Friday, 29 September 2017

Sabah (North Borneo) Historical Background By Datuk James P.Ongkili

Sabah (North Borneo) Historical Background
By
Datuk James P.Ongkili

The history of Sabah from the beginning until the nineteenth century remains unclear and little recorded. Sabah was a land of freedom until the middle of the nineteenth century in the sense that there was no organised form of government and a state did not exist until 1881. Before that, geographically Sabah had existed since time immemorial. But there was no community, no overall administration, no state economy, no state government; only mountains, jungles, rivers, the surrounding seas, and isolated villages scattered over more than 29,000 square miles of tropical and warm equatorial land.

It was in this vacuum of steamy jungles and tempestuous seas of Sabah that an organised society slowly but surely emerged and grew. The numerous villages in the interior plains and the fertile hinterlands, at the river mouths and the coastal areas had existed for a long time before the Western powers and Europeans came to the shores of Sabah. The villagers were the original inhabitants of Sabah; and they pioneered, in conditions more atrocious and difficult than anyone of us could boast about today, the human settlement of Sabah.

The Sultans of Brunei and Sulu claimed suzerainty over the area; and although their respective claims were nominal because they had no effective control over Sabah, the Sultan of Brunei relinquished his rights to Sabah by Treaty of 29 December 1877 and the Sultan of Sulu likewise ceded his rights to Sabah by the Treaty of 22 January 1878.

In both cases the Treaties were signed with Baron Von Overback who represents Alfred Dent of London. Dent subsequently transferred his rights and powers to a Provisional Association which obtained a Royal Charter from the British Government and become the North Borneo Charted Company in 1881.

Other Asians, Easterners, Middle Easterners and Westerners had all visited or passed through the area before the establishment of a formal state in Sabah. But the one who eventually managed to tame the forests, the rivers, the seas and above all, the villagers of Sabah were the British. By degrees, through the business acumen of English Merchants such as the Dent bothers, adventurers such as William Cowie, the Foreign Office and the Colonial Office in London, the British Government eventually approved the setting up of an administration under the North Borneo Charted Company in Sabah in 1881. From that year on no other power, Eastern, Middle Eastern or Western, was allowed to gain a foothold in Sabah.

The British determined our way of life in Sabah from 1881 until we achieved our independence by joining Malaysia in 1963. During that long period of 82 years Sabah gradually grew as a state governed by one administration. The bigger villages like Jesselton, Kudat, Sandakan, Lahad Datu, Tawau, Labuan, Beaufort, Papar, Tuaran, Kota Belud and Keningau became towns, while the smaller villages were connected more and more by bridle-paths, roads and sea or river communications. By the 1960s we had become an organised society willing, though not entirely able, to govern ourselves and determine our own destiny.

At a time when joint-stock companies were already considered anachronistic institutions, the granting of the Royal Charter to the North Borneo Company by the British Government in 1881 was a demonstration of the backwardness of the territory. (1) Nevertheless, the charter laid down the political and administrative bases upon which the company Court of Directors in London and their Governor and officers in Sabah should manage an area of over 29,000 square miles. The Charter, which was closely adhered to by the Company until the Japanese invasion 1942, required inter alia that the Company should by degrees abolish slavery, refrain from interfering with the religion of any class or people of the territory, develop the area, make and maintain public works, promote immigration, grant lands to investors, afford free access to British shipping, and impose no monopoly of trade in the territory.(2)

The Charted Company was preoccupied with the establishment of a bureaucracy in Sabah. In this respect, the most significant provision of the Charter, in so far as the peoples of the territory were involved, was Article 9 which required that:

In the administration of justice by the Company to the people of Borneo, or to any of the inhabitants thereof, careful regard shall always be had to the customs and laws of the class or tribe or nation to which the parties respectively belong, especially with respect to the holding possession transfer and disposition of lands and goods, and testate or intestate succession thereto, and marriage, divorce, and legitimacy, and other rights of property and personal rights.(3)

Here at least is evidence that the territory was constituted into a political entity, separate from the Brunei Sultanate, at a period in British history when some regard for the well-being of the subject peoples, albeit paternalistic, was manifest. As the Rajahs of Sarawak were imbued with Victorian humanitarianism, so the promoters of the Charted Company were enjoined to protect the welfare of the indigenous and other communities of Sabah from 1881 onwards.(4)  Not-withstanding that, it must be pointed out that a stable government was of paramount importance to the Company itself in its overriding effort to open up the territory and thereby attract investors, planters and speculators to Sabah. The chief aim was to establish good government in order to ensure the success of a business concern which had been launched with the blessing of the British Government. It was principally due to this economic preoccupation that the Company Governor and his officers paid far less attention to the promotion of political education among the inhabitants of Sabah.(5)

