Bold move: Chow (second from left) holding up documents during the press conference at Komtar in George Town. — LIM BENG TATT/The Star
GEORGE TOWN: Penang is seeking federal support to create its very own global financial hub, says the Chief Minister.
Chow Kon Yeow said the Penang International Financial Centre (PIFC) would spur economic growth and also boost Malaysia’s reputation on the financial and industrial front.
A formal proposal outlining the state’s commitment to the initiative was submitted to Prime Minister Datuk Seri Anwar Ibrahim last week, he revealed.
“The document details Penang’s ambitions for financial sector growth and economic advancement,” he told a press conference at his office yesterday.
Chow said PIFC would be key in attracting capital inflow, drive financial innovation and strengthen the country’s semiconductor and high-tech industries.
“This initiative aligns with Penang’s longstanding role as a global trading hub and its growing prominence in the manufacturing and technology sectors.
“Penang, often referred to as the ‘Silicon Valley of the East,’ is well-positioned to develop a dynamic financial ecosystem that supports industrial growth, particularly in the semiconductor and high-tech industries,” he said.
Chow said PIFC would also advance the semiconductor sector in the Northern Corridor, in line with the New Industrial Master Plan (NIMP) 2030 and National Semiconductor Strategy (NSS).
“Besides expanding tech-driven investments in the region, PIFC is expected to complement Malaysia’s existing financial centres by drawing new sources of capital for financial innovation and diversifying employment opportunities in the professional services sector.
“We hope that PIFC would increase national and state revenue through enhanced total factor productivity,” he said.
Chow said Penang Institute, the state’s public policy think tank, has initiated a Request for Expressions of Interest (EOI) for the PIFC, adding that financial institutions, property developers, industry leaders and investment firms were welcomed to submit proposals.
EOI documents can be collected from the Penang Institute until March 26, with the deadline for submission set at noon on May 19.
The Chief Minister also said the refurbishment of the iconic Dewan Sri Pinang and construction of the Juru-Sungai Dua Elevated Highway project would begin by the fourth quarter of the year.
Chow, who is the Penang Development Corp (PDC) chairman, also explained the issue of the outstanding balance from the Bayan Mutiara development project, which had yet to be transferred from the state to PDC since 2011.
He said total revenue from the land transaction was RM1.07bil, which was deposited in the state government’s revenue account between 2011 and 2018.
Over the years, he said, funds had been reimbursed to PDC through multiple transactions for the construction of Affordable Housing Scheme (RMM) projects, with the remaining balance to be offset soon.
The outstanding amount was reported to be RM400mil, but it is learnt that the exact figure will be determined by the PDC and tabled at the state exco meeting.
