George Town Central Business District, Penang
Background
Beach Street is one of the oldest streets in George Town, and has been the mercantile and financial hub of the city since its early days. During the 19th century, the street was located adjacent to the old Port of Penang; European traders and merchants were concentrated around its northern end, near the piers and administrative institutions at Light Street. In 1875, the Chartered Bank of India, Australia and China (now Standard Chartered) became the first international bank to establish a branch at Beach Street. Several other banks and mercantile firms followed suit, such as the Hongkong and Shanghai Banking Corporation (now HSBC), the Netherlands Trading Society, and the Oversea-Chinese Bank Limited (now OCBC).
Between the 1870s and the 1890s, land reclamation was carried out to provide more land for mercantile trade, eventually pushing out George Town's eastern coastline. Following the reclamation, Beach Street no longer served as a coastal road, causing many trading firms to relocate to the newly created eastern side of the road, which was closer to the port.
In the 1990s, as the city's banks began reassessing their spatial requirements to accommodate greater business volumes, a number of commercial developments commenced along Northam Road. The commercial skyscrapers along this road quickly attracted various banking, auditing and other ancillary services, as the newer buildings offer more space and amenities that the colonial-era buildings at Beach Street lacked. By the early 2000s, Northam Road and the adjacent Gurney Drive emerged as a new financial precinct.
It was not unitl 2022 when the Penang Island City Council, the local government that administers George Town, released a draft of its Local Plan 2030, which formally proposed the CBD as one of the economic corridors within the city. Covering a significant portion of Penang Island's northeastern promontory up to the northern banks of the Pinang River, including areas such as the city's UNESCO World Heritage Site, Pulau Tikus, Kampung Siam, Kampong Serani and Ayer Rajah, the CBD was envisioned as the hub for financial and service sectors, with the aim of bolstering George Town's standing as a global city.
Economy
Much of George Town's financial, services and retail activities are concentrated within the CBD, home to several international banks including Standard Chartered, HSBC, Citibank and Bank of China. The CBD also houses federal financial institutions like Bank Negara and the Employees Provident Fund, along with various auditing, business intelligence and legal firms.
Tourism plays a significant role in the economy of the downtown area due to the UNESCO World Heritage Site's popularity as a tourist destination. Swettenham Pier and Raja Tun Uda Ferry Terminal are the two major entry points within the CBD, facilitating ease of access for tourists. The ongoing refurbishment of shophouses and alleys throughout downtown George Town has contributed to the growth of the area's retail centres and medical tourism. Among the well-known healthcare facilities within the CBD are Penang Adventist Hospital, Gleneagles Hospital Penang and Island Hospital.
World Heritage
Site
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Governance
The CBD also functions as the political centre of the entire State of Penang, where the executive and legislative branches of the Penang state government are located. The Chief Minister's Office, along with state government agencies and departments, are situated within Komtar, the tallest skyscraper in George Town. The Penang State Assembly Building is where the 40-member Penang state legislature convenes, while the Penang High Court is the highest court in the state. The Penang Island City Council's headquarters is also located at the City Hall. Additionally, all four consulates in George Town - China, Indonesia, Japan, and Thailand - are situated within the CBD.