To streamline the administration of the Malay states, and especially to protect and further develop the lucrative trade in tin-mining and rubber, Britain sought to consolidate and centralise control by federating the four contiguous states of Selangor, Perak, Negeri Sembilan and Pahang into a new entity, the Federated Malay States (FMS), with Kuala Lumpur as its capital. The Residents-General administered the federation but compromised by allowing the Sultans to retain limited powers as the authority on Islam and Malay customs. Modern legislation was introduced with the creation of the Federal Council. Although the Sultans had less power than their counterparts in the Unfederated Malay States, the FMS enjoyed a much higher degree of modernisation. Federalisation also brought benefit through cooperative economic development, as evident in the earlier period, when Pahang was developed using funds from the revenue of Selangor and Perak.