In 1874, Perak became the first Malay state to be ruled directly by the British under the 'Pangkor Treaty', followed by Selangor, Negeri Sembilan and Pahang. Under the British administration, the post of a Resident was introduced in every state to advise Malay Rulers on administrative matters, except on aspects involving Malay culture and Islamic affairs. The Resident was given total control in all state's administration. In 1896, the administration system of all the four states was placed under the jurisdiction of a Central Government, with the states known as Federated Malay States, headed by a Resident General in Kuala Lumpur.

Non Federated Malay States was formed in 1909 based on a treaty signed between the British Government and Siam. In the agreement, Siam relinquished its rights over the four Malay states namely Perlis, Kedah, Kelantan and Terengganu to the British government. In 1945, Malayan Union was introduced to the Malay States, including Penang and Melaka, except Singapore.

The appointed British Governor enjoyed absolute administrative power. The Malay Sultans became merely Honourary Royalty and members of Consultations Committee with the Governor as the chairman. This system continued to be practiced with several changes, thus elevating the Governor's status on par with the Malay Sultans in Malaysia.