An Advisory Council was set up in 1883 with the aim of providing the Governor and his officers a channel of communication with the various communities in the territory. But in practice, this Council hardly promoted political understanding among the people. Its members composed of the higher officers of the Company, representatives of the European planters and Chinese merchant groups.(6) Not only were all the members nominated by the Governor, but it is also significant to note that the indigenous peoples of the territory were not represented on this Council. Despite the Charter provision vis-a-vis the welfare of the indigenous communities, their non-representation on the Advisory Council clearly demonstrates the fact that the Company was far more interested in the economic rather than the political advancement of the territory.

In 1912 a Legislative Council was established to replace the Advisory Council. All nominated, the members of the new Council comprised official members, representatives of the European economic interests, and a representatives of the Chinese community. While the Chinese representation was later increased to two members, the council again included no representative of the indigenous people of the territory. (7) In any event, despite the change in its name,  the new Legislative Council largely advisory in practice. It functioned as a source of information on the economic temperament and development of the territory for the Governor and the Court of Directors rather than training ground for local leaders towards the eventual self-government of Sabah. The Legislative Council existed uneventfully and apolitically until the Japanese invasion in 1942.

An interesting experiment in local government was attempted in 1936. A local authority was formed by combining villagers in the Bingkor area of the Interior Residency for administrative purposes. The committee form to run day to day affairs of the authority led by O.K.K. Sedomon Bun Gunsanad. Initially the authority functioned promisingly; but lack of financial support and experience beset its native leaders who were expected to rely entirely upon the meagre revenue of the poor Bingkor area for the Implementation of their projects and local authority services. (8) Ultimately the experiment failed, thereby demonstrating the impossibility of initiating even grass-root political education successfully without the long-term assistance of governing Company disposed towards the granting of eventual self-government for Sabah.

Whereas the Brooke Rajahs of Sarawak at least repeatedly stated that it was their intention to lead the people of Sarawak to self-rule and attempted to substantiate their pledge by granting the 1941 Constitution to their subjects on a silver platter.  (8A) The Charted Company never in their sixty-year rule indicate such a wish for the people of Sabah. Undisturbed by other imperial powers, thanks to the British Protectorate of 1888, the company portrayed itself by 1941 as a management concern to all intents and purpose was happy to continue to husband Sabah as its economic domain well into an indeterminate future.

Unlike Malaya which experienced the unfolding of the immediate post-war years with keenly-received and widely debated constitutional and political developments, Sabah emerged the Second World War rather uneventfully and remained an apolitical dependency for long years after 1946. In a significant manner, the lack of political response in post-war Sabah was the logical consequence of pre-war policies in the territory. The commercial considerations of the British North Borneo Charted Company had left the area effectively insulated from the spread of nationalist ideas in Southeast Asia. It was principally due to this apolitical historical background that the Sabah was easily acquired and turn into a Crown Colony by Britain in July 1946.

Britain’s motives for acquiring Sabah after the Second World War were not very dissimilar from those which prompted her to regain her pre-war hegemony over Malaya and Singapore in 1946. As discussed earlier, Britain had indirectly but effectively established her imperial influence during the Charted Company administration which lasted until the Japanese Invasion in 1942. As in Malaya, Britain worked for the establishment of post-war position of dominance in Sabah. For economic and strategic reasons, Britain was prepared to add new acquisition to her remaining dependencies.  (9) In the course of rearranging British priorities in Southeast Asia, Sabah became one of His Majesty’s new Crown Colonies in 1946.

