CHIEF MInister Chow Kon Yeow will soon disclose plans to turn the state into an international financial centre as part of efforts to diversify the economy in view of the uncertainty in the global marketplace due to the threat of US tariffs.
Chow said that an official notification would also be send to Prime Minister Datuk Seri Anwar Ibrahim, who is the Finance Minister on this matter.
"To realise this status, the state will invite the private sector to assist the state in trying to secure the necessary approval from the federal monetary authorities."
Chow said that the international financial centre, will also complement Penang's stature as the "Silicon Valley" of the East.
Chow said this after breaking fast with gold merchants and traders in George Town.
He said that this initiative is to also allow Penang to ease into the role as a financial hub for the northern region.
"We have the criteria to attain such a status. Penang is a long - established hub for trade, logistics and now manufacturing. It is logical we seek a financial status."
A financial centre, or hub, is defined as a concentrated location for financial activities, such as the establishment of all reputable financial institutions, stock exchanges, banks, and related entities to underwrite domestic and global financial transactions.
Some of the world's leading financial centre include New York City, London, Tokyo, Singapore, Hong Kong, and Shanghai.
Such centres play a vital role in the global economy by facilitating cross - border financial transactions, investments, and business activities.
In another development, Chow said that the state and the Penang Development Corporation (PDC) are discussing on how to offset RM400 million owed to PDC.
The amount stems from proceeds of a land sale transaction about 14 years ago, following the sale of the Bayan Mutiara (Penang World City) land, which was transacted through the Chief Minister Incorporated (CMI) in 2011.
Chow has instructed PDC to submit an updated financial report to clarify accounts and ensure all outstanding payments are properly addressed.
“The state government has already reimbursed RM500 million to PDC, and over the years, multiple financial transactions have taken place between the state and PDC."
He explained that financial dealings between the state and PDC are part of internal operations. - March 14, 2025.
