Chief minister Chow Kon Yeow today described “high-level discussions” with regulators such as Bank Negara Malaysia, the Securities Commission Malaysia and the Labuan Financial Services Authority as a critical early step to ensure that the initiative, which is still conceptual, is developed responsibly and in line with federal policy priorities.
He reiterated that no decisions had been made on the establishment of the PIFC, including the location of a designated zone. The PIFC is estimated to involve the development of almost 100 acres.
However, Chow said the Penang government would continue to advocate PIFC’s establishment despite the finance ministry previously stating that Putrajaya had no concrete plans to move the project forward. He said the PIFC formed part of a broader strategy to strengthen the state’s economic foundation while supporting national development goals.
“Although the finance ministry has said the timing is not right and no definitive steps have been taken, we remain committed to advancing this agenda,” he said in a statement.
“This initiative is not just for Penang. It aims to contribute meaningfully to Malaysia’s overall development and long-term economic resilience.”
He added that the centre could become a major economic catalyst by positioning Malaysia as a more competitive player in the global financial ecosystem while reinforcing Penang’s role as a strategic economic hub.
Chow said that Penang’s well-established high-tech industrial and manufacturing ecosystem – particularly in semiconductors and other advanced industries – put the state in a prime position to develop a financial ecosystem that supports industrial growth.
He added that phased engagement sessions with potential industry players would continue to build market confidence and assess real industry needs.
Proposed by the Penang government last year, the financial centre is part of a plan to grow the state’s economy beyond factories and tourism.
It is meant to bring in new types of businesses such as fund management, fintech and wealth management, and aims to turn Penang into a regional financial hub.
Last November, Chow said the Penang state government had asked IJM Corp Bhd, Gamuda Bhd and Eastern & Oriental Bhd for additional details after they submitted proposals for the PIFC following an expression of interest undertaken by state think tank Penang Institute in March.