GEORGE TOWN: Penang hopes Budget 2027 will include a Federal commitment towards establishing the proposed Penang International Financial Centre (PIFC).
Chief Minister Chow Kon Yeow said the state is moving forward with preparations, including drafting a white paper, for discussions with the Finance Ministry and relevant agencies.
A task force was formed earlier this year, followed by the appointment of a consultant to work on the proposal.
"The completion of the white paper will be the next major milestone before the proposal is submitted for consideration. We hope this Budget 2027 will acknowledge it and, if possible, approve it," he said during a press conference at G Hotel on Wednesday (Aug 19).
Chow said Penang is seeking a Federal commitment to enable detailed work on the proposed financial centre, including defining the respective roles of the Federal and state governments.
"It (PIFC) would not be positioned to compete with financial centres in Kuala Lumpur, Labuan, or the Johor Special Economic Zone. We will differentiate the proposed centre by building on its strength as a technology and semiconductor hub," he said.
He said the financial centre would play a pivotal role in providing financing to support the expansion of technology companies and the semiconductor industry, including helping firms secure funding to upgrade capabilities.
He added that the proposal was timely amid the rapid growth of artificial intelligence, geopolitical developments, and the semiconductor boom, which are creating greater demand for capital among tech firms.
“This is the time when companies need financing to expand," he said.
