The federal constituency was created in the 1974 redistribution and was mandated to return a single member to the Dewan Rakyat under the first past the post voting system.

The Penang Selatan parliamentary constituency comprises the predominantly rural areas of Balik Pulau, Bayan Lepas, Sungei Nibong and the urban enclaves of Gelugor and Jelutong.

However, towards the late 60s, racial segregation and sentiments had reached a peak which caused the Alliance to lose ground in Penang in favor of opposition parties.

In the 1969 general elections, future Chief Minister, Lim Chong Eu and his Gerakan party swept power in Penang.

Most of the Alliance parliamentary and State Assembly candidates lost their seats.