From Free Port to Modern Economy: Economic Development and Social Change in Penang, 1969 to 1990, edited by Chet Singh, Rajah Rasiah & Wong Yee Tuan

Abstract

From Free Port to Modern Economy: Economic Development and Social Change in Penang, 1969 to 1990 appears to be one of the most recent scholarly volumes on the post-war modern socioeconomic transformation of Penang. This socioeconomic transformation was radical, novel and untried for this island-state (including Seberang Perai or Province Wellesley), one of the 13 states (and three federal territories) of the Federation of Malaysia, since its establishment as a portof-call of the English East India Company (EEIC) in 1786. Trade was the primary source of wealth of this free port, the first by the EEIC in the Eastern Archipelago (contemporary Malaysia and Indonesia). Until 1969, Penang’s port had been free in line with the illustrious British tradition of fostering free trade amongst traders and merchants from near and far. The loss of the free-port status in that fateful year (1969) that coincided with Penang being in political opposition to the ruling Alliance Party of the federal government in Kuala Lumpur, brought immense challenges. In theatrical terms, it was a do-or-die predicament that confronted Penang’s political leadership then helmed by Dr. Lim Chong Eu (1919–2010) as chief minister (1969–1990). But remarkably within a span of two decades, Penang not only survived but also triumphed to the extent of making its mark in the global economy largely thanks to Dr. Lim’s stewardship and his capable team of managers, organisers alongside economists, social scientists and other technocrats.