Being one of the earliest, most established urban centres in Malaya, Penang has often prided herself on her progress while at the same time relishing her traditional and enduring values, way of life and mannerism. Old Penang evoked images of the slow-paced lifestyle of merchants and planters in the Far East, where European culture intermingled with Eastern customs and colonial buildings stood next to attap houses and rickshaw pullers and where electric trams met bullock carts. Chinese influence has always been more evident in urban areas due to their superior numbers while the Malays, until recent times, have largely resided in the rural areas.
21st century Penang remains a thriving commercial (and now industrial) centre with a relatively high standard of living. However, in terms of development it has been overtaken in recent years by the Klang Valley, which is the political and economic heart of modern Malaysia. While the slower rate of development in Penang has left much of its cultural and architectural heritage intact, what development there has been has been poorly managed due to underfunding in infrastructure by the federal government, corruption and the breakdown of participatory local government since the late 1960s. Nonetheless, Penangites maintain a strong civic identity rooted in Penang's former pre-eminence, reinforced by a strong local cultural and linguistic identity.