THE proposed Penang International Financial Centre (PIFC) marks a significant step forward for the state, positioning it as a key player in the financial industry while complementing its existing strengths in manufacturing and the electrical and electronics (E&E) sectors.
88 Captains chairman Datuk Seri Dr Ooi Eng Hock expressed his optimism regarding the initiative and commended the foresight of Prime Minister Datuk Seri Anwar Ibrahim and Penang Chief Minister Chow Kon Yeow for their support in driving Penang’s progress.
He emphasised that the PIFC would elevate Penang’s image and attract high-quality multinational corporations (MNCs) and E&E investors, not only from a financial perspective but across various service-based industries.
“Penang has long been renowned as the ‘Silicon Valley of the East’ due to its strong manufacturing base over the past 50 years.
“As time has passed, we have diversified into tourism and services, and about a decade ago, our Global Business Services (GBS) sector saw significant growth.
“Now, we are striving towards becoming a financial centre, and we are ready for it,” he told Buletin Mutiara recently.
Dr Ooi noted that Penang already has a strong talent pool in finance, accounting, law, and management, making it well-positioned to support the financial services industry.
However, he stressed that Federal support, particularly from Bank Negara and relevant authorities, would be crucial in ensuring the success of the project.
Currently in the preliminary stage, the PIFC concept is still being refined, with Penang Institute inviting Expressions of Interest (EOI) from stakeholders.
The state government is reportedly considering a 100-acre area, to develop the centre as a hub for nurturing local talent and enhancing service capabilities.
“This is about creating an ecosystem that will support the financial industry and encourage the development of high-value services.
“By focusing on service-based industries like finance, we have the opportunity to move out of the middle-income trap, raise wages in the sector, and increase the salary median in Penang,” Dr Ooi explained.
He also highlighted the importance of interlinking the PIFC with Penang’s existing GBS sector, which has played a crucial role in cultivating a skilled workforce.
He believes that with the right mechanisms in place, including modern infrastructure such as the upcoming Mutiara LRT Line, Penang will be well-equipped to support a thriving financial hub.
“This PIFC initiative is a game-changer – a big wave that can help retain talent in the northern region. It is another milestone that will propel Penang forward,” he said.
Dr Ooi concluded by reaffirming his confidence in Penang’s ability to establish itself as a major financial hub with the right support from both Federal and state governments.
“This is the way forward, step by step. With continued commitment and infrastructure development, Penang will not only enhance its financial sector but also strengthen its position as a key economic powerhouse for Malaysia,” he added.
Meanwhile, Penang Chinese Entrepreneurs Association president Dr Lee Eng Wah also voiced his strong support for the PIFC initiative, highlighting its potential to enhance Penang’s global competitiveness, attract international capital, and drive the integration of high technology and financial industries.
Dr Lee pointed out that Penang is already a key global hub for the semiconductor and high-tech manufacturing industries.
He stressed that the PIFC would provide essential financial support to these industries, further solidifying Penang’s position in the global value chain.
“PIFC will strengthen Penang’s investment appeal, boost related service sectors such as law, accounting, and consultancy, and promote economic integration in the northern region, fostering closer industrial ties with Kedah, northern Perak, and southern Thailand,” he said.
He further noted that Penang’s economy currently relies heavily on manufacturing and tourism, making its structure relatively narrow. However, the development of PIFC could drive financial industry growth, transitioning Penang towards a ‘technology + finance’ model, enhancing economic resilience, and reducing dependence on a single industry.
Dr Lee emphasised that PIFC’s success hinges on support from the Federal Government, particularly in areas such as financial licensing, tax incentives, and regulatory frameworks. Additionally, key factors such as land planning, attracting top financial institutions, and establishing an innovative business model must be carefully considered by the state government.
“Penang can take inspiration from international financial hubs such as Singapore and Shenzhen by focusing on niche sectors like green finance, Islamic finance, or digital finance, creating a unique advantage and avoiding direct competition with Kuala Lumpur,” he suggested.
Dr Lee added that if Penang could overcome these challenges, PIFC will become a major milestone in the state’s economic transformation, propelling it towards becoming a high-value international financial and technology hub.
When contacted, Penang Chinese Town Hall chairman Tan Sri Dr Tan Khoon Hai has voiced his strong support for the PIFC.
“This initiative aims to attract foreign investment and enhance the state’s economic competitiveness.
“With its prime geographical position and well-developed infrastructure, Penang serves as a gateway for international enterprises looking to enter the Southeast Asian market,” he said.
He highlighted Penang’s unparalleled advantages in connectivity, spanning sea, land, and air transport.
He believed that the PIFC would not only stimulate the local financial sector but also drive growth in related industries such as technology, logistics, and tourism, thereby generating broader economic benefits.
“With strong government support and forward-thinking policies, the state can seize this opportunity to establish itself as a key economic powerhouse in Malaysia and Southeast Asia,” Dr Tan added.
Story by Christopher Tan
Featured photo of the Dubai International Financial Centre is taken from Bloomberg News