GEORGE TOWN, March 19 — Penang has initiated a request for expressions of interest (EOI) to establish a Penang International Financial Centre (PIFC) in the state.
Penang Chief Minister Chow Kon Yeow said the state executive council has tasked Penang Institute with initiating the EOI to assist the state government in realizing the PIFC proposal.
“Penang Institute has been researching this for a year. At this stage, we want to expedite the process of setting up the PIFC, so the state executive council has agreed to call for EOIs to make this proposal a reality,” he said at a press conference at his office in Komtar today.
He said the establishment of the PIFC aligns with the state’s long-standing role as a global trading hub and its growing prominence in the manufacturing and technology sectors.
“Penang, often referred to as the Silicon Valley of the East, is well-positioned to develop a dynamic financial ecosystem that supports industrial growth, particularly in the semiconductor and high-tech industries,” he said.
The PIFC is aimed at attracting capital inflows to advance the semiconductor sector in the northern corridor.
“It will also expand tech-driven investments in the region, draw in new sources of capital for financial innovation, diversify employment opportunities, and increase national and state revenue,” he said.
“We cannot always rely on the electrical and electronics (E&E) industry and the services sector. Even though this falls under the services sector, it is a specialized financial service centre that can significantly impact the state,” he added.
Chow said the proposed PIFC will complement the existing financial centres in Malaysia, such as those in Kuala Lumpur and Labuan.
“We are not looking to duplicate but rather to establish a financial centre that can complement what we already have,” he said.
The state government submitted a formal letter to Prime Minister Datuk Seri Anwar Ibrahim on March 13, outlining its intentions to set up the PIFC.
“We look forward to the federal government’s support, but at the same time, we want the private sector involved,” he said.
Interested companies may submit their EOI proposals, and applicants will be required to conduct their own studies and demonstrate their ability to prepare the necessary infrastructure for the PIFC.
“If a company is selected, it will be responsible for securing all necessary approvals and must be ready to start operations immediately with physical structures for the centre,” he said.
The state government is looking for the PIFC to be developed on a 100-acre site, which will be built by the selected company.
“It must be in Penang, whether on the island or the mainland,” he said.
The EOI is open to financial institutions, property developers, industry leaders, and investment firms.
EOI documents can be collected from Penang Institute between March 17 and 26 during office hours.
All proposals must be submitted by 12pm on May 19.
