The various policies introduced into the Malay states by British colonial administration wrought a major transformation especially of the social and economic landscape of the Malay peninsular. In particular its education policy was to have far-reaching implications on the production of Malay literature and culture. This was especially true of the early years when secular education was introduced into the country. In order to appreciate the impact of British presence in general and their education policy in particular, it is necessary to have an understanding of the structure of Malay society prior to British colonialism.

Traditional Malay society exhibited a rigid division between the ruling elite (bangsawan) and its subjects (rakyat). This division was based on birth and was strengthened by belief and custom. It was believed, for example, that rulers were vested with divine majesty (daulat) and that any infringement (derhaka) on this daulat would incur a tulah (retribution). This served to consolidate the rulers' position as one which admitted no challenge. Custom also helped to perpetuate the stratification by laying down as desirable and proper such conduct as absolute obedience and respect for elders and chiefs. The subject class was therefore obliged to serve their superiors without question. In this highly stratified society, control of virtually all aspects of life lay in the hands of the ruling élite.

This élite class in traditional Malay society was made up of two groups, the ascriptive and functional, which sometimes overlapped. The former were royal kinsmen who automatically belonged to the Malay upper-class by virtue of birth. The latter exercised administrative and political functions, and as such enjoyed the authority and power which attended their social role. Within this functional elite, the sultan constituted the supreme authority as the head of state, the largest territorial unit consisting of districts which, in turn, were composed of villages.