DAP chairman Lim Guan Eng said having a special financial zone (SFZ) in Penang would boost investments, growth, and economic activities in the state and bring it to the next level of economic development.

He said there had been an overwhelmingly positive response from Penang residents with both the Chinese Chamber of Commerce and Indian Chamber of Commerce fully supporting the move.

“Securing federal government approval for an SFZ in Penang requires full and undivided support from all Penangites, ranging from the state government to all Penang elected representatives, including the opposition,” he said in a statement.

On Wednesday, Lim said the government should create an SFZ in Penang just like the one in Forest City, Johor.

He said the Penang SFZ would boost the economy for the whole country, not just the state.

“My proposal of an SFZ for Penang in parliament on September 13 is based on Penang possessing all the critical competitive and comparative advantages of an industrial state, which happens to be the nation’s largest exporter. 

“Penang has achieved critical mass with a mature manufacturing industry base, which will drive development and boost the growth of our services sector, not only in the northern region but for the whole country as well.”

He said the cost of doing business in an SFZ would be more affordable, with management costs not too high, such as for tourism, education, and health.

“Incentives in an SFZ include a special income tax rate of 15% for skilled workers and multiple entry visas for foreign expertise.”

Lim said Johor Menteri Besar Onn Hafiz Ghazi was both effusive and enthusiastic about an SFZ for Johor – even likening Johor Baru’s growth prospects to that of Shenzhen in China.

“As Penang representatives, we must all put aside partisan politics and personal interests for the sake of a more sustainable and brighter future for Penang.” – September 17, 2023.