ABSTRACT
This chapter focuses on the role of the Chinese in the small firm sector in Penang and examines the experiences of Chinese entrepreneurs in terms of uneven development in Malaysia. The survey used forms part of a broader research project which investigates the impact of the New Economic Policy upon the development of manufacturing industry on Penang Island project. The relationship between ethnicity and development in Malaysia then manifests itself in the different ethnic groups being associated with different functions within the society. Malaysia can be identified as a polyethnic state where, traditionally, different ethnic groups have become associated with different functions within the society. Thus, uneven development in Malaysia may be examined in terms of ethnic differences. When Malaysia gained independence in 1957, Penang lost its dominance to the federal capital Kuala Lumpur. In addition to the functions established during the colonial period, following independence Penang was able to benefit from moves to industrialise the Malaysian economy.
