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Historically Penang has always been an important trading post. Originally part of the Malay sultanate of Kedah, Penang was ceded to the British in exchange for the promise of military protection. Captain Francis Light (also known as the founder of Penang), who negotiated the deal, renamed it ‘Prince of Wales Island’ in honour of the heir to the British throne, and set up a trading post there. Over the years, Penang became a major trading port for tea, spices, china and textiles. It remained under British rule until it became a part of the Malayan Union and a state of the Federation of Malaya which gained independence in 1957. Today the bustling metropolis of Penang has its own unique identity which is a reflection of its historical beginnings.

Although relatively small, Penang has an estimated population of 1.5 million people. It has one of the largest ethnic Chinese population in the country, followed by the Malays and then the Indians. Penang also has a sizeable expatriate population. The Perankan, or Straits Chinese, locally known as the Peranakan or Baba-Nyonya community, forms an important component of Penang society. They are the descendants of the early Chinese immigrants who over the years adopted many Malay customs and use a blend of Chinese and Malay patois. The legacy of the Peranakan community with its distinctive identity in terms of food, costume, rites, crafts and culture, lives on in Penang.
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