During the 19th and 20th century under Residential System, the Federated Malay States were administered separately and independently by their respective Malay Rulers.
Each state had its own rules and regulations.
The role of the Residents was mainly advisory in nature.
The financial administration was conducted through the Bendahara.
Penghulu or village head man and other natives chiefs were responsible for the collection of revenue.
Requests for allocations of expenditure were submitted by the Residents to the Governor of The Straits Settlements for sanction.
Budgetary report was then sent to the Crown Colony Office in India.
With the transfer of Crown Colony Office to London in 1867, financial statements were sent to London for publication as an annual report in Parliamentary papers.
As the country progressed towards becoming a modern economy at the end of 19th century, the fragmented state of affairs was found to be uneconomical and inefficient to manage.
Federal Council Agreement was signed on the 25th October 1909 to led the formation of the Federal Council of the Federated Malay States, under which the states of Pahang, Perak, Selangor and Negeri Sembilan were administered by central body.
Members of the Federal Council were:
High Commissioner (President)
Resident General (Alternate President)
4 Malay Rulers and their Residents
4 unofficial members who were nominated by the High Commissioner
The first Financial Commissioner was Henry George Bagnall Vane who was appointed in 1909 until 1915.
