1957–1969 Penang's political landscape immediately after the independence of
Malaya became relatively fractured. The new
Penang state government was dominated by the
Alliance coalition (now succeeded by
Barisan Nasional), the same ruling coalition that controlled the Malayan federal government.
Wong Pow Nee of the
Malaysian Chinese Association (MCA), one of the major component parties of the Alliance, became Penang's first
Chief Minister, a position that he held until 1969. On the other hand, the
Labour Party, a left-wing opposition party, took control of the
George Town City Council soon after the Malayan independence. This solidified the financial autonomy of the city council, with its revenue going into social welfare projects within
George Town. Meanwhile, the Penang state government attempted to boost the state's manufacturing sector by opening new industrial estates in
Seberang Perai, such as in
Perai and
Mak Mandin. As previously guaranteed by the British authorities, George Town's free port status was untouched in the years immediately after the Malayan independence. The earlier fears by the secessionists eventually came true, however, when in 1969, the free port status was suddenly revoked by the
Malaysian federal government. In the long run, this also marked the beginning of George Town's slow, decades-long decline, which was only recently reversed. The revocation of George Town's free port status, coupled with an unsuccessful, bloody strike by Penang's unions in 1967, led to a loss of popular support for the Alliance amongst Penangites. During the
1969 state election,
Gerakan, then an opposition party, was voted into power in Penang, replacing the Alliance. The party's founder,
Lim Chong Eu, succeeded Wong Pow Nee as the Chief Minister of Penang. However, the
violent race riots in Kuala Lumpur following the concurrent
Malaysian General Elections led to the nationwide imposition of martial law and the functions of the Penang state government were taken over by the National Operations Council until 1971.
1970–1990 in
George Town is
Penang's tallest skyscraper. was first developed by the
Penang Development Corporation in the 1970s, following the establishment of the adjacent
Bayan Lepas Free Industrial Zone. In 1973,
Gerakan joined
Barisan Nasional, thus returning the
Penang state government back into the hands of the ruling coalition. To revive
Penang's economy,
Lim Chong Eu created the
Bayan Lepas Free Industrial Zone and courted foreign
multinational corporations for investments. Pioneer tax status was granted to multinational firms seeking to establish assembly plants within Bayan Lepas, which was formerly the rice bowl of Penang. Meanwhile, in 1974, the
Port of Penang was relocated from George Town to the town of
Butterworth, directly across the
Penang Strait, to allow for the berthing of larger container and cargo vessels. By then, the maritime traffic through Penang had been greatly diminished since the revocation of George Town's free port status, with increasing volumes of maritime trade being directed towards
Port Klang near
Kuala Lumpur instead. Throughout the 1970s and 80s, the
Malaysian federal government proceeded with the rapid development of Kuala Lumpur and nearby Port Klang, by controlling investments in communication, transport, education and health. Between 1974 and 1976, the
George Town City Council was
merged with the
Penang Island Rural District Council to form the Penang Island Municipal Council, while the five local authorities within
Seberang Perai, including the Butterworth and
Bukit Mertajam town councils, were merged into the
Seberang Perai Municipal Council. By then, local elections, suspended since 1965, became a thing of the past, with the municipal councillors being appointed by the Penang state government ever since. In the
1990 state election, Lim Chong Eu as the incumbent lost the
Padang Kota constituency to
Lim Kit Siang of the
Democratic Action Party (DAP), forcing him into retirement. Although Barisan Nasional remained in power, Lim Chong Eu was succeeded by
Koh Tsu Koon as the
Chief Minister of Penang.
1991–2008 Koh Tsu Koon's tenure as the
Chief Minister of Penang was marked by inept development and urban planning policies, rampant pollution, and the deteriorating general state of affairs within
Penang. Political tussles complicated development policies, while simmering discontent from Penang's vocal
non-governmental organisations (NGOs) and residents over the state's decline would eventually lead to an unprecedented political change within the state. In the early 1990s, plans for the development of
Penang Hill were drawn up by the
Penang state government, drawing considerable backlash from Penang's civil societies over the potential environmental degradation of the forested hill. This consequently led to the further hollowing out of the city centre, as residents, and
smaller businesses, were unable to cope with the rental hikes and moved out. Unscrupulous private developers began demolishing several pre-war heritage buildings within the city centre for redevelopment, while other historic buildings fell under disrepair. Concerned over the impending loss of George Town's heritage architecture, NGOs based within the city started to mobilise public support for the conservation of these historic buildings. By the early 2000s, Penang's economic growth began to lose steam, with the city-state recording the lowest monthly household income growth rate amongst the
Malaysian states. Even the state's reputation for cleanliness was not spared, as reports of coastal pollution and dirty streets within Penang made headline news. Widespread dissatisfaction over Penang's decline and neglect sparked a media campaign to restore Penang to its former glory in 2004. It has since been speculated that the public outcry over the neglect of the city once known as the Pearl of the Orient, combined with Penang's relatively lively political scene, contributed to the defeat of Barisan Nasional in the
2008 state election by the federal opposition pact,
Pakatan Rakyat. The opposition coalition, led by the
DAP, subsequently took over the Penang state government, with
Lim Guan Eng succeeding Koh as the Chief Minister of Penang. In late 2004, Penang was hit by the massive
Indian Ocean tsunami. Out of the 68 deaths within
Malaysia, 52 were in Penang.
2008 World Heritage Site since 2008. The swearing in of the new
Penang state government, now led by
Pakatan Rakyat, in 2008, heralded various positive policy changes. During that year, the
George Town city centre, along with
Malacca, was inscribed as a
UNESCO World Heritage Site, as a result of years of conservation efforts led by the city's
NGOs. The new state government subsequently spearheaded efforts to improve hygiene, cleanliness and
pedestrianisation, as well as the use of public transportation and the promotion of the city's cultural diversity. By 2010, George Town was ranked the most liveable city in
Malaysia by
ECA International, coming in at eighth place within
Asia as well. Moreover, in 2017, the city was also ranked the second cleanest within Malaysia, behind only
Ipoh. In the economic front, the present state government has emphasised efforts to attract
foreign direct investments and to push Penang up the economic value chain, as well as policies to root out corruption. In 2010, Penang recorded the highest amount of capital investments within Malaysia, attracting RM12.2 billion, or 26%, of the nation's total investments. Penang's stunning economic recovery, particularly since 2008, was described by
Bloomberg as Malaysia's "biggest economic success" despite the
Malaysian federal government's focus on other states such as
Johor and
Sarawak. On top of that, the
Penang state government was able to decrease Penang's public debt by 95%, from RM630 million in 2008 to RM30 million by late 2011. In addition, in 2016, George Town was rated as the most attractive destination for commercial property investment within Malaysia by
Knight Frank, surpassing even
Kuala Lumpur. In 2015, the Malaysian federal government elevated the Penang Island Municipal Council into the present-day
Penang Island City Council, thereby expanding the jurisdiction of George Town to encompass the entire Penang Island, as well as five of the surrounding islets. This also made George Town the only Malaysian city to have been conferred its city status twice. The
Second Penang Bridge, currently the longest bridge in
Southeast Asia, was opened in 2013. Straddling a length of , it provides a second road link between Penang Island and
Seberang Perai, and has spurred the development of new industrial areas such as
Batu Kawan. ==See also==