[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.

[26][27] 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.

[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.

[38][43][47] 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.

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.

[48][75] 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.

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.

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.

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.

[107] 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.

[121][125] 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.

[130] 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.

[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.

[139] In addition, Penang's Human Development Index (HDI) value stood at 0.83, the fourth highest in the country after Kuala Lumpur, Selangor and Labuan, and on par with Uruguay.

[138][168] Traditionally one of Malaysia's most popular tourist destinations, Penang has embarked on economic diversification by expanding its tourism offerings in areas such as health care, business events, ecotourism and cruise arrivals.

[170][171][172] The state's retail sector is characterised by a diverse range of establishments, including modern shopping malls and traditional shophouses that specialise in local delicacies and produce.

Furthermore, the Keretapi Tanah Melayu (KTM) West Coast Line runs through the city, with the Butterworth railway station serving as the principal terminal in northwestern Malaysia.

Spanning a distance of 29.5 km (18.3 mi), the line is the first domestic light rail system outside the Klang Valley, and will link the cities of George Town and Seberang Perai.

It serves as the main airport for northwestern Malaysia, with services to major regional cities such as Kuala Lumpur, Singapore, Bangkok, Taipei, Hong Kong, Xiamen, Shanghai, Doha and Dubai.

[215] Formerly a vital British entrepôt, Penang's maritime trade has significantly declined due to the loss of George Town's free-port status in 1969 and the concurrent development of Port Klang near the federal capital Kuala Lumpur.

[244] 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.

The state hosts major cultural and religious events, including Chinese New Year, Eid al-Fitri, Diwali, Thaipusam, Vaisakhi, Christmas, Vesak and Songkran.

[278] George Town is credited as the origin of a unique form of the Chingay procession, which involves participants balancing oversized flags on their heads or hands.

[290] 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.

[293][294] Post-independence, the state's literary scene has diversified, with independent local publishers and retailers such as Areca Books, Gerakbudaya and the George Town World Heritage Incorporated (GTWHI) running alongside major bookstore chains like Popular Holdings and MPH Group.

[301] The well-preserved colonial-era cityscape has made George Town a popular filming location for movies and television series that depict Asian culture.

[80] Shophouses sit alongside Anglo-Indian bungalows, mosques, temples, churches, and European-style administrative and commercial complexes, forming the city's multicultural framework.

[309] Penang's culinary scene incorporates Malay, Chinese, Indian, Peranakan and Thai influences, evident in the variety of street food that includes char kway teow, asam laksa and nasi kandar.

[311] Robin Barton of the Lonely Planet remarked that the city was a "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".

[313][314] In 2022, the Michelin Guide made its debut in the state, in recognition of its "small-scale restaurants and street food that embodies Malaysia's distinctive streetside dining culture".