SEPANG – Malaysia Airports Holdings Bhd (MAHB) aims to complete the Penang International Airport (PIA) expansion project by June 2028, with several phases of work already underway, said group managing director Datuk Mohd Izani Ghani.
The expansion project, estimated to cost approximately RM1.55 billion, is designed to address long-term capacity constraints and enhance the passenger experience at one of Malaysia’s busiest regional airports.
Upon completion, the airport’s handling capacity is expected to increase from the current 6.5 million passengers per year to 12 million.
The project is being carried out in three phases, he said, with the first phase involving infrastructure works, including the relocation of government agency offices such as the Civil Aviation Authority of Malaysia and the Meteorological Department, which are currently situated within the airport compound.
Izani said work on Phase 1 has already commenced. Meanwhile Phase 2, focused on apron expansion, is also progressing; and Phase 3, involving the main terminal expansion, is in the final design stage, with board approval and contractor appointment targeted by year-end.
“The target completion date remains June 2028, and we are committed to meeting that timeline,” Izani told reporters during a media briefing on MAHB’s strategic direction here today.
Izani, who was appointed to the role in August last year, also confirmed that the government has approved the expansion of Kota Kinabalu International Airport (KKIA), which is nearing its maximum capacity of nine million passengers annually.
MAHB is currently finalising the development plan to expand KKIA’s capacity to 12 million passengers and aims to appoint a contractor by year-end.
Other tier two airports in the MAHB network are also set for upgrades. These include Tawau, Miri and Kota Bharu.
The Tawau and Miri projects will be financed through allocations in the federal development budget. In Kota Bharu, Phase 1 of the upgrade was completed in August last year and is already operational, while Phase 2 is expected to be completed in the first quarter of 2026.
Commenting on the Sarawak government’s proposal to develop a new international airport to replace the existing Kuching International Airport, Mohd Izani said the matter is still under discussion between the federal and state governments.
Under MAHB’s operating agreement with the federal government, the company has the first right of refusal to manage any new airport developments.
“We are aware of the state’s intention and have been approached for technical assistance. However, any decision on operations will depend on the outcome of the federal-state dialogue,” he said.
He noted that Kuching International Airport is not yet fully congested, and questions remain regarding the economic viability of operating two airports in the same city.
Regarding Langkawi International Airport, Izani said recent upgrades have included enhancements to the VIP lounge, noting that the airport has won the award for Best Airport under the five million passengers category for four consecutive years.
He said Langkawi’s tourism potential remains underutilised, especially in terms of attracting international carriers.
“Langkawi is on par with destinations like Bali and Phuket, but air connectivity remains limited. We need a more collaborative marketing push involving MAHB, the Ministry of Tourism, Arts and Culture, and state tourism agencies,” he said.
On Subang Airport, Mohd Izani said the terminal expansion, completed last year at RM22 million, has increased its capacity to three million passengers annually, although jet operations remain limited to 15 movements per day as stipulated by the government.
With AirAsia relocating its jet operations to KLIA Terminal 2 and Firefly reportedly planning to end jet operations in Subang, MAHB is reviewing the available slots in consultation with the Transport Ministry.
“Priority will be given to local carriers, but discussions are ongoing on the possibility of offering the slots to foreign airlines,” he said. – July 18, 2025