 Due to a dispute between the Malays and the Bugis , the Johor @-@ Riau Empire was split on 1819 with the mainland Johor Sultanate came under the controls of Temenggong Daeng Ibrahim while the Riau @-@ Lingga Sultanate came under the control of the Bugis . The Temenggong intends to create a new administration centre for the Johor Sultanate to create a dynasty under the entity of Temenggong . As the Temenggong already has a close relationship with the British and the British intends to have control over trade activities in Singapore , a treaty was signed between Sultan Ali and Temenggong Ibrahim in Singapore on 10 March 1855 . According to the treaty , Ali will be crowned as the Sultan of Johor and receive $ 5 @,@ 000 ( in Spanish dollars ) with an allowance of $ 500 per month . In return , Ali was required to cede the sovereignty of the territory of Johor ( except Kesang of Muar which would be the only territory under his control ) to Temenggong Ibrahim . When both sides agreed on Temenggong acquiring the territory , he renamed it Iskandar Puteri and began to administer it from Telok Blangah in Singapore . As the area was still an undeveloped jungle , Temenggong encouraged the migration of Chinese and Javanese to clear the land and to develop an agricultural economy in Johor . The Chinese planted the area with black pepper and gambier , while the Javanese dug parit ( canals ) to drain water from the land , build roads and plant coconuts . During this time , a Chinese businessman , pepper and gambier cultivator , Wong Ah Fook arrived ; at the same time , Kangchu and Javanese labour contract systems was introduced by the Chinese and Javanese communities . After Temenggong 's death on 31 January 1862 , the town was renamed " Johor Bahru " and his position was succeeded by his son , Abu Bakar with the administration centre in Telok Blangah being moved to the area in 1889 . 
