At the time, the George Town City Council was the only fully elected local authority in Malaya, as well as the country's richest, with an annual revenue that was double that of the Penang state government by 1965. This solidified the financial autonomy of the city council, with its revenue going into social welfare projects within George Town. Meanwhile, the Penang state government attempted to boost the state's manufacturing sector by opening new industrial estates in Seberang Perai, such as in Perai and Mak Mandin. Exacerbated by the opposing political affinities and ideologies, conflicts frequently arose between the state government and the city council over differences in policies and budget allocations.