QUEST INTERNATIONAL UNIVERSITY PERAK Faculty of Business, Management, and Social Sciences

PRINCIPLE OF ACCOUNTING

Prepared For:Mr. Izdihar

Lecturer: BBA1101

Prepared by:

Malathi D/O Sundra Saigaran (BBA00069) Puventhran S/O Nadaraja (BBA00105)

Topic: KFC Holdings Financial Ratio Analysis of Year 2009

Date : 17th January 2012

Table of Contents

INTRODUCTION…………………………………………………………………… 2 -3

REASON PORTUGUESE CAME TO MALACCA   …………………………… 4-5

REASON MALACCA FELL TO PORTUGUESE…………………………………   6 -8

EFFECT OF PORTUGUESE COLONIZATION…. …………………………….8-9

REASON PORTUGUESE COLONIZATION ENDED   ……………………… …9-11

CONCLUSION……………………………………………………………………….12

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INTRODUCTION

We had chosen the chronological for colonization in Malaysia since 1511 – 1641. We

chose this topic because this topic allows us to understand the colonization in Malaysia

deeper and clearer. As a Malaysian we should know who had colonized our country and

how long are they colonized.

Therefore, in this topic, we are discussing the Portuguese colony in Malaya or in the

specific way, the Portuguese colony in Malacca. During this period, the colonization in

Malaysia is referring the Portuguese. Portuguese colonized Malacca for 130 years. After

we had gone through the information, we knew what had happen within the period, what

the Portuguese had done reasons and what are the effect after the colonization of

Portuguese. Before that, we understand the history of Malacca.

Malacca was founded by Parameswara who was a fugitive prince from Palembang

in Sumatra. He named Malacca after a Melaka tree when he is leaning against the tree

and saw the mouse deer turned to kick the dogs. From that time onward, the Malacca had

become an important port in the East. Muslim Sultanate had ruled Malacca for almost 90

years. Malacca reached its peak under the ruling of Sultan Muzaffar Syah and Sultan

Mansur Syah who with the help of the advice and wisdom of their bendahara Tun Perak.

Sultan Mahmud Syah was the one who defeat at the hands of the Portuguese in 1511.

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International Relations

1.    In 1403, the first official Chinese trade envoy lead by Admiral Yin Ching arrives in

Malacca.

2.    In 1409, Admiral Cheng Ho, the Commander of the Chinese Imperial fleet, arrives in

Malacca on the first of his seven voyages to the Indian Ocean.

3.    In 1411, Parameswara journey to China with an entourage of 540 and meets the

Ming Emperor Yung Lo.

4.    In 1414, Parameswara marries a princess from Pasai (Indonesia) and embraces Islam,

change his name to Raja Iskandar Shah.

Reasons for the glory of Malacca

1. Excellent rulers

2. Protection from China

3. Efficient administration

4. Strategic location

5. appointment of Syahbandar for each of traders

6. Facilities at the port

7. Great entry port

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Organizational Chart

Sultan

↓

Bendahara

↓

Penghulu Bendahari

↓

Temenggung

↓

Laksamana

↓

Syahbandar

 

The Sultans of Malacca

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1. Parameswara 1400-1414

2. Sultan Megat Iskandar Syah 1414-1424

3. Sultan Muhammad Syah 1424-1444

4. Sultan Abu Syahid 1444-1445

5. Sultan Muzaffar Syah 1456-1477

6. Sultan Mansur Syah 1456-1477

7. Sulatan Alaudin Riayat Syah 1477-1488

8. Sultan Mahmud Syah 1477-1511

After discussing the history of Malacca, let’s discuss the meaning of chronology and

colonization. Chronology is from Latin chronologia which is the science of arranging

events in their order of occurrence in time, such as the use of a timeline or sequence of

events.1

      

1 WIKIPEDIA - The Free Encyclopedia. (2011, November 4). Retrieved from http://en.wikipedia.org/wiki/Chronological

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Colonization is the act or process of establishing a colony or colonies. It occurs whenever

any one or more species populate an area. The term, which is derived from the Latin

colere which mean to inhabit, cultivate, frequent, practice, tend, guard, and respect.

Human colonization is related the concept of colonialism, because whereas colonization

refers to settler colonies, trading posts, and plantations, colonialism deals with this and

the ruling of new territories’ existing peoples.2

      From this topic, we will discuss few subtopics which related to the chronological of

colonization in Malaya since 1511-1641. The subtopics are:

Reason Portuguese came to Malacca

Reason Malacca was defeated by Portuguese

Effect of Portuguese colony

Reason Portuguese colonization ended.

