THE National Technology Financial Centre will take time to materialise and should not be expected to be fully implemented within two years, says Chief Minister Chow Kon Yeow.
“If it can be implemented within two years, that will already be very fast. Take the Johor-Singapore Special Economic Zone, for example. Discussions on the initiative have been going on for several years, and implementation still takes time,” he said in response to a media query after holding a press conference on Penang Miaohui at Komtar today.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced in the 2027 Budget yesterday that the Federal Government would promote balanced development among the states, with Penang designated as the National Technology Financial Centre.
On the positioning of the National Technology Financial Centre, he said that although the Federal Government had designated it as a national-level initiative, Penang hoped to remain at the centre of its development.
Asked whether the initiative would eventually cover other northern states and how a proposed joint committee involving the Federal and state governments would be structured, Chow said the arrangements were still under discussion and had yet to be finalised.
Khazanah Nasional and InvestPenang will also establish a RM100 million Strategic Investment Fund to support semiconductor and advanced manufacturing companies in their early growth stages.
Chow said Penang hoped to implement the initiative by leveraging existing frameworks and investment incentives while minimising any additional financial burden on the Federal Government.
He added that InvestPenang, the state government’s investment promotion agency, and Khazanah Nasional had begun discussions on the initiative one or two months ago.
He said the RM50 million previously announced by the Penang government would form part of the state’s contribution to the strategic investment arrangement, while the overall funding structure and detailed implementation mechanisms remained subject to further coordination.
He hoped the fund and its accompanying support measures would help semiconductor and advanced manufacturing companies in their early growth stages, particularly technology start-ups.
“Our aim is for the government to take the lead in providing support so that these companies can get started.”
Chow cited the Silicon Design @ 5km+ initiative, which already has seven incubators in Penang to provide a platform for technology companies to grow.
He said consultants had also been appointed this year to prepare a white paper for the Penang Technology Financial Centre, laying the groundwork for its eventual implementation.
“The initiative has so far received approval in principle, but substantial work remains to be done, including studies on its implementation framework, location and related mechanisms. As such, it should not be expected to be fully implemented within a short period,” Chow said.
“This initiative did not emerge overnight. Last year, we had already started engaging stakeholders and conducting studies through the Penang Institute, and further work has been undertaken this year.”
He also explained that the Federal Budget primarily outlined the government’s policy direction and key measures, without necessarily providing details of every project.
Following the budget announcement, some initiatives would require further follow-up by the relevant Federal agencies or state governments, including confirmation of project approvals, funding disbursement timelines and specific implementation arrangements, he said.
“Therefore, the absence of detailed information in the Budget did not mean that the initiatives do not exist. Further information and implementation details will emerge as the work progresses,” he said.
Story by K.H. Ong
Pix by Siew Chia En
Video by Siti Nuratikah Rahmat