FedEx and PDC Announce MoU to Develop New Logistics Facility in Penang

Federal Express Corporation, one of the world's largest express transportation companies, today announced a Memorandum of Understanding (MoU) with the Penang Development Corporation (PDC) to develop a new logistics facility within the upcoming Penang International Logistics Aeropark (PILA), adjacent to Penang International Airport. The MoU exchange ceremony was witnessed by Penang Chief Minister Chow Kon Yeow during an official state mission to the EXPO Osaka 2025, underscoring Penang's strategic role as a gateway for Malaysia's trade and logistics sector.

As part of the MoU, FedEx will be one of the first global logistics companies to commit to PILA with an investment of approximately RM46 million (around USD11 million). This funding will go towards the construction and equipping of a new 100,000 sq. ft, fully integrated logistics and air cargo facility within the 42-hectare development. Expected to be completed by the end of 2028, the new facility will expand FedEx's capacity in Penang by integrating freight and express operations under one roof, creating a multiplier effect that gives manufacturers, SMEs, and regional businesses faster and more reliable access to global markets.

"This MoU is not only about infrastructure, but about future-proofing Malaysia's role in international trade," said Tien Long Woon, managing director of FedEx Malaysia. "Our investment demonstrates how targeted, high-impact infrastructure can catalyse growth, attract industries, and support Penang's ambition to remain Malaysia's top exporting state. By embedding ourselves in PILA, FedEx is strengthening the resilience and agility of the supply chain while supporting the vision of the National Transport Policy 2019-2030 and Penang 2030."

During the ceremony, Dato' Aziz Bakar, chief executive officer of Penang Development Corporation said, "PDC warmly welcomes FedEx's decision to invest and lease space at PILA. We are confident that FedEx's strengthened presence in Penang will further enhance and reinforce the state's industrial and trade ecosystem."

The agreement was preceded by a visit to the FedEx Gateway at Kansai International Airport, where Penang state leaders observed best practises in global express operations to inform the development of PILA.

In 2024, Penang generated RM121.5 billion in gross domestic product (GDP), reflecting a 4.8% year-on-year growth. The state also recorded RM431 billion in exports, accounting for 31.4% of Malaysia's total exports and reaffirming its position as the country's top exporting state.

For more than 30 years, FedEx has strengthened Malaysia's logistics network, enabling businesses to connect more efficiently to global markets and advancing the country's role in international trade. Earlier this year, FedEx enhanced its inbound service to Johor, enabling customers to receive import shipments from Asia, Europe, and the U.S. up to two hours earlier than before.