2 WIKIPEDIA – The Free Encyclopedia. (2011, Nov 21) Retrieved from http://en.wikipedia.org/wiki/Colonization

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WHY PORTUGUESE VENTURE TO THE EAST?

      During the 15th century, Portugal heralded its Age of Discovery and became

inexhaustible in its quest to discover foreign lands and expand its tiny kingdom. Initiated

by Infant Don Enrique, popularly known as Prince Henry the Navigator (1394-1460),

who encouraged his people to increase their knowledge and expand their trading

activities to the Far East, the Portuguese embarked on countless missions by land and sea.

Their purpose, in addition to searching for "Guinea gold" and expanding their tiny

kingdom to become one of the most powerful nations in the world, was to spread the

Christian Gospel and reduce the influence of Islam in the East.             

Since the 11th century, the Portuguese, who were Christians, had been battling with

the Muslims in the Crusades War in Europe. The reason behind this war stemmed from

the fact that the Portuguese wanted to conquer Palestine, the Holy Land of the Muslims.

This animosity waged on until the 15th century. By that time, however, Islam had spread

to the East and garnered good response from nations in the Malay Archipelago like

Acheh, Brunei and Malacca. Burning with the anti-Muslim crusading spirit, the

Portuguese were bent on spreading the gospel to the East and replacing Islam with

Christianity.              

The Portuguese also had another important reason to venture to the East - to search

for Guinea gold - precious Asian spices which had become essential in their part of the

world, in flavoring and preserving their food. For a long time in Europe, Asian spices

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were sold at exorbitant prices, mainly because of its high demand and the countless

number of middlemen in between, from the Muslim merchants of Gujerat and Malabar in

India, to Arab merchants in Baghdad and Iskandariah and finally, to the Venetian and

Genoese merchants in Italy.

Apart from that, the Muslims, who constantly traveled to and from South-East Asia,

reaping high profits, dominated the trading of spices between Europe and Asia. Keeping

consistent in their animosity against the Muslims and fueled by their search for Asian

spices, the Portuguese were intent on diverting the Asian spice trade away from the

Muslims. The only way to do this was to stop obtaining the Asian spices from the

Muslim Mamaluke Empire in Egypt and Syria, and instead, chart a new spice route

around the Cape of Good Hope. The efforts of the Portuguese made them the first

European nation that came to the South East Asia in search of Asian spies.

       Another reason for the Portuguese venturing to the East is to search for the

mythical priest-king, Prester John, ruling over a powerful Christian kingdom in, what was

then known as,  ‘the Indies’. They believed that with his help, they could conquer the

Muslims in the East. In addition, since Muslims had dominated the route via land, they

decided to find a new route by sea to the East.

      Portuguese were the first European colonial powers to establish themselves in

Malaysia, capturing Malacca in 1511, at the time of the Portuguese arrival in the Asian

seas, Malacca, thanks to its strategic position on the strait bearing the same name, was a

remarkable trading center for the trade and shunting of spices. At that time, Malacca was

ruled by a Muslim Sultanate, the town extended its influence over a vast territory, which

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included the whole Malaya Peninsula. Its port was frequented by a multitude of ships and

merchants from all the Asian nations of the time: Arabia, Persia, China, India, Japan,

Indonesia, Ceylon, and Bengal. In it were gathered and sold all the Asian spices: pepper,

cloves, ginger, cinnamon, nutmeg, etc.

The King of Portuguese knew that they had to control strategic ports like Goa in India

and Malacca in the Straits to break the Muslim traders' monopoly over the spice trade.  

      Malacca was located close to the equator on the west coast of the Malay Peninsula in

Modern day Malaysia. At a narrow point in the Straits of Malacca roughly half way

between India and China, Malacca’s deep river mouth made it a natural meeting place for

traders from east and west dependent on seasonal monsoon winds.

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THE REASONS FALL OF MALACCA  

      In the wake of the many explorations made by the Portuguese in the quest to spread

the Gospel and obtain Asian spices, Malacca was recognized as the collecting point for

the much sought-after spices of the Moluccas and also a centre where Islam thrived.

