Kudat holds a special place in the annals of the Malaysian state of Sabah, serving as its historical cradle. This small town was officially founded on 7 December 1881 by representatives of the British North Borneo Company. Notably, Kudat became the first capital of British North Borneo, fulfilling this function until the administrative centre was moved to Sandakan in 1883.
The development of the town was defined by a number of strategic factors:
- Geographical location: Its position at the northernmost tip of the island of Borneo made Kudat an ideal point for controlling sea routes.
- Natural harbour: Marudu Bay provided safe anchorage for vessels, which was critically important for the maritime logistics of that era.
- Proximity to trading partners: Geographical closeness to the Philippines and China facilitated the establishment of external trade relations.
The early economy and culture of Kudat were shaped by the influence of active migration. The British administration encouraged the resettlement of Chinese people (predominantly of the Hakka dialect group) to develop agriculture. Thanks to this, the region quickly became a centre for the cultivation of coconut palms and copra production. The local culture represents a unique interweaving of the traditions of the indigenous Rungus people, known for their longhouses and crafts, and the customs of the Chinese settlers, which gives the town a unique character to this day.