Kang Heejung
(Institute for East Asian Studies, Sogang University, Korea)

 

Abstract: Penang is a small island that became a beachhead for British expansion from South Asia into East Asia. It was the Chinese immigrants that completed the transformation, turning Penang into what it is today. This paper examines to look into the roles played by the Chinese community in Penang from the second half of the 18th century, with focus placed on the relationship between opium revenue farming and Chinese community.
The Chinese community in Penang began to swell starting from the British occupation of the island in 1786. The Chinese merchants in Penang accumulated their capital and built up their community there through “opium farms” until the late 19th century. The Chinese economic achievements in Penang at the beginning of the 19th century were largely based on opium abuse encouraged by the Chinese among their compatriots. It was closely linked to Britain’s taxation system. The Chinese merchants in Penang sold opium and financed Secret Societies over a century to open up an era of business titans on the island. They began to expand their wealth further through a huge syndicate encompassing opium farms, capital, coolie trade, and Secret Societies.
The unique human network valued by the Chinese played a central role in the capital accumulation. Based on the same hometowns or ties of kinship, the Secret Societies emerged as interest groups contributing to the enhancement of solidarity in the Chinese community. The Secret Societies got involved in social control and economic operations on behalf of the colonial government. At the beginning of the 20th century, the influence of traditional Chinese business titans who competed against Western capital shrank significantly as their enclave was undermined. Clearly, the economic power of Chinese merchants would no longer come from opium.

 

Key words: Penang, opium, opium farm, Southeast Asia, Chinese enclave, overseas Chinese