      Hence, it became a prime target of the Portuguese. If the latter succeeded in

conquering Malacca, it meant that they would be able to monopolize the trading of spices

and simultaneously halt the spread of Islam through the preaching of the Gospel.

      The man who succeeded in the capture of Malacca was none other than the famed

Alfonso de Albuquerque. After 10 days under siege, Malacca fell into the hands of the

Portuguese on 24th August 1511. Many factors caused the fall of Malacca.  

- Weak ruling government

      The golden age of Malacca, with its wealth and prestige, very much depended on its

leadership, and one leader who especially shone through was Bendahara Tun Perak. After

his death however, there was no successor capable of running the state of Malacca. Tun

Perak’s successor, Tun Putih was old, weak and barely able to carry out his duties.

Following Tun Putih’s death, Tun Mutahir, who was elected Bendahara, was no better,

being more concerned about his welfare than the welfare of the state.

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      Tun Mutahir also evoked the anger of the ruling king, Sultan Mahmud Shah, when

the former married off his daughter, Tun Fatimah to Tun Ali, instead of to the Sultan. 

Because of this, Sultan Mahmud ordered Tun Mutahir executed when an enemy betrayed

the latter.                 

        The reign of Sultan Mahmud Shah as king is also another factor that caused the fall

of Malacca.  Sultan Mahmud paid no heed to the administration of the government. He

allowed his officers to act as they pleased and this encouraged much bribery and

corruption among them. When Sultan Mahmud descended the throne to allow his

successor Sultan Ahmad Shah to reign as king, the administration of Malacca

deteriorated, since Sultan Ahmad was young and lacked experience.

      The weak ruling of the government had caused a decline in Malacca’s trading

activities and forced many merchants to shift to Acheh, the other trading centre in the

region.

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- Hostility among races

      When Tun Mutahir assumed the position of Bendahara after the demise of Tun Putih,

Tun Mutahir, who was a Tamil-Islam, favoured his relatives and reserved important

administration positions in the government for them.

      Consequently, there was much dissatisfaction among the Malay Muslims and Tamil

Muslims, and the racial tensions, which had mellowed to some point due to the wise and

fair reign of Tun Perak, flared up again.

- Disloyalty

      Many of the foreign merchants who came to Malacca to trade did not believe loyalty

to the government of Malacca. Some even backed the Portuguese during the attack on

Malacca. A Chinese merchant, for instance, provided on loan, 5 huge barges to the

Portuguese while a Tamil merchant known as Ninachatu supplied information on

Malacca’s defense system.  

      To make matters worse, the Javanese army hired by the government of Malacca

abandoned the state during the siege, since they were not willing to die for a country

which wasn’t their own. The colony states under Malacca failed to back the state up and

instead, seized the opportunity to free them from the reign of Malacca. Consequently,

Malacca lacked military strength and aid. 

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- The strength of the Portuguese army

      Portuguese soldiers were better equipped than their Malacca counterparts and

possessed advanced weapons, like guns and cannons. They were also led by Alfonso

d’Albuquerque, who was capable and experienced in the battlefield. The Malacca army,

on the other hand, used medieval weapons like the kris, swords, spears and lances. In

addition, the Portuguese army was more disciplined and experienced in comparison with

the army of Malacca.

      All these factors demonstrate how important leadership is to a country. It can either

lead a country to rise as a strong empire or cause a country to crumble. It also plays an

important role in uniting people and unity among citizens of a country is essential in the

formation of a strong government.

       Apart from all these factors, we see that political stability is another prerequisite

to ensure the expansion of a country’s economy. If we can say that weak leaders like

Sultan Mahmud Shah and Tun Mutahir were very much to blame for the fall of Malacca,

then we can in turn, attribute the success of the Portuguese in becoming the first

European power to find their way to the east and conquer Malacca, to capable and

efficient leaders like Prince Henry and Alfonso d’Albuquerque.  

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THE EFFECTS OF PORTUGUESE COLONIZATION

Now, we discuss about the effects of Portuguese colonization. Since Portuguese had

colonized Malacca for 130 years, there are some effects which affect Malacca. The

effects were divided into 3 aspects. There are:

Culture

Trade

Religion

The conquest of the Portuguese brought an end to the Malacca Sultanate and Malacca no

longer played a role as the Islamic centre in South East Asia. This position went to Acheh

and Brunei. The Portuguese ruled Malacca for 130 years (1511 - 1641).

