THE MALAY STATES
Electric trams provided an efficient transport system for Penang prior to their elimination in 1936.
The present federal system of Malaysia began with the administrative structure of the Federated Malay States (FMS) which united four states-Perak, Selangor, Negeri Sembilan and Pahang-in 1896. These states gradually lost their powers to the federal government, but later sought to recover them through decentralization.
The process of centralization began with Frank Swettenham, the first Resident-General of the FMS (1896-1900), who consolidated power into his own hands. His successor, William Taylor, did the same. In 1911, the title of Resident-General was replaced with Chief Secretary. Thereafter, the Governor-High Commissioner in Singapore used the Chief Secretary to consolidate his own powers and enhance centralization in the FMS. To mollify the rulers and the Residents, they were invited to become members of the Federal Council which was set up in 1909. The Federal Council constitution effected a division of powers between the federal and state councils. While the Federal Council had almost unlimited powers, the rulers were left sovereign in their own states, which were administered on the advice of their Residents. However, the Residential System lost much of its vitality during this period as each states power continued to be curtailed until the 1920s when new policies devolved various federal responsibilities back to the rulers and Residents.
Before World War II, the states had won back some of their powers, including the allocation of specific budgets to the states, which were also allowed to collect certain taxes to avoid over-dependence on federal budgets. The Federal Council, however, was empowered to approve the annual federal and state budgets.
The decentralization policy was devised as a conciliatory measure to return several powers to the rulers and the Residents. In 1925, major reforms included the abolition of the post of Chief Secretary and the devolution of powers of the federal secretariat to the Residents, state councils and federal heads. The process was expedited by Governor Sir Cecil Clementi (1930-4), who used the sultans to play a more active role in public affairs and to help the Malays compete more effectively with the non-Malays. He also enlarged the Durbars by inviting the sultans from the Unfederated Malay States.
The Unfederated Malay States (Kelantan, Terengganu, Perlis, Kedah and Johor) did not all come under British control until 1919. British Advisers were appointed to Perlis, Kedah and Kelantan in 1909, and Terengganu in 1918. Prior to the 1909 Anglo-Siamese Treaty, Siam had held suzerainty over these four states. Under Sultan Abu Bakar, Johor had a special relationship with Britain, spelt out in the 1885 Anglo Johor Treaty. However, this ceased with his death, and a General Adviser was appointed in 1914.
Despite the loss of state powers, the federal system left intact the sovereignty of the Malay rulers and their respective states. After the war, following the debacle of the Malayan Union scheme, it was this consideration which persuaded all the Malay rulers to accept the federal system further when they signed the Federation of Malaya Agreement in 1948.