Penang is the second smallest state in Malaysia after Perlis, and the eighth most populous. It consists of an island as well as an area on the mainland, located on the north-west coast of Peninsular Malaysia. When people refer to Penang, it is usually to the island, which is affectionately known as "Pulau Mutiara" or Pearl of the Orient.

As one of the earliest, most established urban centres in Malaysia, Penang has often prided herself on her progress while at the same time nurturing her traditional and enduring values.

History
Penang was originally part of the Malay sultanate of Kedah and was given to the British East India Company in 1786 by the Sultan of Kedah. This was in exchange for military protection from Siamese and Burmese armies who were threatening Kedah. On 11 August 1786, Captain Francis Light, known as the founder of Penang, landed in Penang and renamed it Prince of Wales Island in honour of the heir to the British throne.

However, Light had acted without the approval of the East India Company when he promised military protection. When the Company failed to aid Kedah when it was attacked by Siam, the Sultan tried to retake the island in 1790. The attempt was unsuccessful, and the Sultan was forced to cede the island to the Company for an honorarium of 6,000 Spanish dollars per annum. This was later increased to 10,000 dollars, with Province Wellesley (Seberang Prai) being added to Penang in 1800. An annual honorarium of 10,000 ringgit continues to this day to be paid each year by the Malaysian Federal Government to the state of Kedah.

In 1826, Penang, along with Malacca and Singapore, became part of the Straits Settlements under the British administration in India, moving to direct British colonial rule in 1867. In 1946 it became part of the Malayan unio n, before becoming in 1948 a state of the Federation of Malaya, which gained independence in 1957 and became Malaysia in 1963.

The island was a free port until 1969. Despite the loss of the islands free-port status, the state built up one of the largest electronics manufacturing bases in Asia, in the Free Trade Zone around the airport in the south of the island.

Language
Malay is the national language while English is widely spoken and used in business as well as other contexts. Penang Hokkien and Mandarin are Chinese dialects which are commonly spoken in Penang, while other languages, including Cantonese and Tamil, are also spoken in the state.

Religion
The official religion of Penang is Islam but other religions are freely practised. These are Buddhism, in the Theravada, Mahayana and increasingly also Vajrayana traditions, Taoism, Chinese folk religion, Hinduism, Catholicism, Protestantism (the largest denominations of which are the Methodists, Seventh-day Adventists, Anglican, Presbyterian and Baptists) and Sikhism - reflecting Penangs diverse ethnic culture.

Climate
Penang has a year-round equatorial climate which is warm and sunny, along with plentiful rainfall, especially during the southwest monsoon from April to September. As an island, Penang also enjoys cool sea breezes, especially in the coastal areas.