The Portuguese were the first European to come to the east and they brought with

them a new culture and religion with them. Their missionaries taught the Christian faith

in India, Malacca, the Moluccas Islands, Macao and Japan. The most famous missionary

was St. Francis Xavier. He arrived in Malacca from Goa in 1545and traveled to many

parts of Asia such as Japan, India and Amboyna to spread Christianity. He was the first

man to start a school called St. Pauls College in Malacca in 1548 for pupils of all races.

St. Francis Xavier died on Sanchan Island off the coast of China in December 1552. His

body was bought to Malacca and later taken back to Goa, where it is kept till today.  

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  The Portuguese were encouraged to marry local girls and soon there were a strong

Eurasian community. Today, there are Portuguese Eurasians in Malacca and other towns

of Malaysia and many of them speak a Portuguese dialect. Though the Portuguese lost

Melaka more than 300 years ago, many words from their language are still used by the

Malays. Some of the examples include almari (almario), bendera (bandera), mentega

(mantaga), garfu (garfo) and meja (mesa).  

It soon became clear that Portuguese control of Malacca did not mean they now

controlled Asian trade that centered on it. Their Malaccan rule was marred with

difficulties: they could not become self-supporting and remained reliant on Asian

suppliers (as had their Malay predecessors); they were short of both funds and

manpower; and administration was hampered by organizational confusion and command

overlap, corruption and inefficiency. Competition from other ports such as Johor saw

Asian traders bypass Malacca and the city began to decline as a trading port.  Rather than

achieving their ambition of dominating it, the Portuguese had fundamentally

disrupted the organisation of the Asian trade network. Rather than a centralized port of

exchange of Asian wealth exchange, or a Malay state to police the Straits of Malacca that

made it safe for commercial traffic, trade was now scattered over a number of ports

amongst bitter warfare in the Straits.

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Malacca was later conquered by the Dutch in a joint military campaign in January

1641. The Portuguese fortress, however, did not fall to the force of Dutch or Johorese

arms as much as to famine and disease that had brutally decimated the surviving

population. Through the Anglo-Dutch Treaty of 1824, Malacca became a colony of the

United Kingdom. In 1957, Malacca joined other Malay states to form Malaya and in

1963, together with Sarawak, Sabah and Singapore formed Malaysia.

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REASON PORTUGUESE COLONIAL ENDED

The 130 years Portuguese colonial occupation of Malacca ended in 1641. They had done

many things in Malacca in the aspect of politic, economic and social. The position of

Portuguese in the East was strong so no other country had successful attacked Portuguese

Malacca. Nevertheless, we would like to discuss the reason why Portuguese colony ended

though its position in the East was strong. After read some articles, we found out there

are a few reasons caused Portuguese Malacca fall at the hand of Dutch.

The reasons are:

Repeated attacks from Johor and Acheh

The Condition in Fatherland, Portugal

Comprehension plan

Position of Portuguese in Malacca was unstable

-Repeated attacks from Johor and Acheh

During Portuguese 130 years ruled in Malacca, they faced repeated attacks from the

Malay Sultanates of Johor. They attacked Malacca because they wanted to rule the

Malacca back. Malay Sultanates of Acheh too attacked Malacca repeatedly. Both of them

had failed many times due to the equipment used by Portuguese were modern and its

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power still strong at that time. Nevertheless, they managed to get the help from another

European maritime power – the Dutch.

-The Condition in Fatherland, Portugal

Their fatherland, Portugal is facing the succession crisis. The succession crisis happened

because of the death of king Sebastian of Portugal and his only heir. Therefore, it was

succeeded by Philip II of Spain. The position of Portuguese in the East continued to

weaken because the joining of two crowns.3

By taking the advantage of this period of Portuguese weakness, the Dutch-

Portuguese War happened. Many Portuguese territories were occupied by the Dutch

because they wanted to chase out Portuguese from Malay Archipelago.

-Comprehensive Plan

As Dutch merchants were more and more harassed by Spanish authorities in Lisbon, they

began to make arrangements for the journey to trade directly in Eastern markets. During

this period, Dutch East India Company was formed to protect the Dutch merchants by

providing the necessary resources for arming ships as well as for building and manning of

land forts. However, they wanted to chase out Portuguese form Malay Archipelago. They

started attacked Portuguese Malacca.

