Penang seeks 2027 Budget boost for air connectivity, tourism

GEORGE TOWN: Penang wants the 2027 Budget to prioritise air connectivity, international events and George Town's heritage to strengthen tourism and local economic benefits.

Penang Tourism and Creative Economy Committee chairman Wong Hon Wai said the state urged the federal government to strengthen the tourism agenda through targeted investments.

"This will not only help sustain tourism growth, but also enable the economic benefits generated by tourism to flow further into the local economy and communities, ensuring that tourism development delivers tangible benefits to the people," he said.

He said one key proposal was an International Air Connectivity Fund, including matching grants to attract direct flights from strategic markets such as Japan, South Korea, Australia and the Middle East.

He said the initiative would complement ongoing efforts to strengthen Penang's international air links and maximise the benefits of the planned expansion of Penang International Airport (PIA).

Wong recently met senior officials of Malaysia Airports Holdings Bhd (MAHB) at Kuala Lumpur International Airport to discuss PIA's expansion, upgrading and route development.

He said the airport's capacity is expected to rise from 6.8 million to 12 million passengers annually upon completion of the expansion project, which is expected over the next two years.

"The next priority will be to fully utilise this additional capacity by opening new routes and increasing flight frequencies on existing routes."

Wong said early planning with MAHB was essential to ensure Penang was ready to absorb the additional capacity and expand its international route network once the project was completed.

He said regular engagement between the state government and MAHB would focus on route development, aviation market trends and future PIA projects.

The state government would also strengthen strategic information-sharing and coordination with MAHB, including exchanging aviation market intelligence, development trends and relevant data.

Wong said Penang also had potential to expand its air cargo sector, given its concentration of multinational corporations and growing demand for international logistics and air freight services.

He said the state and MAHB could explore opportunities based on the needs of companies operating in Penang and identify further potential in the air freight market.

He said PIA's status as Malaysia's second-busiest airport meant its potential as an aviation hub should be further developed.