A plane about to touch down at the Penang International Airport (PIA) in Bayan Lepas ( March 09, 2024 ) — K.T.GOH/The Star
GEORGE TOWN: The Penang Freight Forwarders Association (PFFA) expects a 5% increase in the volume of cargo handled at the Penang International Airport this year to 61,809 tonnes.
Honorary secretary-general Ali Ahmad told StarBiz that in the first half of 2024, PFFA members handled 58,866 tonnes of cargoes compared with 51,406 tonnes in 2023, representing a 14.5% increase.
“The global electrical and electronics (E&E) sector is recovering and since E&E products comprise 70% of the cargoes that we manage, we can expect a 5% improvement in 2024.
“The third quarter will be pivotal. So far, the customers’ feedback for the third quarter (3Q) is encouraging.
“Barring unforeseen circumstances, we should achieve our growth target,” Ali added.
According to Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, 60% of companies in the E&E and semiconductor industry in Malaysia are optimistic about their performance in 3Q.
This optimism is driven by demand for consumer electronics, automotive and artificial intelligence, MSIA said.
It added that E&E companies also had a favourable investment outlook for 3Q, with the majority eyeing investments in new technologies and expansion into new products.
Most of them are also optimistic about the outlook over the next 12 months, according to MSIA.
Finished and semi-finished semiconductor products comprise about 70% of the air cargoes handled in Penang.
“This is why when the semiconductor industry is affected, the volume of cargo handled also drops correspondingly,” Wong said.
The Penang International Airport is an important air cargo handling hub, as it manages about 70% of the air cargo in the country due to the presence of multinational corporations and semiconductor manufacturing companies in the state.
“The 70% includes cargo trucked to Kuala Lumpur and Singapore to be shipped out. Sometimes, air cargo from here needs to be sent from Kuala Lumpur as there’s a shortage of air freighters flying out of Penang,” Ali added.
The Malaysian Aviation Commission (Mavcom) is forecasting the air cargo sector to rebound in 2024, registering a 6% to 6.6% increase compared with 2023.
Mavcom said the low base in 2023, a potential upturn in the global technology cycle, continued recovery in China and expected economic stabilisation would drive the growth.
The International Air Transport Association expects global air cargo traffic to grow by 5% in 2024, driven by booming eCommerce and disruptions in maritime shipping, both of which favour air cargo sector.
“Air cargo, of course, faces all the challenges common to the industry as a whole but it is uniquely exposed to trends in manufactured goods trade and to all the related policies.
“There is a global increase in steps taken by countries to restrict international trade by different types of measures including raising tariffs.
“Despite this difficult context, 2024 has seen growth in trade accelerating from a difficult 2023,” it said.
