Completed in 1909, the building, situated at Downing Street within the city's Central Business District (CBD), was formerly part of the Government Offices, the administrative seat of Penang under the Straits Settlements.

[3] The local media at the time characterised the new extension as "abnormally hideous" and "abominations" built by "gallant but inartistic builders".

[3] In 1945, the Government Offices were largely destroyed by Allied aerial bombardment, with only the last constructed section along Beach Street surviving.

[3][5] After the British retook Penang, government departments had to be temporarily relocated to nearby godowns and commercial structures.

In 1962, the administrative seat of Penang was officially moved to the Tuanku Syed Putra Building.