Penang

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Straits Settlements Presidency

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State in Malaysia

State in Malaysia

Penang Pulau Pinang
State
Other transcription(s)
• Mandarin	槟城 (Simplified) 檳城 (Traditional) Bīn chéng (Pinyin)
• Hokkien	庇能 Pī-néeng (Tâi-lô)
• Tamil	பினாங்கு Piṉāṅku (Transliteration)
Ethnic groups (2020)[1]		41.3% Chinese 41.1% Bumiputera 40.7% Malay 0.5% indigenous groups from Sabah and Sarawak 8.9% Indian 0.6% Other ethnicities 8.1% Non-citizens
Religion (2020)[1]	45.5% Sunni Islam (official)[2] 37.6% Buddhism 8.4% Hinduism 4.3% Christianity 2.4% Other religions 1.7% No religion
Demonym(s)	Penangite
Government	Parliamentary
• Yang di-Pertua Negeri	Ahmad Fuzi Abdul Razak
• Chief Minister	Chow Kon Yeow (PH-DAP)
• Speaker of the legislature	Law Choo Kiang (PH-PKR)s
Legislature	Postal code	10xxx–11xxx (George Town) 12xxx-14xxx (Seberang Perai)
ISO 3166 code	MY-07
Website	www.penang.gov.my

Penang (Malay: Pulau Pinang, [pi.naŋ]) is a Malaysian state located on the northwest coast of Peninsular Malaysia along the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay Peninsula. These two halves are physically connected by the Penang Bridge and the Second Penang Bridge. The state shares borders with Kedah to the north and east, and Perak to the south.

With 1.74 million residents and a population density of 1,659/km² (4,300/sq mi) as of 2020^[update], Penang is one of Malaysia's most densely populated and urbanised states.^[4] Seberang Perai is Malaysia's third largest city by population. Penang is culturally diverse with a population that includes Chinese, Malays, Indians, Eurasians, Siamese and expatriates.

Established by Francis Light in 1786, Penang became part of the Straits Settlements, a British crown colony also comprising Malacca and Singapore. During World War II, Japan occupied Penang, but the British regained control in 1945. Penang was later merged with the Federation of Malaya (now Malaysia), which gained independence in 1957.

Penang's economy shifted from entrepôt trade to electronics manufacturing and the tertiary sector in the late 20th century. It is one of the country's most developed economic powerhouses, with the second highest GDP per capita among Malaysian states, and the third highest Human Development Index after Kuala Lumpur and Selangor. Penang is Malaysia's leading exporter with nearly RM451 billion (US$108.94 billion) in exports in 2022, primarily through the Penang International Airport which is also the nation's third busiest in passenger traffic.

Etymology

The name Penang comes from the modern Malay name Pulau Pinang which means 'areca nut island'.^[5] Penang is also colloquially referred to as the "Pearl of the Orient" and "The Island of Pearls" (Malay: Pulau Mutiara).^[6][7]

Over the course of history, Penang Island had been known by different names by seafarers from various regions. The locals named it Pulo Ka Satu, meaning The First Island, as it was the largest island on the maritime route between Lingga and Kedah.^[8] The Siamese, who were the overlords of Kedah, called it Ko Mak (Thai: เกาะหมาก).^[9]

Maritime explorers also took note of the island's abundance of areca nut. During the 15th century, Admiral Zheng He of Ming China referred to the island as Bīngláng Yǔ (traditional Chinese: 檳榔嶼; simplified Chinese: 槟榔屿; Pe̍h-ōe-jī: Pin-nn̂g-sū; lit. 'areca nut island') in his navigational charts.^[10] In the Description of Malacca, Portuguese cartographer Manuel Godinho de Erédia named it Pulo Pinaom.^[11]

History

Main article: History of Penang

Historical affiliations

British East India Company 1786–1858
British Raj 1858–1867
 Straits Settlements 1826–1941; 1945–1946
Empire of Japan 1941–1945
 Malayan Union 1946–1948
 Federation of Malaya 1948–1963
 Malaysia 1963–present

Early history

Archaeologists have discovered human remains such as the "Penang Woman", along with seashells, pottery and stone tools, in Seberang Perai.^[12] The artifacts indicate that around 5,000 to 6,000 years ago, Penang was inhabited by nomadic Melanesians during the Neolithic era.^[13][14][15]

Pali inscriptions on the Cherok Tok Kun megalith suggest the Hindu-Buddhist Bujang Valley civilisation, based in present-day Kedah, held authority over parts of Seberang Perai by the 6th century.^[16] The entirety of Penang later formed part of Kedah, which came under Siamese suzerainty by the late 18th century.^[17]

