Capital Accumulation by the Chinese in Penang (1820-1867): A Review from the Aspects of Assets,Potential and Opportunities

This article focuses on the capital accumulation by the Chinese in Penang during the development period under the British control, 1820-1867. Factor in terms of personal asset, racial factors helped by the potential of the region’s economic activities and opportunities, and also the extend of economic networks presented here as a contributor to these capabilities. According to Porter and Fiske (1935), capital refers to physical wealth. The discussion of this article also involves capital in the form of non-physical and human capital. Debated here how each aspect and collectively enable the Chinese in Penang raise capital, either legally or illegally, through the field of production and exchange. The importance of this study is to determined the grassroots to control the economy of the Chinese community in Malaysia especially Penang in general and particular. Proof is obtained from the records and documents available in libraries, archives and Chinese associations. This study applies the rules of interpretation of history with the analysis using several auxiliary science of history. Results of the study shows that the assets and the family are very dominant, but the contribution of other factors such as potential and opportunities that exist in Penang are also important in enabling the Chinese in Penang to accumulate capital. Koh Lay Huan success in Penang along with his business partner-Khaw Soo Cheang of Ranong, can be attributed to factors such as personal assets, local economic potential, opportunities offered by business partners and King Mongkut of Thailand. While the potential and range of economic activities, especially in taxes leasing, as well as the role of British had a great chance to increase the ability of the Chinese in Penang founded their success in the field of sustainable production and exchange.