History of Penang

[15][16][17] Moreover, the state enjoys one of the lowest unemployment rates and Gini coefficients within Malaysia, as well as the second highest gross domestic product (GDP) per capita within the country after Kuala Lumpur.

The Cherok Tok Kun megalith in Bukit Mertajam, discovered in 1845, contains Pali inscriptions, indicating that an early Hindu-Buddhist political entity in what is now Kedah had established control over parts of Seberang Perai sometime between the 5th and 6th centuries.

[27] In the early 18th century, ethnic Minangkabaus from Sumatra, led by Haji Muhammad Salleh (also known as Nakhoda Intan), landed on Penang Island, establishing a seaside settlement at Batu Uban in 1734.

[5][6][32] Light subsequently wrote to his superiors regarding the offer, arguing that Penang Island could serve as a "convenient magazine for trade" and its strategic location would allow the British to check Dutch and French territorial gains in Southeast Asia.

[5] Faced with the Dutch dominance of the East Indies (now Indonesia) and a growing French threat, Light, who by then had risen to the rank of captain, was ordered to acquire Penang Island from Kedah.

[30][32] The British East India Company sought control of Penang Island as a Royal Navy base, and a trading post between China and the Indian subcontinent.

[5][6][33] When Light reneged on his promise of British military protection against Siam, the Kedah Sultan in 1791 assembled an army in what is now Seberang Perai to retake the Prince of Wales Island.

[6][38] The treaty, negotiated by Leith's First Assistant George Caunter, superseded Light's earlier agreement and gave the British permanent sovereignty over both Prince of Wales Island and the newly ceded mainland territory,[39] which in subsequent years was named Province Wellesley.

[38] The treaty gave Prince of Wales Island the entire command of its harbour for the first time, as well as control of the vulnerable mainland coastline, home to pirates and brigands.

[8] Nonetheless, George Town continued to retain its importance as a vital British entrepôt by funneling the exports meant for global shipping lines which had bypassed other regional harbours.

[68] By the end of the 19th century, George Town also evolved into a leading financial centre of British Malaya, as mercantile firms and international banks, including Standard Chartered and HSBC, flocked into the city.

Aside from the sizeable Chinese, Malay, Indian, Peranakan, Eurasian, and Siamese communities, the colony's multi-ethnic and multi-religious society included significant minorities of Burmese, British, Javanese, Japanese, Sinhalese, Jewish, German, and Armenian origin.

[37] While the Europeans predominated in the various professional fields, as well as occupying managerial positions in mercantile and shipping firms, the Peranakans and the Eurasians tended to enter the nascent civil service as lawyers, engineers, architects and clerks.

The rapid population growth that resulted from the booming economy led to several social problems, chiefly the inadequate sanitation and public health facilities, as well as rampant crime.

[73][74] The resulting civil unrest lasted for 10 days, before the turf war was eventually quelled by the Straits Settlements authorities under newly appointed Lieutenant-Governor Edward Anson, who were assisted by European residents and reinforcements from Singapore.

[80] With improved access to education and rising living standards, Penang soon enjoyed substantial press freedom and there was a greater degree of participation in municipal affairs by its Asian residents.

Not only did the British Army abandon the Batu Maung Fort on the island, they also surreptitiously evacuated Penang's European population, leaving the colony's Asian populace to the mercy of the impending Japanese occupation.

A British Royal Marines contingent recaptured Penang Island on the following day, making George Town the first city in Malaya to be liberated at the end of the war.

As the gradual withdrawal of the Western colonial powers in Southeast Asia continued taking shape, the independence of Malaya as a united political entity seemed a foregone conclusion.

Wong Pow Nee of the Malaysian Chinese Association (MCA), one of the major component parties of the Alliance, became Penang's first Chief Minister, a position that he held until 1969.

[69] Penang's voters tended to leave the control of the state government in the hands of the Alliance, while consistently electing the Labour Party to run the city council.

At the time, the George Town City Council was the only fully elected local authority in Malaya, as well as the country's richest, with an annual revenue that was double that of the Penang state government by 1965.

[110] The revocation of George Town's free port status, coupled with an unsuccessful, bloody strike by Penang's unions in 1967, led to a loss of popular support for the Alliance amongst Penangites.

However, the violent race riots in Kuala Lumpur following the concurrent Malaysian General Elections led to the nationwide imposition of martial law and the functions of the Penang state government were taken over by the National Operations Council until 1971.

[108][115] To revive Penang's economy, Lim Chong Eu created the Bayan Lepas Free Industrial Zone and courted foreign multinational corporations for investments.

Launched in 1974 as part of his vision to reverse George Town's declining fortunes, Komtar was constructed in the expense of hundreds of shophouses, schools and temples, as well as whole streets, which were bulldozed for the project.

[121][122] Throughout the 1970s and 80s, the Malaysian federal government proceeded with the rapid development of Kuala Lumpur and nearby Port Klang, by controlling investments in communication, transport, education and health.

Concerned over the impending loss of George Town's heritage architecture, NGOs based within the city started to mobilise public support for the conservation of these historic buildings.

[130][133][134][135][136] It has since been speculated that the public outcry over the neglect of the city once known as the Pearl of the Orient, combined with Penang's relatively lively political scene, contributed to the defeat of Barisan Nasional in the 2008 state election by the federal opposition pact, Pakatan Rakyat.

Straddling a length of 24 km (15 mi), it provides a second road link between Penang Island and Seberang Perai, and has spurred the development of new industrial areas such as Batu Kawan.