Why was Singapore chosen by the British?

In the early 19th century, European trading companies such as the British and Dutch East India companies were competing fiercely outside Europe for profit and monopoly of trade routes.
Britian had already developed commerce with-

China

India

Malay Archipelago

The Dutch-

Main power in
Malay Archipelago.
controlled large part of the region
(Java and Melaka)

The British had to pay high taxes on goods that were sold or bought there.

In the early part of the 19th century, Britain's trade with China had become very lucrative.
The British had 2 trading settlements at Penang and Bencoolen. However, these 2 settlements were unsuitable for the British.
Penang  
Far north of the Sraits of Melaka.
Dutch could cut off the valuable trade between Penang and the important trading centres within the Archipelago.
Bencoolen
Situated on the wrong side of Sumatra, facing the Indian Ocean instead of the Straits of Melaka.

This prompted the British to search for a new British trading settlement south of Dutch Melaka. If the British had another port besides Penang, another port to the south of Dutch Melaka, the new port could be used to protect the British shipping trade along the Straits of Melaka. This would alow them to control the Straits of Melaka. This was why Singapore was chosen by the British! Moreover, Singapore was and excellent harbour and had a good supply of dinking water. Raffles also mentioned that Singapore was in a commanding position to protect their trading ships between China and India.

*For more information on why Singapore was chosen by the British, refer to the history text book: "Singapore- From settlement to nation pre-1819 to 1971" page 22 to 24.

Extra Facts:

Anglo-Dutch War

Now that we have learnt why the British chose Singapore, let us learn more about the Anglo-Dutch War, a war between British and Dutch.

The Anglo–Dutch Wars were a series of wars fought between the English (later British) and the Dutch in the 17th and 18th centuries for control over the seas and trade routes. The first war took place during the English Interregnum, and was fought between the Commonwealth of England and the Dutch Republic. The second war and third war took place after the Restoration, and involved the Kingdom of England and the Dutch Republic. The fourth war took place after the Acts of Union, and involved the Kingdom of Great Britain and the Dutch Republic.
While the English eventually emerged as the greater world power, the Dutch did see some significant victories

There are a total of four anglo-dutch wars. We are sharing on the 4th war, which marked an end to the anglo-dutch war. Also this war shows why British urgently wanted a new port.

Fourth Anglo-Dutch War:
The Fourth Anglo–Dutch War (1780–1784) was a conflict between the Kingdom of Great Britain and the Dutch Republic. The war, tangentially related to the American Revolutionary War, broke out over British and Dutch disagreements on the legality and conduct of Dutch trade with Britain's enemies in that war.
Although the Dutch Republic did not enter into a formal alliance with the United States and their allies, U.S. ambassador (and future President) John Adams managed to establish diplomatic relations with the Dutch Republic, making it the second European country to diplomatically recognize the Continental Congress in April, 1782. In October, 1782, a treaty of amity and commerce was concluded as well.
Most of the war consisted of a series of largely successful British operations against Dutch colonial economic interests, although British and Dutch naval forces also met once off the Dutch coast. The war ended disastrously for the Dutch and exposed the weakness of the political and economic foundations of the country.

- Hope you guys have a better understanding of how the finding of Singapore by the British got to do with the fourth Anglo-Dutch War. :) -
The resources are:
http://en.wikipedia.org/wiki/Fourth_Anglo-Dutch_War
http://en.wikipedia.org/wiki/Anglo-Dutch_Wars