GEORGE TOWN: The state government has formed a special task force to work towards establishing its Penang International Financial Centre (PIFC).
Chief Minister Chow Kon Yeow said it was decided during the state executive council meeting on Wednesday (March 18) that they will adopt a “whole-of-state” approach to accelerate the development of the proposed financial hub.
"The task force would be chaired by me (the chief minister), with the state secretary serving as deputy chairman, and supported by key state and federal stakeholders as well as industry representatives.
"The members of the task force include the state financial officer, state legal adviser, representatives from the State Economic Planning Unit, Invest Penang, the Northern Corridor Implementation and Malaysian Investment Development Authorities, with strategic advisers and private sector representatives.
"It will be jointly managed by the State Finance Department and Penang Institute.
“The task force will oversee the preparation of a white paper and strategic action plan (blueprint) which will be submitted to the Finance Ministry by the third quarter of this year," he said during a press conference held at his office in Komtar on Thursday (March 19).
Chow said PIFC aims to position Penang as a nexus of technology and finance by providing strategic financial services to support the semiconductor industry value chain.
“This includes supply chain financing, the advancement of Islamic fintech solutions and the development of digital financial infrastructure to meet industry needs.
“The initiative will reinforce Penang’s standing as a leading electrical and electronics hub, particularly by attracting capital relocation amid ongoing global trade tensions and supply chain realignments in recent times.
“This will position Penang as a 'safe haven' for investments.
"It (PIFC) would serve as an economic pillar for the state, complementing existing financial centres in Johor, Kuala Lumpur and Labuan," he said.
Chow said PIFC is envisioned as a long-term effort spanning 20 years, with two initial phases that will focus on the establishment of institutions (years one and two), and the formation of a regulatory ecosystem (years two to five).
He said while it will take time, one must start first and progress can then be made.
He said the first meeting of the PIFC special task force committee is scheduled for April 1.
"I hope that the stakeholders will demonstrate full commitment to the initiative.
"We (the Chief Minister’s Office) submitted a letter of intent to the Finance Ministry in March last year (2025) regarding the establishment of the PIFC.
"The ministry responded in July (2025) that there was no existing national policy to establish a new international financial centre at the time.
"We did receive a more encouraging response from the Federal Government on March 2 this year (2026) following my query in Dewan Rakyat.
"It called for a clear direction and policy framework at the state level to ensure alignment with the national financial ecosystem and long-term federal plans," he said.
Chow said the state will undertake comprehensive studies and conduct holistic engagements with key stakeholders, including the Finance, Economy and Investment, Trade and Industry Ministries, Bank Negara Malaysia and the Securities Commission Malaysia.
"Preparations for the white paper and the blueprint is based on the suggestions by the Finance Ministry to improve the proposal.
"The main purpose now is to start the engagement exercise and with the setting up of this task force our first milestone is to come up with the white paper and blue print so that the relevant agencies can review the proposal.
"We have initiated early engagement with regulators, including Bank Negara, the Securities Commission and the Labuan Financial Services Authority, following the submission of the letter of intent," he said.
It was reported in January this year (2026) that Chow said PIFC would position Penang as a financial hub is part of a broader, long-term strategy to strengthen the state's economic foundations, in line with its ambition to become a competitive and high-impact regional technology and innovation hub.
Chow had said then that Penang, often referred to as the 'Silicon Valley of the East', was well-positioned to develop a dynamic financial ecosystem supporting industrial growth, particularly in the semiconductor and high-tech industries.
