The Dutch basically controlled most of the region. The British needed to find their own strategic location to compete.

The British only had Bencoolen and Penang at the time. Bencoolen was on the wrong side and Penang was too far north.

Singapore was a good choice as it a natural sheltered harbour, supply of drinking water, and a strategic location along the Melaka Straits.

Witness one of Singapore’s major historical milestones 200 years ago, as told through the perspective of the first British Resident and Commandant of Singapore - William Farquhar 

Is Raffles the key founder of Singapore?