CM: Penang seeks federal backing for proposed international financial centre in Budget 2027

George Town, Aug 19 — Penang is optimistic about its proposed international financial centre (PIFC) being approved under Budget 2027, according to Chief Minister Chow Kon Yeow. The state has prepared a white paper, backed by a consultant, to pitch the PIFC to the Finance Ministry. Chow emphasized that the PIFC aims to differentiate itself as a technology hub, rather than competing with Kuala Lumpur, Labuan, or Johor Special Economic Zones.

He referred to it as the Penang Technology Financial Centre, reflecting its focus on financing technology development. The chief minister highlighted Penang's decades of groundwork in industrial development, but stressed that financing remains a crucial gap, especially for local SMEs. He suggested equity financing, institutional investment, and initial public offerings as potential avenues to empower local companies.

Chow also pointed out that stronger connections between SMEs, multinational corporations, technology, talent, and capital could bolster Penang's semiconductor ecosystem. The state has recently shifted its focus towards integrated circuit design, resulting in positive outcomes. Chow expressed anticipation for federal government support in the 2027 Budget, signalling readiness for the second phase of the PIFC, which includes engaging additional consultants and detailing the responsibilities of both state and federal governments.