Revenue farming  

From Johor Bahru Directory

Revenue farming is the leasing of a government monopoly to collect certain taxes. The earliest revenue farm in Johor was set up in 1845, a year after the first surat sungai was issued.^[1] The most profitable farms were the opium and gambling farms which preyed on the Chinese propensity for gambling and smoking opium. Revenue farms were first set up in Singapore for opium and spirits under the British, although not for gambling.

2.   The Johor revenue farms were let out either separately or jointly with the Singapore farms. These farms were held by syndicates of Singapore Chinese and there were much competition and rivalry in bidding for their control. Tan Hiok Nee was the only Johor Chinese known to have held the Johor opium and spirit farm for a period.^[1]

3.   Revenue for opium accounts for some 40-50% of its revenue for the first hundred years of its existence.^[1] The income from the revenue farms was the main source of government revenue in Johor up till the beginning of the 20th century. In 1917, the Kangchu Rights (Abolition) Enactment abolished the rights to the monopolies enjoyed by the kangchu and officially wound up the kangchu system.^[2]