From Johor Bahru Directory
The Kangchu system is a system that was introduced by Temenggong Daeng Ibrahim to develop the black pepper and gambier plantations in Johor. The system caused Johor to become the largest producer of pepper and gambier in the world by the end of the 19th century.[1] The kangchu system was essentially a matter of land management but through the revenue generation, it was firmly locked into the system of revenue farming which was introduced in Johor in 1845, a year after the first surat sungai was issued. However, the Kanun Kangchu or Law of the Kangchu, consisting of 81 clauses that set out the responsibilities and rights of the kangchu, was only codified in 1873 under Sultan Abu Bakar.[2] Even so, it was not passed by the Council of State and therefore had no force of law in Johor.[3]
2. Under the system, a Chinese would apply to the Johor sultan for a grant or surat sungai (river document) to develop pepper and gambier plantations within the watershed of a specified river or tributary. On receiving the grant, he would be known as the kangchu of the particular river. Kangchu is a Chinese term that comes from the word "kang" (river) and "chu" (master or owner) and therefore "kangchu" can be translated as "master of the river". The kangchu would then proceed to open up his settlement with the financial backing of some pepper and gambier traders in Singapore. The center of the kangchu settlement was called the kangkar or "foot of the river". He would sublet smaller blocks of his concession to cultivators who actually did the planting and who for the first 18 months or so, were provided with planting materials and the necessities of life by the Singapore financiers. When the first crop was ready for the market, the kangchu would distribute the planters' debts among the Singapore traders and from then on, the planters dealt with their particular trader directly. In practice, however, the cultivator obtained his supplies and planting materials from his trader or financier, and in turn, sold his produce to him and in this way, the two sides became part of an integrated system of production and trade.
3. In addition to the right to cultivate the land, the kangchu was also granted the right to operate five monopolies within his territory, namely the sale of opium, spirit and pork, and the operation of gambling and pawning shops.[4] The monopolies on opium and spirits were held by the revenue farmers and the kangchu was obliged to obtain them from his revenue farmer. The Kangchu was also responsible to keep the peace and harmony among the workers and collect tax for the Johor government. They also have to make sure their workers follow the rules and regulation of Johor.
4. Under Temenggong Daeng Ibrahim, the cultivators were poor peasants who only managed to survive on credit from the Chinese towkays in Singapore. In 1859, some thirty surat sungai had been issued and by the time of his death in January 1862, the number had increased only by nine.[4] In order to bring in more capital and step up the pace of development, his son, Temenggong Sri Maharaja Abu Bakar realized that he needed to bring in the entrepreneurs and began actively approaching them. With his wide circle of friends and contacts in Singapore, he was able to interest different groups of people to invest in Johor, including wealthy Arab traders at a later date.
5. The kangchus were initially agricultural pioneers who held the grants to their rivers but around 1860, there was a reorganization of the system and the surat sungai was increasingly issued to merchants who became known as tuan sungai (owner of the river).[4] The kangchu was instead issued with a surat tauliah (letter of authority) to work the river on behalf of the owner. The Sultan’s intention was to draw in more investment but the effect on the Ngee Heng Kongsi was to subordinate the kangchu to the merchant.
6. With attempts to diversify the Johor economy, coffee was introduced in 1881 and enjoyed some initial success. But the significance of coffee planting was that it marked the entry of European plantations into Johor. The rise of rubber planting in the early 20th century was accompanied by drastic falls in the prices of pepper and gambier so that rubber was to become the main commercial crop. The end of pepper and gambier planting finally came with the abolition of the kangchu system with the passing of the Kangchu Rights (Abolition) Enactment in 1917.
