BUTTERWORTH – Chief Minister Chow Kon Yeow has given his blessing to the proposal by his predecessor Lim Guan Eng for Penang to be accorded a special financial zone (SFZ) to stimulate further economic growth in the northern region.
Chow said the state would support any proposal which helps Penang in its quest to develop the state despite challenges from a global economic slowdown.
But the SFZ is under the domain of the federal government, so the latter must come up with more details about it, Chow said after launching the Penang Science Cluster at Bagan.
The cluster has set up a branch in Butterworth to instil the need to master science, technology, engineering and mathematics subjects in Penang.
Lim, who is the Bagan MP, was also present at the launch last night.
“I have asked the Penang Institute (a think tank) to study the SFZ but there are no details yet on how it will be done. Any new initiative for the economy will benefit the state but it is under federal jurisdiction because it involves taxes and incentives. We will wait for further details from the federal government on the SFZ.”
Last month, Prime Minister Datuk Seri Anwar Ibrahim announced that the government would establish a SFZ in Forest City, as well as incentives which include multiple entry visas, fast-track entry for those working from Singapore and a flat income tax rate of 15% for skilled workers.
It was designed to jumpstart development in the Forest City enclave, which is a real estate haven for mainland China nationals to invest in holiday homes outside of their country.
Lim also proposed a similar SFZ with the backing of the chambers of commerce here as well as several DAP elected representatives.
Lim reasoned that Penang now has a distinctive advantage with a mature manufacturing industry base.
Such elements will drive development and boost the growth of the services sector, not only in the northern region but for the whole country, he said.
It is learnt that there are now attempts to lobby the federal government to offer the SFZ to Penang when it tables the national fiscal budget for next year.
It is believed that the SFZ zone can be located in the reclaimed island parcel which Penang is jointly developing with project delivery partner SRS Consortium Sdn Bhd off the Batu Maung coastline on the island.
The SFZ has come at a time where Penang is busy trying to roll-out development projects from the light rail transit (LRT) to three new highways including the Air Itam to Tun Dr Lim Chong Eu bypass, a cable car on Penang Hill and an ecotourism venture in Paya Terubong.
The Gurney Bay – a sprawling reclaimed site off the old Gurney Drive is scheduled to have its first phase completed by early next year – marking a new recreational ground for the state, and another addition to its list of tourism products. – The Vibes, September 24, 2023
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