Is Penang's Heritage Being Bought Out Of Existence?

Foreign investment can boost George Town’s economy, but it also threatens to erase the local culture and history of the capital of the Malaysian island of Penang..

Ever since UNESCO’s stamp of approval in 2008, George Town has become an increasingly attractive economic investment. And foreigners know it.

According to the George Town Heritage Action Group, at least 236 pre-war properties within the inner historic city have already been sold to foreign investors. Many of these properties fetch an average of RM6 million ($1.5 million).

George Town’s dilapidated pre-war properties, particularly within the WHS Core and Buffer Zones, are under strict government guidelines to conserve the historic nature of the buildings. In cases of renovations, reconstruction, and refurbishment, this means that pre-war properties are required to comply with the National Heritage Act 2005, and may be required to source original building materials and ensure minimal changes in architectural design.

“Eventually,” he says, “many owners will end up selling their pre-war houses because it is too expensive to maintain, and the place has become too dilapidated to live in.”

George Town Heritage Action Group co-founder, Joann Khaw, points out that tourist-targeted businesses like souvenir shops and boutique cafes are driving out the very heritage that vacationers want to see. Local businesses like signage carvers and songkok hat makers are dwindling.

She compares George Town to Hoi An, a destination that shares George Town’s colonial past and UNESCO World Heritage Site stamp.

“Today, tourists steer clear of Hoi An. This is because everything is very touristy. Things have become so touristy, one would have to purchase a ticket to walk on cordoned-off roads.”

But it is not too late to save George Town from the same fate. She outlines several suggestions to protect George Town’s local heritage, including limiting the number of souvenir shops, cafes, and hotels within the historic enclave, and renting out old Chinese clan houses for locals to stay, not businesses.

Nevertheless, for better or worse, there have been intimations that George Town’s foreign investment may be slowing, due to low rates of return (ROI) in terms of rental yield. Foreigners are also subject to minimum property investments, upwards of RM3 million ($0.75 million), as well as rent control policy — both of which discourage foreign investment.

It remains to be seen if George Town’s heritage conservation and tourism will reflect the slowdown in foreign investment.

Since you are here, we would like to share our vision for the future of travel - and the direction Culture Trip is moving in.

Culture Trip launched in 2011 with a simple yet passionate mission: to inspire people to go beyond their boundaries and experience what makes a place, its people and its culture special and meaningful — and this is still in our DNA today. We are proud that, for more than a decade, millions like you have trusted our award-winning recommendations by people who deeply understand what makes certain places and communities so special.

Increasingly we believe the world needs more meaningful, real-life connections between curious travellers keen to explore the world in a more responsible way. That is why we have intensively curated a collection of premium small-group trips as an invitation to meet and connect with new, like-minded people for once-in-a-lifetime experiences in three categories: Culture Trips, Rail Trips and Private Trips. Our Trips are suitable for both solo travelers, couples and friends who want to explore the world together.

Culture Trips are deeply immersive 5 to 16 days itineraries, that combine authentic local experiences, exciting activities and 4-5* accommodation to look forward to at the end of each day. Our Rail Trips are our most planet-friendly itineraries that invite you to take the scenic route, relax whilst getting under the skin of a destination. Our Private Trips are fully tailored itineraries, curated by our Travel Experts specifically for you, your friends or your family.

We know that many of you worry about the environmental impact of travel and are looking for ways of expanding horizons in ways that do minimal harm - and may even bring benefits. We are committed to go as far as possible in curating our trips with care for the planet. That is why all of our trips are flightless in destination, fully carbon offset - and we have ambitious plans to be net zero in the very near future.