Penang’s Logistics Industry: Connecting the Parts

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The logistics industry is a key component of Penang’s economy, with induced demand from the robust and expanding manufacturing sector. The transportation and storage industry contributed 3.1% (using value-added approach) to Penang’s Gross Domestic Product (GDP), with a Compound Annual Growth Rate (CAGR) of 7.2% (2017-2019). It employed more than 22,000 workers in 2020.

This report assesses the current state of Penang’s logistics and freight transportation, and its role in propelling Malaysia as a preferred gateway into and through Asia. Its specific objectives are as follows:

  • To identify the untapped potentials of Penang International Airport (PIA) and Penang Port as the country’s main air and sea channels of logistics in terms of efficiency,
    productivity, and adoption of technologies;
  • To study the state of the free commercial zones (FCZs) of PIA and Penang Port and their ability to attract greater transshipments and higher value-added activities;
  • To evaluate the industrial-logistics synergies in Penang’s economy; and
  • To investigate the talent and labour landscape of the logistics industry and the requirements necessary for the industry’s upgrading.