Penang seeks federal approval for technology-based financial centre

The Penang state government is seeking federal commitment in the 2027 Budget for the establishment of the Penang International Financial Centre (PIFC). Chief Minister Chow Kon Yeow stated that the proposal aims to create a technology-based financial hub to strengthen the state's semiconductor industry.

Following the formation of a PIFC task force earlier this year and the appointment of consultants, the next step involves completing a ‘white paper’ to be submitted to the Ministry of Finance for approval. Chow emphasized that the PIFC is not intended to compete with existing financial centers like Kuala Lumpur, Labuan, or the Johor Special Economic Zone (JS-SEZ). Instead, it will leverage Penang's established position as a global and regional technology hub.

The center is expected to focus on providing specialized financing to support technological development and help local small and medium enterprises (SMEs) expand their capabilities. The initiative seeks to address financing gaps within the state's industrial ecosystem, which includes multinational companies, advanced infrastructure, and a skilled workforce.