The Business of Governing Penang: Workarounds as Remedy?

Abstract

The state of Penang, including city councils for island Pulau Pinang (with urban-core George Town) and mainland Seberang Perai, has negotiated at least a degree of political marginalisation since independence. Ruled previously by a secondary partner in the ruling Barisan Nasional (National Front), and since 2008, by the Democratic Action Party and its coalition partners, the economically powerful state has negotiated constrained autonomy and resources. While to some extent, these governing challenges are common to all states in Malaysia's highly centralised federation, in other ways, they reflect Penang's specific political position. Penang's leadership has sought in particular ways to circumvent inertia or divided loyalties among bureaucrats from the federal, rather than a state-level, civil service. Central to that solution has been reliance on an array of state government-linked corporations, facilitating administration, but at possible cost to clear accountability, transparency, and promised empowerment of civil society.