Establishment and British rule

See also: History of George Town, Penang

Penang's modern history began in 1786 when Francis Light, a representative of the British East India Company (EIC), obtained Penang Island from Sultan Abdullah Mukarram Shah of Kedah in exchange for military aid. Light had been sent to the Malay Peninsula by the EIC to build trade relations in the region, where he saw the strategic potential of Penang Island as a "convenient magazine for trade" that could enable the British to check Dutch and French territorial ambitions in Southeast Asia.^[23]

After negotiating an agreement with the Sultan, Light and his entourage landed on Penang Island on 17 July that year and took formal possession of the island "in the name of King George III of England" on 11 August.^[24] The island was renamed Prince of Wales Island after the heir to the British throne and the new settlement of George Town was established in honour of King George III.^[25]

Unbeknownst to Sultan Abdullah, Light had acted without the authority or the consent of his superiors in India. When the EIC reneged on military protection, the Sultan launched an attempt to recapture the Prince of Wales Island in 1791. However, the attempt was defeated by EIC forces and the Sultan sued for peace.^[26] An annual payment of 6000 Spanish dollars was agreed in exchange for British sovereignty over the island.^[27]

In 1800, Lieutenant-Governor George Leith secured a strip of hinterland across the Penang Strait, which was subsequently named Province Wellesley (now Seberang Perai).^[27][28] The EIC gained permanent sovereignty over both Prince of Wales Island and the new mainland territory, while the annual payment to the Sultan of Kedah was increased to 10,000 Spanish dollars.^[29] The British and Malaysian governments maintained the annual payments to Kedah until 2018, when the Malaysian federal government increased the amount by RM10 million yearly.^[30][31]

George Town grew rapidly as a free port and a conduit for spice trade, diverting maritime commerce away from Dutch outposts in the region.^[32][33][34] In 1805, Penang became a separate presidency of British India, sharing similar status with Bombay and Madras.^[35] By 1808, George Town had established its local government, while the founding of the Supreme Court of Penang marked the birth of Malaysia's modern judiciary.^[36] In 1826, George Town was made the capital of the Straits Settlements which included Singapore and Malacca. As Singapore soon supplanted George Town as the region's premier entrepôt, Singapore became the capital instead in 1832.^[37]

Despite its secondary importance to Singapore, George Town retained its importance as a vital British entrepôt.^[38] Towards the end of the 19th century, it became a major tin exporter and Malaya's primary financial centre.^[39][40][41] Penang's prosperity attracted a cosmopolitan population comprising Chinese, Malay, Indian, Peranakan, Siamese and migrants of mixed European-Asian lineage referred to as "Eurasians", and led to the development of hitherto rural areas such as Butterworth and Bukit Mertajam.^[42] However, the population growth created social problems such as inadequate sanitation, health facilities and rampant crime, culminating in street violence and rioting in 1867.^[43][44][45]

The Straits Settlements became a British crown colony within the same year.^[46][47] Direct British rule led to improved law enforcement, and investments in health care and public transportation in Penang.^[38][43][48] Owing to enhanced access to education, active participation of Asian residents in municipal affairs and substantial press freedom, George Town was perceived as being more intellectually receptive than Singapore.^[38][49][50] The settlement attracted intellectuals and revolutionaries, including Rudyard Kipling, Somerset Maugham and Sun Yat-sen.^[38][51][52] In 1910, Sun selected George Town as the centre for the Tongmenghui's political activities in Southeast Asia, aimed at overthrowing the Qing dynasty.^[52]

World wars

SMS Emden sank two Allied warships off George Town.^[53] During the interwar years, the British had acknowledged the need to fortify their armed forces in northern Malaya. However, complacency and lack of resources left British forces ill-prepared to confront the Japanese invasion at the onset of the Pacific War. Although Penang Island had been designated as a fortress, Penang fell without struggle to the Imperial Japanese Army on 19 December 1941 after daily aerial attacks.^[54] The British covertly evacuated Penang's European populace; historian Raymond Callahan since contended that "the moral collapse of British rule in Southeast Asia came not at Singapore, but at Penang".^[55][56]

Penang Island was subsequently renamed Tojo-to after Prime Minister Hideki Tojo.^[57] Japanese military police imposed order by massacring Chinese civilians under the Sook Ching policy, while women were forced into sexual slavery.^[58] Swettenham Pier was converted into a major submarine base by the Axis Powers.^[59][60][61]

Between 1944 and 1945, Allied bombers from India targeted naval and administrative buildings in George Town, damaging and destroying several colonial buildings in the process.^[62][63] The Penang Strait was mined to restrict Japanese shipping.^[64] Following Japan's surrender, George Town was the first Malayan settlement liberated by British marines through Operation Jurist on 3 September 1945.^[65]

Post-war years

Penang was placed under British military administration until 1946, after which the Straits Settlements was abolished. The British sought to consolidate the various political entities in British Malaya, including the Crown Colony of Penang, under a single polity known as the Malayan Union. Initially, the impending annexation of Penang into the vast Malay heartland proved unpopular among Penangites.^[66] The Penang Secessionist Committee was formed in 1948 due to economic and ethnic concerns, but their attempt to avert Penang's merger with Malaya was unsuccessful due to British disapproval.^[67][68][69]

