 The Kangchu system was a socio @-@ economic system of organisation and administration developed by Chinese agricultural settlers in Johor during the 19th century . The settlers organised themselves into informal associations ( similar to the Kongsi organisations found in other Chinese communities ) , and chose a leader from among themselves . In Chinese , " Kangchu " ( Chinese : 港主 , literally " harbour leader " ) is the title given to the leader of the Kangchu system .
 nobody knows how this system was developed . However , the system was so successful that it was adopted by the Malay rulers in Johor , who used the system to organise the Chinese settlements