Penang has welcomed the federal government’s recognition of its plan to establish the Penang Technology Financial Centre under Budget 2027. Chief Minister Chow Kon Yeow said the initiative was a strategic step towards strengthening Malaysia’s position in the high-value technology-based economy, according to The Malaysian Reserve.
“This recognition is a positive development in Penang’s efforts to explore new opportunities to strengthen the technology ecosystem, particularly in the electrical and electronics (E&E) and semiconductor sectors, while increasing the added value of local industries,” he said in a statement.
The state government submitted the PTFC White Paper to the Finance Ministry on 23 Sept, and will submit the PTFC Strategic Blueprint and PTFC Action Plan by November to outline its direction, the strategies it will use and the actions required.
Following the Budget 2027 announcement, Chow said the state would continue discussions with the ministry to establish a PTFC Federal-State Joint Committee to coordinate planning, delivery and follow-up measures between the federal and Penang state governments.
The proposal was previously known as the Penang International Financial Centre and was renamed to better reflect Penang’s role, and that of the northern region, as the country’s electrical and electronics and semiconductor hub, NST reported. The centre would focus on improving access to capital for small and medium enterprises, startups and local companies seeking to expand into the semiconductor and artificial intelligence sectors, Chow told reporters.
Chow said the PTFC could strengthen local manufacturing that supports the E&E and semiconductor sectors, while allowing local companies to move into higher value technology chains.
The centre could also move Penang’s economy towards higher value-added activities by expanding opportunities in advanced technology, innovation and knowledge-based industrial development, while supporting Malaysia’s ambition to develop and own intellectual property and technological capabilities, particularly in hard tech and deep tech, under the “Made by Malaysia” vision.
The PTFC initiative is aligned with the National Semiconductor Strategy, which seeks to strengthen Malaysia’s position in the global semiconductor value chain and develop more advanced local technological capabilities.
Chow also said seven of the 10 priority projects Penang submitted to the Finance Ministry in February were being considered for the Budget, while the state would continue to raise the remaining three with the federal government.
“The state government will continue to work closely with the federal government to ensure the development of the PTFC can be translated into new economic opportunities, stronger local industries and increased Malaysian competitiveness in the global technology landscape,” he added.
