GEORGE TOWN: A Penang lawmaker has proposed a working group with Bank Negara Malaysia to realise the establishment of a state government-owned financial GLC, namely the Penang Development Bank.
Joshua Woo (PH-Pulau Tikus) said a development bank was strategic as it could provide financing, through loans and equity participation, for infrastructure projects, the industrial sector, as well as support urban renewal and tourism initiatives.
"As a reference, we can emulate the model of DBS Bank, which is now the largest bank in Southeast Asia in terms of assets and market capitalisation.
"DBS began as a government-owned company established to finance economic development before evolving into a full-fledged commercial bank," he said when debating the Supply Bill at the state legislative assembly on Tuesday (Nov 18).
He praised the state government, which was working hard to realise the Penang International Financial Centre (PIFC).
He said while efforts were underway to establish a working group with the Finance Minister to study the establishment of PIFC, a similar effort should be done to set up the Penang Development Bank.
The proposed establishment of the PIFC is currently at the discussion stage with the Federal Government, Bank Negara and the Securities Commission.
It was reported that the think tank, Penang Institute, was given the role to initiate the expression of interest process last March, and the results had already been presented to the state Cabinet.
PIFC aims to attract new capital to strengthen the semiconductor sector in the Northern Corridor, in line with the New Industrial Master Plan 2030 and the National Semiconductor Strategy.
