As I did research on George Town and Penang, I ended up chuckling a lot. It is most interesting to see how different websites characterize the British fellow who is given the credit of the founding of George Town: Francis Light. I have seen him referred to as charismatic, charming, and clever. Quite frankly, I would call him a devious scallywag! You will see why in the write-up below.

Penang Island" first appeared in the "The Nautical Charts of Zheng He" during the 15th century. In the early 16th century Portuguese traders searching for spices in the Far East came across the small uninhabited island looking to replenish fresh water supplies. They named their island Pulau Pinang which means, loosely translated, Betel Nut Island. The betel palm produces the betel nut which contains chemicals similar to nicotine, and yields a similar narcotic effect. Field workers and other rural inhabitants often chew it not only for its mild painkilling effects, but also for appetite suppression and digestive aid. You can always tell a betel nut chewer by the tell-tale dark red stained lips.

Eventually, Penang Island became part of the Kedah Sultanate. Its strategic location at the northern entry to the Straits of Malacca has made it a natural harbor during the monsoon months for Arabian, Chinese, European and Indian ships. It inevitably also became a hunting ground for pirates.
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 materialized as Francis Light's superiors refused to offer any aid.

However, in 1786, on behalf of the East India Trade Company, Captain Light did secure the island from the Sultan in return for the protection the Sultan desired. The Sultan of Kedah was not aware that Light had acted without the approval of his superiors when making the promise (see what a scallywag he was).

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, 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 George Town named after the King of England, George III.

In 1790, the Sultan of Kedah formed an army to get rid of the Dutch and English after Light and the East India Trade Company had failed to provide military protection when Kedah was attacked by Siam. He assembled an army to retake Penang Island but was defeated by Light who had carried out night raids on the Sultan's stronghold. The following year, the Sultan signed a treaty with the British, officially handing over Penang Island to the British. As part of the treaty, the Sultan of Kedah was 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 motivate his men and the locals to clear the thick undergrowth around that site, Light loaded the ship's cannons with silver dollars and fired it into the jungle (what a scallywag!).

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 the nearby Dutch trading post. In addition, newcomers were 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 when he died of Malaria on October 21, 1794 at the age of 54. 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 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 harbor 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 to the Sultan of Kedah annually. This is about $6,000 US a year.

In 1805, Penang was elevated from a colonial status to that of a Residency. A new Governor, 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 neighboring states 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 prosperity 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.

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 center, with cabarets, cinemas, amusement parks and gambling establishments.

However, when Wall Street crashed, the economy of Penang suffered badly. Before the people of Penang could recover from the depression, the Second World War broke out on December 8, 1941. Penang was attacked by the Japanese and the British fled to Singapore leaving the island defenseless. The people of Penang lived in fear and fled to the interior to escape from Japanese army. The days of the Japanese Kempettai were the days of horror, torture and executions. On September 4, 1945, the Japanese surrendered to the British Forces.

After World War II, the Straight Settlements were dissolved and Penang became part of Malayan Union, before it became part of Federation of Malaya in 1948. Malaya gained independence in August 31, 1957 and Penang was one of its 13 component states. Penang was officially known as Negeri Pulau Pinang. George Town, which has the oldest municipal history in the country, was accorded City status by Queen Elizabeth II on 1st January 1957.