History

It was believed that Penang was first used as a rest stop since the 16th Century, by Portuguese traders travelling from Goa, India to the Far East, via the Straits of Malacca where Penang is located. The island became a nesting ground for pirates and was practically ignored by the Sultanate of Kedah, in which Penang belonged to. However, in 1786, the Sultan faced incredible pressure from an impending invasion by Siamese forces.

Faced with the prospect of annihilation, the Sultan struck a deal with Sir Francis Light, a captain with the British East India Company that was looking to expand its territory. He ceded Penang to Francis Light for military protection from the Thai, but what unknown to him, Francis Light failed to get permission from the East India Company to provide military support to Kedah. The Thai eventually attacked, and the Sultan realising that he had been tricked, tried to retake Penang in 1790 but failed miserably, as the British had bigger and more guns. The Sultan was officially forced to cede Penang to the British at 6,000 Spanish dollars (Later increased to 10,000 dollars). Pleased with his achievement, Francis Light named Penang 'The Prince of Wales Island'. It was the first British conquered territory in Malaysia and Southeast Asia, which led to their greater expansion in the region.

Penang became established as a free port to compete with the Dutch, who had taken hold of the East Indies, which would become Indonesia in future. Penang, as a port, became highly successful, attracting traders and migrants from all over the world, especially those from China. The island prospered through exports of tin and rubber as well as opium, much more so with the opening of the Suez Cannal in 1869. However, many battles were fought between the secret societies, which were triad groups made up of mostly Chinese miners and migrants, during this time, but it was eventually quelled by the British.

During the second world war, Penang fell to the Japanese occupation forces, with the British fleeing back to their homeland and leaving the island to its fate. This left the people of Penang demoralised and discouraged with their colonial masters. When Japan surrendered, the British came back but it was only temporary until Malaysia became independent in 1957. Today, Penang has grown into an economic powerhouse and popular tourist destination among the states of Malaysia, but over the recent years, has seen a massive decline due to corruption under its previous government. With the new State Government elected in 2008, made by promising people with integrity under the Pakatan Rakyat coalition, Penang is now seeing an immense revival, a trend that will hopefully continue for many long years.