The Straits Settlements - Singapore, Malacca and Penang - were ruled from India until 1867, when they were erected into a crown colony under the charge of the Colonial Office.

It is notable that the heavy trade with Singapore shows a tendency to decrease in favour of direct trade with Europe.

Areca-nut Island), the town and island which, after Singapore, form the most important portion of the crown colony of the Straits Settlements.

The colony of the Straits Settlements consists of the islands of Singapore, Penang and the Dindings, the territory of Province Wellesley, on the mainland opposite to Penang, the insignificant territory of the Dindings, and the town and territory of Malacca.

Penang was purchased from Kedah in 1786, and Singapore from the then sultan of Johor in 1819.