Kuala Lumpur:A proposal to redirect part of Malaysia's existing technology and semiconductor funds to support the development of Penang as a national technology financial hub was discussed in the Dewan Rakyat today. Chow Kon Yeow (PH-Batu Kawan) suggested that technology funds be allocated through the Penang Technology Financial Centre (PTFC).
According to BERNAMA News Agency, Chow emphasized the importance of utilizing existing public capital from government-linked investment companies and federal financing programmes. This includes Jelawang Capital, the venture capital fund under the KL20 Action Plan, and the Strategic Co-Investment Fund under the New Industrial Master Plan 2030, aiming to attract specialized technology financing providers and private investment without creating a new financing pool.
The PTFC aims to establish Malaysia's financial center for technology, focusing on semiconductor supply chain financing, knowledge creation, and Islamic finance. Chow also proposed forming a joint working group between federal and state governments, involving key financial and investment stakeholders such as the Ministry of Finance, Bank Negara Malaysia, the Securities Commission Malaysia, and others to drive this initiative.
Additionally, Datuk Hasni Mohammad (BN-Simpang Renggam) addressed fiscal discipline, emphasizing the need for evaluating development expenditure based on outcomes and reducing the absolute deficit when feasible. He highlighted the importance of assessing major development projects thoroughly and considering the nation's financial structure beyond just the deficit-to-GDP ratio.
He also noted that a large portion of the federal government's projected RM380.8 billion revenue for 2027 will cover operating expenses, leaving limited funds for development, which relies heavily on borrowing. Hasni proposed a strengthened framework for Petronas's contributions, suggesting that the government should balance fiscal needs with Petronas's investment capacity and expand the non-petroleum revenue base. This approach aims to ensure fiscal resilience, allowing the government to better protect its citizens during economic downturns.