Allocate Existing Tech Fund To Support Penang's Financial Hub Development -- Chow

KUALA LUMPUR, Oct 14 (Bernama) – A proposal to allocate a portion of existing technology and semiconductor funds to Malaysian technology companies via the Penang Technology Financial Centre (PTFC) — thereby supporting Penang's development as the nation's technology financial hub — was among the points raised at the policy-level debate on the Supply (Budget) Bill 2027 in the Dewan Rakyat today.

Chow Kon Yeow (PH-Batu Kawan) proposed channelling technology funds for this purpose.

He said this could be implemented by identifying and mobilising public capital from relevant government-linked investment companies (GLICs), and federal financing programmes such as Jelawang Capital, the venture capital fund under the KL20 Action Plan, and the Strategic Co-Investment Fund under the New Industrial Master Plan 2030.

“The objective is not to establish a new pool of financing, but to leverage existing capital to attract specialised technology financing providers and private investment,” he said.

The proposal was among several measures put forward by Chow to establish the PTFC as Malaysia’s technology-based financial centre, with a focus on semiconductor supply chain financing, knowledge creation and Islamic finance.

He also proposed establishing a joint working group between the federal and state governments to drive the initiative’s implementation.

“The proposed working group would involve the Ministry of Finance, Bank Negara Malaysia, the Securities Commission Malaysia, Bursa Malaysia, GLICs, Collaborative Research in Engineering, Science and Technology (CREST), and other investment agencies and stakeholders,” he added.

At the same Dewan Rakyat sitting, Member of Parliament Datuk Hasni Mohammad (BN-Simpang Renggam) said the government needs to strengthen fiscal discipline by evaluating development expenditure based on outcomes and giving attention to reducing the absolute deficit when economic conditions permit.

“Gradual fiscal consolidation efforts warrant support. However, an assessment of the nation's financial position must take into account the expenditure structure — in addition to the deficit-to-GDP ratio — given that economic growth can lower the ratio without a corresponding reduction in the absolute ringgit value.

“For every major development project, we need to assess the problem to be solved, the expected economic and social benefits, the total cost over the project’s lifetime, implementation risks, and how success will be measured after the project is completed," the former Menteri Besar said.

On government revenue, he noted that the federal government's projected RM380.8 billion revenue for 2027 leaves only about RM4 billion after covering operating expenditure of RM376.8 billion. This means about 99 per cent of annual revenue is used to fund ongoing commitments, while development financing remains heavily reliant on borrowing.

On Petronas's contribution, he said the 2026 contribution — originally estimated at RM20 billion — has been revised to RM27 billion, while the 2027 figure is projected to rise to RM32 billion.

However, Petronas also needs financial resources to continue investing, maintain competitiveness, and develop future capabilities.

He therefore proposed that the government strengthen its contribution framework by taking into account both Malaysia’s fiscal needs and Petronas’ capacity to reinvest sustainably, while broadening the non-petroleum revenue base via high-value economic growth, improved tax compliance and reduced leakages.

Prudent fiscal management will enable the government to continue protecting the people, with a strong fiscal position providing greater room for manoeuvre during economic recessions, disasters or price shocks.

-- BERNAMA