It is located within the Air Itam suburb, 9 km (5.6 mi) west of the center of George Town.

One of the peaks is known as Strawberry Hill, which was also the name of a house owned by Francis Light, founder of Penang colony.

Penang Hill is a hilly, forested area that stands out from the lowlands of Malaysia due to its elevation and greenery.

The area was used as a retreat during the British colonial period and is now a popular tourist destination because of its history and heritage.

To date, this funicular railway system is the only one of its kind in Malaysia, transporting over a million visitors to the top of Penang Hill as of 2014[update].

The name was a reference to the flagstaff outside "Bel Retiro", which was the residence of the Governor of Penang built by Francis Light c.

[7][8] One of the earliest buildings on Strawberry Hill was a house built by David Brown on land given by Francis Light.

In the early days the only way to the top of hill was to travel on foot or horseback, or be carried on a dooly (sedan chair).

The first attempt at a mountain railway on Penang Hill began in 1897 but it proved unsuccessful; it was built between 1901 and 1905 but had technical faults.

The funicular railway led to a sharp increase in residential development as it became a location for the building of holiday villas and bungalows by Europeans and wealthy local Chinese towkays alike.

The railway was overhauled, allowing for faster access to the hill, and facilities for visitors, walkways and viewing decks were constructed.

In a number of cases, sudden changes in ground level have resulted in a series of small waterfalls and rapids, where bathing, dipping and picnicking are popular.

As a means of reducing congestion and decreasing reliance on the railway, a cable car system linking the peak with the Penang Botanic Gardens is being built as of 2024[update].

It begins at the quarry at the entrance of the Penang Botanic Gardens and it takes a two- or three-hour leisurely hike to reach the top.

At these pit stops, a view of the island is visible to hikers, who are able to get some water and tea prepared by locals stationed on the hill.

Indian penal servitude prisoners shipped from Bencoolen, Sumatra, to Penang during the second half of the 19th century built these by-paths.

It is an area rich in biodiversity and has a great number of endemic species, some of which are so rare that their existence is endangered.

The rare and endangered species include the parasitic plant Exorhopalia ruficeps, which grows in the shady and damp undergrowth.