KEDUDUDKAN EKONOMI CHETTIAR DI TANAH MELAYU, 1945-1957

Abstract

This article examines the role played by the Chettiars in the economic development of Malaya before the Second World War which has been largely ignored by local his, -ians in the study of Malayan economic history, especially . from 1945 until 1957. The Chettiar community played an important role in the economic development of Malaya from the beginning of the twentieth century until the Second World Mr. The dominant role of the Chettiars in the Malayan economy became either irrelevant or disappeared altogether during the Japanese occupation due to the use of Japanese currency in transactions. When the British returned to Malaya after the Japanese occupation, they did not recognize the Japanese currency and declared it worthless. The latter paid very little compensation under the War Damage Compensation Scheme against losses suffered by the Chettiars. This complicated the economic position of the Chettiars and many Chettiars ended their money lending activities; sold off their rubber plantations and tin mines to Chinese businessmen and returned to India. Within this context, it is pertinent to study how the Japanese occupation affected the economic position of the Chettiar community and why the British did not favour the Chettiars through compensation schemes and legislation even though the Chettiars had contributed enormously to the development of the Malayan economy before Second World War.