Penang International Airport (PIA) in George Town is set to become the second largest airport in Malaysia, with a RM1.5 billion expansion project scheduled for completion in 2028. Currently, the terminal can accommodate 16 commercial aircraft, but with the expansion, PIA will be able to handle 28 planes simultaneously, including six additional parking bays and six remote parking bays.
The upgrade will nearly double PIA’s current annual capacity of 6.5 million passengers per year to 12 million, matching the capacity of Kota Kinabalu International Airport. The project includes the construction of a new multi-storey car park with an additional 1,700 parking spaces, increasing the total capacity to 3,400 lots. The terminal’s gross floor area will also double to 115,000 square meters from 55,000 square meters, according to Malaysia Airports Holdings Bhd (MAHB).
Physical work on the expansion is set to begin in the third quarter of 2024, with the terminal expansion construction starting in the third quarter of 2025. The entire project is expected to be completed in 33 months, targeting completion by the second quarter of 2028, as stated by MAHB in a recent statement.
MAHB recently issued a tender for the expansion project, covering the new main terminal building, multi-storey car park, Air Traffic Control Tower, and the Civil Aviation Authority Malaysia (CAAM) office. The new terminal design aims to create a vibrant and robust airport environment. The approval for PIA’s expansion plans was granted by the Cabinet on Feb 21, following requests from the Penang state government for over six years.
Chief Minister Chow Kon Yeow expressed his satisfaction with the approval and funding from the Federal Government, highlighting the significant impact the expanded airport would have on tourism in Penang. He emphasized that the enhanced airport infrastructure would contribute to the economic recovery and tourism sector, while also boosting the development of the Northern Corridor states and Penang’s industrial sectors.
The expansion will utilize the existing airport land area and adjacent land for road and infrastructure development, without involving any land reclamation. Some nearby land, including staff quarters near the car park, will be utilized for the project. The Penang government has arranged for over 50 MAHB staff to be relocated to affordable housing in Teluk Kumbar, as part of the project.
Penang International Airport, which is 87 years old, has undergone multiple infrastructure upgrades over the years. Its capacity has been increased in phases, from 1.5 million passengers annually in 1979 to 8.3 million passengers in 2019. The surge in passenger traffic led to overcrowding and the need for further expansion, culminating in the current project.
While the expansion is seen as a positive development for the state, the Penang Freight Forwarders Association (PFFA) raised concerns about the impact on MASkargo, a cargo unit operated by Malaysia Airlines. PFFA’s honorary secretary-general, Ali Ahmad, highlighted the need for an extension of the cargo area to support the potential increase in cargo handled at the airport.
Penang International Airport, originally known as Bayan Lepas International Airport, was completed in 1935 and has since undergone modernization and expansion projects in 1979 and 2013. It is currently the third busiest airport in Malaysia after KL International Airport (KLIA) and Kota Kinabalu International Airport (KKIA). The airport’s peak passenger traffic was recorded at 8.3 million in 2019, exceeding its capacity of 6.5 million passengers, prompting the current expansion efforts.
Despite experiencing a decline in passenger numbers due to the Covid-19 pandemic, with 4.5 million passengers in 2022, Penang International Airport saw a resurgence in 2023 with nearly seven million passengers. It remains an essential transportation hub in the region and a key contributor to the state’s tourism and economic growth.
Historically, the oldest airport in Malaysia is Taiping Airport, built in 1929, followed by Sungai Besi Airport in 1930. Subang International Airport served as the main airport until the opening of KLIA in 1998, marking a significant milestone in the country’s aviation history.
