Early years The origins of the Kangchu system dates back to the mid-18th century, when early Chinese settlers in
Penang experimented in
cash crop plantations with various types of crops, including pepper, gambier,
betelnut and
clove. The plantations were abandoned by the late 18th-century, as Penang experienced wars from
Buginese seafarers that resulted in many gambier plantations being destroyed; contributing to the decline in plantations was the growing popularity of the
spice trade that reaped much greater profits. At the beginning of the 19th century, these Chinese settlers began to look south to
Malacca and
Singapore, where gambier and pepper plantations had also been established. In the late 1820s, Chinese settlers from Singapore also began to look towards
Johor for gambier and pepper cultivation at the encouragement of
Temenggong Abdul Rahman and his successor, Daeng Ibrahim. As more Chinese settlers established gambier and pepper plantations in Johor during the 1840s, Temenggong Daeng Ibrahim formed a bureaucracy made up of Malay officials to oversee administrative affairs upon the Kangchu. He began issuing official permits, known as
Surat Sungai (transliterated as "river documents") in
Malay, to the Kangchu (leaders of the settlers) which permitted them to establish these plantations along the river banks. In turn, the Kangchu were required to pay
taxes from the profits generated by the gambier and pepper farms and the
Surat Sungai, which had to be renewed after a specified period of time. More Chinese settlers came to Johor from the 1850s onwards, and forested areas in Southern Johor such as
Tebrau,
Plentong and
Stulang were cleared for the cultivation of gambier and pepper. By the time Temenggong Daeng Ibrahim's son,
Abu Bakar took office from his father in 1862, at least 37
Surat Sungai have been issued to various Kangchu, all of whom were collectively responsible for the operations of the 1,200 gambier and pepper farms in the state. Most of these Chinese leaders were also members of
secret societies, and communal warfare often broke out in Singapore between different dialect groups as a result of conflicting economic interests. From the late 1850s onwards, the Kangchu began to exert political influence in the state affairs by establishing close ties with Temenggong Abu Bakar. In 1865, Abu Bakar granted official recognition to the
Teochew-dominated Johor branch of the
Ngee Heng Kongsi after a Kangchu, Tan Kee Soon, raised a small army to subdue
Sultan Ali's forces, from whom Abu Bakar was facing considerable dissent but was unable to raise an organised army. Abu Bakar nevertheless called for the Ngee Heng Kongsi to accept Chinese settlers of other dialect groups to prevent possible communal warfare as a result of conflicting economic interests. As the gambier and pepper plantations expanded in the 1870s, the more established Kangchu were entrusted with larger blocks of farms and made contracts with Chinese merchants from Singapore. The profits generated from harvests of these plantations formed the bulk of Johor's economy, As the land along the river banks in Southern Johor was already taken by the earlier waves of Chinese settlers, newer Chinese settlers began migrating northwards in the 1870s and established new gambier and pepper plantations further north; new plantations were established in
Yong Peng,
Batu Pahat,
Benut,
Endau and
Kota Tinggi. In particular, Abu Bakar actively encouraged Chinese settlers to establish plantations in
Muar, shortly after the British Colonial Government ruled in favour of Abu Bakar over
Tengku Alam Shah (Sultan Ali's eldest son) and his family, and granted Abu Bakar control of Muar.
Decline At the end of the 19th century, Johor's economy began to diversify from gambier and pepper plantations to other agricultural crops. Starting with
coffee in 1881, crops such as
tapioca,
tea,
pineapple and
rubber were introduced into the state. Coffee and tapioca was quickly abandoned in the 1890s when the value of these crops experienced a drop, while rubber was introduced and quickly established a strong foothold in Johor, as the world demand for
rubber increased greatly around 1910. Prices for gambier plunged between 1905 and 1906, and many Kangchu abandoned gambier in favour of rubber. Further decline in the number of gambier and pepper plantations was fuelled by the colonial government's suppression of traditional farming methods employed by the Kangchu for planting gambier and pepper; these method led to soil exhaustion and a depletion of forests which was used as firewood in small factories. A few years before the Kangchu system was abolished, exports for both gambier and pepper plunged by a further 60% between 1912 and 1917. The British had long frowned upon the Kangchu because of their links with secret societies in Singapore as well as their indulgence in social vices such as
gambling and
opium smoking, activities which the British had been actively suppressing in Singapore and the Federated Malay States. As early as 1890, the
Governor of the Straits Settlements,
Cecil Clementi Smith had lobbied Abu Bakar to adopt the Societies Ordinance and ban the Ngee Heng Kongsi, but was promptly turned down. Shortly after the British appointed an adviser to Johor, the British began attributing the high crime rates in the state to Chinese settlers loyal to the Kangchu. In 1915, the Johor state government, now effectively under the control of the British Colonial Government, passed the
Societies Enactment which prompted the dissolution of the Ngee Heng Kongsi the following year. The Kangchu system was officially abolished December 1917 in an enactment passed by the Johor state government, which was by then effectively administered by the British colonial government. ==Role of the Kangchu==