State may consider special financial zone to cement status as regional business hub, says Penang CM

GEORGE TOWN, Nov 28 — The Penang government is still studying the feasibility of establishing a special financial zone (SFZ) in the state, Penang Chief Minister Chow Kon Yeow told the state legislative assembly today.

He said Gurney Bay and Andaman Island were identified as potential locations during a public engagement workshop held in September.

“The prospect of setting up the SFZ as an engine of growth for the state is still in the research stage by Penang Institute,” he said during his winding-up speech.

Chow said 100 participants from the logistics, commerce, and finance industries took part in the workshop, and 93 per cent of them supported the SFZ proposal.

He added that the SFZ could create more job opportunities for young graduates, boost funding models to advance the local manufacturing sector, and attract foreign investors to Penang, strengthening its position as a regional business hub in Southeast Asia.

“The financial services subsectors Penang can focus on include fintech, startups, equity crowdfunding, corporate finance, maritime, and cryptocurrency commerce,” he said.

However, he noted that challenges such as traffic congestion, talent shortages, and low wages must be addressed before the SFZ can be implemented.

“Penang Institute conducted a roundtable session with experts in finance, banking, insurance, fintech, and wealth management on November 27,” he said.

He added that a framework for the SFZ will be presented to the state executive council once the Penang Institute’s study is completed.

“The state government will need to carefully review the findings before finalising the implementation of the SFZ in Penang,” he said.