In the early 16th century, Portuguese traders have been sailing to the
Far East searching for spices. They came across a small uninhabited island
where they could replenish fresh water supplies, which they then named it “Pulo
Pinaom”.
The island was part of the Kedah Sultanate. Its strategic location at
the northern entry to the Straits of Malacca has made it a natural harbour
during the monsoon months for Arabian, Chinese, European and Indian ships.
Inevitably, it became a hunting ground for pirates.
Since the 17th century, Kedah have been sending “Bunga Emas” (Gold
Flowers) to Siam (Thailand) as an acknowledgement of the Siam King’s
sovereignty. 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.
In 1771, the Sultan of Kedah offered Captain Francis Light the island of
Penang in return for protection from the Siamese and Burmese armies who were
constantly threatening Kedah. This treaty never materialised as Francis Light's
superiors refused to offer any aid.
Captain Francis Light left Kedah for Junk Ceylon (Phuket, an island off
southern Thailand) in 1772 to setup trade activities with India, southern Siam
and northern Malay Peninsula. At that time, the British were involved in the
Napolean war in Europe. Light was asked by the East India Company based in
Madras to obtain Pulau Pinang to setup a base to repair British navy ships and
as a trading post for trade between China, India and the archipelago.
In 1786, Francis Light acted as middleman in securing Penang from Sultan
Abdullah of Kedah in return for a promise of British protection from his
enemies. The Sultan of Kedah was not aware that Light had acted without the
approval of his superiors when making the promosi.
Light landed in that part of Penang now known as the Esplanade on July
17, 1786 with a small group of civilians and naval staff. On August 11, 1786,
the Union Jack was hoisted as Captain Francis Light, known as founder of Penang
officially took possession of the island for the Crown. The island was named
"The Prince of Wales Island” as the acquisition date fell on the prince’s
birthday. The settlement in the Eastern Cape of the island was called
Georgetown named after the King of England, George III.
In 1790, Sultan Abdullah formed an army to get rid of the Dutch and
English after the Company had failed to provide military protection when Kedah
was attacked by Siam. He assembled his men at Seberang Prai (Province Wellesley)
to retake Penang Island but was defeated by Captain Francis Light who had
carried out night raids on the enemy's fortress. The following year, Sultan
Abdullah signed a treaty with the British, officially handing over Penang
Island to the British. As part of the treaty, the Sultan of Kedah is paid 6,000
Spanish dollars annually. Captain Francis Light was appointed Superintendent of
Prince of Wales Island.
The first settlement in Penang was at the present Esplanade area which
was a swampy, malaria infected area at that time. Fort Cornwallis, the island’s
main defense was located at the same area. In order to expedite clearing of
thick undergrowth around that site, Light loaded the ship’s cannons with silver
dollars and fired it deep into the jungle. The township was named George Town
after King George III of Britain. Four original streets of George Town were
Beach Street, Light Street, Pitt Street (now Masjid Kapitan Keling Street) and
Chulia Street, all of which still form the main thoroughfares of the modern
city.
When Light first took over the island, there were less than 1,000 Malay
fishermen living on the island. To encourage settlers, Light introduced Penang
as a free port in order to attract traders away from nearby Dutch trading post.
In addition, new comers are allowed to claim as much land as they could clear.
Captain Light's term as the first Superintendent of the Prince of Wales
Island came to an end in 1794. He died of Malaria on October 21, 1794 at the
age of 54 and 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 arrived
in Penang to coordinate the defenses of the island. In 1800,
Lieutenant-Governor Sir George Leith secured a strip of land across the channel
from the island and named it Province Wellesley (Seberang Prai). This gave
Penang control over the harbour and food supplies from the mainland. The annual
payment to Sultan of Kedah was increased to 10,000 after the acquisition.
Today, the Penang State comprises both Penang Island and Province Wellesley
and, the State Government still pays RM 18,800.00 to the Sultan of Kedah
annually.
In 1805, Penang was elevated from a colonial status to that of a
Residency. A new Governor, the honourable Philip Dundas was appointed into
office. His assistant secretary was Thomas Stamford Raffles, future founder of
Singapore in 1819. In 1832, under the British administration in India, the
Straits Settlements comprising the states of Malacca, Singapore and Penang was
formed. Penang became its capital but in 1935 Singapore took over as capital of
the Straits Settlements.
At the end of the 19th century, rich deposits of tin from neighbouring
state and relentless demands of the Industrial Revolution in Britain saw Penang
enjoying a trade boom. This also includes trading of rubber, nutmeg, clove, sugar,
coconut and pepper. In time, Penang’s properity attracted immigrants from
various parts of the world, especially those from Europe, China and India.
European planters and Chinese towkays (business leaders) made their money in
the plantations and mines in other northern states but built their mansions in
George Town and sent their children to school here.
In 1905 the first hydro-electric scheme in Penang was completed, giving
the island her first electricity. Penang got its first electric tramway in 1906.
By mid 20th century, other modes of transport such as rickshaws, bullock carts
and horse-carts gradually disappeared from the roads of Penang.
By the 1930s, Penang had become a busy port with ocean liners and
coastal steamers docking at Swettenham Pier or anchoring in the waters of the
channel. Penang became an entertainment centre, with cabarets, cinemas,
amusement parks and gambling establishments. When Wall Street crashed, the
economy of Penang suffered badly.