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The Straits Trading Company Limited

The Straits Trading Company Limited has a long association with tin in the region, and was synonymous with tin-smelting and tin trade in Singapore and Malaysia for many years. However, unlike most of the other early trading companies, its business during much of its history revolved around this commodity as tin smelters and refiners and tin ore buying agencies. It was only in the late 1900s that it expanded its business to include other areas such as investment holding and trading, and property holding and development.

History
In the late 19th century, Herman Muhlinghaus visited tin mines in the Malay Peninsula.  He felt that the smelting methods were too wasteful, and saw the business opportunities in purchasing tin ore from the miners, and smelting them using more efficient methods.  He acted quickly and formed a partnership with James Sword in 1886, called Sword and Muhlinghaus.  On 8 November 1887, Sword and Muhlinghaus was converted to Straits Trading Company Limited (STC) with an initial capital of $150,000. In 1982, Malaysia Smelting Corporation Berhad (MSC) entered into a joint venture with STC and took over its smelting business. In 2005, MSC was acquired by Straits Trading Amalgamated Resources Sdn Bhd, a wholly owned subsidiary of STC.

Nature of Business
In STC's initial years, it operated a trial smelting plant at Telok Anson in Perak.  As the site was not suitable, a smelting plant was constructed at Pulau Brani that was strategically located for such a facility.  The construction was completed in 1890.  STC gained popularity among the miners, and its business expanded rapidly. A second smelting plant was set up at Butterworth.  By the early 20th century, it had become a leading player in tin trade - buying tin ore from miners in Malaya as well as importing it from Siam, Dutch East Indies, Australia and Alaska for smelting. After smelting, the tin was exported.  

In the run-up to the Japanese Occupation in February 1942, the plant at Pulau Brani was destroyed.  The plant was rebuilt after the war, and smelting resumed.  When STC's lease on Pulau Brani expired in 1965, it moved out of the island but smelting remained its main activity. Later, STC ventured into hotel and property investment and management. Today, STC is an investment holding company. Besides tin mining and smelting, STC's core business for more than a century, the group's business interests are in metals and mineral resources, finance, hotels and properties.    

Timeline
1886 : Founding of Sword and Muhlinghaus.
1887 : Incorporation of Straits Trading Company (STC). 
1890 : Completion of smelting plant at Pulau Brani.
1901 : Smelting plant at Butterworth began operation.
1942 : Smelting plant at Pulau Brani was destroyed.
1965 : Smelting operation at Pulau Brani ceased.
1982 : Malaysia Smelting Corporation (MSC) took over STC's smelting business.
2005 : MSC became a subsidiary of STC



Author
Joshua Chia Yeong Jia & Chan Fook Weng



References
Makepeace, W., Brooke, G. E., & Braddell, R. St. J. (Eds.). (1991). One hundred years of Singapore (Vol. 2, p. 219). Singapore: Oxford University Press.
(Call no.: RSING 959.57 ONE) 

Singapore International Chamber of Commerce. (1979).  From early days (pp. 72-73).  Singapore: The Chamber.  
(Call no.: RSING 380.10655957SIN)

Savage, V. R., & Yeoh, B. S. A. (2004).  Toponymics: a study of Singapore street names (2nd Ed., p. 310).  Singapore: Marshall Cavendish International.
(Call no.: RSING 915.9570014 SAV)

Tej company profile - The Straits Trading Company Limited. (2006, September 30). Taiwan Economic Journal.  Retrieved July 26, 2007 from Factiva database. 

The Straits Trading Company Limited. (2006).  Corporate Profile.  Retrieved October 6, 2006, from http://www.stc.com.sg.

Malaysia Smelting Corporation Berhad. (2003).  Corporate Profile.  Retrieved October 6, 2006, from
http://www.msmelt.com (then click on Corporate Profile > Our History).



Further Reading
Straits Trading Company Ltd. (1987). 100 years of growth 1887-1987: the Straits Trading Company Limited. Singapore: Author.
(Call no.: RSING q338.76095957 STR)



The information in this article is valid as at 2007 and correct as far as we are able to ascertain from our sources.  It is not intended to be an exhaustive or complete history of the subject.  Please contact the Library for further reading materials on the topic. 

Subject
Commerce and Industry>>Trade
Trading companies--Singapore
Trading companies--Malaysia--Malaya
Tin industry--Singapore
Tin industry--Malaysia--Malaya
The Straits Trading Company Limited
Business, finance and industry>>Business organization>>Business enterprises

Librarian Recommendations
>> Pulau Brani


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