To allay the concerns raised by the secessionists, the British government guaranteed George Town's free port status and reintroduced municipal elections in 1951.^[36][69] George Town became the first fully-elected municipality in Malaya by 1956 and was granted city status by Queen Elizabeth II in the following year. This made George Town the first city within the Federation of Malaya, and by extension, Malaysia.^[70]

Post-independence era

George Town's status as a free port was rescinded by the Malaysian federal government in 1969.^[49] This led to a loss of maritime trade, causing massive unemployment and brain drain.^[49][71][72] To revive the economy, Chief Minister Lim Chong Eu established the Bayan Lepas Free Industrial Zone in 1972.^[73] Massive industrialisation proved instrumental in reversing Penang's economic slump and led to the state's rapid economic growth until the late 1990s.^[73][74][75] Under Lim's tenure, the Penang Bridge, the first road link between Penang Island and the Malay Peninsula, was built.

However, persistent brain drain, exacerbated by federal policies that favoured the development of Kuala Lumpur, meant that Penang was no longer at the forefront of the country's economy by the 21st century

Persistent brain drain, aggravated by federal policies prioritising the growth of Kuala Lumpur, resulted in Penang losing its leading position in the national economy by the 21st century.^[49][76] This decline, compounded by various issues including incoherent urban planning, poor traffic management and the dilapidation of George Town's heritage enclave following the repeal of the Rent Control Act in 2001, contributed to growing dissatisfaction within Penang's society.^[22][77][78]

In response, civil societies in George Town mobilised public support to rejuvenate the city.^[49][79][80] Resentment against the Barisan Nasional (BN) administration led to the Pakatan Rakyat bloc (now Pakatan Harapan) rising to power through the 2008 state election.^[77] Efforts to preserve George Town's heritage architecture led to the city's historical core being designated as a UNESCO World Heritage Site that year.^[80][81]

Skyline of George Town, as seen from the Penang Strait

Geography

Butterworth (bottom) by the Penang Strait

.

With a land area of only 1,049 km² (405 sq mi), Penang is the second smallest state in Malaysia after Perlis.^[82] It is located on the northwestern coastline of Peninsular Malaysia, lying between latitudes 5.59° and 5.12°N, and longitudes 100.17° and 100.56°E. The state is divided into two major halves by the Penang Strait, which is only 3 km (1.9 mi) wide at the narrowest point and 13 km (8.1 mi) at its widest.^[83][84]

• Penang Island, a 295 km² (114 sq mi) island.^[85]
• Seberang Perai, a 748 km² (289 sq mi) hinterland on the Malay Peninsula. It shares land borders with Kedah to the north and east, and Perak to the south.^[82]

The state capital, George Town, encompasses the entirety of Penang Island and a few surrounding islets, including Jerejak, Betong, Kendi, Rimau and Andaman islands.^[86] On the other hand, the city of Seberang Perai covers the mainland side of Penang.^[87]

Kepala Batas

Alma

Nibong Tebal

Perai

Seberang Jaya

Juru

Mertajam
Hill

Permatang Pauh

Relau

Sungai Jawi

Simpang Ampat

Tasek Gelugor

Andaman I.

Jerejak I.

Kendi I.

Aman I.

Gedung I.

Rimau I.

Gertak Sanggul

George Town

Seberang Perai

Bukit Minyak

class=notpageimage|

A map of Penang with the locations of George Town, Seberang Perai

and major suburbs.

Penang Island is irregularly shaped, with a hilly and mostly forested interior. The island's coastal plains are narrow, with the most extensive plain located at the northeastern cape.^[90] George Town, which started off as a small settlement at the northeastern tip of the island, has expanded over the centuries to encompass the entire island, although the marshy western coast remains relatively underdeveloped.^[91] The highest point of the state is Penang Hill, which stands at a height of 833 m (2,733 ft) at the centre of the island. On the other hand, Seberang Perai has mostly flat topography, save for a hilly region along the eastern border with Kedah.^[92]

Due to land scarcity in George Town, land reclamation projects have been undertaken at high-demand areas, particularly along the island's east coast.^[89][93] In 2023, a massive reclamation project commenced off the city's southern coast to build the 920 ha (2,300-acre) Silicon Island, envisioned as a new hub for high-tech manufacturing and commerce.^[94] Following years of reclamation works, the Gurney Drive shoreline is also being transformed into Gurney Bay, intended as "a new iconic waterfront destination for Penang".^[95]

The major rivers within Penang include the Pinang, Perai, Muda and Kerian rivers. The Muda River serves as the northern border between Seberang Perai and Kedah, while the Kerian River forms part of the southern boundary between Seberang Perai, Kedah and Perak.^[96]

