Pinang

Pinang or Penang, state, north-western Malaysia, comprising Pinang Island, lying off the western coast of the Malay Peninsula in the Strait of Malacca, and a small area of land on the mainland opposite. The two parts of the state are joined by an 8.4 km (5.2 mi) bridge. Pinang has land boundaries on the north and east with Kedah State, and on the south with Perak State. Pinang has an area of 1,031 sq km (398 sq mi). The port of George Town, or Penang, on Pinang Island is the state capital. Pinang has a population of 1,222,100 (1997 estimate).

Pinang has a diverse ethnic structure, reflecting its long history as an important trade entrepôt and shipping centre. Indigenous Malays are still a majority in rural mainland areas, while Pinang Island is a cosmopolitan mix, in which Chinese and Indians are the dominant groups. Bahasa Malaysia is the official language; several Chinese dialects are widely spoken. Pinang has a large Buddhist community.

Agriculture is an important source of livelihood in the rural areas: rubber and rice are the main products. However, much of the population works outside agriculture, notably in cargo handling, financial services, tourism, and manufacturing. George Town was founded in the late 18th century by the British and developed as a collection, processing, and shipment centre for peninsular Malayan exports, especially rubber and tin, and as a distribution centre for imports. It is one of Malaysia's chief ports and an important industrial centre. From the early 1970s onwards, many high-technology factories opened in Pinang, including electronics and household appliances. During the same period, the state developed into one of Malaysia's prime tourism centres; the many luxury hotels are located mainly on the north coast of Pinang Island.

The British East India Company, attracted by its strategic location, established the first British colony in Malaya on Pinang Island in 1786. The mainland area was acquired in 1798; in 1800 it was incorporated with Pinang Island (called Prince of Wales Island until 1867) as a single administrative unit. Rubber plantations were established on the mainland. Pinang Island—which commanded the trade of the north-western Malay Peninsula, the western coast of south Thailand, and the east coast of Sumatra—was developed as the focus of the British challenge to Dutch commercial power in the region. In 1826, the Pinang colony was united with Melaka and Singapore to form the Straits Settlements under a single British colonial governor. In 1867 the Straits Settlements became a Crown Colony. In 1946 Pinang became a member of the Malayan Union (which was superseded in 1948 by the Federation of Malaya) and in 1963 became part of Malaysia. Pinang bore the brunt of the tsunami impact on Malaysia in December 2004, with an estimated 70 people losing their lives when the waves hit the coastline. However, the region was largely protected from the worst effects of the devastation by the Indonesia island of Sumatra, where an estimated 100,000 people died.