Administration in Muar
Sultan Ali delegated the administrative affairs of Muar to the Raja Temenggung of Muar (also known by the title of Temenggong Paduka Tuan of Muar) and spent most of his time in Malacca. Muar was sparsely populated in 1855 and had a population of 800 and no formal structure of government was formed. In 1860, Sultan Ali reportedly borrowed $53,600 from a Chettiar money lender, Kavana Chana Shellapah. Sultan Ali signed an agreement with Shellapah to contribute a portion of his monthly allowance to repay his debt. However, Sultan Ali found himself unable to settle his debts in time, and an angry Shellapah wrote to the British government in 1866. Pressured to liquidate his debts in time, Sultan Ali granted Shellapah the right to trade off Muar to the Temenggong of Johor as mortgage if he is unable to pay off his debts in time.
His relations with Temenggong Daing Ibrahim remained strained; in 1860, Sultan Ali allowed a Bugis adventurer, Suliwatang, the chiefs of Rembau and Sungei Ujong to settle in Muar and prepare themselves for an attack on Johor. Such bad blood between the Sultan and Temenggong Daing Ibrahim passed down to the Temenggong's son, Abu Bakar, who succeeded his father after the former died in 1862. Shortly after Abu Bakar became the Temenggong of Johor, he sent a letter to Sultan Ali to reassert of Johor's sovereignty over Segamat. Continued disputes over the sovereignty of Segamat led to an outbreak of a war between the Temenggong's men with the Sultan's. Eleven years later in 1873, attempts made by Suliwatang to collect custom taxes from inhabitants at the Muar estuary led to further conflict with Abu Bakar's (who became Maharaja in 1868) men.
During the remaining years of Sultan Ali's reign, there was no visible economic activity in Muar. Nevertheless, he delegated the duty of collecting Muar's revenues to Suliwatang and his agents, all of whom were later poisoned and killed by the Temenggong Paduka Tuan of Muar. In 1868, Sultan Ali appointed Babu Ramasamy, a Tamil schoolmaster the duty collect the Muar revenues. A European miner approached Sultan Ali in 1872, in which he was granted exclusive mining rights over the entire Kesang territory for five years. Three years later, an American trader approached the Sultan, in which he gave the American the concessionary grant of purchasing 45 square miles (120 km2) of land within the Kesang territory.
Read more about this topic: Sultan Ali Of Johor, Sultan of Muar
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