Climate

Penang has a tropical rainforest climate under the Köppen climate classification (Af). The state experiences relatively consistent temperatures throughout the course of the year, with an average high of about 32 °C and an average low of 24°C.^[98] Penang's proximity to Sumatra makes it susceptible to dust particles carried by wind from transient forest fires that create the perennial Southeast Asian haze.^[99] The Penang Meteorological Office at Bayan Lepas is the primary weather forecast facility for northwestern Malaysia.^[100]

Nature

In spite of rapid urbanisation, Penang has managed to preserve a significant portion of its natural environment. Within the state, 7,761 ha (77.61 km²) have been designated as protected forest reserves.^[101] In 2021, the 12,481 ha (124.81 km²) Penang Hill Biosphere Reserve was designated a UNESCO Biosphere Reserve in recognition of the area's biodiversity.^[102] The gazetted nature reserve includes the Penang National Park, which covers 2,562 ha (25.62 km²) of the northwestern tip of the island.^[103][104] It has been identified as one of the state's ecotourism destinations, alongside the Penang Botanic Gardens and the Tropical Spice Garden.^[105]

Governance and politics

Current leaders

Ahmad Fuzi Abdul Razak
Governor

Chow Kon Yeow

Chief Minister

Penang, a former British crown colony, is one of the four Malaysian states without hereditary monarchies. The Constitution of Penang, codified in 1957, is the state's highest law, consisting of 42 articles that govern the proceedings and powers of the state government.^[2] The head of state is the Governor (Malay: Yang di-Pertua Negeri), who is appointed by the King of Malaysia. Ahmad Fuzi Abdul Razak is the current Governor of Penang, having assumed office in 2021. In practice, the Governor's role is largely symbolic and ceremonial. This includes the authority to appoint the head of government and approve legislation that has been passed by the state's legislature.^[106]

The Penang state government has its own executive body and legislature, but their powers are limited compared to the Malaysian federal government. According to the Federal Constitution, the state can legislate on matters pertaining to Malay customs, land, agriculture and forestry, local government, civil and water works, and state administration. Matters falling under the joint purview of state and federal authorities include social welfare, wildlife protection and national parks, scholarships, husbandry, town planning, drainage and irrigation, and public health regulations.^[107]

The 40-member Penang State Legislative Assembly forms the state's legislature and is elected for a maximum term of five years from single-member constituencies through state elections. Compared to the rest of Peninsular Malaysia, Penang's electoral landscape is perceived as being more liberal and distinct due to the state's ethnic diversity and socio-economic development.^[108][109] Unlike other Peninsular states, ethnic Chinese have formed the plurality in Penang for decades, and the state's economic infrastructure is based primarily on commerce and trade rather than agriculture.^[109] As of 2023^[update], non-Malays formed the majority in 25 of the 40 state constituencies.^[110] Thus, non-Malay electoral support is crucial to any political coalition aiming for power in Penang.^[109][110]

Executive

The Penang State Executive Council is the executive authority of the Penang state government, similar in function to the federal Cabinet. It is led by the Chief Minister, who serves as the head of government in Penang. To this day, Penang remains the only Malaysian state where the position of the head of government has been continuously held by an ethnic Chinese since the nation's independence.^[111] Additionally, Penang was the first state to impose a two-term limit for the head of government's tenure.^[112] The current Chief Minister of Penang is Chow Kon Yeow of the Democratic Action Party (DAP), having assumed office after the 2018 state election.^[113]

Legislature

The unicameral 40-seat Penang State Legislative Assembly, whose members are called State Assemblymen, convenes at the neoclassical State Assembly Building in George Town. Penang practises the Westminster system whereby the State Executive Council members are appointed from the elected State Assemblymen. Any amendment to Penang's Constitution requires the support of at least two-thirds of the State Legislative Assembly.^[2] Prior to a state election, it is customary to dissolve the legislature, which necessitates the consent of the Governor.^[106]

The 2023 state election witnessed an unprecedented alliance between Pakatan Harapan (PH) and its erstwhile adversaries Barisan Nasional (BN).^[114] The PH-BN alliance currently commands a supermajority in the State Legislative Assembly, controlling 29 out of the 40 seats. However, the election also saw the right-wing Perikatan Nasional (PN) opposition bloc gaining ground in the rural Malay-majority constituencies, occupying the remaining 11 seats in the legislature.^[110]

Affiliation		Coalition/Party Leader	Status	Seats
				2023 election	Current
	Pakatan Harapan Barisan Nasional	Chow Kon Yeow	Government	29	29
	Perikatan Nasional	Muhammad Fauzi Yusoff[115]	Opposition	11	11
Total				40	40
Government majority				18	18

Local governments

Penang is further divided into two city-level municipalities, each administered by a local government. The local governments exercise power in areas such as planning and development control, public housing, public spaces, waste disposal, business licensing, markets, local transport, and municipal roads.^[116]

• The Penang Island City Council (MBPP) administers the city of George Town, which includes the entirety of Penang Island. It is made up of a mayor, a city secretary and 24 councillors.
• The Seberang Perai City Council (MBSP) is in charge of Seberang Perai. Similar in structure to the MBPP, it also consists of a mayor, a city secretary and 24 councillors.

