Most of the chapters in this volume were first presented at the Penang Outlook Forum 2009, held on 1-2 June 2009 at the E&O Hotel in Penang. A few others have been added to complement those at the conference. At present, comprehensive and authoritative studies on Penang's current economic conditions are a rarity. This book is thus an effort to correct that lack. Evidence does suggest that the state had not been doing well in the first half of the first decade of the new millennium. Being a small state situated relatively far away from the administrative capital of Putrajaya, Penang has to be economically innovative if it is to regain its place at the forefront of Malaysian development. The relationship between the state and the federal government remains a vital matter.