Penang to launch ‘CM Fund-Transition Financing Scheme’ to accelerate green growth among SMEs

Published by Riadz Akmal • 29/08/2025

THE Penang government, through the Penang Green Council (PGC), is set to introduce the ‘CM Fund-Transition Financing Scheme’, a pioneering initiative designed to fast-track sustainable growth among small and medium enterprises (SMEs).

The scheme, expected to be launched by the end of this year, will be co-developed with a local banking partner and will combine preferential financing with environmental, social, and governance (ESG) capacity-building support.

Chief Minister Chow Kon Yeow said the initiative will make it easier for SMEs to adopt greener practices while meeting global sustainability benchmarks.

Chow said the initiative will make it easier for SMEs to adopt greener practices while meeting global sustainability benchmarks.

“In short, this fund is designed to make going green easier, faster, and more rewarding.

Some of the cultural performances during the anniversary dinner.

Various industry captains attending the dinner.

“By the end of this year, with its launch, Penang will not only strengthen its manufacturing ecosystem but also take a big leap towards becoming the leading green manufacturing hub of the region,” Chow announced this in his speech during the Federation of Malaysian Manufacturers (FMM) Penang branch 56th Anniversary Dinner at St Giles The Wembley Hotel in George Town this evening.

The FMM Penang branch anniversary dinner was graced by the presence of Yang di-Pertua Negeri Tuan Yang Terutama Tun Ramli Ngah Talib.

Also present were Human Resources Minister and Bukit Mertajam MP Steven Sim Chee Keong, FMM Penang branch chairman Datuk Seri Lee Teong Li and FMM president Tan Sri Datuk Soh Thian Lai.

Chow also congratulated FMM Penang for celebrating its 56th anniversary.

“What a remarkable journey it has been, and tonight, we celebrate not just years, but decades of contribution to Penang’s economy and Malaysia’s growth story.

“The Penang story has always been one of partnership, government and industry working hand-in-hand, shoulder-to-shoulder.

“As we look ahead, we will continue strengthening infrastructure, improving ease of doing business, and ensuring Penang remains not only competitive for investors but also livable and inspiring for our people,” he said.

On a separate matter, Chow also said the state government will consider establishing an AI University on Silicon Island or an AI hub for Penang to lead in this sector.

Meanwhile, Lee said over the years, FMM Penang has witnessed and contributed to the state’s extraordinary industrial evolution.

Lee said over the years, FMM Penang has witnessed and contributed to the state’s extraordinary industrial evolution.

“From a modest free industrial zone to a thriving global hub for semiconductors, electronics, medical devices, automation, and precision engineering, Penang has become a beacon of excellence in the global supply chain.

“FMM Penang will continue to chart the way forward, not just as the voice of the manufacturing sector, but as a partner for progress, a platform for change, and a pillar of Penang’s economic leadership,” he said.

Lee added that FMM Penang also recognises the importance of digitalisation and Industry 4.0 in strengthening its investment proposition.

“Through Internet of Things (IoT), artificial intelligence, and cloud technology, Penang is fostering innovation not just in electronics, but also in foodtech and agritech, improving farming efficiency, sustainability, and resource management,” he concluded.