This article first appeared in The Edge Malaysia Weekly on July 14, 2025 - July 20, 2025

EASTERN & Oriental Bhd (KL:E&O), IJM Corp Bhd (KL:IJM), Gamuda Bhd (KL:GAMUDA), Ideal Capital Bhd (KL:IDEAL) and a Butterworth-based company are believed to be among the bidders of a RM10 billion Penang International Financial Centre (PIFC) project.

Sources say the parties have submitted proposals for the PIFC following an expression of interest (EOI) undertaken by the Penang Institute in March. “The winning bid is expected to be announced in the next few weeks,” says a source.

The Penang government has yet to decide on the location of the PIFC, which is estimated to involve the development of almost 100 acres.

According to sources, Gurney Bay, Jelutong, Pulau Jerejak and Penang South Island are a few locations on the island that the bidders have proposed for the PIFC. Other proposed sites include North Butterworth and Batu Kawan on the mainland of Penang.

It is understood that the project, which will take more than 20 years, will require a considerable amount of upfront capital to kick-start the development that will be rolled out in several phases depending on the uptake and response from companies involved in all segments of the financial and wealth planning industry.

“The PIFC will have facilities for fund management firms, an international convention centre, private banking wealth management and exclusive financial services, a free trade zone with financial technology operations and a logistics hub with licensed manufacturing warehouses. The party with the winning bid must design and develop a globally renowned state-of-the-art office building supported by commercial retail, art and cultural spaces following the state’s guidelines,” says a source.

However, some quarters are of the view that it should not be a single developer and just one location for the mega project.

Small and Medium Enterprises Association (Samenta) national secretary-general S H Yeoh says the state government should consider adopting the financial hub model used in Hong Kong and Singapore, where critical financial services abound across the islands, rather than in a specific location.

“If awarded to five parties, each could focus on developing a particular phase, expediting the project’s completion in four years. Distributing PIFC across several districts promotes more equitable statewide growth, while decentralising investment and development boosts socio-economic opportunities for the people,” he adds.

“The multiple PIFC nodes will expand Penang’s global network to attract foreign investors, international talent and multinational corporations, and accelerate knowledge transfer and skills development statewide.”

He adds that Hong Kong and Singapore adopted such a financial hub model that transformed the entire island into a financial centre. “The state government should also set up an agency to oversee and coordinate the project.”

According to Yeoh, the Penang government should work with the federal authorities to lure talents and angel investors with work permits to promote the state as an equity crowdfunding (ECF) hub with peer-to-peer platforms.

According to One Asia Property Consultant Sdn Bhd director Chandra Mohan Krishnan, the multi-location development model will prevent congestion and dependence on only one area. “The different financial hubs will boost property prices across the island and mainland while bringing balanced growth to all the participating districts,” he says.

Chandra points out that this approach would see the five developers construct world-class buildings in designated PIFC zones. “The state will gain 25 iconic, internationally benchmarked buildings within five years. Each building can specialise in a key financial vertical — fintech, Islamic finance, ESG, digital banking or asset management,” he says.

“The model improves access to diverse client bases, supply chains and service markets; strengthens resilience against economic, logistical or geopolitical disruptions; and fosters competitive innovation between zones while preserving an integrated PIFC brand.”

Prime Minister Datuk Seri Anwar Ibrahim has received a letter from the Penang government affirming its commitment to the PIFC project.

At a press conference on PIFC in March, Penang Chief Minister Chow Kon Yeow said the initiative would drive technological investments, create high-value employment opportunities and contribute significantly to national and state revenue.

The PIFC is expected to play a pivotal role in advancing the semiconductor sector in the northern corridor, in line with the New Industrial Master Plan 2030 and the National Semiconductor Strategy.

Penang Institute invited financial institutions, property developers, industry leaders and investment firms to participate in the EOI. 

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