Economy
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From the earlier period of the federation the currency in used was the Straits dollar issued by the Board of Commissioners of Currency. As the currency depreciated over time, it was pegged at two shillings four sterling pence in 1906. In 1939, the British government introduced a new currency, Malayan dollar (ringgit in Malay) for used in Malaya and Brunei replacing the Straits dollar at par value. It had the smallest denominations of 1 cent to a highest of 1000 Malayan dollar and retained the exchange rate as was from the Straits dollar.
The Federated Malay States main economic activity was mostly focused on agriculture and mining with emphasis on rubber and tin. FMS and Malaya as a whole was the main supplier of these two commodities for the British industrial need. Rubber estates or plantations were established in all four states and tin was mined primarily in the Klang valley in Selangor and the Kinta valley in Perak. This labor intensive economic activities prompted the British to bring in immigrant workers from Southern India to work at the plantations and workers from Southern China to mine the tin.
The economic condition in the period can be viewed as self-sustainable, as the income of the federation was more than what was expended in terms of maintaining the administration and economic activities. In the later period, a lot of resources was poured into the development of the city of Kuala Lumpur, as the capital of the federation. This period also saw rapid growth in terms of communications infrastructure such as interstate roads, a narrow gauge railway line from Penang to Singapore, and the Port Swettenham (present day Port Klang). Public schools and academic institutions were also opened along with an improvement in public health. An area in the city was also gazetted as a settlement for the Malay called Kampung Baru. Public buildings were also constructed such as the Kuala Lumpur railway station, the Bangunan Sultan Abdul Samad complex and Masjid Jamek.
The table and section below illustrated the economic growth of the federation and its member states.
| Year | Revenue | Expenditure | Import | Export |
|---|---|---|---|---|
| 1875 | $409,394 | $436,872 | $831,375 | $739,972 |
| 1880 | $881,910 | $794,944 | $2,231,048 | $1,906,952 |
| 1885 | $2,208,709 | $2,261,954 | $8,667,425 | $9,961,786 |
| 1890 | $4,840,065 | $5,237,275 | $15,443,809 | $17,602,093 |
| 1895 | $8,481,007 | $7,582,553 | $22,653,271 | $31,622,805 |
| 1900 | $15,609,807 | $12,728,930 | $38,402,581 | $60,361,045 |
| 1905 | $23,964,593 | $20,750,395 | $50,575,455 | $80,057,654 |
| 1910 | $26,553,018 | $23,598,610 | $53,255,151 | $102,851,990 |
| 1915 | $40,774,984 | $42,838,631 | $61,343,935 | $162,429,254 |
| 1920 | $72,277,146 | $100,433,471 | $175,916,712 | $289,112,016 |
| 1921 | $54,449,568 | $114,386,546 | $102,914,877 | $134,955,549 |
| 1922 | $52,494,110 | $49,811,007 | $78,822,349 | $140,429,775 |
Note: All values are in Straits Dollar (One dollar fixed at two shillings and four pence sterling). Data for Pahang included only from 1890 onwards
Ref: Harrison, Cuthbert Woodville. An Illustrated Guide to the Federated Malay States. 1923
Read more about this topic: Federated Malay States
Famous quotes containing the word economy:
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“Everyone is always in favour of general economy and particular expenditure.”
—Anthony, Sir Eden (1897–1977)