GEORGE TOWN: A special task force has been formed to hasten the Penang International Financial Centre (PIFC) project.
Chief Minister Chow Kon Yeow, who disclosed this, said the state exco wanted the task force to adopt a “whole-of-state” approach to accelerate the development of the proposed financial hub.
He said the task force will prepare a white paper and strategic action plan for submission to the Finance Ministry later this year.
Chow, who will head the task force, said the PIFC was to position Penang as a nexus of technology and finance by providing strategic financial services to support the semiconductor industry value chain.
“The initiative will reinforce Penang’s standing as a leading electrical and electronics hub, by attracting capital relocation amid ongoing global trade tensions and supply chain realignments.
“It will also serve as an economic pillar for the state, complementing existing financial centres in Johor, Kuala Lumpur and Labuan,” he told a press conference yesterday.
Chow said the PIFC’s development was expected to take up to 20 years, with two initial phases focusing on institutional establishment and regulatory ecosystem development to take off soon.
The first meeting of the task force is scheduled for April 1.
Chow said the state wrote to the ministry regarding the PIFC proposal in March last year, with the latter replying that no national policy existed for a new financial centre.
“However, we received a more encouraging response this month requesting for a clear policy framework and comprehensive stakeholder engagement to ensure alignment with the national financial ecosystem and long-term federal plans,” he said.
Chow said the state has initiated early engagement with regulators, including Bank Negara, Securities Commission and Labuan Financial Services Authority.
On the location of the centre, Chow said it has yet to be finalised. So far, three companies based in the island have submitted proposals through an expression of interest process conducted by Penang Institute.
In January, Chow said the PIFC would position Penang as a financial hub, forming part of a long-term strategy to strengthen the state’s economy and support its ambition to become a competitive, high-impact regional technology and innovation centre.