Sabah received its status of Crown Colony with hardly any dissenting voice. Relative isolation from the outside world and lack of educational facilities during the pre-war period accounted for the inability of most people in Sabah to comprehend the change in their status from the inhabitants of a mere British Protectorate to that a directly-governed Crown Colony in 1946: ‘The British North Borneo Company’s servant may rarely have lacked devotion to the lands and its peoples, but they seldom had sufficient resources at their disposal to educate the people of the country to the full. (10) In addition to illiteracy among the majority of the people. In addition illiteracy among the majority of the people, the aversion of the Charted Company to any political development in Sabah which might upset the unbroken tranquillity (11) of its business-minded administration ensured that the most part Sabah was politically untutored in 1946. It is in this light   the following comments must be understood : ’Politics had never appealed  in North Borneo.... Politically North Borneo progresses through its allotted [first] forty-one years of the Twentieth century very quietly.(12)

Sabah was freed from the Japanese by a brigade of the Australian Ninth Division which was assisted by the United States Seventh Fleet. (13) The President of the Court of Directors in London, Sir Neil Malcolm, felt that the resources of the Charted Company would be inadequate for the needs of rehabilitation and reconstruction of post-war Sabah which was severely devastated by Japanese denial and Allied occupation bombings. (14) The Company made informal approaches to His Majesty’s Government of the possibility of Sabah being transferred to the British Crown. For reasons already stated above, Whitehall was in fact no less interested in acquiring Sabah as part of the territories encompassed in the framework of British policy for post-war Southeast Asia. Formal proposition and negotiations led to concrete results, and in June 1946 the Secretary of State for the Colonies announced ‘that an agreement had been reached between the Government and the Charted Company for the transfer of the latter’s territory to the Crown. Compensation was to be determined by arbitration on the basis of the net maintainable revenue and the number of years purchase which, in the opinion of the arbitrator, should be applied thereto.(15)

From the point on, without much ado, Sabah slipped into the control of His Majesty’s Government. On the  10 July 1946 British passed the North Borneo Cession Order in Council which provided that an agreement had been made between the Secretary of State for the Colonies, on behalf of His Majesty, and the British North Borneo Company, where by the Company had transferred and ceded all its rights, powers, and interest in the territory with effect  15 July, 1946, and that it was therefore ordered that the State of North Borneo be annexed to and form part of His Majesty Dominions, and should be called, together with the Settlement  of Labuan, the Colony of North Borneo. (16) On 15 July 1946 in the presence of, among others, Malcolm MacDonald who was Governor-General of the Malayan Union and Singapore, the new Colony of North Borneo was proclaimed in Jesselton.(17)

It is to be noted that the Charted Company, as a well established commercial concern for over half a century, did not fold up for nothing. The shareholders did received something, notwithstanding the fact that ‘the sale of North Borneo to the Crown was achieved  (18) at a rate lower the price of issued share capital, namely payment of about ten shillings per share. The overall financial settlement of the Sabah transfer to the British Government was summed up in the following:

A very satisfactory financial settlement has been negotiated with his Majesty’s Government. Put briefly, His Majesty’s Government has agreed firstly to pay to the Charted Company for the sovereign rights and assets of North Borneo the sum of £1,400,00; secondly, to provide grants-in-aid totalling £1,750,000 for the period 1948-1951; thirdly, to provide £1,215,000 towards the Colony’s Development Programme estimated to cost £3,300,000; fourthly, to provide over £500,000 to redeem Charted Company Currency; fifthly, to waive the cost of the British Military Administration; and sixthly, to provide a free grant of $5,000,000 and interest-free loan of approximately $6,400,000 to meet damage claims.(19)

The transfer of Sabah to the jurisdiction of the Colonial Office was followed by years of gradual social welfare and economic development. As Sabah passed on to the 1950s, the tenor of life was characterized by the preoccupation with ‘the peace, order and good government of the Colony’. By 1956 the administration took pride in the fact that ‘the colony maintained its enviable record of freedom from political strife and violence’. (20) Yet, the irony of history had also ensured that such ‘freedom’ meant that Sabah was far away from Colonial rule. The transfer to the Colonial Office had help to stem post-war social, economic and administrative dislocation in Sabah; but beyond that, the territory had little political character, inasmuch as the meticulous application of ‘peace, order and good government of the Colony’ rendered the growth of political awareness excruciatingly slow among the people of Sabah.

British colonial rule lasted from July 1946 to September 1963 in Sabah. This period of seventeen years witnessed an era of benevolent administration in the territory. To a considerable extent because of the lack of political development in the territory until the Second World War, progress along nationalist lines after 1946 was a slow process. The colonial Government of Sabah, above all else, wish to rehabilitate and reconstruct the economy of the territory which was ravaged by the War. It was clearly recognised that the social and stable and expanding economy; and, accordingly, such services were given emphasis at the same time as the principal products of Sabah, such as rubber, copra, timber, sago and tobacco, were speedily rehabilitated. (21) In many ways, Sabah under the colonial rule for seventeen years underwent the execution of British policies not unlike those which were carried out in the Peninsula under the British in pre-war Malaya.

