Penang
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How resilient is Penang?
Understanding risks is the first step in defining the right strategy and creating enabling environments where communities can thrive.
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1
Water in Penang
Too many floods
In 2017, floods in Penang displaced more than 7,000 people, impacted 159 areas, claimed 7 lives, and caused economic losses exceeding RM250 million.
From 2020 to 2023, flash floods have repeatedly disrupted daily life, leading to evacuations, traffic chaos, and significan damage to infrastructure.
People wade through ankle-deep water along Macalister Road in George Town November 5, 2017.
— Picture by KE Ooi
— Picture by KE Ooi
There are areas in Penang at a higher risk of flooding. A common reason is that drainage systems are old—which increases the risk of floods.
Flood maps are contributing to Penang’s planning and mitigation efforts.
In this map, the local government can see where interventions are most needed.
1
Water in Penang
Too little clean water
Water demand growth in Penang was steady from 2010 to 2020, followed by a sharp increase between 2020 and 2022—that caught the water system unprepared. Demand decreased slightly in 2023, but water usage remains above pre-2020 levels.
Penang depends on surface water and external sources like sungai Muda to provide water to communities. Water levels have been declining due to climate change, which is increasing the pressure on the water supply.
Interruptions in water supply also disrupt Penang's electronics manufacturing and other high-tech industries, affecting jobs and causing economic losses.
Source: Think City
Source: Think City
Little nature to absorb
Areas that are easier to access tend to attract more businesses and services—driving economic growth. In 2020, buildings were more concentrated on Penang Island than in Seberang Perai, especially near the Penang Bridge and the airport. But with more concrete and less green space, these areas face higher risks of flooding and extreme heat.
Source: Think City
2
Heat in Penang
It's becoming too hot
In February 2024, MetMalaysia issued a Level 1 heatwave warning as temperatures in Central Seberang Perai stayed between 35°C and 37°C for three consecutive days.
Rising temperatures and high humidity made it difficult for some people to cool down, increasing cases of heatstroke, dehydration, and heat exhaustion.
Penang’s entrepreneurs are also affected, as tourists are avoiding the months of extreme heat, reducing revenues for hotels, restaurants, and local businesses. This is leading to increased job insecurity.
Source: The Straits Times
Source: Think City
Temperatures have risen between 1988 and 2024—heat maps show Penang getting hotter.
2
Heat in Penang
Nature needs to come back
Introducing nature to cities helps reduce surface temperatures and improve urban liveability.
Planting trees along streets, creating rooftop gardens, and establishing blue-green corridors are some of the actions that cities are implementing to mitigate the Urban Heat Island effect.
The thermal images from George Town show that streets with shaded tree cover are significantly cooler. Temperatures in these areas were around 28.6°C, compared to 33.0°C in exposed areas.
3
Life in Penang
Economic dependency
Penang is among the top five states in terms of its contribution to the economy of Malaysia, but GDP per capita is only half of Kuala Lumpur’s.
2021 had the highest growth rate among Malaysian states, surpassing the pre-pandemic level.
This growth was mainly driven by a robust recovery in the manufacturing and construction sectors.
Source: Think City
Source: Think City
There are more job opportunities in the south of Seberang Perai than in the northern region—as industrial areas like Batu Kawan and Simpang Ampat offer work in factories and transport.
A similar trend can be observed on Penang Island. On Penang Island, the economy is more focused on services like tourism, retail, and office jobs.
Source: Think City
Penang is the largest contributor of the Malaysia’s
electrical and electronics products.
Its labour force is
33.6%
of total Penang
The dependence to a small number of industries limits Penang's capacity to adapt and thrive in evolving economic landscapes.
3
Life in Penang
The comparison of Penang’s urbanisation over 1994, 2009, and 2024 reveals differences in its landscape and infrastructure
Source: Think City
A challenge for Penang is to make sure growth benefits everyone. Despite rising incomes, the cost of living is becoming a concern—especially when it comes to housing.
People need homes
Either people do not find a house or they can not pay it. For many lower- and middle-income households, homes are simply too expensive.
A home is usually considered affordable if it costs around three times the average annual household income. In 2014, Penang’s ratio was 5.2 times—making housing highly unaffordable.
Home ownership has also dropped, from 82% in 2014 to 78.9% in 2019—as incomes haven’t kept up with rising property prices.
Source: Think City
Source: Think City
Income is not enough
In Seberang Perai, 80% of official districts have median household incomes below the state average. This means a large part of the population struggle to afford good housing. Income gaps also limit access to homes with proper drainage and transport links—making them more exposed to natural disasters and health crises.
The housing shortage also makes it hard to keep and attract workers, which hurts Penang’s ability to attract skilled professionals to grow its economy.
Source: Think City
Too many cars
More people mean more traffic congestion, longer travel times, and more fuel use.
“There are 2,778,681 private vehicles registered in Penang, slightly more than double the state population of 1.3 million.”
Director Adenan
State Road Transport Department
June 2021
“In the morning, I take about an hour and fifteen minutes to get to work. The return journey takes me between 90 minutes to 2 hours.’’
Free Malaysia Today
March 2024
This harms air quality, public health, and how livable the city is. Businesses face delays in moving goods and workers, which hurts the economy.
People are leaving
Ageing population and talent migration can lead to reliance on outside labour force —as local available labour reduces.
Source: Think City
A resilient economy requires talent retention and attractive opportunities.
Source: Think City
4
Enabling resilience
in Penang
in Penang
The starting point of a successful resilience strategy is having resilient institutions and networks within the state and cities. Their capacity to collaborate and advance resilient solutions determines the state and cities’ speed of preparedness. So, does Penang have what it takes?
Governance
Preparing for known and unknown risks requires multistakeholder engagement. Effective governance structures are vital to coordinate efforts, foster collaboration, and ensure transparent decision-making across multiple stakeholders.
Capacity
Skill shortages are making implementation challenging and reducing the impact of actions. Building local skills and capacity for building urban resilience is crucial, as city officers need to be able to convene stakeholders to advance projects.
Financing
Limited resources and other pressing priorities have prevented Penang from taking resilience-building actions in the past. Penang needs to secure more funding to implement resilient projects that will prepare Penang for future challenges.