In 1786 Penang became part of the United Kingdom and was renamed Prince of Wales Island. The first settlement was named George Town in honour of the then King, George III. This was Britain’s first settlement in southeast Asia. In 1941 after severe bombing, Penang fell to Japan. In 1945, the British re-took Penang and in 1946 it was incorporated into the Federation of Malaya. From 1948 – 1986, Penang issued its own stamps, until it became part of Malaysia.