As in pre-war Malaya, the people of Sabah tended to live in plural societies for long after 1946. It was not the intention of Whitehall to foster political awareness or nationalistic ideas among the people of Sabah throughout the 1950s, notwithstanding the fact that Britain was aware that she would have to relinquish her sovereignty over the territory in the foreseeable future. The nationalist movements and successful demands for political independence in Southeast Asia made it plain that, at best, Britain could only hope to delay the rise of nationalist sentiment among the people of Sabah. At all events, Britain reasoned, as she did with respect to Malaya and Singapore, that if the parting of the ways must come with the Borneo territory it was in the best interest of the British Government and people that such a break should eventuate in an amicable manner. Thus the subsequent formation of Malaysia from 1961 to 1963 turned out to be a diplomatic, amicable and evolutionary effort in nation building.

Source : Commemorative History of Sabah 1881-1981
  1.                                                                                                                                                              K.G. Tregonning, ‘Steps in the Aquisition of North Borneo,’Historical Studies: Australia and New Zealand, vol 5, no 19, 1952
  2. For the test of the Royal Charter, see the Company’s Handbook of British North Borneo, 1886, William Clowers & Sons, Ltd., London, 1886, pp.113-28
  3. Ibid., p.123
  4. The population of Sabah comprised the indigenous communities (Kadazans, Bajau and Bisayas, Rungus, Murut and pockets of kindred races), the Chinese and a small number of Europeans and others. In 1960, the percentage were: indigenous, 68; Chinese 23; Europeans and others, 9. See L.W. Jones, The Population of Borneo, University of London, 1966, Appendix A.
  5. K.G. Tregonning in his Under Charted Company Rule, University of Malaya Press, Singapore, 1958 (2nd ed., 1965, as A History of Modern Sabah, 1881-1963) gives the impression that the Chartered Company was a very humane institution which husbanded Sabah faithfully and brought it to stability and progress. There is lots of truth in such an assertion, and admittedly the company brought relative peace to a once-wild country. Yet, such an impression is one-sided unless one also points out that the Company had an overriding economic wish to do well for the sakes of its shareholders. Indeed, the company made little effort to hide this paramount objective. One has only to scan the pages of the reports of the Company to find major spaces perennially to trade and products, timber and other forest products, geology and minerals, commercial agriculture, careful reproduction of documents of trade returns, ;opening for capitalist and settlers’ the prospect for European life in the territory. See Handbook of British North Borneo for 1886,1890 and 1934
  6. The Advisory Council was so much a creature of the Company Government, and so little a body representing the people of the territory, that Rutter saw no distinction between it and the Company administration. See O.Rutter, British North Borneo, Constable and Company, London, 1922, ch VI.
  7. The locus of power and extent of political participation by the people were summed up by the company Handbook in 1934: ‘The Government is assisted by a Legaslative Council consisting of nine official and five unofficial members, the unofficial members being nominated by the different communities and appointed by the Governor subject to the approval of the Court of Directors. Ordinances are enacted by the Governor, with the advice of the council, but the court of directors reserve the right to disallow any such ordinances in the same way as the Crown retains a power of veto in the case of Crown Colonies.’(p.44) The position remained so until the Japanese occupation.
  8. The local authority received some financial assistance from the Education and Medical Department, but this made no difference to the increasing budgetary need of the authority. Tregonning, A History of Modern Sabah, pp 127-8.
  9. 8A. The communities of Sarawak made no demand for constitution at the time thereby manifesting that they were not politically prepared or nationalistically aware. Neither was there any significant reaction to that constitution.
  10. See C.N. Parkinson, Britain in the Far East: The Singapore Naval Base, Eastern Universities Press, Singapore, 1955; S.Rose, Britain and Southeast Asia, Chatto & Windus, London, 1962
  11. M.H. Baker, Sabah : The First Ten Years as a Colony, 1946-1956, Malaysia Publishing House, new ed., Singapore, 1965, p.iv, Sabah was “North Borneo” until the inauguration of Malaysia on 16th September 1963.
  12. British North Borneo (Chartered) Company, Handbook of the State of North Borneo, London, 1934, p. 31.                                                                                                                                                                                            


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