Construction has started on the Penang International Logistics Aeropark (PILA), an expansion of the existing air cargo hub aimed at increasing air cargo capacity in northern Peninsular Malaysia [1, 2, 3, 4]. The project broke ground in August 2026, with a launch event planned soon to be officiated by Prime Minister Anwar Ibrahim [1, 2, 3, 4].
PILA covers approximately 42 hectares adjacent to Penang International Airport in Batu Maung, with planning approval granted in April 2026 [4]. The expansion is a joint effort by Malaysia Airports Holdings Bhd (MAHB) and the Penang Development Corporation (PDC), formalized through the formation of the joint venture company PILA Sdn Bhd on April 13, 2026 [1, 2, 3, 4].
The project’s first phase involves building a new free commercial zone-class air cargo warehouse. This facility is expected to be operational by 2029 and will enhance Penang's role as a major air logistics center for northern Malaysia [1, 2, 3]. Anthony Loke Siew Fook said, "This will be an expansion, a further expansion, and to make it a Penang Air Logistics Complex. It will be much bigger with increased capacity, and this will definitely boost our air cargo facilities in the northern region" [1].
By 2050, PILA is projected to handle up to 500,000 tonnes of cargo annually, supported by warehouse space exceeding two million square feet [2, 3]. This capacity boost will consolidate Penang's strategic position in the region's air cargo network [1, 2, 3, 4].
Beyond Penang, MAHB plans upgrades to air cargo facilities at other major Malaysian airports including Kuala Lumpur International Airport (KLIA), with the government acting mainly as a facilitator while MAHB leads the investments as a private-sector initiative [1, 2, 3, 4].
