AIR cargo continues to serve as the lifeblood of Penang’s high-tech ecosystem, driving its global competitiveness and supporting its robust manufacturing base.
Chief Minister Chow Kon Yeow underscored this significance during the Penang Freight Forwarders and Logistics Association (PFFLA) 45th Anniversary Gala Dinner at St Giles The Wembley Hotel in George Town this evening.
“Penang International Airport handles roughly 70% of Malaysia’s total air cargo, with about 70% of that comprising finished and semi-finished semiconductor products.
“Naturally, global chip demand has a direct influence on our freight volumes. This year, PFFLA projects an overall contraction of about 15% in air cargo, a temporary adjustment shaped by demand cycles, tariff uncertainties and capacity constraints.
“But we should not view this as a setback. Instead, it is a clear call for us to build resilience, diversify markets, optimise routing, enhance freighter availability and address operational frictions that increase cost and time,” Chow said.
He added that logistics has become a key competitive differentiator in the global economy.
Leading nations, he said, are those that integrate digital infrastructure, real-time visibility, AI-powered decision-making and sustainable operations.
Smart ports and next-generation logistics hubs are emerging as national growth engines, connecting manufacturing, trade and multimodal networks in cleaner and more resilient ways.
Penang, he emphasised, must continue to position itself at the forefront of this transition.
Chow also commended PFFLA members for their performance and contribution to the logistics sector.
“From January to April this year, PFFLA members handled 45,339 metric tonnes (MT) of air cargo, compared to 37,230 MT in the same period last year. This included 28,864 MT of exports and 16,475 MT of imports, demonstrating an industry poised to scale once global demand rebounds.
Chow also congratulated PFFLA on its 45th anniversary, noting its longstanding commitment to strengthening Penang’s logistics ecosystem.
He urged the industry to move forward together by embracing technology and digitalisation, adopting global best practices, and committing to sustainable, low-carbon logistics.
“Let us build supply chains that are more efficient, more transparent and more resilient not only for Penang’s economy but for Malaysia’s long-term competitiveness,” he said.
Also present were Federation of Malaysia Freight Forwarder (FMFF) president Datuk Tony Chia, Penang Port Commission (PPC) general manager Datuk Dr Vijayaindiaran Viswalingam, Federation of Malaysian Manufacturers Penang (FMM Penang) Datuk Seri Lee Teong Li and PFFLA president Jaishanker Thambiah.
Story by Riadz Akmal
Pix by Siti Nuratikah Rahmat
Video by Noor Siti Nabilah Noorazis