Historical Sketch

In the late 1870s, the Sultanate of Brunei began issuing concessions to foreign nationals and companies in the northern portion of the country. The North Borneo Chartered Company was created in 1882 to consolidate the different claims, and in 1888, North Borneo became a British protectorate. During World War II, the North Borneo State was occupied by Japan and got largely devastated in the fighting until 1945. After liberation, the North Borneo Company did not resume authority over the territory for lack of resources for the restoration. North Borneo became a crown colony in July 1946.

The Federation of Malaya initiated a campaign in mid-1961 to merge with the territories in northern Borneo. The North Borneo State joined Malaysia under the name of Sabah in July 1963.

Monetary History Overview

Traditionally, the economy on the Malay Peninsula and neighbouring Borneo was based on silver. In transactions, bullion was used, supplemented by small coins made of tin and lead or, occasionally, copper. The value of the so called "Pitis" against silver varied both regionally and over time. In the 17th and 18th centuries, the silver Spanish Dollar made its way into the Malay territories through trade with the Europeans.

In 1881, the British North Borneo Company carved out a territory of Brunei, creating the North Borneo State, today's Sabah. The Company began issuing coins and paper money. The British North Borneo Dollar was identical to the Straits Dollar, which in 1914 became legal tender, as well. During the Japanese occupation in World War II, the North Borneo Dollar was abolished and replaced by the Japanese military currency for Malaya. After the war, the economy was devastated such that that the British North Borneo Company surrendered the territory to the British Crown. The pre-war currency was therefore not restored but replaced by the Malayan Dollar, later renamed into Malaya British Borneo Dollar. It remained in place until the end of the colonial rule.

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