Transport Minister Anthony Loke Siew Fook announced today that the government has given the green light for the expansion and upgrade of Penang International Airport (PIA), with an estimated cost exceeding RM1 billion. Malaysia Airports Holdings Bhd (MAHB) will oversee the project, which aims to enhance the airport’s facilities and infrastructure.
Loke revealed that the final cost of the expansion will be determined after the tender process, which will also include plans to upgrade surrounding facilities near the airport. He expressed hope that the project could commence this year and be completed within approximately four years.
Additionally, Loke disclosed that AirAsia has sought approval from the ministry to impose specific charges for a carbon levy. While stressing that the charges would be minimal and subject to market forces, he emphasized that high carbon taxes could discourage air travel. Unlike Singapore’s approach, Malaysia intends to keep the carbon fee optional for airlines.
Loke highlighted the challenges of adopting sustainable aviation fuel (SAF), noting its high cost. He stated that airlines considering SAF adoption may need to increase prices or implement charges on passengers. However, he assured that the ministry would maintain the carbon fee as an optional measure for airlines, with other avenues for reducing carbon emissions, such as operational efficiency, also under consideration.
The minister underscored the importance of cooperation from air traffic management, overseen by the Civil Aviation Authority of Malaysia, in achieving operational efficiency for aircraft take-off and landing.
