THE Penang government emphasised the need for careful deliberation before finalising the establishment of a Special Financial Zone (SFZ) in Penang, recognising its potential as a powerful growth engine for the state’s economy.
Chief Minister Chow Kon Yeow the potential establishment of an SFZ in Penang as a growth engine is currently under study by the Penang Institute (PI).
“The state has been briefed by PI on the prospects of implementing the SFZ in Penang.
“A public engagement workshop was held on Sept 24 this year, attended by over 100 participants representing the logistics, trade, and financial sectors.
“Over 93% of the participants expressed support for the initiative.
“Key benefits identified include the creation of ample job opportunities for young graduates, enhanced funding for advanced local manufacturing, and an increase in foreign investment to solidify Penang’s position as a regional business hub in Southeast Asia,” he said in his winding-up speech during the Penang Legislative Assembly today.
Chow said the participants also pinpointed promising financial subsectors for Penang to prioritise, such as fintech, startup financing, equity crowdfunding, maritime trade, and cryptocurrency finance.
“Prominent locations under consideration for the SFZ include Gurney Bay and Andaman Island, though concerns were raised about traffic congestion, talent shortages, and low wage offerings potentially impacting the project’s success,” he added.
The initiative, spearheaded by PI, remains in the research stage, with findings set to be presented to the state executive council (exco) after further evaluation.
A roundtable session with industry experts was held on Nov 27 this year to refine the proposal’s framework.
Story by Christopher Tan