Penang International Airport (PIA) has reached a significant milestone in 2024, reflecting the state’s burgeoning tourism sector. Foreign arrivals have surged impressively, with countries like China, Thailand, and Taiwan leading the way. Notably, China saw a staggering 218.86% increase in visitors, while Thailand and Taiwan also experienced robust growth, with rises of 41.28% and 19.34%, respectively. Indonesia continues to be the largest source of visitors, with a modest 6.74% increase. In contrast, Singapore recorded a slight dip of 4.55% in arrivals. [1]
This uptick in foreign tourism can be attributed to several factors, including Malaysia’s visa-free policy for Chinese tourists, aggressive marketing strategies and improved connectivity, promoting Penang as a travel destination. Looking ahead, India is expected to join the top ten sources of foreign arrivals in 2025, especially with the introduction of a new direct flight from Chennai to Penang, further enhancing regional connectivity. [2]
As passenger traffic continues to rise and demand for more efficient air travel intensifies, the ongoing PIA expansion project is poised to play a crucial role in accommodating this growth. The project aims to enhance Penang’s standing as a key aviation hub in northern Malaysia and Southeast Asia, further strengthening the state’s role in facilitating regional mobility and connectivity.
The expansion is progressing through three major work packages (WP). Work Package One (WP1), awarded in September 2024, is already 31% complete and focuses on critical enabling works, including the construction of an ancillary building, the new Air Traffic Control (ATC) Tower, the Civil Aviation Authority Malaysia (CAAM) office, and the AVSEC control post. This phase is scheduled for completion by November 2025. Work Package Two (WP2), which begins in April 2025, will upgrade the airport apron, taxiways, airside drainage, and other vital infrastructure. Work Package Three (WP3), set to tender in May 2025, involves the construction of a new terminal and renovations to the existing one, with the new terminal expected to open by 2027. The entire project is slated for completion by 2028. This expansion will significantly boost PIA’s capacity to handle the growing number of passengers, integrating state-of-the-art air traffic control systems that are vital to positioning Penang as a digitally-enabled aviation hub. With better connectivity and upgraded infrastructure, Penang is poised to strengthen its tourism, trade, and investment opportunities—aligning perfectly with the Penang2030 vision of enhancing mobility and digital infrastructure. [3]
As passenger numbers continue to rise, PIA’s transformation will not only support the growth of the aviation sector but also contribute to Penang’s broader goal of fostering sustainable, inclusive development. This expansion is a vital step in reinforcing Penang’s role as a competitive player on the global stage.
Footnotes
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Tan, C. (2025). Penang International Airport sees surge in foreign arrivals, except for Singapore. Bulletin Mutiara, February 10.
https://www.buletinmutiara.com/penang-international-airport-sees-surge-in-foreign-arrivals-except-for-singapore/#:~:text=China%20saw%20the%20most%20dramatic,numbers%20on%20the%20state’s%20economy. - See Footnote 1.
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Tan, C. (2025). Airport expansion in full swing. Bulletin Mutiara, April 1–15.
https://www.buletinmutiara.com/download/2025/BuletinMutiaraApr12025-MIX.pdf