page_title: History of Penang
section_title: 2008
hierarchical_section_title: History of Penang / Post-independence / 2008
caption_attribution_description: English: LinkBike bicycle rental service in George Town, Penang
context_page_description: The State of Penang, one of the most developed and urbanised Malaysian states, is located at the nation's northwest coast along the Malacca Strait. Unlike most Malaysian states, the history of modern Penang was shaped by British colonialism, beginning with the acquisition of Penang Island from the Sultanate of Kedah by the British East India Company in 1786. Developed into a free port, the city state was subsequently governed as part of the Straits Settlements, together with Singapore and Malacca; the state capital, George Town, briefly became the capital of this political entity between 1826 and 1832. By the end of the 19th century, George Town prospered and became one of the major entrepôts in Southeast Asia.
  During World War II, Penang was conquered and occupied by the Japanese Empire from 1941 to 1945. At the end of the war, Penang was also the first state in the Malay Peninsula to be liberated by the British, under Operation Jurist. The Straits Settlements was dissolved in the following year and Penang was merged into the Federation of Malaya.
context_section_description: 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 24 km (15 mi), 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.
caption: A LinkBike station in George Town. This public-bicycle sharing service is an initiative of the Penang state government to alleviate traffic congestion in the city.
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