Malaysia has announced that Penang state will be developed into a logistics hub for the Northern Corridor Economic Region (NCER).

The declaration made by Malaysian Prime Minister Abdullah Ahmad Badawi indicates that several major projects would be carried out, including the expansion of Penang Port and the Penang International Airport.

In addition, US$588.24 million is being invested to integrate the terminal for rail, road and sea travel, said Mr Badawi.

"With the many projects taking shape, Penang will serve as the gateway to the Northern Corridor," the Prime Minister was quoted as saying in a report by the News Straits Times.

"Also, with the increase in sophisticated logistics capabilities, the state will strengthen its position as the best logistics and transportation hub for the Indonesia-Malaysia- Thailand Growth Triangle (IMT-GT)," he said.