Penang is also divided into five administrative districts – two in George Town and three in Seberang Perai. Each district is headed by a district officer. The lands and district office in each district deals with land administration and revenue. Thus, it differs from the local governments that oversee the provision and maintenance of urban infrastructure.^[117]

After Pakatan Rakyat was voted into power in 2008, the newly-elected state government attempted to reinstate local government elections within Penang, which have been suspended since the 1960s.^[118][119] At the time, the Barisan Nasional-controlled federal government objected to the move, which eventually led to the Federal Court's decision that local government elections do not fall under the jurisdiction of state governments.^[118][120]

Judiciary

The present-day Malaysian judicial system traces its roots to 19th-century George Town.^[123] In 1807, Penang was granted a Royal Charter which paved the way for the establishment of a Supreme Court.^[26] In the following year, the Supreme Court of Penang (now Penang High Court) was inaugurated at Fort Cornwallis with the appointment of Edmond Stanley as the first Recorder.

The Penang High Court serves as the highest court in the state. Notable lawyers who served the high court include Tunku Abdul Rahman, Cecil Rajendra and Karpal Singh.^[121][124] There are also four Magistrates Courts and two Sessions Courts throughout Penang.^[125]

Foreign relations

Penang is home to the largest contingent of foreign diplomatic missions among Malaysian states. As of 2023^[update], a total of 27 countries have either established consulates or appointed honorary consuls within Penang.^[126] The Penang state government has also inked a sister state agreement with Japan's Kanagawa Prefecture and a friendship state partnership with China's Hainan Province.^[127][128]

Consulates

This list is based on information from the Ministry of Foreign Affairs, unless otherwise cited.^[126]

Security

In 1861, the Penang and Province Wellesley Volunteer Corps (P&PWVC) was established as the second volunteer military force in Malaya after the Singapore Volunteer Corps. Initially, the unit was exclusively formed by Europeans, with other races being barred until 1899.^[131] Over time, the P&PWVC transformed into the 3rd Battalion of the Straits Settlements Volunteer Force (SSVF) and by 1937, the unit also contained a European machine gun platoon, a Malay rifle company, a medical section and headquarters reserve. Although enlistment increased prior to the Japanese invasion of Malaya, 3rd Battalion SSVF was eventually evacuated from Penang without engaging in any combat.^[132]

Since independence, the Malaysian federal government assumes sole responsibility for the country's defence.^[107] Penang houses the Malaysian Army's 2nd Battalion of the Royal Malay Regiment and Rejimen 509 Askar Wataniah, which traces its lineage back to the P&PWVC.^[133][134] The Royal Malaysian Navy maintains a volunteer reserve base in George Town.^[135] RMAF Butterworth Air Base also serves as the headquarters of the Five Power Defence Arrangements Integrated Area Defence System (HQIADS).^[136] The air base continues to host Australian air force and army units on a rotational basis, including Rifle Company Butterworth.^[137]

Demographics

As of 2020^[update], the population of Penang was 1,740,405. It has the highest population density of all Malaysian states at 1,659/km² (4,300/sq mi).^[1] In addition, Penang is the country's second most urbanised state after Selangor, with an urbanisation level of 92.5% in the same year.^[4] Residents of the state are colloquially known as Penangites or "Penang-lang".^[141]

Seberang Perai, Malaysia's third largest city, was home to a population of 946,092 as of 2020^[update], or over 54% of Penang's population.^[142] The city had a population density of 1,264.8/km² (3,276/sq mi). Meanwhile, George Town had a population of 794,313, which accounted for nearly 46% of the state's popution. Due to its more compact land area, George Town had twice the population density of Seberang Perai at 2,595.8/km² (6,723/sq mi).^[142]

George Town serves as the core city of the George Town Conurbation, Malaysia's second largest metropolitan area after the Klang Valley.^[143] As of 2020^[update], the conurbation, which encompasses the whole of Penang, southern Kedah and northern Perak, was home to over 2.84 million residents.^[1]

The state's diversified economy has made it one of the major recipients of interstate migrants within Malaysia.^[144] Between 2015 and 2016, Penang achieved the highest migration effectiveness ratio among Malaysian states. For every 100 Malaysians that migrated into and out of Penang, the state's population increased by 58 persons.^[145][146] The bulk of the interstate immigrants came from Perak, Selangor, Kedah, Johor and Kuala Lumpur.^[146]

