The Bugis began to arrive in large numbers in Malaya about the beginning of the 18th century. The Dutch did not interfere with the Bugis and allowed the Johor-Riau Kingdom to fall into their hands. It was only when the Bugis became serious trade rivals in the tin trade that the Dutch took steps against them. Therefore, in 1784, the Dutch captured Riau, the capital of the kingdom, and made the Johor-Riau Malays vassals of Holland. The wars between the Bugis and the Dutch in 1755 till 1758 and 1783 till 1784 not only eroded the power and influence of Holland in the area, but also sapped the wealth of the Dutch East India Company. Although Melaka still attracted the attention of the traders, Riau now held ‘the key to the Straits of Melaka’. The British had moved into the area as a new power, especially their fourth war with Holland between 1781 and 1783, and having successfully influenced some local rulers to side with them. They had also established a settlement on Penang Island in 1786.
	The French Revolutionaries declared war on Britain in 1793 and the Dutch Revolutionary Patriots’ Movement, known as the Velvet Revolution, invited them in 1795, to attack the King of Netherlands, William V of George, who the sought British protection. Therefore the Dutch colonies overseas had to take steps to look after themselves because they could not get any help from the home government. Hence the British government decided to take over all the Dutch colonies abroad to avoid them being taken over by the French.
	On 15th August 1795, a British force arrived at Melaka and took over from the Dutch Governor, Abrahamus Couperus. Although there was some opposition to the handover of Melaka to the British, it did not lead to any hostilities between them. Melaka continued to be governed by Dutch officials, but under the supervision of a British Resident.
	In accordance with the Treaty of Vienna in 1814, Melaka was returned to the Dutch on 21 September 1818, but it was reverted to the British on 17th March 1824 following the Treaty of London. This Treaty enabled each of the two western powers concerned to concentrate its attention on its own sphere of colonial activity.
	The Demolition of Melaka Fort
	The British in Penang knew that Melaka would have to be returned to the Dutch when their country became free at the end of the war. However, they were reluctant to hand Melaka back because they feared it might jeopardize the development of their new settlement in Penang. Hence they decided to destroy the name and influence of Melaka by diverting the trade from Melaka to Penang, destroyed the Melaka Fort and its city and moved the 15,000 people to Penang. In this way, Melaka would not become a trade rival to Penang when Melaka was handed over to the Dutch again. Secondly, in case they need to attack Melaka in the future, the fortress would not be there to stop them.
	The Governor of Penang ordered Captain William Farquhar to have Melaka Fort demolished in 1807 and was almost completed in 1808. However, Stamford Raffles who had come to Penang as an assistant secretary had arrived in Melaka for his sick leave during this time and managed to stop any demolition work and depopulating Melaka town with the consent of Lord Minto, the Governor General of India. Stamford had liked the old city of Melaka and was keenly interested in the Malay people and their language, history and customs. Raffles had managed to save the archway of the Melaka Fort and it can be seen to this day. The destruction of the Melaka Fort caused 70,000 sterling pounds and involved several hundred workers.
	The Decline of Melaka
	Melaka’s economy began to decline around the middle of the Dutch period when the town was being reduced to being a warehouse for Batavia. The handing over of Melaka to the British further worsened the situation because their policy at that time was to destroy Melaka to prevent it from competing with Penang. However, when Melaka was handed over to the British for the second time in 1824, the British tried to develop the town again but was not very successful. The area around the state of Melaka was reduced and its production from natural resources, such as gold and tin, declined. The British Government restricted the development of Melaka and the local people did not have the resources to stem the deterioration of the economy. The port of Melaka was no longer busy because it had lost its attraction to the trading vassals.
	The Straits Settlement (1826)
	In 1826, Penang with Province Wellesley, Melaka and Singapore were joined together to form the Straits Settlements. Penang, which was the oldest settlement was made the capital. As the years passed, Melaka declined in importance but Penang developed steadily. However, Singapore rose in population and trade that in 1832, the capital was transferred there. The Straits Settlement was under the control of the Governor-General in Calcutta. However, in 1867 the Straits Settlement was separated from India and made a Crown Colony directly under the control of the Colonial Office in London.

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