A proposal from former Malaysia Finance Minister, Lim Guan Eng, to create a Special Financial Zone (SFZ) in Penang had been put forward during the 12th Malaysian Plan mid-term review.
Lim, in making this proposal, also shared how Penang now has a mature manufacturing industry base that is already at critical mass. In short, there is a need to empower other growth sectors for Penang.
As such, there is a need for a dedicated zone like the one in Forest City, Johor, to ensure there is continuous development and growth for the service sector in Penang.
“Designating an SFZ for Penang, similar to what Prime Minister Anwar Ibrahim announced for Johor Baru, will help to boost the services sector in Penang. (In fact,) with the 15% tax rate and multiple entry visas (under the SFZ provision), it would attract highly-skilled talents and even stem the brain drain of talented Malaysians,” Lim said.
Statistics from the Malaysian Investment Development Authority (MIDA) have also been cited as support for Lim’s proposal as the services industry had attracted a total of RM82.4 billion in approved investments. This is largest contribution for the first-half of 2023 with the total being RM132.6 billion. The second largest is manufacturing (RM44.9 billion) and coming in at third is primary sectors (RM5.3 billion).
As is, the services sector, which comprises 62% of total approved investments, will continue to grow and become a main economic driver.
“There is no doubt that the services sector will, in the near future, become the primary source of approved investments. If possible, having a SFZ in the north will also help facilite economic growth for the nation,” Lim added.