A method of manufacture of an integrated circuit packaging system includes: forming a base structure having an intermediate lead with an intermediate concave side and an intermediate convex side, a peripheral lead with a peripheral concave side and a peripheral convex side, and a paddle with a paddle concave side and a paddle convex side; applying an inner multi-layer finish directly on the intermediate concave side, the peripheral concave side, and the paddle concave side; applying an outer multi-layer finish directly on the intermediate convex side, the peripheral convex side, and the paddle convex side; mounting an integrated circuit device over the inner multi-layer finish; attaching an interconnect directly to the inner multi-layer finish on the peripheral concave side and directly to integrated circuit device; and applying an encapsulation over the integrated circuit device, the interconnect, and the base structure, with the outer multi-layer finish exposed from the encapsulation.