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Penang’s proposed National Technology Financial Centre is unlikely to be fully implemented within the next two years, according to Chief Minister Chow Kon Yeow. He said the initiative would require time for further studies, coordination and the development of an implementation framework, noting that major national initiatives typically take several years to move from planning to implementation.
The National Technology Financial Centre was announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim in the 2027 Budget as part of efforts to promote more balanced development among the states, with Penang designated as the National Technology Financial Centre. Chow said Penang hoped to remain at the centre of the initiative, although details on its scope, including whether it would eventually involve other northern states, have yet to be finalised.
A proposed joint committee involving the Federal and state governments is also still under discussion. Chow said the initiative had already been in development, with the state engaging stakeholders and conducting studies since last year. Consultants were appointed this year to prepare a white paper for the Penang Technology Financial Centre, which is expected to help establish the groundwork for its eventual implementation.
Meanwhile, Khazanah Nasional and InvestPenang are set to establish a RM100 million Strategic Investment Fund to support semiconductor and advanced manufacturing companies during their early growth stages, particularly technology start-ups. The Penang government’s previously announced RM50 million contribution is expected to form part of the strategic investment arrangement, although the overall funding structure and implementation mechanisms remain subject to further coordination.
Chow said the state hoped to build on existing frameworks and investment incentives while minimising additional financial commitments from the Federal Government. He also pointed to the existing Silicon Design @ 5km+ initiative, which currently has seven incubators in Penang, as one of the platforms that could support technology companies as the broader initiative develops.
The Chief Minister added that the Budget announcement primarily sets out the Federal Government’s policy direction, while details such as project approvals, funding disbursement and implementation arrangements would require further follow-up. He stressed that the initiative had received approval in principle, but substantial work remained, including studies on its location, implementation framework and related mechanisms.
