The Penang state government has clarified that the proposed Penang International Financial Centre (PIFC) remains a long-term aspiration, with no decisions finalised to date, including the location of any designated PIFC zone.

In a statement responding to remarks by Bagan Member of Parliament Lim Guan Eng, the state government said it has taken note of all views expressed on the matter. It stressed that the initiative is still at an exploratory stage and forms part of a broader vision to strengthen Penang’s economic foundation by positioning the state as a competitive, high-impact regional technology and innovation hub.

The state government acknowledged that a comprehensive national framework for the initiative has yet to be finalised by the federal government. Nevertheless, it said Penang, through its think tank Penang Institute, remains committed to laying the groundwork by conducting phased and structured engagement sessions with potential industry players. These engagements are aimed at building market confidence and better understanding the actual needs of the financial sector.

At the same time, high-level discussions are ongoing with key regulators, including Bank Negara Malaysia, Securities Commission Malaysia and the Labuan Financial Services Authority. The objective is to ensure that any proposals put forward are innovative, legally compliant, aligned with the national Financial Sector Blueprint, and do not overlap with existing financial ecosystems.

The statement also highlighted Penang’s unique strength in its long-established high-technology industrial and manufacturing ecosystem. Building on this advantage, the state intends to focus on specialised financial segments such as digital assets, financial technology (fintech), and manufacturing-related financial services. These include supply chain financing, trade finance, risk management and industry-driven innovation as part of the potential PIFC direction.

The state government reiterated that all engagements and planning efforts will continue to be conducted prudently and progressively.