E&O Proposes RM10bil Penang International Financial Centre on Andaman Island

"Eastern & Oriental proposes Andaman Island for RM10b Penang International Financial Centre, aiming to boost Penang’s role in finance and tech."

Kuala Lumpur, 27th August 2025, 01.10pm - Eastern & Oriental Bhd has proposed its Andaman Island development in Penang as the site of the planned RM10 billion Penang International Financial Centre (PIFC).

Managing director Kok Tuck Cheong said the proposal has been submitted to the state authorities, expressing confidence that Andaman’s reclaimed land, layout and integrated amenities would strengthen its bid against other contenders.

“The project will give the island international recognition. It will attract more activities, create multiplier effects, and channel foreign investors, venture capital and private equity funds into Penang,” Kok said at a post-results briefing on Tuesday.

According to Kok, the project award could be decided this year, though details would still need to be worked out with the Ministry of Finance and the Securities Commission.

E&O is among several companies that submitted proposals after the Penang Institute called for expressions of interest in March, The Edge Malaysia reported in its July 14–20 issue.

Other sites proposed for the PIFC include Gurney Bay, Jelutong, Pulau Jerejak and Penang South Island, as well as North Butterworth and Batu Kawan on the mainland.

The winning developer will be tasked with building a state-of-the-art financial hub to position Penang as a global player in finance, complementing the state’s fast-growing semiconductor and technology sectors. The project aligns with Malaysia’s New Industrial Master Plan 2030 and the National Semiconductor Strategy.