Ethnicities

Penang has undergone a demographic shift in the decades since independence, with the proportion of Bumiputeras (consisting of ethnic Malays and East Malaysian indigenous races) reaching parity with that of the Chinese, traditionally regarded as the state's majority ethnicity. According to Malaysia's 2020 census, Chinese and the Bumiputeras each constituted about 41% of Penang's population, while ethnic Indians made up nearly 9%.^[1]

Chinese comprised over 51% of George Town's population as of 2020.^[142] This includes the Peranakan Chinese, a hybrid ethnicity known for their distinctive architecture, costumes and cuisine. The city is also home to a cosmopolitan mix of indigenous East Malaysians, ethnic Eurasians and Siamese.^{[148][149][150]} On the other hand, Seberang Perai has a Malay plurality, making up almost half of the city's population.^[142]

Penang is also home to a significant expatriate community. As of 2020, foreigners comprised 8% of the state's population.^[142] Over 38% of Penang's expatriates resided within downtown George Town, Paya Terubong and Bayan Lepas.^[147] George Town's affordable living costs, natural destinations, health care infrastructure, an established ecosystem of multinational companies (MNCs) and the widespread use of English have been cited as pull factors for expatriates.^[151][152]

Languages

Penang is an urban multilingual society, where Malay, English, Hokkien, Mandarin and Tamil are widely spoken.^[154] In particular, Penang is well known for its distinctive Hokkien dialect known as Penang Hokkien.^[155]

Like the rest of Malaysia, Malay is the official language in Penang. The Jawi Peranakans in the state also use a variant of the Kedah Malay dialect, slightly modified to suit the conditions of a cosmopolitan society.^[156] English had been the official language in Penang during British rule. The growth of English and mission schools throughout George Town contributed significantly to the widespread use of the language in the state.^[26] The importance of English for global trade has also encouraged its adoption by the Chinese and Indian communities.^[154] In recent years, there have been calls to reinstate English as one of Penang's official languages.^[157][158]

Penang Hokkien serves as the lingua franca between the various ethnicities in Penang.^{[155][162][163]} Originally a variant of the Southern Min group of languages, the dialect has absorbed numerous loanwords from Malay and English, yet another legacy of the Peranakan Chinese culture. Community efforts have been made to preserve the relevance of Penang Hokkien in the face of the rising prevalence of Mandarin and English among youths.^[164][165]

Religions

Penang, like other Peninsular states, has Islam as its official religion.^[2] Even so, the state allows freedom of religion and religious assembly, which contributes to its cosmopolitan society. Penang is unique among the Peninsular states in that no single religion commands an absolute majority among the populace. Penang is also one of only three states in Malaysia to have a dedicated department for non-Muslim affairs.^[166]

As of 2020^[update], Muslims constituted over 45% of Penang's population, followed by Buddhists at nearly 38% and Hindus at more than 8%.^[1] Notably, George Town contains small communities of Chinese Muslims and Indian Muslims, while Buddhists follow either Theravada, Mahayana or Vajrayana traditions.^{[167][168][169]}

Pitt Street, within George Town's Central Business District (CBD), houses multiple places of worship belonging to Muslim, Taoist, Hindu and Christian communities, all located in close proximity to each other.^[170] This unique arrangement has earned Pitt Street the nickname "Street of Harmony".^[171] In 2021, the Penang state government formed the Penang Harmony Corporation to further enhance interreligious harmony in the state.^[166]

Economy

Despite its small size, Penang has one of the most robust economies in Malaysia.^[173] The state's tertiary-based economy is largely driven by the manufacturing and services sectors.^[3] In 2022, Penang's GDP was worth RM121.154 billion (US$27.535 billion) with a growth rate of 13%, the fastest in the country. Penang's GDP per capita of RM69,591 (US$15,837) was the second highest among Malaysian states after Sarawak, surpassing the World Bank's threshold of US$13,205 to be considered a high-income economy.^[3][174] In addition, the George Town Conurbation had a GDP worth US$13.5 billion in 2010, making it the second largest contributor of Malaysia's total GDP.^[143]

Penang contributed approximately RM7 billion (US$1.69 billion) of Malaysia's yearly tax revenue and consistently records one of the lowest unemployment rates in the nation – at 2.8% as of 2022^[update].^{[3][175][176]} Monthly median household income rose to RM6,502 (US$1570.53), while the state had a labour force participation rate of 70.3% in 2022, an increase from 69.7% in the previous year.^[3]

Penang is the top destination in Malaysia for foreign investors, capturing US$13.4 billion – or nearly 33% – of the country's inbound foreign direct investments (FDI) in 2023.^[177] As of 2022^[update], the bulk of Penang's FDI originated from the Netherlands, China and Singapore.^[3] The state has also attracted hundreds of multinational corporations (MNCs) to its shores and plays a growing role in the global electronics supply chain, holding a share of more than 5% in the world's semiconductor sales.^[178][179] Penang is concurrently Malaysia's largest exporter, accounting for almost RM451 billion (US$108.94 billion) – or 29% – of the country's exports in 2022.^[180] The services sector has been growing in tandem as well, with Penang being the second most popular hub in Malaysia for Global Business Services (GBS) and the financial heart of the country's northwestern region, complemented by the state's traditional popularity as a destination for tourism, business events and health care.^[181][182]

