Penang: Penang hopes that its proposal to establish the Penang International Financial Centre (PIFC) will receive the Federal Government's approval through Budget 2027, said Chief Minister Chow Kon Yeow. He stated that the state government is prepared to present the proposal to the Finance Ministry based on a white paper prepared by an appointed consultant.

According to BERNAMA News Agency, the PIFC is not intended to compete with Kuala Lumpur, Labuan, or the Johor-Singapore Special Economic Zone. Instead, it aims to differentiate Penang's financial centre based on the state's existing foundation as a regional and global technology hub. The chief minister made these remarks after attending the SC Penang Semicon Roadshow 'Powering SemiCons: Financing Your Next Breakthrough.'

The proposal for the PIFC aims to address key issues like providing access to financing to support technological developments and unlock the potential of the industry in Penang. The state has developed an industrial ecosystem over several decades through the presence of multinational companies, infrastructure, industrial parks, experienced companies, and a skilled workforce.

However, Chow emphasized that the financing aspect still needs reinforcement, particularly for local small and medium enterprises (SMEs) seeking to expand and enhance their global competitiveness. Stronger linkages between SMEs, multinational companies, technology, talent, and capital could create a robust semiconductor ecosystem in Penang.

Over the past two years, Penang has focused on integrated circuit (IC) design, showing progress as the state moves towards higher-value activities beyond its traditional strengths in assembly and testing. Chow expressed hope that the Federal Government would provide a clear commitment to the PIFC proposal through Budget 2027, enabling further planning stages for the state government.