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Penang is an island located off the west coast of Malaysia. It ceded to the British in 1791 by the sultan of Kedah and was the first British settlement in Malaya. Penang was formerly also known as Pulu Penang and Prince of Wales Island - a title which was retained until 1867. The currency system of Penang depended on the Spanish dollar which was divided into 100 pice (or cents) until 1826. The coins are considered in three groups:-
(a) The Company bale mark series, consisting of copper 1/10, ½ and 1 pice of 1786/1787, and silver tenth, quarter and half dollars, dated 1788
(b) Company coat of arms issues in copper between1810 and 1828 in denominations of ½, 1 and double pice pieces
(c) Tin issues of local mintage pice pieces of 1800-1809, which are extremely rare.