THE proposed Special Financial Zone (SFZ) for Penang should be included in the 13th Malaysia Plan which runs from 2026 until 2030 as the incentive can diversify the economic base of Penang from manufacturing to services.
Chief Minister Chow Kon Yeow, said the SFZ when realised, can become a boon for the state to leverage from its strong manufacturing base, coupled with the state's phenomenal surge in tourism and regional trade.
SFZ is an area in which the business and trade laws within it are different from the rest of the country.
It aims to become a global financial and business hub by attracting multinational corporations, financial institutions, and high-tech companies through the offering of a conducive business environment, tax incentives, and proximity to key inbound markets.
Speaking at the Malaysia Plan engagement session held at the Setia SPICE Convention Centre where Economy Minister Rafizi Ramli was also present, Chow emphasised the initiative’s potential to bolster Penang’s economic dynamism and significantly contribute to Malaysia’s overall growth.
“This initiative, if materialised, will attract more foreign direct investments (FDIs) into the state and position Penang as a global powerhouse in key industries,” Chow stated.
SFZ was originally mooted by Chow's predecessor Lim Guan Eng, who in turn drew inspiration from it after studying a similar proposal for Johor, which runs through the mega Forest City development area.
Chow also provided updates on the 13th Malaysia Plan's (13MP) fifth rolling plan, revealing that the Penang government has received 93 project applications from 19 departments and agencies, amounting to an estimated RM17.7 billion.
“So far, six projects worth RM199.1 million have been approved, with RM1.9 million earmarked for relevant initiatives in 2025. We are optimistic about having other proposed projects considered as well,” he said.
The SFZ, if integrated into the plan, is expected to amplify these efforts by fostering an environment conducive to FDIs, further cementing Penang’s reputation as one of the country's economic engines.
It is not just a local ambition but a national opportunity to propel Malaysia’s economy to new heights, said Chow.
Meanwhile, in another event, the state executive councillor in charge of tourism, Wong Hon Wai told a press conference that the state is exploring new markets to further enhance its thriving medical-tourism area.
Buoyed by the record arrivals of Indonesians to the several private medical facilities here, Wong said that there are steady inflows from Indonesian cities like Surabaya, Aceh, Jakarta, and Medan.
But it is time to diversify because the state cannot just rely on one market, he said.
Wong spoke of tapping the potential from other Asean - member countries and from East Asia, namely China, South Korea and Japan.
“We aim to explore untapped areas, both within Indonesia and in other regions, such as the Middle East and East Asia,” Wong said.
With a reputation for high-quality medical professionals and facilities, Penang is well-positioned to attract international patients.
“In East Asia, we are particularly interested in drawing visitors from South Korea, Japan, and China,” Wong said. - December 12, 2024.
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