Malaysia

Penang gets green light to develop International Logistics Aeropark

The state has obtained approval for the master plan in developing a new logistics hub to underpin the ecosystem of the northern region's manufacturing sector.

Updated 4 months ago · Published on 14 Apr 2026 5:41PM

Penang gets green light to develop International Logistics Aeropark
Chow said that the warehouse can handle a cargo capacity of up to 500,000 tons by 2050 - April 14, 2026

by Ian McIntyre

PENANG has obtained planning permission to develop the proposed Penang International Logistics Aeropark, which seeks to complement the air cargo activities at the Penang International Airport in Bayan Lepas.

Chief Minister Chow Kon Yeow, in a statement, said that the state has obtained approval for the master plan in developing a new logistics hub to underpin the ecosystem of the northern region's manufacturing sector.

The project, deemed a strategic one, is jointly developed by the Penang Development Corporation (PDC) and the Malaysia Airport Holdings Berhad (MAHB).

Currently, PDC is conducting earthworks and rehabilitation with the first phase of developing an air cargo warehouse, which is also listed as a free commercial zone terminal, expected to be ready by 2029.

The approval is a big injection of confidence in Penang's ability to function as a logistics hub to complement its existing manufacturing facilities, particularly in the area of electronics and electrical.

Once ready, Chow said that the warehouse can handle a cargo capacity of up to 500,000 tons by 2050, with a cargo warehouse space exceeding two million sq. ft.

The first phase, upon completion by 2029, will support an additional capacity of up to 100,000 tons annually.

The approval is in line with the state's aspiration to become an international city under its Penang2030 Vision, the state's structure plan and the expansion of the international airport, said Chow.

The launching of the new logistic hub in what is believed to be Bayan Lepas is expected to be officiated by Prime Minister Datuk Seri Anwar Ibrahim, said Chow.

Meanwhile, it remains to be seen if the new hub is a stiff competitor to the proposed neighbouring Kulim International Airport in Sidam Kiri, some 81km from Penang.

The Kedah government has been pressing for the inclusion of the Kulim airport, called the aerotropolis concept.

Kedah has defined it as a metropolitan subregion whose infrastructure, land use, and economy are centred on an airport.

The proposed site for Kedah Aerotropolis is at Mukim Sidam Kiri of the Kuala Muda District.

This 9,800-acre development will consist of the Kulim International Airport (KXP) and the Sidam Logistics, Aerospace & Manufacturing Hub (SLAM). - April 14, 2026.

Related News

Events / 12h

Jokowi to deliver keynote address at Peace Dialogue in Penang

Community / 18h

Penang authorities seal transit home units, occupants appeal for leniency

Malaysia / 1d

Penang secures more than RM17b investments for first half of 2026

Heritage / 1d

Penang first state to recognise Hungry Ghost Festival, cemeteries as heritage

Malaysia / 2d

Collision between tanker and ferry under investigation - PPC

Malaysia / 3d

Penang, Thai cops seize drugs worth over RM4m in joint operation

Spotlight

Malaysia

Puteri Umno distances itself from viral Threads post

By Alfian Z.M. Tahir

Malaysia

MACC drops orange detention attire for court remand cases after PM’s call

World

Man jailed six years for keeping Indonesian woman as slave in Melbourne home

Malaysia

Emergency declared in Serian as haze reaches hazardous levels (UPDATED)

Malaysia

Haze in Serian enters emergency phase

Malaysia

Death sentence for deaf, mute man who killed family of four upheld

Malaysia

Retired army officer with Datuk title charged with alleged sexual assault of golf caddie

Heritage

Penang first state to recognise Hungry Ghost Festival, cemeteries as heritage

You may be interested

Malaysia

RCI TH: Former THP manager charged with CBT involving RM72,000

Malaysia

‘I was sent home despite subpoena,’ Madinah rebuts TH RCI chairman

Malaysia

Former Tabung Haji COO’s charges put off after hospital admission

By Alfian Z.M. Tahir

Malaysia

King receives Singapore Foreign Minister in Johor Bahru, enhancing bilateral ties

Malaysia

DEEP is not for punishing top civil servants, says Chief Secretary

Malaysia

UMNO-PAS ‘reunion’ gains pace as Hadi puts PAS on GE16 alert

Malaysia

Child malnutrition needs urgent action, says Charles Santiago

By Alfian Z.M. Tahir

Malaysia

Retired army officer with Datuk title charged with alleged sexual assault of golf caddie