Perlis is the smallest state in Malaysia. It lies at the northern part of the west coast of Peninsular Malaysia and has Satun and Songkhla Provinces of Thailand on its northern border. Perlis was called Palit by the Siamese when it was under their influence.

Perlis Indera Kayangan has a population of 210,000. The ethnic composition for the year 2000 in Perlis was: Malay (174,805 or 79.74%), Chinese (21,058 or 9.6%), Indian (2,658 or 1.21%) and others (20,690 or 9.45%).

The capital of Perlis is Kangar and the Royal capital is Arau. Another important town is Padang Besar, at the Malaysian-Thailand border. The main port and ferry terminal is at the small village of Kuala Perlis, linking mostly to Langkawi Island.

The state economy is dominated by agriculture, with rice, sugar, herbs and fruits predominating. Forestry especially from Jati timberwoods and fishery is also important, and the state is making great efforts to attract small and medium scale manufacturing industries and services.