Penang's economic renaissance, particularly since 2008, was described by Bloomberg as Malaysia's "biggest economic success", in spite of the federal government's focus on other states such as Johor and Sarawak.^[183] The Penang state government has also managed to pare down public debt to RM41.1 million (US$9.93 million) by 2022.^[172] In addition, Penang's Human Development Index (HDI) value stood at 0.836, the third highest in the country after Kuala Lumpur and Selangor, and on par with Turkey.^[184]

The booming economy has also led to a considerable interest in real estate in Penang. In 2016, George Town was ranked Malaysia's most attractive destination for commercial property investment by Knight Frank, surpassing even Kuala Lumpur.^[185] In 2023, Penang's residential market was ranked the second most popular in Southeast Asia after Singapore.^[186]

Manufacturing

In the early years following Malaya's independence, Penang's industrialisation efforts were limited to import substitution.^[73] This was when George Town still enjoyed its free port status.^[49] The first industrial estates were built in the 1960s at Mak Mandin and Perai during the tenure of Penang's first Chief Minister Wong Pow Nee.^[188]

However, the revocation of George Town's free port status and the fall of Wong's administration in 1969 marked a turning point in Penang's economic fortunes.^[49][73] Wong's successor, Lim Chong Eu, initiated a massive transformation of Penang's economy.^[73] The Bayan Lepas Free Industrial Zone (Bayan Lepas FIZ) in George Town was established in 1972, followed by the Perai Free Industrial Zone (Perai FIZ) in 1980.^[73][189] The zones played a critical role in reviving Penang's economy and driving the state's economic growth in the late 20th century.^[71][75] The Penang state government has since embarked on building newer industrial parks within Seberang Perai where land is more readily available, such as at Seberang Jaya, Bukit Minyak and Batu Kawan.^{[190][191][192]}

The Bayan Lepas FIZ is regarded as the Silicon Valley of the East, home to more than 300 multinational corporations (MNCs) including 39 Fortune 1000 companies.^[178][193] Among the MNCs within the zone are major technology firms such as AMD, Bosch, HP Inc., Intel, Motorola, Osram and Renesas.^[190][194] Since the 1970s, manufacturing has formed the backbone of Penang's economy, contributing 48.3% of its GDP as of 2022^[update] and cementing the state's position as Malaysia's leading exporter.^{[3][180][195]} In 2022 alone, integrated circuitry accounted for more than 40% of the state's total exports, followed by piezoelectric crystals, scientific and measuring equipment, and other electric and electronic products.^[3] In 2023, Penang's manufacturing sector drew in US$13.1 billion of foreign direct investments (FDI), accounting for almost 47% of Malaysia's total that year.^[196] According to Financial Times in 2024, Penang is well-positioned to benefit from the ongoing China–United States trade war, as restrictions prompt businesses to diversify their supply chain away from China.^[197]

Aside from electronics and engineering manufacturing, Penang is Malaysia's main jewellery finishing hub, contributing 85% of the nation's gold and jewellery exports as of 2016^[update]. The state's gold and jewellery industry originates from the founding of the Penang Goldsmith Association in 1832. Jewellery from Penang is exported to over 20 foreign markets, including Singapore, Hong Kong, Japan, Canada and the United States.^[198]

Services

The services sector contributed 46.7% of Penang's GDP as of 2022^[update], employing almost 3⁄5 of the state's workforce. Major subsectors in the state include logistics, communications, retail, food and beverages (F&B), tourism, financial, real estate and business services.^[3]

George Town was formerly the financial centre of British Malaya. In the late 19th century, international banks such as Standard Chartered, HSBC, and the Royal Bank of Scotland established themselves in the city, leading to the clustering of mercantile trade around the northern end of Beach Street.^[41][199] Post-independence, George Town continues to function as the commercial hub of northern Malaysia.^[200] As of 2022^[update], finance and ancillary services contributed 9.1% of Penang's GDP.^[3]

Penang is one of Malaysia's vital logistics hubs. The Penang International Airport (PIA) is the country's third busiest in passenger volume and in 2022, handled RM385 billion (US$93 billion) worth of exports, the largest of all entry points nationwide.^[180] In the same year, the Port of Penang processed over 1.3 million TEUs of cargo, the third highest among Malaysia's seaports.^[3][201]

Traditionally one of Malaysia's most popular tourist destinations, Penang has attracted important people such as W. Somerset Maugham, Rudyard Kipling, Lee Kuan Yew, Queen Elizabeth II and King Charles III.^{[202][203][204]} The state is recognised for its architecture and cultural diversity, natural attractions, and its culinary scene.^[205] In 2017, Penang contributed close to RM3.9 million (US$0.94 million) of Malaysia's tourism tax revenue, the third highest after Kuala Lumpur and Sabah.^[206]

