|  In the 16th century, Portuguese traders from Goa,
India sailed to the Far East in search of spices. It is said that
a small rocky isle on the northern coast of a main island became
a landmark for traders to stop and row in by boat to obtain fresh
supplies of water from a nearby river. The local Malays called these
traders ferringi, an Indian term for Europeans, especially Indian
born Portuguese. That rocky isle was then referred to as Batu Ferringi,
better known now as "Lover's Isle". The Portuguese called
the main island "Pulo Pinaom" or Betel Nut Island. Probably
areca nut palm trees were found abundantly then. The palm tree is
known as PINANG to the Malays or PENANG to the English.
During the 17th century the turtle-shaped island
of Penang situated at the northern entry point to the Straits of
Malacca had provided a natural harbour during the monsoon months
for Indian, Arabian, Chinese, Dutch, Danish and French ships. Penang
island also became a haven for pirates who plundered ships that
passed through the Straits of Malacca.
In the 18th century, the spice and opium trade
between the East and west had become extremely lucrative. The Dutch
dominated the Far East spice trade and the British too needed to
establish themselves in the region. Thus, in 1765 Francis Light
was instructed by his Company, Jourdain Sullivan and de Souza to
establish better trade relations in this part of the world. During
this period Penang island belonged to Kedah. In 1771, the Sultan
of Kedah offered Captain Francis Light the island of Penang in return
for British Protection from the constant threats of the Siamese
and Burmese armies. This treaty never materialised as Francis Light's
superiors refused to offer any aid.
In 1772 Captain Francis Light left Kedah for
Junk Ceylon (Phuket) to set up business with his friend James Scott.
By then he was knowledgeable of the peoples' customs and the local
language. This helped him to win their trust in him. In 1786, Francis
Light acted as middleman in securing Pulau Pinang from the new Sultan
Abdullah of Kedah in return for a promise of British protection
from his various enemies. It is said that before the agreement was
signed, Light sailed in three vessels to the island with a small
civilian and naval staff. He landed in that part of Penang now known
as the Esplanade on July 17, 1786. On August 11, 1786, Light officially
took possession of the island for the Crown and the East India Company.
He christianed it "the Prince of Wales Island", and the
Union Jack was hoisted over the new stockade. So, in all legal documents,
Penang was known as Prince of Wales Island. The settlement in the
eastern cape of the island was called Georgetown named after the
King of England, George III.
In 1790, when Sultan Abdullah heard that the British
would not give protection, he formed an army to get rid of the Dutch
and English. He assembled his men at Prai to retake the island of
Penang but was defeated. Captain Francis Light had carried out night
raids on the enemy's fortress. In 1791, Sultan Abdullah signed a
treaty with the British handing over Penang Island to the British.
Light promised to pay the Sultan 6,000 Spanish dollars annually.
Today, almost two centuries later, the Penang State Government still
pays RM 18,800.00 to the Sultan of Kedah annually.
Captain Light's term as the first Superintendent
of the Prince of Wales Island came to an end in 1794. He died on
October 21, 1794 at the age of 54 probably due to malaria. He was
buried at the Protestant cemetery at the end of Northam Road (now
known as Jalan Sultan Ahmad Shah). He was survived by Martina Rozells,
a local Eurasian of Portuguese descent and son, William Light who
later founded the city of Adelaide, Australia.
After Francis Light's death, Lieutenant Colonel Arthur
Wellesley (Colonel Wellesley the then, future Duke of Wellington)
arrived in Penang to coordinate the defences of the island. It was
in 1800 that Sir George Leith, then Lieutenant Governor of the Prince
of Wales Island secured a strip of land across the channel from
the island. He named it Province Wellesley. This gave Penang control
over its harbour and food supplies from the mainland. Till this
day, the State of Penang comprises two areas – Penang Island
and Province Wellesley.
 In 1804, Penang was elevated from a Settlement to
a Presidency. In 1805, a new Governor, the honourable Philip Dundas
took over. His assistant secretary was Thomas Stamford Raffles,
the future founder of Singapore in 1819. In 1832, the Straits Settlements
was formed comprising the states of Malacca, Singapore and Penang.
Penang became its capital but in 1935 Singapore took over Penang
as capital of the Straits Settlements.
The latter part of the 19th century saw Penang enjoying
a trade boom, as rich deposits of tin were found in the neighbouring
state of Perak. Initially famed for clove and nutmeg, Penang gradually
turned to sugar and coconut as cash crops. Pepper was imported from
Acheh in Sumatra, in the Indonesian Archipelago, for re-export.
With British intervention in the Malay states, Penang became rich
from the tin mines of Perak. In time, Penang became an important
immigration port for immigrants from various parts of the world,
especially those from South China and those from South India. As
Britain's only strategic port of call in the Straits of Malacca,
Penang was soon linked by ship to Madras, Rangoon, Medan and Singapore.
It served as an entreport for southern Thailand, the north of peninsular
Malaya, and also the northern region of Sumatra.
At the turn of the 20th century, Penang became a centre
of export for rubber and tin. Rubber was in demand for the manufacturing
of pneumatic tyres of the first generation of motor cars. The European
planters and Chinese towkays (business leaders) made their money
in the plantations and mines of the other northern states but built
their mansions in Georgetown and sent their children to school here.
With the advent of new food canning technology, tin was also in
great demand. In 1905 the first hydroelectric scheme in Penang was
completed, giving the island her first electricity. Penang's first
electric tramway appeared in 1906. By mid 20th century, other modes
of transport such as the jin-rickshaws introduced by the Chinese,
the bullock carts introduced by the Indian and the horse-carts gradually
disappeared from the Penang roads.
 By the 1930s, more than forty steamship lines connected
Penang to the rest of the world, and there were already "Flying
Boat" services to London and Singapore. Penang had become an
entertainment centre, with cabarets, cinemas, amusement parks and
gambling establishments. The popularity of the turm club led to
the ruin of many rich families whose sons were tempted to bet on
slow horses and fast women. Then came the depression. Penang's economy
suffered due to the Wall Street Crash. Before the people of Penang
could recover from the depression, the Second World War broke out
on December 8, 1941. The Japanese invaded Malaya. Penang was bombed
and the British fled to Singapore. The year 1942 saw Penang living
in fear. The days of the Japanese Kempettai were the days of horror,
torture and executions. In September 4, 1945, the Japanese surrendered
to the British Forces.
 This was followed by years of struggle for power
between the communists and the democratic forces of Malaya and Britain.
Malaya gained independence in August 31, 1957 and Penang became
one of its 13 component states. Georgetown, which has the oldest
municipal history in the country, was awarded City status by royal
charter on 1st January 1957.
The latter part of the 20th century witnessed outstanding
progress and development in commerce and industry. Presently Penang
is officially known as Negeri Pulau Pinang. Those who have enjoyed
the beauty of the island gave Penang various names – An Asia
in Miniature, An Island in the Sun, The Garden of the East, The
Pearl of the Orient and The Land of Festivals. By whatever name
she is called, Penang Island's cosmopolitan population of over one
million come from a variety of backgrounds and culture. Each of
the races of Penang's multi-ethnic society has contributed to the
rich potpourri of cultures.
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