PILA development marks major boost for Penang’s logistics and manufacturing sector, says FMM Penang

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THE Federation of Malaysian Manufacturers Penang (FMM Penang) has welcomed the recent announcement by Deputy Transport Minister Hasbi Habibollah confirming that the Penang International Logistics Aeropark (PILA) development at Penang International Airport has commenced in the first quarter of this year.

 

FMM Penang chairman Datuk Seri Lee Teong Li described the development as a critical milestone for Penang’s industrial and export ecosystem.

Lee described the development as a critical milestone for Penang’s industrial and export ecosystem.

“The planned expansion to approximately 0.5 million tonnes of cargo capacity will significantly strengthen the logistics backbone supporting Penang’s globally competitive manufacturing sector.

 

“For the electrical and electronics (E&E) industry, which relies on air freight for more than 90% of its exports by value, tripling the airport’s cargo handling capacity will be a major step forward in enhancing efficiency, reliability and global connectivity.

 

“Equally important are the supporting infrastructure developments, including the new taxiway and additional aircraft parking aprons, which will help reduce ground congestion and improve aircraft turnaround times.

 

“These improvements will translate directly into shorter lead times and a more responsive supply chain for manufacturers,” Lee said in a statement.

 

He added that the enhanced cargo infrastructure will also support the increasingly sophisticated logistics requirements of Penang’s medical device and life sciences sector, further strengthening the state’s position as a global MedTech hub.

 

“PILA is not merely a transport project; it is a strategic extension of the manufacturing ecosystem that underpins Penang’s role as the ‘Silicon Valley of the East’,” Lee added.

 

PILA is a state-of-the-art logistics and air cargo hub spearheaded by Penang Development Corporation and will operate as a Free Commercial Zone (FCZ) at Penang International Airport.

 

Scheduled to be completed in phases between 2028 and 2030, the RM1 billion aeropark, spanning 42 hectares, will offer a future-ready logistics ecosystem featuring streamlined customs procedures and technology-enabled warehousing and cargo handling powered by Automated Storage and Retrieval Systems (ASRS) and Internet of Things (IoT) technologies.

 

The development will also be aligned with Environmental, Social and Governance (ESG) standards and incorporate green building principles.

Story by Riadz Akmal