 In 1826, the British East India Company amalgamated the territories of Penang, Singapore (acquired from Johor in 1819) and Malacca (acquired from the Netherlands in 1824) into a single political entity, the Straits Settlements.George Town was made the administrative and judicial capital of the new entity.However, owing to Singapore's more strategic geographical location between the Malacca Strait and the South China Sea, the Port of Singapore rapidly surpassed the Port of Penang as the preeminent harbour in the region.