The East India Company was looking for a suitable place in the Straits of Melaka to serve as a port of call for its ships on the long voyage between India and China. They were looking for a port to replace Dutch Melaka as a center of the Malayan trade. The Company decided to choose Kedah to establish a station in the Malayan waters. In 1785, the Company obtained an agreement with the Sultan of Kedah where the Company could occupy Penang Island in return for an annual rent and help against the Sultans enemies, that is, the Siamese in the North and the Bugis in Selangor. Captain Francis Light was appointed Superintendent of Penang when the East India Company took formal possession of the island on 11th August 1786. Penang was to be a dependency of Bengal and under the control of the Governor in Calcutta. Penang soon became a busy settlement as Chinese and Indian traders quickly saw the advantages in coming to Penang because it was free port and there were no high taxes to pay. The population rose from 1,000 in 1788 to 12,000 in 1804 with the Malays forming the biggest part of the population, followed by the Indians and the Chinese.