The term "Kangchu" became widely used during the 19th century, as Chinese immigrants began to settle in and around Johor state and set up gambier and pepper plantations. The social and economic welfare of the early Chinese settlers came under the charge of local Chinese leaders, who were responsible for running these agricultural plantations, which were situated along the river banks. The Kangchu system traces its origins from the 18th century when Chinese coolies settled in Penang and Riau and set up gambier and pepper plantations there. The sovereign rulers of Johor, Temenggong Daeng Ibrahim and his son and successor, Sultan Abu Bakar, took up the Kangchu system during the first half of the 19th century to provide a more organised form of administration as Chinese immigrants began to settle in the state in great numbers and developed the state's agricultural economy.