<P> During the 16th century, the Europeans viewed Muslim control of the eastern and southern parts of Europe with concern, as both a religious threat as well as an obstacle to trade . To counter this Muslim threat, the Europeans aimed to spread Christianity across the known world . At the same time, they also searched for profitable trading opportunities . This explained why the Portuguese and Spanish came to Southeast Asia and how they managed to establish their trading ports in strategic locations . By the time the British and the Dutch came to Southeast Asia, trade had become the dominant motive, and religion was less important . Aside from Islam being a widely important religion in Southeast Asia, Buddhism and Hinduism were also popular amongst the Southeast Asian population . A key reason for this could be because of the fact that India and China were neighbors to Southeast Asia (1) </P> <P> The 17th century saw the formation of powerful trading companies such as the British East India Company and its Dutch counterpart VOC (initials for its Dutch name, Verenigde Oost - Indische Compagnie). This was because the ships needed for the maritime spice trade were too expensive for individual merchants to acquire, and the sea route presented numerous challenges which delayed the recovery of initial financial costs . Sea voyages were dangerous and, before the advent of steam engines, depended on the wind which meant that the journeys were long and unpredictable . </P> <P> The British East India Company led by Josiah Child, had little interest or impact in the region, and were effectively expelled following the Siam--England war (1687). Britain, in the guise of the British East India Company, turned their attention to the Bay of Bengal following the Peace with France and Spain (1783). During the conflicts, Britain had struggled for naval superiority with the French, and the need of good harbours became evident . Penang Island had been brought to the attention of the Government of India by Francis Light . In 1786, the settlement of George Town was founded at the northeastern tip of Penang Island by Captain Francis Light, under the administration of Sir John Macpherson; this marked the beginning of British expansion into the Malay Peninsula . </P> <P> In the latter half of the 18th century, however, Europe experienced a massive advancements in science, industry and technology, and this created a tremendous gap in the power relations between the Europeans and people in other parts of the world, including Southeast Asia . This period also saw the initial stages of growing industrialisation that would increase European demand for raw materials . Southeast Asia happened to be rich in the resources needed . </P>

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