THE Penang International Financial Centre (PIFC) will remain a long-term aspiration of the state government, even though the original proposal has not been supported by the Ministry of Finance (MoF) at this stage.
Chief Minister Chow Kon Yeow said this in response to a supplementary question from Gooi Hsiao-Leung (PH-Bukit Tengah) during the Penang State Legislative Assembly today.
“I am not disappointed because we (the state government) have only just begun this initiative (PIFC) at the preliminary or even pre-preliminary stage, through a letter to the Prime Minister and possibly extended to the Treasury (MoF) to inform them of the state government’s initiative,” said Chow, who is also the assemblyman for Padang Kota and the Member of Parliament for Batu Kawan.
Chow cited the upcoming Light Rail Transit (LRT) project as an example, noting that it took the state nearly 10 years before it secured approval from the Federal Government.
“Major international financial centres abroad can take up to seven years before becoming fully operational. Therefore, the process of selecting a location for PIFC will be carried out carefully, in phases, and based on suitability analysis as well as current market needs,” he said.
He added that the proposed PIFC is a strategic initiative built on three pillars aimed at strengthening the state’s financial ecosystem.
The first involves creating a state sovereign fund using state assets such as land to generate investment capital without requiring direct Federal approval. The second is the digitalisation of state-owned land assets into a Real Estate Investment Trust (REIT) to attract private investors. The third includes developing a physical financial hub by creating a special zone equipped with modern infrastructure and a digital business ecosystem, supported by data centres, fintech services, and professional support industries.
Chow said the state government has applied to the Ministry of Finance to establish a Penang Special Financial Zone, but the MoF replied that it currently has no plans to do so.
He said the proposal to locate the PIFC in Ampang Jajar, covering approximately 40 hectares, is appreciated and will be considered alongside other potential sites already identified, in line with the state’s development plans to ensure balanced growth between Penang Island and Seberang Perai.
Chow also highlighted that Penang Institute, the state’s think-tank, has been tasked to engage three companies that have expressed interest in the PIFC to obtain more details on their proposals before the state responds further to the Federal Government.
At this juncture, Teh Lai Heng (PH–Komtar) stood to thank the Chief Minister for his optimism and asked whether Chow knew how Johor had managed to establish its financial zone in such a short time, so that Penang could learn from the experience in securing Federal approval for a similar status.
“I hope the Prime Minister has heard the views of YB Komtar,” Chow said tongue in cheek, drawing laughter from the floor.
In a lighter vein, he added: “There are things that Penang has, like char koay teow and laksa, which Johor does not have; but there are also things Johor has that Penang does not.” More laughter followed.
Lim Guan Eng (PH–Air Putih), who is also the Bagan MP, thanked Chow for considering Seberang Perai as a potential location for the PIFC as part of the state’s efforts to grow its economy.
Since Ampang Jajar is located between the Permatang Pauh and Bagan parliamentary constituencies, Lim said he believes the Opposition (from Permatang Pauh) and the Prime Minister, who hails from Penang, would support the project for the area’s economic development.
Responding, Chow said that under the Prime Minister’s leadership, “everything is possible, especially matters related to Penang Island and Seberang Perai.”
“Yang Berhormat Bagan is very supportive, as Seberang Perai, especially Bagan, will benefit. But I don’t know whether Yang Berhormat Permatang Pauh wants or does not want to support it. But whatever it is, if it is suitable, we will give it to them,” he quipped, again drawing laughter from the assemblymen.
Chow said that at this stage, all three interested companies have their own considerations regarding the location. The state, he said, remains open to possibly having more than one site.
“I am not certain about the venue yet. Although today is my birthday, even if I make a wish, it cannot be fulfilled today. Nevertheless, this matter will be pursued, and we hope it will succeed,” Chow said with a smile.
Story by K.H. Ong
Pix by Alissala Thian