Penang CM hopes to get federal govt approval for International Financial Centre proposal

GEORGE TOWN (Aug 20): Penang hopes that its proposal to establish the Penang International Financial Centre (PIFC) will receive the federal government’s approval through Budget 2027, said Chief Minister Chow Kon Yeow.

He said the state government is prepared to present the proposal to the Finance Ministry based on a white paper prepared by an appointed consultant.

“The PIFC is not intended to compete with Kuala Lumpur, Labuan or the Johor-Singapore Special Economic Zone. Instead, we need to differentiate Penang’s financial centre based on the state’s strong foundation as a regional and global technology hub,” he said after attending the SC Penang Semicon Roadshow ‘Powering SemiCons: Financing Your Next Breakthrough’ here on Wednesday.

He said among the key issues the PIFC aims to address is providing access to financing to support technological developments and unlock the potential of the industry in Penang.

According to him, Penang has developed an industrial ecosystem base over several decades through the presence of multinational companies, infrastructure, industrial parks, experienced companies and a skilled workforce.

However, he said, the financing aspect still needs to be strengthened, particularly for the local small and medium enterprises (SMEs) seeking to expand their businesses and enhance their global competitiveness.

Chow said stronger linkages between SMEs, multinational companies, technology, talent and capital could create a stronger semiconductor ecosystem in Penang.

He said Penang’s focus on integrated circuit design over the past two years has also shown encouraging progress, as the state seeks to move towards higher-value activities beyond its traditional strengths in assembly and testing.

“We hope the federal government can provide a clear commitment to the PIFC proposal through Budget 2027, enabling the state government to proceed with the next stage of planning,” he added.

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