Gurney Bay and Andaman Island considered for Penang’s Special Financial Zone
Penang government is carefully evaluating the establishment of a Special Financial Zone (SFZ), recognising its potential as a transformative economic driver. Chief Minister Chow Kon Yeow revealed that the Penang Institute (PI) is leading the study into the proposal.
During a winding-up speech at the Penang Legislative Assembly, Chow highlighted the findings from a public engagement workshop held on September 24. Over 100 participants from the logistics, trade, and financial sectors attended, with more than 93% expressing support for the SFZ initiative.
Key benefits identified included job creation for young graduates, increased foreign investment, and enhanced support for advanced manufacturing. Participants also recommended focusing on financial subsectors such as fintech, startup financing, equity crowdfunding, maritime trade, and cryptocurrency finance.
Potential sites for the SFZ include Gurney Bay and Andaman Island. However, concerns were raised regarding challenges such as traffic congestion, talent shortages, and low wages, which could hinder the project’s success.
A roundtable discussion with industry experts on November 27 aimed to refine the framework for the SFZ. Further research findings will be presented to the state executive council for consideration.
This initiative underscores Penang’s commitment to maintaining its position as a regional business hub in Southeast Asia while addressing economic and infrastructure challenges.
Malaysia is becoming more and more popular lately in the “international news” and Penang is its gem in the crown. Good reports are aplenty connected with Penang and keep spreading. It looks like blooming time is here, fast !
please ask Forest Ciity owner approval first before you ever think of here.
Great idea if one doesn’t understand the context or ramifications. A major stumbling block will be an order of magnitude increase in traffic on the approaches. This already in an area of Georgetown paralysed by cars, and will be unsustainable. History teaches us that the Penang (and Federal) government cannot (and will not) follow up with develping a transport infrastructure to cope with the increases in population, traffic and demand for services. Perhaps better to consider something like this for the mainland part of Penang…not in/near Georgetown.
@Rick Lemanczyk
Actually out of the few concerns mentioned in the article namely traffic, talent, low wage, traffic will be the least concerning. The key component of SFZ is Single Family Office, which would require only a min of 2 staff, unlike factories in B.Lepas which require 100x if not 1000x of workers. These are highly skilled+paid ppl who would anyway stay in the vicinity and probably work from home, hence traffic is the least concern. Talent and pay is a big problem though. An entry-level, well qualified, investment banker earns an ave of RM33k/mth in Spore (before bonus). Our very own SC sets a minimum staff salary of RM10k for companies to qualify for SFZ. Who would want to work here, except those chapalang, half-qualified self-proclaimed investment advisors whose usefulness are only to help MBI & associates