CJMY
Penang now wants its Penang Technology Finance Centre realised within one year, not two. Chief Minister Chow Kon Yeow gave the new target in the state assembly on Friday.
The state will also set up an implementation office. A RM100 million strategic fund with Khazanah and InvestPenang is part of the plan.
Here is what the centre is, what has changed and what comes next.
What the Technology Finance centre is
The centre is still a proposal. People call it the PTFC. The state first planned a Penang International Financial Centre.
After talks with stakeholders and the Finance Ministry, it shifted to a technology focus. That builds on Penang’s status as the national technology hub.
The Penang Technology Finance Centre grew out of that earlier plan. The idea is to link money with the state’s chip and electronics firms.
The state has submitted a White Paper and formally asked Putrajaya to agree to the plan.
Chow noted that Budget 2027 named Penang a national financial technology centre. He called this “an enhancement of our proposal”.
The regional centre the state proposed could now play a larger, national role, he said. It should tie in with the National Semiconductor Strategy and the New Industrial Master Plan.
A shorter timeline and a new office
Chow replied to a question from Bukit Tengah assemblyman Gooi Hsiao-Leung. Gooi had asked that the White Paper be shared with all assemblymen.
Chow said the state first aimed for two years.
“Some people felt that was too long and asked us to shorten the timeframe to one year,” he said.
He added that the state will try. However, it will need close support from federal agencies. The report carried no federal response.
The state will also set up an implementation office. It will bring together resources in Penang and work with other stakeholders.
“We cannot simply wait for the federal government,” Chow said. Sometimes the state must take the initiative and show it is serious.
A Strategic Blueprint and Action Plan is also being prepared. Chow said he will invite all assemblymen to a briefing once it is ready.
Funding and what comes next
Money is the next piece. The state has a RM100 million strategic fund involving Khazanah and InvestPenang. It hopes to finalise the governance arrangements by the end of the year.
“This is a small fund, but it is a start and an injection of confidence,” Chow said. The sum is modest, yet it signals intent.
Small firms in the semiconductor and electrical and electronics sectors have already shown interest in the fund. Foreign parties have shown interest in taking part too.
Fintech means financial services built on technology, such as digital payments. The state wants an integrated finance and investment ecosystem. It should raise capital, offer financial services and create new financial solutions.
Penang already has a deep technology base. For example, Bosch opened a semiconductor backend site there, and LEM built a RM79m factory.
The state is also working on its Silicon Island project.
Next, the state must finalise the fund rules and open the implementation office. Those steps will show whether one year is enough
Sashidaran Gunathevan
Yalinie Mathan
Admin
Add comment