By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 24 October 2026
The expansion of Penang International Airport (PIA) will almost double its capacity, from 6.5 million to 12 million passengers a year. The airport is already handling more people than it was built for: 8.31 million passengers in 2025. Malaysia Airports (MAHB) is targeting completion in June 2028, and the first work package is already finished.
Here is what is being built, how far the works have progressed, and what a bigger airport means for Penang and for homes in the Bayan Lepas area.
PIA expansion at a glance
| Item | Details |
|---|---|
| Developer | Malaysia Airports Holdings Berhad (MAHB) |
| Cost | About RM1.55 billion (MAHB, July 2025) |
| Passenger capacity | 6.5 million → 12 million a year |
| Aircraft parking stands | 16 → 28 (six new contact stands linked to the terminal and six remote stands) |
| Target completion | June 2028 |
| Passengers in 2025 | 8.31 million, up 11.25% from 7.47 million in 2024 |
| Passengers in first half of 2026 | About 4 million (2.2 million international, 1.8 million domestic) |
| Network | 27 airlines serving 22 destinations (September 2026) |
Progress: where the works stand
| Work package | Scope | Status |
|---|---|---|
| WP01 | Support buildings, utility relocation, infrastructure and a remote digital virtual control tower | 100% complete; Certificate of Completion and Compliance received 1 July 2026 |
| WP02 | Airside works: apron expansion, taxilanes, drainage and airfield lighting | About 70% complete (July 2026) |
| WP03 | Main terminal building expansion and associated works | Design completed; procurement started 25 June 2026 |
State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said in July 2026 that the project is “progressing according to schedule,” with works continuing until 2028. More immigration autogates are also being added, with 12 each for departures and arrivals planned by the end of 2026.
Why the expansion matters
- The airport is over capacity. At 8.31 million passengers in 2025, PIA is already well above its 6.5 million design capacity, which explains the queues at peak times.
- More routes. Twelve extra aircraft stands give airlines room to add flights and new destinations, helping tourism, medical tourism and business travel.
- Industry needs it. Penang exports about 45% of Malaysia’s goods, and the E&E sector relies on air freight and on executives and engineers flying in and out.
- Recognition. In October 2026, PIA was named CAPA Asia Small and Medium Airport of the Year.
Getting to the airport: the LRT
The Mutiara Line LRT will have a Penang International Airport station (S03), one of the two stations with the fastest construction progress, linking the airport to Bayan Lepas, Bayan Baru, Gelugor and George Town. The line is scheduled to open in December 2031. See our Penang LRT route map.
What it means for property near the airport
Homes in Bayan Lepas, Bayan Baru and Batu Maung are closest to the airport and to the Bayan Lepas industrial zone, the island’s biggest employment area. A bigger airport, the LRT station and Silicon Island next door all add to the area’s long-term appeal for own-stay buyers and for rental to airline, industrial and medical-tourism workers.
New launches near Penang airport
| Project | Area | Indicative price | Completion |
|---|---|---|---|
| Maldives Residence | Bayan Lepas | RM498,000–RM550,000 | 2027 |
| Senze @ PICC | Bayan Baru | Price on request | 2027 |
| Queens Residences Q3 | Bayan Lepas | RM958,130–RM1,988,640 | 2027 |
| Valencia Residence | Bayan Lepas | RM1,391,300–RM1,553,600 | Completed |
| Desa Seri Aman (landed) | Batu Maung | RM1,600,000–RM2,010,000 | Completed |
| Casa Rica (Phase 2) (landed) | Sungai Ara | From RM2,377,500 | Completed |
Browse every project on our Bayan Lepas and Bayan Baru pages.
Frequently asked questions
When will the Penang airport expansion be completed?
Malaysia Airports is targeting June 2028. The first work package was completed in July 2026, airside works were about 70% done, and procurement for the main terminal expansion started in June 2026.
How many passengers will Penang airport handle after the expansion?
Up to 12 million passengers a year, up from the current design capacity of 6.5 million. The airport handled 8.31 million passengers in 2025.
How much does the Penang airport expansion cost?
About RM1.55 billion, according to Malaysia Airports in July 2025.
Will the LRT go to Penang airport?
Yes. The Mutiara Line has a Penang International Airport station (S03) and is scheduled to open in December 2031.
Looking for a home near the airport or Bayan Lepas?
I can send the latest price lists for projects in Bayan Lepas, Bayan Baru and Batu Maung. WhatsApp or call +60 10-313 9113.
Sources
- Malay Mail: Penang airport expansion records strong progress, slated for 2028 completion
- Bernama: Malaysia Airports targets June 2028 for completion of Penang expansion
- Buletin Mutiara: Phase 1 of Penang airport expansion nearly complete
- The Star: Penang International Airport named Asia’s small and medium airport of the year
- The Star: MAHB eyes growth via airlines, airport expansion
This article is general information based on Malaysia Airports and state government statements and published reports as of 24 October 2026. Timelines may change. It is not investment advice; project prices are indicative and depend on availability.