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In page History of Malaysia:

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In the years before World War II, the colonial government were concerned with finding a balance between a centralised state and maintaining the power of the sultans.[8] In 1935 the position of Resident-General of the Federated States was abolished, and its powers decentralised to the individual states. The colonial government regarded the Chinese as clever but dangerous—[citation needed]and during the 1920s and 1930s, the Chinese Nationalist Party (the Kuomintang) and the Chinese Communist Party built rival clandestine organisations in Malaya, leading to regular disturbances in the Chinese towns.