Abstract

This study emphasises the development of the socio-economy of the Malay community in Kedah. The issues focused on are related to the debt and poverty which had been the dilemma and shackled the Malay community, specifically the farmers. This research will unfold the factors that had led the farmers to like being indebted. This practice was seen to be the norm to the everyday life in handling hardship. In addition, the practice of indebtedness too had led the farmers to fall into the scourge of poverty. This research fully uses historical documents and materials which include books, articles, files from the state secretary, CO 273 Straits Settlements, Original Correspondence, 1838–1922 and CO 716, Kedah/ Perlis Sessional Papers, 1905–1937. It was found that for the first quarter of the 20th century, the Malays in Kedah specifically the farmers suffered from financial difficulties. They were not only faced with poverty but also oppression from the middlemen and mounting debts. Many of these farmers at that time had to borrow from the loan sharks who were seen as the main source of income to settle all their bad debts. This research provides understanding about poverty, oppression and middleman issues.

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