CHIEF Minister Chow Kon Yeow today visited the Penang International Logistics Aeropark (PILA), describing it as a strategic joint venture between the Penang Development Corporation (PDC) and Malaysia Airports Holdings Berhad (MAHB).
During the visit, Chow, who is also the chairman of PDC, said the project aims to develop a new cargo terminal to strengthen the logistics ecosystem in the northern region and support the growth of Penang’s industrial sector.
“PILA represents a significant step forward in enhancing Penang’s logistics infrastructure, particularly for the semiconductor and electrical & electronics industries. This project will not only improve cargo capacity but also create opportunities for local logistics players and international companies to expand their operations in the state,” Chow said.
He added that despite challenging global conditions, the industrial sector, including E&E, semiconductors, and others, continues to grow. Demand for new technologies, including AI, continues to drive orders, and the state’s industries are still receiving increasing bookings.
With new investments and expansions of existing capabilities, Chow noted the urgent need for the project over the past few years.
“Without new facilities, cargo would have to be sent to other locations, such as Singapore, requiring transportation by truck from the northern region. With these additional facilities, we can capture cargo locally in Penang. As MAHB puts it: ‘Make in Penang, fly from Penang,’” he emphasised.
Chow was earlier briefed by PDC special project unit chief Azizee Rohemee and Arup project manager Jason Mak. Also present were MAHB senior manager Rahime @ Faize Jamaluddin, PDC chief executive Abdul Latiff Ab Aziz, PDC technical division manager Norhartini Mohd Noor, and PDC head of corporate & communications division Zulkifli Ismail.
The boards of PDC and MAHB have also approved the establishment of the joint venture company, PILA Sdn Bhd, with the agreement executed on 13 April 2026. The project is financed through PDC as well as support from the federal government, which has provided grants for certain components.
The strategic collaboration aligns with Penang’s Vision 2030 and the 2030 State Structure Plan, supporting the expansion of Penang International Airport while meeting future logistics demands for the high-tech industrial sector.
The project has obtained Master Plan approval, and PDC is currently carrying out earthworks and soil treatment.
The first phase, which involves constructing a Free Commercial Zone Air Cargo Warehouse, is expected to be completed and operational by 2029. Once fully developed, PILA is projected to handle up to 500,000 tonnes of cargo annually by 2050, with warehouse space exceeding two million square feet. The first phase alone is expected to support an additional 100,000 tonnes of cargo per year.
The RM1 billion project, covering 42 hectares, has already received leasing commitments from both international logistics companies and local operators.
Chow said a formal launch ceremony for PILA is being planned and is expected to be officiated by Prime Minister Datuk Seri Anwar Ibrahim.
Story by K.H. Ong
Pix by Siew Chia En
Video by Law Suun Ting