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KUALA LUMPUR (Jan 27): The Penang government is holding high-level discussions with key federal regulators to advance a plan for an international financial centre in the state.
Chief Minister Chow Kon Yeow said the state government is in talks with Bank Negara Malaysia, the Securities Commission and the Labuan Financial Services Authority to ensure that proposals for the Penang International Financial Centre meet national regulatory and policy requirements.
"The aim of these discussions is to ensure that the proposals put forward are not only innovative but also legally compliant, uphold high standards of integrity and align with the country’s Financial Sector Masterplan while avoiding any overlap with the existing [financial] ecosystem," Chow said.
No decision has been made on the location or structure of the proposed financial centre, which the state government continues to view as a long-term aspiration to strengthen Penang’s economic base and build a competitive regional technology and financial hub.
The proposal comes as Penang seeks to accelerate growth and to develop a financial services industry to support the economy of the state that hosts some of the largest global high-tech companies.
The potential financial centre will focus on specialised segments such as digital assets, fintech, and manufacturing-related financial services, including supply-chain financing, trade services and industrial innovation, Chow said in the statement on Monday (Jan 26).
Stakeholder engagements are being conducted in phases through the Penang Institute to assess actual industry needs and build market confidence, he said.
"While the federal government has yet to finalise a comprehensive framework for this initiative, the Penang state government, through its think tank Penang Institute, remains committed to laying a strong foundation," Chow added.
In Nov 2025, the Penang state government asked IJM Corp Bhd, Gamuda Bhd and Eastern & Oriental Bhd for details on their proposed partners and the types of financial services they intended to anchor in the hub that could cost some RM10 billion.
The proposed development, expected to span nearly 100 acres, has reportedly drawn competing site proposals including Gurney Bay, Jelutong, Pulau Jerejak, Penang South Island, North Butterworth and Batu Kawan.
Chow had, in October 2025, stressed that Penang would continue advocating for the proposed financial centre even as the Ministry of Finance had said "the timing was not right" to pursue the plan.
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