The word “hartal” refers to a cessation of work or businesses in protest against a political decision. While the 1947 hartal, organised by the Pan-Malayan Council of Joint Action against the constitution of the Federation of Malaya, is widely quoted on paper today, there is little mention of a hartal that swept the island of Penang for two months in 1967.

Originally intended as a peaceful protest, it escalated into a bloody situation of heightened racial tension. Tan Sri Wong Pow Nee, the state’s first Chief Minister, even cited the protest as one of the events which might have prepared the ground for the 1969 racial riots. However, a closer look at the mood and circumstances surrounding the 1967 Hartal, which began in November and tapered out by the end of December, reveals the contrary.

The Prince of Wales Island crumbles

Penang in the 1960s was no wonderland. Both its economy and trading environment were in a depressing state. Per capita income declined as much as 12% under the national wage, and the island’s entrepot trade, mostly with Indonesia, was also affected by the Konfrontasi. A two per cent surtax imposed by the Malaysian government on Indonesian goods re-exported from Penang placed the island in a disadvantage compared to other ports like Singapore. Things crumbled in 1967 when Penang lost its free port status. Businesses were struggling to survive and the unemployment rate was soaring. According to a Straits Echo report, in the early months of 1968 the state government estimated about 20% of the work force – including a total of 10,000 school leavers – required jobs. The island’s economic condition was so bleak that even the president of the International Chamber of Commerce predicted that Penang would end up as a fishing village. Dissatisfaction was mounting among the masses.

 

Sterling devaluation and brewing rage

The decision of the Malaysian authorities in November 1967 to devalue the Malaysian dollar which was then tied to the Pound sterling added fuel to fire. Malaysia had two types of currencies in circulation – the old, based on the sterling, and the new, based on gold. The new currency issued by the Malaysian government in June 1967 was to replace the old at par value, but without any stipulated “phasing out” period.

In light of the British devaluation, the impromptu action to similarly devalue only the old currency, making it 15% less valuable than the new, resulted in public confusion and anger, especially among the lower income group. Farmers, fishermen and small-time traders back then did not have bank accounts. Many lived in the rural outskirts and kept their savings in their homes, with the bulk of it in the old currency. The devaluation burden, which the government should accordingly have shouldered by itself, fell upon those who could least afford it.

When the authorities maintained that they were faced with no other choice but to devalue the old currency, immense public outcry followed, and many questioned the validity of that stand. It was under such conditions that Lim Kean Siew, then chairman of Penang’s Labour Party division, decided on a hartal a la Gandhi’s civil disobedience approach. A public statement urging the government to provide a grace period for the lower income group to replace their old currencies was similarly issued. Their demands were ignored.

 

The hartal and its unanticipated violence

Contrary to common perception, the hartal was never meant to be a racial riot. It was intended as a peaceful, democratic protest against the decision to devalue the old dollar. Lim even made it clear that the move was in no manner communistinspired. Calls were merely made for shops to cease conducting their usual business routines by putting up their shutters as an act of protest. In fact, there were neither street demonstrations nor elements of violence and hostility during the first hours following the launch of the hartal.

In its early stages, it was perceived as a success by the Labour Party – it had the entire city of Penang under its control. Overwhelming support also gave the party a ray of hope for the upcoming 1969 general election.

What then started the trouble? In an era when thugs ruled most of the streets of George Town, the hartal spiralled out of control and exploded into an unexpected racial conflict when gangs and party extremists decided to take matters into their own hands. For this, even the police force was not fully prepared.

A group of gangsters exchanged blows with a goreng pisang seller along the Malay-dominated Datuk Keramat area and later killed a guard at the Standard Chartered Bank. It was tit for tat when a gang of Chinese youths harassed a Malay passer-by in retaliation of an earlier incident in which a Malay group had done the same to the Chinese.

The Straits Times reported chaos along the main streets of George Town – from Lebuh Chulia to Jalan Penang, Jalan Prangin and Lebuh Pantai. The windows of Cold Storage were smashed by stones and bricks, and the Jefferson Centre on Lebuh Pantai was attacked by youths shouting anti-devaluation slogans. Bus companies withdrew their vehicles following several attacks, such as when a mob was reported to have stopped a bus along Jalan Penang, throwing stones into the bus to chase out its passengers before attempting to overturn the vehicle. Two reporters from a local newspaper, Warta Negara, were assaulted when they attempted to snap pictures of the incident.

Barricades went up, curfews were implemented and the streets of the holiday island were deserted.

 

A racial riot instigated by the Labour Party?

Towards the end of the hartal, the island was at its bloodiest – eight dead and 137 injured. Extra police personnel and members of the armed forces were sent from KL to control the situation. Lim and 23 other leaders were arrested. The code-launched “Operation X” initiated by the Home Affairs Ministry closed the party’s headquarters, followed by eight other branches throughout Penang.

Weapons were seized and several hundred youths (sources do not state whether these youths stemmed from the party or street gangs, but there is the possibility of dual-affiliations) were rounded up for suspected subversive activities. Clearly, someone needed to be blamed, and fingers were pointed at the Labour Party.

Tunku Abdul Rahman expressed his shock in the papers over the “outbreaks of violence in Penang over such a ‘small thing’ as the devaluation of the old dollar”. Regarding the hartal, he noted, “All hell broke loose. Malays retaliated with violence and what originally was a communist resistance against the government and the people, turned into a Sino-Malay conflict.” However, in light of the island’s troubles during that period, it is res ipsa loquitur that the hartal was not a racial riot instigated by the Labour Party.

While it is true that the hartal was inspired by Lim as chairman of the Labour Party, there was never any intention for it to be racially motivated. The majority, regardless of race, did not want the devaluation that would make their livelihood more difficult, and it was that which led to a peaceful demonstration. Racial elements entered into the picture only when gangs, thugs and extremists decided to intervene.

 

In fact, Lim was arrested at the height of the hartal even before the chaos had taken place, and the entire party was held responsible for the chaos that happened in the later stages of the protest. Even Tun Abdul Razak Hussein, then Malaysia’s Home Minister, was later quoted in the Straits Times as being “happy to say that there was no evidence to show that the clashes were racial”.

Despite the disorder, the hartal served as a good lesson for the island to be thoroughly prepared for the future. Penang was relatively calm in 1969, thanks in part to the diligent leadership of the police force led by Albert Mah.

Forty-seven years later, the 1967 Hartal has faded into obscurity. But to those who witnessed and struggled through those times, it is still very real and should serve as a constant reminder to appreciate the peace we often take for granted.