Penang (Malay: Pulau Pinang) is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay Peninsula. These two halves are physically connected by the Penang Bridge and the Second Penang Bridge. The state shares borders with Kedah to the north and east, and Perak to the south.
With 1.74 million residents and a population density of 1,659/km2 (4,300/sq mi) as of 2020, Penang is one of Malaysia’s most densely populated and urbanized states. Seberang Perai is Malaysia’s third-largest city by population. Penang is culturally diverse with a population that includes Chinese, Malays, Indians, Eurasians, Siamese and expatriates.
Established by Francis Light in 1786, Penang became part of the Straits Settlements, a British crown colony also comprising Malacca and Singapore. During World War II, Japan occupied Penang, but the British regained control in 1945. Penang was later merged with the Federation of Malaya (now Malaysia), which gained independence in 1957.
Penang’s economy shifted from entrepôt trade to electronics manufacturing and the tertiary sector in the late 20th century. Today, it is one of the country’s most developed economic powerhouses, with the second-highest GDP per capita among Malaysian states, and the third-highest Human Development Index after Kuala Lumpur and Selangor. Penang is also Malaysia’s leading exporter with nearly RM451 billion in exports in 2022, primarily through the Penang International Airport, the nation’s third busiest.
The name Penang comes from the modern Malay name Pulau Pinang which means ‘areca nut island’. The State of Penang is also colloquially referred to as the ‘Pearl of the Orient’ and ‘The Island of Pearls’ (Malay: Pulau Mutiara).
Over the course of history, Penang Island has been known by different names by seafarers from various regions. The locals named it Pulo Ka Satu, meaning The First Island, as it was the largest island on the maritime route between Lingga and Kedah. The Siamese, who were the overlords of Kedah, called it Ko Mak.
Maritime explorers also took note of the island’s abundance of areca nut. During the 15th century, Admiral Zheng He of Ming China referred to the island as Bīngláng Yǔ Pin-nn̂g-sū; lit. ‘areca nut island’) in his navigational charts. In the Description of Malacca, Portuguese cartographer Manuel Godinho de Erédia named it Pulo Pinaom.