THE PENANG International Financial Centre (PIFC) project is back on after positive feedback from the federal authorities, with the state now forming a special committee to spearhead the initiative.
It will take up to 20 years to see the full fruits of the project, but it is seen as timely owing to the challenges in the global economy.
Penang's economic scene is mostly powered by the twin growth of the services sector through tourism and the manufacturing sector through a combination of medical devices and electronics, as well as the electrical ecosystem.
Chief Minister Chow Kon Yeow envisions that the PIFC is next in the effort to diversify the economic base and not be reliant on just those two sectors.
"It is better late than never, and we should tap on this opportunity," Chow told a press conference at Komtar.
He said that Penang may have also reaped the capital flight, which is now taking place out of Dubai, UAE, due to the war in neighbouring Iran.
But unfortunately, the PIFC is not yet activated, Chow conceded.
Capital is now flowing to East Asia from the Middle East, namely to Singapore and Hong Kong, which are regarded as safe havens to grow investments, said Chow.
He said that the PIFC will encompass the supply chain of regional financing and investments through Fintech (financial tech), Syariah finance, as well as the development of the necessary infrastructure for the centre.
The state's partner in this venture is the Penang Institute think tank, which, in turn, has a proposal from three local specialist companies, who are keen to tap into the potential of Penang as a financial hub.
Penang will not compete but complement the existing financial hubs in Johor Bahru and Labuan (Sabah) to grow the country's strength as a financial gateway.
Chow noted that the federal authorities, namely the Ministry of Finance, the Ministry of Investments, Trade and Industries, Bank Negara and the Securities Commission, were willing to see what Penang can offer through the PIFC.
He said that the PIFC will facilitate the easier movement of investments, while it can also stimulate the growth of the national semiconductor masterplan.
The location of the PIFC would only be determined once all studies related to the project are finalised and federal approval granted, said Chow. - March 20, 2026.
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