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Penang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the eighth most populous. It is composed of two parts - Penang Island, where the seat of government is, and Seberang Perai (formerly, and occasionally Province Wellesley) on the Malay Peninsula. Highly urbanized and industrialized Penang is one of the most developed and economically important states in the country, as well as a thriving tourist destination. Its heterogeneous population is highly diverse in ethnicity, culture, language, and confessions. It is also widely recognized as the most socially progressive, being the home of both the Consumer's Association of Penang, and of the reform group Aliran. A resident of Penang is colloquially known as a Penangite.