How Did the British Govern Singapore, and Why Did They Keep Running Out of Money?

These notes explain how changes in the way Singapore was run affected its growth. Until 1867 it was run from far away and was always short of money, so little was spent on the port, security or services. From 1867 rule gave nearly 75 years of stable government that let trade thrive, but it had two weaknesses: an unelected and against Asians.

Run From Far Away (1819–1867)

1819–1823: every decision had to be approved by Raffles in , where he was Lieutenant-Governor.
1823: after Raffles went back to England, Singapore was placed under the .
1824–1858: Singapore was formally handed to the EIC. In 1826 it joined Penang and Melaka as the Straits Settlements.
1858–1867: after the EIC was dissolved, the in London took over.

How Did the British Govern Singapore, and Why Did They Keep Running Out of Money?

Problem: Always Short of Money

PointBefore 1867, the way Singapore was run held back its growth because the government was always short of money.
EvidenceTraders protested against any tax on trade, so the government taxed gambling, opium and liquor instead; when gambling was banned in 1829, that income fell. In the 1830s the EIC lost its control of the China trade, so it cut costs, dismissed officials and cut the pay of those who were left.
ElaborationKeeping the free port meant giving up the biggest possible source of tax, and a distant company that was cutting costs had little reason to spend on a colony that paid hardly any taxes, so there was never enough to fund what a growing port needed.
LinkTherefore, there was not enough money for better port facilities, security, schools or healthcare, which led directly to the law and order problems that followed.

Crown Colony (1867–1942)

The Governor: represented the King or Queen of Britain, and had , the ability to reject laws.
Executive Council: high-ranking British officials who advised the Governor and helped carry out the laws.
Legislative Council: British officials plus , mainly Asian and European traders, who helped make laws.

Strength: Stable Crown Colony Rule

PointFrom 1867, Crown Colony rule helped Singapore grow by giving it stable, peaceful government.
EvidenceThe Colonial Office in London took charge in 1867, ruling through a Governor, an and a that included Asian and European traders. Crown Colony rule gave Singapore nearly 75 years of peaceful government.
ElaborationBeing ruled directly by the British government, rather than from India, meant Singapore's needs received more attention, and long years of peace gave traders the confidence to keep investing and trading there.
LinkThus, stable Crown Colony rule created the conditions in which trade could thrive, and from 1867 the government began to tackle law and order, education and public health.

Weakness 1: An Unelected Governor

PointOne weakness of Crown Colony rule was that the Governor was not elected by the people.
EvidenceBritain chose him to represent the King or Queen, and he had veto power over laws the Legislative Council passed.
ElaborationBecause he owed his position to London rather than to local people, he answered to Britain, and when local and British interests clashed he tended to favour Britain.
LinkHence, local people had little say in how they were governed, even as the colony grew.

Weakness 2: Discrimination Against Asians

PointAnother weakness of Crown Colony rule was discrimination: the British treated Asians unfairly.
EvidenceQualified Asians were denied senior jobs, discouraged from first-class train carriages, and kept out of places like hotel dancefloors.
ElaborationBeing given second-class treatment in their own home showed local people that the British did not see them as equals, so they had little reason to trust or support British rule.
LinkTherefore, discrimination cost the British the trust of local people, and some Chinese students became anti-British.

A Fair Verdict?

Little interest: the EIC and the British India government spent little on Singapore.
But some credit: one British historian argued that the EIC gave Singapore fair government and the freedom to build up its trade.
Paying the bills: from 1833 to 1867, the British India government kept paying to run a colony that paid hardly any taxes.
On balance: despite little money, Singapore still prospered and the town kept growing, as free trade kept drawing merchants.

In One Sentence

Run from far away and always short of money until 1867, Singapore then gained stable Crown Colony rule that let trade thrive, though under an unelected Governor and with discrimination that cost the British local trust.

Think About It

Why do you think the government in India showed little interest in the Straits Settlements?
The traders refused a tax on trade. Were they being selfish, or protecting Singapore? Explain.
How might being shut out of senior jobs have made qualified Asians feel about British rule?