Chief Minister Lim Guan Eng says Penang, a popular tourist destination and manufacturing hub, has been hit by torrential rains and strong winds since late Saturday.
Floodwaters have risen to 12 feet (3.6 meters), submerging houses in parts of the island.
Army personnel have been deployed to help in the rescue operation.
Lim says there's no need to declare an emergency as the situation is under control.
Prince Charles and his wife Camilla are due to visit Penang on Tuesday.
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