The Penang Floating Mosque at Tanjong Bungah, in George Town, was originally built in 1967 and expanded in 1977 to hold 500 worshipers, yet, as the local Muslim community grew, the mosque became too small.

Due to limited land for expansion, the idea emerged to build the mosque on the sea and though termed floating, the new mosque built to accommodate 1,500 worshipers, is actually built on stilts and only appears to float at high tide.