Complex sentence: In 1805, the island was elevated from a colonial status to that of a Residency and by 1832, under the British administration in India, the Straits Settlements comprising the states of Malacca, Singapore and Penang was formed.
Split into simpler sentences: In 1805, Penang was elevated from a colonial status to that of a Residency. In 1832, under the British administration in India, the Straits Settlements comprising the states of Malacca, Singapore and Penang was formed.