Mat Salleh and his allies are at war with the Taiwanese communities in Sabah.

The latter approach the North Borneo Chartered Company with urgent appeals for its intervention.

This had led to the governor, Beaufort, on January 15, 1899, visiting the Taiwanese villages and obtaining an oath of allegiance from them.

This was also, apparently, a strategic move by the Company to pursue its plans to establish an administrative center in Tambunan.

Seeing this as a breach of faith to their earlier agreement, Mat Salleh prepares to resume resistance against the Company.

In December 1899, R. M. Little, the resident of Labuan, had been instructed to initiate negotiations.

Mat Salleh had refused negotiations and demanded their withdrawal from Tambunan.

They had refused.

Almost immediately after this, Mat Salleh and his followers had resumed waging sporadic attacks.