3 History of Malacca. Retrieved from http://www.asiaexplorers.com/malaysia/history-of-malacca.htm

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First timid attempt was in 1602-1603, the Dutch blockaded Malacca by sea. Johor

and Dutch concluded an alliance against the Portuguese in 1606. The following year, they

set again the town under siege.4 Then the Dutch started to attack Portuguese Malacca

with a large number of sails and troops in 1640. The Dutch had fierce fighting with

Portuguese. On the other hands, Dutch and German VOC troops came and attacked the

confines of their fortress – the A Famosa.

The Dutch repeated attacked Portuguese with the help of Johor Sultanates. The

prolonged battlement between Portuguese and Dutch resulted in the spread of disease;

more and more troops were killed by illness then by the hand of the enemy. Malacca,

finally fell to the hands of the Dutch in 1641.5

-Position of Portuguese in Malacca was unstable

During colonization of Portuguese, they had introduced the mercantile policy. This policy

stated that the traders had to obtain trading permits before they could carry out business

transactions. They were also forced to sell their goods to the Portuguese at low price and

buy Portuguese goods at marked-up rates. Besides this, the Portuguese treated the

Muslim traders poorly.6 This caused traders to turn to the ports of Johor, Acheh and

Demak. During that time, Johor and Acheh were attacking Malacca caused the securities

4 Rmerini, M. COLONIALVOYGE.COM. Retrieved from the website dedicated to the Colonial History: http://www.colonialvoyage.com/eng/asia/malaysia/malacca/portuguese.html5 Joomia. holland focus. Retrieved from http://www.hollandfocus.com/v2/index.php/magazine/contributors/dennisdewitt/99-dennisdewitt/111-ddwstadthuys6 Yunus, M. S. (2001). Malaysian Studies. Malaysian Studies: Pearson Malaysia Sdn. Bhd.

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of Malacca unstable. Moreover, since the traders had run away, the economics of Malacca

was unstable. 

CONCLUSION

After we done this assignment, we had better understand to our country especially

Malacca. We knew what had happened in the period 1511-1641, why Malacca fall at the

hand of Portuguese, why Portuguese came to Malacca and why Portuguese Malacca fall

at the hand of Dutch.

Portuguese came to Malacca because of expanding their tiny kingdom to become

one of the most powerful nations in the world. They chose Malacca because the strategy

position of Malacca. Malacca is between India and China and surrounded by the

Monsoons - Northeast Monsoon which blow from November to March and Southwest

Monsoon which blow from April to October. Malacca was rich in the spices, bamboo,

timber and damar which were important for trading.

Malacca falls because the weak ruling of government, hostility among races,

disloyalty and the strength of the Portuguese army. However, the fall of Portuguese

Malacca is because the repeated attacked from Johor and Acheh, the condition in

fatherland, Portugal, comprehension plan and the position of Portuguese in Malacca was

unstable. Besides that, we know what had happened during the ruling of Portuguese.

They had brought new culture and religion to our country.

From the summary above, we should appreciate that we had a wonderful country

which is full of natural resources. Besides that, we also can learn from the mistaken - the

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fall of Malacca and Portuguese Malacca. We need to know the strength and the weakness

of our country so we will not be the same situation there had been.

BIBLIOGRAPHY

1. Embassy of Malalysia in Seoul (Consular Section). (n.d.). Retrieved from

http://www.malaysia.or.kr/frame2.htm

2. History of Malacca. (n.d.). Retrieved from

http://www.asiaexplorers.com/malaysia/history-of-malacca.htm

3. Joomia. (n.d.). holland focus. Retrieved from

http://www.hollandfocus.com/v2/index.php/magazine/contributors/dennisdewitt/

99-dennisdewitt/111-ddwstadthuys

4. Raffles, M. A. (n.d.). journey Malaysia. Retrieved from

http://www.journeymalaysia.com/MHIS_malacca.htm

5. Rmerini, M. (n.d.). COLONIALVOYGE.COM. Retrieved from the website

dedicated to the Colonial History:

http://www.colonialvoyage.com/eng/asia/malaysia/malacca/portuguese.html

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6. WIKIPEDIA - The Free Encyclopedia. (2011, November 4). Retrieved from

http://en.wikipedia.org/wiki/Chronological

7. WIKIPEDIA - The Free Encyclopedia. (2011, November 19). Retrieved from

http://en.wikipedia.org/wiki/Iberian_Union

8. Yunus, M. S. (2001). Malaysian Studies. Malaysian Studies: Pearson Malaysia

Sdn. Bhd.

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