GEORGE TOWN: The support from the federal government is important if Penang decides to establish a Special Financial Zone (SFZ) in the state.
In his winding up speech at the ongoing state legislative assembly session here today, Chief Minister Chow Kon Yeow said this was because the SFZ involved various tax incentives.
He said the state government welcomed the suggestion to have a SFZ, similar to the one in Forest City, Johor.
"However, the state government needs a more comprehensive study before deciding on the matter.
"So, if the state government decides to establish the SFZ, the support from the federal government is extremely vital," he said.
Elaborating, Chow said the SFZ is seen as one of the efforts to increase and stimulate the investment, growth and economic activity of a city or region.
"This is because costs such as management, education, health, business are more affordable in areas categorised as SFZ with assistance and initiatives from both the federal and state governments," he added.
DAP national chairman and Bagan member of Parliament Lim Guan Eng had proposal a SFZ for Penang, which he made in Parliament on Sept 13, based on the state possessing all the critical competitive and comparative advantages of an industrial state, which also happens to be the nation's largest exporter.
Lim had since called for undivided support from all Penangites, the state government and all elected representatives including the opposition, to secure the federal government's approval for the SFZ.
According to Chow, in a bid for Penang to remain a local and international investment hub, the state government through InvestPenang plays an important role to ensure a smooth investment climate in the state.
He said there were many plans to attract more investors and retain their presence here.
"Among them is to develop new industrial parks of international standard through the Penang Development Corporation.
"The development of the Bandar Cassia Technology Park, East Batu Kawan and Penang Science Park South are being actively pursued," he added.