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Ethnicities

As of 2020, ethnic Chinese and the Bumiputeras, which include Malays, each constituted about 41% of Penang's population, while Indians made up nearly 9%. The Chinese community in Penang includes the Peranakan Chinese, a hybrid ethnicity known for their distinctive architecture, costumes and cuisine. The state is also home to a cosmopolitan mix of indigenous East Malaysians, ethnic Eurasians and Siamese.

Foreigners comprised 8% of Penang's population in 2020. Over 38% of Penang's expatriates resided within downtown George Town, Paya Terubong and Bayan Lepas. George Town's affordable living costs, natural destinations, health care infrastructure, an established ecosystem of multinational companies (MNCs) and the widespread use of English have been cited as pull factors for expatriates.