There has been organized racing in Penang for more than a century, the Penang Turf Club having been founded in 1864. The club received a free land grant in McAlister Road for its course of 7 furlongs 81 2/3 yards, Here the first stands and buildings of wood and attap were put up in 1869 and small annual meetings were started. At these the stake money was never more than RM600 for the whole meeting. By 1898, Penang was holding two meetings a year, two days in January and two in July. Prize money for the year totalled RM5,590. In 1900, new and substantial stands were built. These were to serve the club for nearly 40 years until the club acquired its present 230-acre site for RM250,000 at Batu Gantong in 1935.

At the three-day January meeting in 1907 the stakes totalled RM26,000. There were entries from the Federated Malay States, Singapore, the Netherlands, Burma and India. After J.F. Wreford's presidency, during which the club made great progress, A.R. Adams, a leading Penang lawyer, a Municipal Commissioner and Penang Chamber of Commerce's nominee on the Straits Settlements Legislative Council, was president of the club.

World War I held up the growth of racing throughout the region and it had barely had time to get going again before it was badly affected by the depression of the Thirties. Nevertheless, Penang went ahead with the purchase and construction of the new course and stands at Batu Gantong - in a splendid setting. Work was completed at a cost of RM350,000 and the course was opened on May 27, 1939 by the late J.D. Kemp, who was president when work had begun in 1936.