on by means of a civil service whose members were recruited by competitive examination held annually in London.
Penang and Malacca were administered, directly under the governor, by resident councillors.
The Dindings, consisting of some islands near the mouth of the Perak River and a small piece of territory on the adjoining mainland, were ceded by Perak to the British government under the Pangkor Treaty of 1874. Hopes that its excellent natural harbour would prove to be valuable have been doomed to disappointment, and the islands, which are sparsely inhabited and altogether unimportant both politically and financially, were administered by the government of Perak.
Province Wellesley, situated on the mainland opposite to the island of Penang, was ceded to Great Britain in 1798 by the Sultan of Kedah, its northern and eastern border; Perak lies to the south. The boundary with Kedah was rectified by treaty with Siam in 1867. It was administered by a district officer, with some assistants, answering to the resident councillor of Penang. The country consists, for the most part, of fertile plain, thickly populated by Malays, and occupied in some parts by sugar-planters and others engaged in similar agricultural industries and employing Chinese and Tamil labor. About a tenth of the whole area was covered by low hills with thick jungle. Large quantities of rice are grown by the Malay inhabitants, and between October and February there is excellent snipe-shooting to be had in the paddy fields. A railway from Batu Kawan, opposite to Penang, runs through Province Wellesley into Perak, and thence via Selangor and the Negri Sembilan to Malacca, with an extension via Mar under the rule of the sultan of Johor, and through the last-named state to Johor Bharu, opposite the island of Singapore.
The governor of the Straits Settlements was also High commissioner for the Federated Malay States on the peninsula, for British North Borneo, the sultanate of Brunei and Sarawak in Borneo, and since the administration of the colony of Labuan, which for a period was vested in the British North Borneo Company, was resumed by the British government he was also governor of Labuan. British residents controlled the native states of Perak, Selangor, Negri Sembilan and Pahang, but since the 1st of July 1896, when the federation of these states was effected, a resident-general, responsible to the (governor as) high commissioner, has been placed in supreme charge of all the British protectorates in the peninsula.
The following are the area and population, with details of race distribution, of the colony of the Straits Settlements, the figures being those of the census of 1901:
| Area in square miles | Population in 1891 | Population in 1901 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | Europeans | Eurasians | Chinese | Malays | Indians | Other nationalities | |||
| Singapore | 206 | 184,554 | 228,555 | 3,824 | 4,120 | 164,041 | 36,080 | 17,823 | 2,667 |
| Penang, Province Wellesley and Dindings | 381 | 235,618 | 248,207 | 1,160 | 1,945 | 98,424 | 106,000 | 38,051 | 2,627 |
| Malacca | 659 | 92,170 | 95,487 | 74 | 1,598 | 19,468 | 72,978 | 1,276 | 93 |
| Total | 1,246 | 512,342 | 572,249 | 5,058 | 7,663 | 281,933 | 215,058 | 57,150 | 5,387 |
Singapore 176,587 Chinese; Penang 56,333 Chinese and 52,041 natives of India; and Malacca 598 Chinese. The total number of immigrants for 1906 was therefore 285,560, as against 39,136 emigrants, mostly Chinese returning to China. In 1867, the date of the transfer of the colony from the East India Company to the Crown, the total population was estimated at 283,384.
The revenue of the colony in 1868, only amounted to $1,301,843. That for 1906 was $9,512,132, exclusive of $106,180 received on account of land sales. Of this sum $6,650,558 was derived from import duties on opium, wines and spirits, and licences to deal in these articles, $377,972 from land revenue, $592,962 from postal and telegraphic revenue, and $276,019 from port and harbour dues. The expenditure, which in 1868 amounted to $1,197,177, had risen in 1906 to $8,747,819. The total cost of the administrative establishments amounted to $4,450,791, of which $2,586,195 were personal emoluments and $1,864,596 other charges. The military expenditure (the colony pays on this account 20% of its gross revenue to the Imperial government by way of military contribution) amounted in 1906 to $1,762,438; $578,025 was expended on upkeep and maintenance of existing public works, and $1,209,291 on new roads, streets; bridges and buildings.