Economic diversification measures have led to Penang expanding its tourism offerings in areas such as health care, business events, ecotourism and cruise arrivals.^[207] The state has emerged as the leading destination in Malaysia for medical tourism, attracting over half of the medical tourist arrivals prior to the COVID-19 pandemic.^{[208][209][210]} George Town is the country's second most popular destination for meetings, incentives, conferences and exhibitions (MICE) after Kuala Lumpur, with the industry had an economic impact of about RM1.3 billion (US$0.31 million) throughout the state in 2018.^[211][212] Among the major venues for business events in the state are SPICE Arena, Straits Quay and Prangin Mall.^[213]

The state's retail subsector employed as much as 15% of its workforce as of 2019^[update].^[214] As the main shopping destination in northwestern Malaysia, Penang's retail scene includes shopping malls like Gurney Plaza, Gurney Paragon, 1st Avenue Mall, Straits Quay, Queensbay Mall and Design Village. Traditional shophouses and markets continue to thrive, specialising in local delicacies and produce such as nutmegs, Heong Peng and Tambun biscuits.^[215][216]

In 2004, the Bayan Lepas FIZ and the adjacent township of Bayan Baru were granted Multimedia Super Corridor Cyber City status, galvanising Penang's growth as a shared services and outsourcing (SSO) hub.^[217] By 2016, the state attracted the second largest share of investments for global business services (GBS) in the country after Kuala Lumpur, creating over 8,000 high-income jobs in the process.^[218][219] Newer office spaces at Bayan Baru have attracted multinational firms including Cisco, Citigroup, Clarivate, Swarovski and Teleperformance to open GBS offices at the area.^{[220][221][222]} In addition, Penang is home to a thriving startup community, driven by home-grown companies like Piktochart and DeliverEat.^[223][224]

Culture

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Chingay troupe in George Town. To this day, the Chingay parade continues to be a major expression of Penang Chinese identity.^[225]

Festivals

Penang's cosmopolitan society results in a great number of celebrations and festivities throughout any given year. The state hosts major cultural and religious events, including but not limited to, Chinese New Year, Eid al-Fitri, Diwali, Thaipusam, Vaisakhi, Christmas, Vesak and Songkran.^[226] Chinese New Year celebrations, in particular, last for 15 days and are marked with festivities unique to the state, such as the birthday of the Jade Emperor, and the annual opening of Chinese ancestral halls and associations in George Town.^[227][228] The 15th and final day of Chinese New Year is celebrated with a Peranakan Chinese-inspired Lantern Festival.^[228]

Expatriates living in Penang have also brought their own celebrations to the state.

Bon Odori, a Japanese festival celebrated annually in George Town, has gained popularity among locals.^[229] St. Patrick's Day and Oktoberfest, traditionally celebrated by ethnic Irish and German communities respectively, are also celebrated in the city.^[230][231]

Penang also hosts several major festivals each year, including the George Town Festival which has become one of the largest arts events in Southeast Asia since its inaugural event in 2010.^[232] In 2018, the George Town Literary Festival became the first Southeast Asian literary event to bag the international Literary Festival Award at the London Book Fair.^[233]

Performing arts

Chingay procession. Introduced in 1919, Penang's variant of Chingay includes the act of balancing gigantic flags on one's head or hands.^[234] A state-held Chingay parade takes place in George Town annually, although Chingay performances are also frequently included in Chinese festivals and significant state events throughout Penang.^[235]

Bangsawan is a form of Malay theatre that originated in Penang at the end of the 19th century, and incorporates Indian, Western, Islamic, Chinese and Indonesian influences. It was a popular outdoor performance in the 1920s.^[236] Another unique form of theatre that began in Penang is boria, which features singing accompanied by violin, maracas and tabla. Boria reached the height of its popularity in the 1930s and was typically performed as a form of satire. While the British imposed a ban on boria in Singapore and Malacca, the art form was never banned in Penang.^[237]

Apart from traditional forms of art, the Penang Philharmonic Orchestra, funded by the state, was established in 2010 to elevate the standard of classical music in Penang. Dewan Sri Pinang and SPICE Arena in George Town are the main venues for performing arts and concerts within the state.^[238]

Street art

George Town is a hub for the arts and culture scene in Malaysia. In 2012, Lithuanian artist Ernest Zacharevic created a series of six wall paintings depicting local culture, inhabitants and lifestyles as part of the George Town Festival. The city is also adorned with 52 wrought iron caricatures and 18 wall murals that showcase the city's history and the daily lives of the local community.^[239] Additionally, art exhibitions are held at the city's event spaces like the Hin Bus Depot and Sia Boey.^[240][241]

Architecture

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Arulmigu Karumariamman Temple