The Penang Prison is not the first prison on the island; that dubious honour belongs to Fort Cornwallis, which was used to house prisoners until 1811. The prison population eventually ballooned, to the point where Fort Cornwallis was no longer viable, and alternatives were needed. There were several early missteps; the replacement prison on Penang Road, Chowrusta Lines, was too small, and another prison had to be built across the street.

Meanwhile, the number of prisoners on the island continued to grow. This was partly because of the need to house Kedahan rebels protesting against the British ownership of Penang and Chinese secret society members who fought at tin mines.

Prisoners from Bencoolen (now Bengkulu or southwest Sumatra) were also brought to Penang, after the British gave up the Indonesian province to the Dutch in exchange for Malacca. This was under the Anglo-Dutch Treaty of 1824. The prisons on Penang Road were again deemed too small, and some prisoners had to be sent to Malacca and Singapore.

The Penang Prison on Gaol Road was finally built in 1849 by Malabari convict labour, during the time of Colonel Butterworth. In 1860, Penang Island was no longer classified as a penal colony.

References:

• Penang Prison (Penjara Pulau Pinang) (Penang Travel Tips)
• Penang Prison (槟城四坎店监狱) (Life in Penang is more than beautiful)
• Penang Prison to be turned into a medical prison (BNET)

• Jabatan Penjara Malaysia

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