Penang

Penang, officially known as Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia. It comprises Penang Island and Seberang Perai on the mainland, connected by two bridges. Known as the "Pearl of the Orient," it is a significant economic powerhouse with a diverse cultural landscape, famous for its food and heritage.

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Country

1,740,405 (2020)

Population

Introduction

Penang, officially known as Pulau Pinang, is a vibrant Malaysian state situated on the northwest coast of Peninsular Malaysia, along the Strait of Malacca. The state is geographically divided into two main parts: Penang Island, where its capital George Town is located, and Seberang Perai on the Malay Peninsula. These two areas are seamlessly connected by the iconic Penang Bridge and the Second Penang Bridge. Often referred to as the "Pearl of the Orient," Penang is celebrated for its rich historical background, diverse cultural tapestry, and significant economic contributions to Malaysia [1, 2].

Penang's modern history began in 1786 with the acquisition of Penang Island by Captain Francis Light of the British East India Company from the Sultanate of Kedah. George Town was established as a free port, rapidly growing into a bustling trading hub that attracted a cosmopolitan population of Chinese, Malays, Indians, and Eurasians. This strategic location and free trade policy were instrumental in its early prosperity. Despite facing challenges such as the Japanese occupation during World War II and the later revocation of its free port status, Penang has continuously reinvented itself, becoming a leading hub for high-tech manufacturing and tourism [3, 4].

Data and Facts
  • Penang's population in 2020 was 1,740,405, making it one of Malaysia's most densely populated and urbanized states [5].
  • The state boasts the highest GDP per capita among Malaysian states, excluding federal territories, and ranks second in average wages [2].
  • Penang is a major hub for foreign direct investment (FDI) in Malaysia, attracting substantial investments, particularly in the manufacturing sector [2].
  • In 2024, Penang was Malaysia's leading exporter, with nearly RM495 billion (US$119.57 billion) in exports, primarily driven by the electronics manufacturing sector [2].
  • The state maintains one of the lowest unemployment rates in the nation, recorded at 2.2% in 2023 [6].
  • George Town's historic core was designated a UNESCO World Heritage Site in 2008, recognizing its unique architectural and cultural landscape [4].
  • Penang is known as the "food capital of Malaysia," with its diverse culinary scene influenced by Malay, Chinese, Indian, Peranakan, and Thai cultures [2].
  • The state is home to the Penang Hill Biosphere Reserve, a UNESCO Biosphere Reserve, highlighting its commitment to preserving its natural environment and biodiversity [2].
Administration

The Government of Penang operates under a parliamentary system, adhering to both the Malaysian federal constitution and the state's own constitution, codified in 1957. The state government comprises an executive body, the Penang State Executive Council, and a legislative branch, the Penang State Legislative Assembly. The head of state is the Governor (Yang di-Pertua Negeri), appointed by the King of Malaysia, whose role is largely ceremonial. The head of government is the Chief Minister, currently Chow Kon Yeow, who is appointed based on commanding the confidence of the majority in the State Legislative Assembly [7].

Penang is unique among Malaysian states for appointing two Deputy Chief Ministers, representing the Malay and Indian communities, reflecting the state's diverse ethnic makeup in its leadership. The state government's powers are defined by the Federal Constitution, allowing it to legislate on matters such as land, agriculture, local government, and civil works. Historically, Penang has experienced periods of strained relations with the federal government, particularly concerning economic policies and funding allocations, with ongoing calls for greater fiscal decentralization to bolster the state's development initiatives [7].

Economy

Penang possesses one of Malaysia's most robust and diversified economies, classified as a high-income economy. Its economic strength is predominantly driven by the manufacturing and services sectors, each contributing significantly to the state's Gross Domestic Product (GDP). In 2023, Penang's GDP growth rate was 3.3%, with its GDP per capita of RM72,586 (US$15,814) being the highest among Malaysian states, excluding federal territories. The manufacturing sector, particularly in electronics and electrical (E&E) products, is a vital component, with the Bayan Lepas Free Industrial Zone known as the "Silicon Valley of the East" [2, 8].

The services sector, contributing 48% of the state's GDP in 2023, encompasses logistics, communications, retail, tourism, and financial services. Penang is recognized as Malaysia's leading destination for medical tourism and a significant hub for Global Business Services (GBS). The state consistently records a low unemployment rate and attracts substantial foreign direct investments, primarily from countries like the Netherlands, Cayman Islands, and Singapore. The booming economy has also stimulated considerable interest in the real estate market [2].

Infrastructure

Penang boasts a relatively developed and comprehensive transport infrastructure, connecting the state by land, air, and sea. The Penang Bridge and the Second Penang Bridge provide crucial road links between Penang Island and mainland Seberang Perai. The state is also served by the North-South Expressway and Keretapi Tanah Melayu’s (KTM) West Coast Line, enhancing interstate connectivity [12, 13].

Public transportation within Penang is primarily managed by Rapid Penang, which operates an extensive network of bus services. Penang Sentral acts as a major intermodal transport hub, integrating various public transport modes including buses, ferries, and train services. Air travel is facilitated by the Penang International Airport (PIA), the second busiest airport in Malaysia for aircraft movements and the busiest by export volume. The Port of Penang serves as the main transshipment hub for northern Malaysia and southern Thailand, with Swettenham Pier in George Town accommodating cruise ships and acting as a key entry point for tourists. Future developments include a proposed light rapid transit (LRT) system, the Mutiara LRT, and a cable car system for Penang Hill, further enhancing the state's urban mobility and connectivity [12, 14, 15].

Region
Peninsular Malaysia
Government Type
Parliamentary (State Government)
Area
• Total Area
1,049 km² (405 sq mi)
Time Zone
MYT (UTC+08:00)
Postal Code
10000-14400
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