On 31 August 1957 Pow Nee was formally appointed Chief Minister of Penang and awarded the PMN for his distinguished service to the Community. In 1959, he was re-elected to the State Legislative Assembly and was re-appointed Chief Minister for another five-year term. His term of office saw the successful implementation of the Rural Development Plan for Penang and the expansion of industries across the State. In the April 1964 elections, he contested again and won the Bukit Mertajam Constituency for the Penang Legislative Assembly, and was re-appointed Chief Minister for another five years. This period saw the successful implementation of the Five Year Development Plan for Penang.

During his time in politics, Pow Nee was most moved by the honor accorded to him to proclaim Independence of the Country in Penang on 31 August 1957:

The highest point in my life was when our Prime Minister Tunku Abdul Rahman gave me the honour of reading the Proclamation of Independence on 31 August 1957 at the Esplanade, Penang.

Outside Kuala Lumpur, the Proclamation was read out in Penang and Melaka, formerly colonies of the British Crown.

On that historic day, Pow Nee flew back to Penang from Kuala Lumpur in a Dakota plane after attending the Independence celebrations in the federal capital with The Tunku. He headed for the Esplanade at around 3.30pm after touching down in Penang. It was a bright Saturday afternoon, and thousands of people had gathered to celebrate their Independence, all of them looking very happy. The Union Jack was lowered for the last time at 6.45pm from the flagstaff of the Naval Light House at Fort Cornwallis. The last British Resident Commissioner, R.P. Bingham and his aide-de-camp arrived at the Esplanade and was met by the British State Secretary, Ellis. All guests stood up and Bingham ascended the dais. Pow Nee then read the Proclamation of Independence thus bringing to a close 171 years of British Sovereignty over the State of Penang.

Pow Nee recalled: “I then shouted MER-DE-KA! Several times and the crowd echoed after me and cheered. There was complete silence as the first note of our national anthem, Negara Ku, was struck, followed by a 101 gun salute and the raising of the new State Flag.”

This was followed by a grand parade of various units and schools, including the Second Field Federation Infantry Brigade Police, and cadets from St. Xavier’s Institution and Penang Free School.

The out-going Commissioner performed his last official act when he presented the Constitutional Instrument to the first Governor of Penang, Raja Sir Uda. He inspected a farewell Guard of Honor mounted by the Federation of Malaya Police at the Kedah Pier before he boarded a launch, the Stella Maris, at 5.30pm which ferried him across to the HMS Tobruk, a British warship, which then set sail for Singapore. Bingham eventually retired to Northern Ireland.

Pow Nee’s first day in the Chief Minister’s Office, located then at the Ban Hin Lee Bank building along Beach Street was a most memorable one. He was still in a state of disbelief when he received his letter of appointment from the Governor Raja Sir Uda at the Governor’s Official Residence. He was the only one sworn in on that day. He recalled sitting on the very same chair previously sat on by the last British Resident Commissioner, who had also left Pow Nee his official car, a Daimler including its driver; but Pow Nee chose to drive around for a while in his Austin even after assuming office.

Pow Nee remembered vividly the moment when the State Secretary, Mr Ellis came into his office for the first time and said, “Good morning Sir!” Pow Nee was too dumbstruck to reply. At that time there were no Malaysian officers and the State Secretary, Financial Officer, Education Officer, and Chief Police Officer, were all British! In running the State during the early transition period, he sought the counsel of both his British Officers, who were honest and had years of experience, and also the State Executive Councillors who were Malaysians.