Penang has been successful in reducing poverty with less than 0.3% of the population below the poverty line in 2006, compared with 29% in 1980. Despite the progress made, Penang continues to feature urban-rural divide and new urban poverty which impact population’s health outcomes. Urban-rural divide, growing disparities, drug abuse, ageing and ethnic diversity also poses challenges, while Malay, Chinese and Indian populations feature diverse health profiles. There is a general need to focus on preventive care and improve nutritional awareness.