[6] Originally founded as an entrepôt, George Town's diversified economy is powered by the twin major sectors of manufacturing and services.

As Penang's industries rapidly scaled up the value chain, the border towns in neighbouring Kedah, specifically Sungai Petani and Kulim, also started to witness economic spillover resulting from agglomeration effects and the rise in the standard of living within the former.

[9][10] In the first NUP, formulated in 2006, the George Town Conurbation was defined as spanning all of Penang, Sungai Petani, Kulim, Parit Buntar and Bagan Serai.

[11] The Second National Physical Plan (NPP-2), endorsed in 2010, demarcated the George Town Conurbation as stretching from Sungai Petani in the north to Parit Buntar in the south.

[12] However, by 2013, there had been no further developments on the proposal, prompting then Penang Chief Minister Lim Guan Eng to question the federal government's lack of progress.

[14] In 2021, the Fourth National Physical Plan (NPP-4) provided a revised definition of the George Town Conurbation, which now includes Yan and Selama.

[5][6] Manufacturing remains the main economic driver in the two towns, while the southern fringes of the conurbation, spanning Bandar Baharu and northern Perak, are primarily focused on agriculture.

[24][25] Keretapi Tanah Melayu (KTM) operates the West Coast line, connecting the conurbation to other regions of western Peninsular Malaysia and Singapore.

[31] Opened in 2018, the hub integrates Rapid Penang and interstate bus services, linking to the adjacent Butterworth railway station and the Sultan Abdul Halim Ferry Terminal.

It is the main airport within the conurbation, with services to major regional cities including Kuala Lumpur, Singapore, Bangkok, Taipei, Hong Kong, Xiamen, Shanghai, Doha and Dubai.

[47] Swettenham Pier, located within downtown George Town, accommodates cruise ships and is one of the main entry points into the city.