THE THREE MAIN FACTORS
1. DEMAND FOR PROTECTION FROM THE RULER OF KEDAH
2. PROTECTING CHINA TRADE 3. NAVAL BASE
1. DEMAND FOR PROTECTION FROM THE RULER OF KEDAH
To further understand the first factor, it’s important to take a look at one of the dominant people involved in this event, Francis Light.
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| Statue of Captain Francis Light at Fort Cornwallis in George Town |
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| Francis Light's grave in the Old Protestant Cemetery in George Town |
Francis Light was the one who received an appeal from the ruler of Kedah, Sultan Muhammed Jewa who wanted assistance in solving internal troubles in his region. As an exchange for the help, the Sultan promised a license for Light to trade in Kedah. In November 1771, the coast from Kuala Kedah to Penang was offered by the Sultan to protect them against Bugis. Later in the year 1785, Sultan Abdullah Mukaram Shah offered to cede territories for protection by the British against the threats from Burma (Myanmar) and Siam (Thailand).
When the appeal was proposed to the British East Indian Company by Light, the threats from Burma and Siam were not mentioned. This was because Light figured it could disinterest the company as they had no interest in intervening in state problems. This matter was only brought up after Penang was occupied. In fact, the Sultan’s terms were said to be treated only as of the basis of negotiation for future treaties. During the proposal, Light emphasized the geographical and strategic advantages of Penang. When the offer was eventually accepted, Penang became part of the British’s territory.

However, in January 1787, military assistance to Kedah was denied by Governor-General Lord Cornwallis and Light delayed noticing this matter to the Sultan of Kedah until 1788. When it came to the Sultan's knowledge, he demanded that the British leave Penang. After many failed attempts, he decided to expel the British by force in 1791 only to fail again due to his unprepared Malay forces. Thus, the Sultan was forced to sign the Treaty of Peace, Friendship, and Alliance on the 1st of May 1791 before the second treaty was signed to agree on the payment of six thousand Spanish dollars a year for the cession of Penang. The last agreement contracted was in June 1800 by the company for a stretch of a territory known as Province Wellesley, providing Kedah with slightly greater protection.
However, to pay for these imports, a lot of silver has to be imported. Most of the raw material was produced in Southwest Asia, hence it was crucial for the BEIC to develop country trades and secure a base for the collection of these raw materials that are at the same time away from the Dutch East India Company’s sight.
3. NAVAL BASE
The third factor is the British’s need for a naval base.
In the 18th century, the French heavily depended on naval control when they were struggling for the upper hand in India. This has influenced the British Navy to find its own repair-depot on the eastern coast.
During the north-east monsoon season, it is highly dangerous for them to travel. Consequently forcing the British fleet to retire at the Bombay base, only able to return the following year. The British were worried that this gap would allow the French fleet to launch attacks against them. This results in their need to occupy Penang to serve as a naval base on the eastern side of the bay and to protect them from the north-east monsoon. Along these lines, the British fleet would be able to gain control over the bay against the French.
The strategic location of Penang would allow the British to check both Dutch and French territorial gains in Southeast Asia.
B, Rollins. "Francis Light and Penang." Journal of the Malaysian Branch of the Royal Asiatic Society 38, no. 1 (207 (1965): 135-158. https://www.jstor.org/stable/pdf/41491842.pdf
Gin, Ooi Keat. "DISPARATE IDENTITIES: PENANG FROM A HISTORICAL PERSPECTIVE, 1780-1941." Kajian Malaysia: Journal of Malaysian Studies 33 (2015). http://web.usm.my/km/33%28Supp.2%292015/km33s22015_03.pdf
Yamada, Hideo. The origins of British colonialization of Malaya with special reference to its tin. Institute of Developing Economics, 1971. https://www.ide.go.jp/library/English/Publish/Periodicals/De/pdf/71_03_01.pdf
DEMAND FOR PROTECTION FROM THE RULER OF KEDAH
PROTECTING CHINA TRADE
NAVAL BASE







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