Early history Archaeologists have discovered human remains such as the "Penang Woman", along with seashells, pottery and stone tools, in
Seberang Perai. The artefacts indicate that around 5,000 to 6,000 years ago, Penang was inhabited by nomadic
Melanesians during the
Neolithic era. The indigenous
Semang people of Penang died out in the early 20th century.
Pali inscriptions on the
Cherok Tok Kun megalith suggest the
Hindu-
Buddhist Bujang Valley civilisation, based in present-day
Kedah, held authority over parts of
Seberang Perai by the 6th century. The entirety of Penang later formed part of
Kedah, which came under
Siamese suzerainty by the late 18th century.
Establishment and British rule The British first arrived in Penang in 1592. After negotiating an agreement with the Sultan, Light and his entourage landed on Penang Island on 17 July that year and took formal possession of the island "in the name of King
George III of England" on 11 August. The island was renamed Prince of Wales Island after the
heir to the British throne and the new settlement of
George Town was established in honour of King George III. Unbeknownst to Sultan Abdullah, Light had acted without the authority or the consent of his superiors in
India. When the EIC reneged on military protection, the Sultan launched an attempt to recapture the Prince of Wales Island in 1791. However, the attempt was defeated by EIC forces and the Sultan sued for peace. An annual payment of 6,000 Spanish dollars was agreed in exchange for British sovereignty over the island. In 1800,
Lieutenant-Governor George Leith secured a strip of
hinterland across the
Penang Strait, which was subsequently named Province Wellesley (now
Seberang Perai). The EIC gained permanent sovereignty over both Prince of Wales Island and the new mainland territory, while the annual payment to the Sultan of Kedah was increased to 10,000 Spanish dollars. The British government and, subsequently, the Malaysian government maintained the annual payments to Kedah until 2018, when the
Malaysian federal government increased the amount by RM10 million yearly. in
George Town . Port functions were eventually relocated to
Seberang Perai in 1974. George Town grew rapidly as a
free port and a conduit for
spice trade, diverting maritime commerce away from
Dutch outposts in the region. In 1805, Penang became a separate
presidency of
British India, sharing similar status with
Bombay and
Madras. By 1808, George Town had established its local government, while the founding of the
Supreme Court of Penang marked the birth of Malaysia's modern judiciary. In 1826, George Town was made the capital of the
Straits Settlements which included
Singapore and
Malacca. As Singapore soon supplanted George Town as the region's premier
entrepôt, Singapore became the capital instead in 1832. Despite its secondary importance to Singapore, George Town retained its importance as a vital British entrepôt. Towards the end of the 19th century, it became a major tin exporter and
Malaya's primary financial centre. Penang's prosperity attracted a cosmopolitan population comprising
Chinese,
Malay,
Indian,
Peranakan,
Siamese and migrants of mixed European-Asian lineage referred to as "
Eurasians", and led to the development of hitherto rural areas such as
Butterworth and
Bukit Mertajam. However, the population growth created social problems such as inadequate sanitation, health facilities and rampant crime, culminating in
street violence and rioting in 1867. The Straits Settlements
became a British crown colony within the same year. Direct British rule led to improved law enforcement, and investments in health care and public transportation in Penang. Owing to enhanced access to education, active participation of Asian residents in municipal affairs and substantial press freedom, George Town was perceived as being more intellectually receptive than Singapore. The settlement attracted intellectuals and revolutionaries, including
Rudyard Kipling,
Somerset Maugham and
Sun Yat-sen. In 1910, Sun selected George Town as the centre for the
Tongmenghui's political activities in Southeast Asia, aimed at overthrowing the
Qing dynasty. During the
interwar years, the British had acknowledged the need to fortify their armed forces in northern Malaya. However, complacency and lack of resources left British forces ill-prepared to confront the Japanese invasion at the onset of the
Pacific War. Although Penang Island had been designated as a fortress, Penang fell without struggle to the
Imperial Japanese Army on 19 December 1941 after daily aerial attacks. The British covertly evacuated Penang's European populace; historian Raymond Callahan since contended that "the moral collapse of British rule in Southeast Asia came not at Singapore, but at Penang". Penang Island was subsequently renamed
Tojo-to after
Prime Minister Hideki Tojo.
Japanese military police imposed order by massacring
Chinese civilians under the
Sook Ching policy, while women were forced into
sexual slavery.
Swettenham Pier was converted into a major submarine base by the
Axis Powers. Between 1944 and 1945, Allied bombers from India
targeted naval and administrative buildings in George Town, damaging and destroying several colonial buildings in the process. The
Penang Strait was mined to restrict Japanese shipping. Following
Japan's surrender, George Town was the first Malayan settlement liberated by
British marines through
Operation Jurist on 3 September 1945.
Post-war years Penang was placed under
British military administration until 1946, after which the
Straits Settlements was abolished. The British sought to consolidate the various political entities in
British Malaya, including the
Crown Colony of Penang, under a single polity known as the
Malayan Union. Initially, the impending annexation of Penang into the vast Malay heartland proved unpopular among Penangites. The
Penang Secessionist Committee was formed in 1948 due to economic and ethnic concerns, but their attempt to avert Penang's merger with Malaya was unsuccessful due to British disapproval. To relieve the concerns raised by the secessionists, the British government guaranteed George Town's free port status and
reintroduced municipal elections in 1951.
Post-independence era George Town's status as a free port was rescinded by the
Malaysian federal government in 1969. This led to a loss of maritime trade, causing massive unemployment and
brain drain. To revive the economy,
Chief Minister Lim Chong Eu established the
Bayan Lepas Free Industrial Zone in 1972. Under Lim's tenure, the
Penang Bridge, the first road link between Penang Island and the
Malay Peninsula, was built. Persistent brain drain, aggravated by federal policies prioritising the growth of Kuala Lumpur, resulted in Penang losing its leading position in the national economy by the 21st century. This decline, compounded by various issues including incoherent urban planning, poor traffic management and the dilapidation of George Town's heritage enclave following the repeal of the Rent Control Act in 2001, contributed to growing dissatisfaction within Penang's society. In response, civil societies in George Town mobilised public support to rejuvenate the city. Resentment against the
Barisan Nasional (BN) administration led to the
Pakatan Rakyat bloc (now
Pakatan Harapan) rising to power through the
2008 state election. Efforts to preserve George Town's heritage architecture led to the city's historical core being designated as a
UNESCO World Heritage Site that year. }} ==Governance and politics==