According to Euromonitor International and the Economist Intelligence Unit, George Town has the highest potential for revenue growth among all Malaysian cities and contributed nearly 8 per cent of the country's personal disposable income in 2015, second only to Kuala Lumpur.
[19][20] In 1771, Francis Light, a former Royal Navy captain, was instructed by the British East India Company (EIC) to establish trade relations in the Malay Peninsula.
Light noted the strategic potential of the island as a "convenient magazine for trade" that could enable the British to check Dutch and French territorial ambitions in Southeast Asia, and tried unsuccessfully to persuade his superiors to accept the Sultan's offer.
[29] As Light intended, George Town grew rapidly as a free port and a conduit for spice trade, taking maritime commerce from Dutch posts in the region.
[21][44][50] Advances in education and living standards gave rise to a non-European gentry and middle class, which in turn fostered nascent intellectual activities and political movements.
Sun chose George Town as the headquarters for revolutionary activities by the Tongmenghui in Southeast Asia that eventually launched the Wuchang Uprising, a precursor to the Xinhai Revolution that ushered in the beginning of Republican China.
[52][53] George Town emerged from World War I relatively unscathed, except for the Battle of Penang where the Imperial German Navy cruiser SMS Emden sank two Allied warships off the settlement.
[55][59][60] Japanese military police imposed order by massacring Chinese civilians under the Sook Ching policy; the victims were buried in mass graves all over the island, such as at Rifle Range, Bukit Dumbar and Batu Ferringhi.
[51][75] Although these were successful in transforming Penang into a tertiary-based economy, they also led to the decentralisation of the urban population as residents gravitated towards newer suburban townships closer to the Bayan Lepas FIZ.
[77] George Town had benefitted from a real estate boom towards the end of the 20th century, but in 2001, the Rent Control Act was repealed, worsening the depopulation of the city's historical core and leaving colonial-era buildings in disrepair.
[105] Its proximity to the island of Sumatra makes George Town susceptible to dust particles carried by wind from transient forest fires that cause the perennial Southeast Asian haze.
[126] Due to George Town's predominantly Chinese population and the longstanding political consciousness, the city has been regarded as a stronghold for the incumbent Pakatan Harapan (PH) coalition.
[38][55] The George Town Conurbation, which also covers Seberang Perai, and parts of neighbouring Kedah and Perak, was home to 2,843,344 residents as of 2020[update], making it the second largest metropolitan area in Malaysia after the Klang Valley.
[11][142][143] As of 2022[update], George Town has seen growing arrivals of Sabahan and Sarawakian natives migrating to the city for employment opportunities in sectors like manufacturing, healthcare and the civil service.
[11] George Town's affordable living costs, natural destinations, advanced healthcare infrastructure, its established ecosystem of multinational companies (MNCs) and the widespread use of English have been cited as factors that made the city attractive to expatriates.
[150] Throughout George Town's history as a cosmopolitan port of clearance and departure, it attracted a polyglot society consisting of various other communities such as Burmese, Acehnese, Arabs, Jews, Japanese and Armenians.
[159] Originally a variant of the Southern Min group of languages, Penang Hokkien has absorbed numerous loanwords from Malay and English, yet another legacy of the Peranakan Chinese culture.
[13][166] With at least 300 multinational companies (MNCs), the robust manufacturing sector has contributed to George Town emerging as Malaysia's leading exporter and one of the major destinations for foreign direct investment (FDI) in the country.
Following the revocation of George Town's free port status and the fall of the Alliance-led state government in 1969, newly-elected Chief Minister Lim Chong Eu sought to revamp Penang's economy and commissioned Robert R. Nathan Associates to formulate strategies.
[179][180] The electronics ecosystem and supply chain comprising both MNCs and large local companies (LLCs) have solidified George Town's position as a major destination for foreign direct investment (FDI) and Malaysia's top exporter.
[195] Measures to promote economic diversification have led to George Town expanding tourism offerings in specific areas such as healthcare, business events, ecotourism and cruise arrivals.
[197][198][199] 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 throughout Penang in 2018.
[205] By 2016, Penang attracted the second largest share of investments for global business services (GBS) within Malaysia after Kuala Lumpur, creating over 8,000 high-income jobs in the process.
[14] Recognised for the British-era cityscape, the city centre is notable for its "unique architectural and cultural townscape without parallel anywhere in East and Southeast Asia", according to UNESCO.
[232][233] George Town's culinary scene incorporates Malay, Chinese, Indian, Peranakan and Thai influences, evident in the range of available street food that includes char kway teow, asam laksa and nasi kandar.
[235] Robin Barton of the Lonely Planet described George Town as the "culinary epicentre of the many cultures that arrived after it was set up as a trading port in 1786, from Malays to Indians, Acehenese to Chinese, Burmese to Thais".
[237][238] In 2022, the Michelin Guide made its debut in Penang, in recognition of the state's "small-scale restaurants and street food that embodies Malaysia's distinctive streetside dining culture".
[271] George Town's well-preserved colonial-era architecture has made the city a popular filming location for movies and television series that depict Asian culture.
[272] Films and series that were shot within the city include Crazy Rich Asians, Anna and the King, Lust, Caution, The Little Nyonya and You Mean the World to Me; the latter was the first movie to be produced entirely in Penang Hokkien.
The first domestic light rail system outside the Klang Valley, the 29.5 km (18.3 mi) line will connect the city centre with the Penang International Airport and Seberang Perai.