The Resident System became the strategy used by the British to assume complete control over the Malay States. With the implementation of the Resident system, the British now had complete control over the Malay States in all aspects, especially administration and economy, without bearing the costs and responsibilties involved. Through the Resident system, the British ruled through existing political institutions which even retained their names. Resident also hoped to use these institutions and gradually change them.
The Resident who were all powerful did not work well with the Sultans and the local ministers. In Perak, anger towards the Resident culminated in the murder of the first Perak resident, J.W.W.Birch, in 1875. This was caused by the Resident not having proper guidelines, acting on their own accord, for their own interests.
To regain the support of the local community, the Britsh in Perak introduced the State Council. This Council consisted of Rajas, Residents, Malay ministers and Chinese representatives. The formation of this council successfully restored the situation in Perak. The British soon introduced it in other states.
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