1967 Penang Hartal riot

The 1967 Penang Hartal riot (Malay: Hartal Pulau Pinang 1967) happened on November 24, 1967 in response to the devaluation of the Malayan dollar against the British pound sterling and the newly established Malaysian dollar.

1967 Penang Hartal riot
Date24 November – 13 December 1967
Location
Penang
Caused byProtest against the devaluation of the old currency by the administration of Tunku Abdul Rahman, the first prime minister.
MethodsProtest, general strike, riot
Parties to the civil conflict
Penang Labour Party
Lead figures
Lim Kean Siew
Casualties and losses
27 killed
137 injured

Cause of the riot

The riot began as a peaceful protest organised by the Labour Party over the devaluation of the Malayan dollar against the British pound sterling.[1]

Malaysian at that time had two currencies in circulation. One was the old Malayan dollar and the other was the new Malaysian dollar. Both were trading at par and valued at 8.57 dollar per pound. The pegging of the local currency to the pound was part of Malaysia's membership in the Sterling area.[2] The new Malaysian dollar was introduced on June 12, 1967 as the currency union between Malaysia, Singapore and Brunei came to an end.[3] Singapore was expelled out of Malaysia on August 9, 1965.

Five months after the introduction of the new Malaysian dollar, the United Kingdom government which was already struggling from the burden of post-World War II rebuilding decided to devalue the pound sterling by 14.3% against the US dollar as part of effort to improve its national competitiveness. The Tunku Abdul Rahman took the opportunity to devalue the old Malayan dollar by 15% against the pound by and the new Malaysian dollar.[1]

The devaluation caused much disagreement among Malaysians who held the old currency, which led to the organisation of the hartal.

The riot

However, the protest turned violent with 27 died and 137 people injured.[1][2] Conflicts emerged as some shops refused to participate in the hartal and were forced to shut down by protesters.[1] Several cafes serving breakfast were attacked by protesters.[1]

The federal government declared a 24-hour curfew beginning 8PM on the same day to overcome the riot.[1]

Aftermath

The federal government launched an operation coded "Operation X", which closed down the Labour Party.[2] During the raid, the police discovered communist documents at the party headquarters, which suggested that the Communist Party of Malaya might have played a role in the hartal.[4]

The old Malayan dollar itself continued to be used until January 16, 1969, albeit at a lower value.

gollark: Unnecessary.
gollark: Surround the country in a solid hemisphere of pure iron.
gollark: What of an *actual* iron dome?
gollark: What? That's $106500 a child. They could probably rent each an individual apartment somewhere for that much.
gollark: When I attempted to be involved in the democratic process™ by complaining to my local politician about a thing their government had done, I got no useful response out of it. I don't think it's worth the time.

References
  1. "Curfew in Penang after 5 hartal riot deaths". Retrieved 2015-10-03.
  2. "Penang's untold story: Hartal 1967 | FZ.com". Archived from the original on 2017-04-25. Retrieved 2015-10-03.
  3. "The Currency History of Singapore". Monetary Authority of Singapore. 9 April 2007. Archived from the original on 2 February 2010. Retrieved 21 November 2010.
  4. Dennis Bloodworth (15 October 2010). The Tiger and the Trojan Horse. Marshall Cavendish International Asia Pte Ltd. pp. 221–. ISBN 978-981-4561-74-7.
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