Penang History and Economy

History

Today, Penang bears the mark of its early history of successive foreign influences - from the early Hindu civilization in northern Malaya, to that of the Portuguese, the Dutch and later the British, who came to this part of the world in search of spices and stayed to participate in the lucrative trade.

The history of modern Penang can be traced back to 1785 when Francis Light persuaded the Sultan of Kedah to cede "Pulau Pinang" (Betel Nut Island) to the British East India Company. Light landed at the site of the present Esplanade and purportedly fired gold coins into the surrounding jungle to induce his men to clear the area!

Originally named the Prince of Wales Island, the settlement that soon grew was named Georgetown after King George III. In 1800, The Sultan of Kedah further ceded a strip of land on the mainland across the channel, which Light named Province Wellesley after the then Governor of India.

In 1832, Penang formed part of the Straits Settlements with Melaka and Singapore to the south. It flourished and grew to be a major trading post for the lucrative tea, spice, china and cloth trade. For more than a two hundred years, it remained under British Colonial rule until 1957, when it gained independence and became one of the states of the newly formed Federation of Malaya, which later became Malaysia in 1963.

Economy

Penang has a mixed economy of commerce, industry, tourism and culture. High-tech industry is well developed here with many international electronics companies producing computer peripherals and chips.

Tourism-related services are also highly developed, as Penang is the country's premier destination, after the capital KL, and one of Asia's top meeting, convention and exhibition centres.

Agriculturally, there is some land use for oil palm, rice, rubber and fruits. Penang's port is a deep-water port that links Malaysia to more than 200 ports internationally.