George Town, the second largest city in Malaysia, has a metropolitan population of over 2 million. It is the capitol of the state of Penang, which includes Penang Island and Sebarang Pri on the northwestern coast of Peninsular Malaysia. Penang has few natural resources, and thus relies on manufacturing and tourism driven by George Town’s status as a UNESCO World Heritage Site. Local investments in aquaculture and historic preservation present opportunities to address national food security issues and protect the intangible heritage of Malaysia. Because Penang was historically a free port, the island has developed into an ethnically and racially diverse community, with 42% ethnic Chinese, 41% Malay, and 10% Indian Malaysian residents. The Penang state government and local municipal councils are currently led by the Democratic Action Party (DAP), a center-left political party rooted in the large Chinese-Malaysian community in Penang and a minority party in the national parliament. The political and ethnic differences among Penang, its surrounding states, and the national government present a challenging setting to implement public policy. And, the area’s recent real estate boom poses serious obstacles to water quality and solid waste management. Nevertheless, civil society engagement (especially in participatory budgeting) may help Penang meet its sustainable development goals.